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8.4 Aggregate Planning Using Linear Programming

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51 views3 pages

8.4 Aggregate Planning Using Linear Programming

Uploaded by

tuantuan210920041
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Aggregate Plan Decision Variables

Ht Lt Wt Ot It St Ct Pt
Period # Hired # Laid off # WorkforcOvertime Inventory Stockout SubcontracProduction
0 0 0 80 0 1,000 0 0
1 0 16 64 0 1,960 0 0 2,560
2 0 0 64 0 1,520 0 0 2,560
3 0 0 64 0 880 0 0 2,560
4 0 0 64 0 0 220 140 2,560
5 0 0 64 0 140 0 0 2,560
6 0 0 64 0 500 0 0 2,560

Aggregate Plan Costs

Period Hiring Lay off Regular ti Overtime Inventory Stockout SubcontracMaterial


1 0 8,000 40,960 0 3,920 0 0 25,600
2 0 0 40,960 0 3,040 0 0 25,600
3 0 0 40,960 0 1,760 0 0 25,600
4 0 0 40,960 0 0 1,100 4,200 25,600
5 0 0 40,960 0 280 0 0 25,600
6 0 0 40,960 0 1,000 0 0 25,600

Total cost= 422,660


Constraints

Demand Price Workforce Capacity Inventory Overtime

1600 40 0 0 0 640
3000 40 0 0 0 640
3200 40 0 0 0 640
3800 39 0 0 0 640
2200 40 0 0 0 640
2200 40 0 0 0 640
Aggregate Planning (Chapter 8-9)

Demand Forecast

Month Demand Forecast


January 1,600
February 3,000
March 3,200
April 3,800
May 2,200
June 2,200

Costs

Item Cost
Materials cost/unit $ 10
Inventory holding cost/unit/month $ 2
Marginal cost of stockout/unit/month $ 5
Hiring and training cost/worker $ 300
Layoff cost/worker $ 500
Labor hours required/unit 4
Regular time cost/hour $ 4
Over time cost/hour $ 6
Marginal subcontracting cost/unit $ 30

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