Forecasted Demand Month Workdays (in aggregate units) July August September October 3,825 7,245 2,770 4,440 23 16 20 22

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A local firm manufactures children’s toys. The projected demand over the next four months for one particular model of toy robot is (given)

Assume that a normal workday is eight hours. Hiring costs are $350 per worker and firing costs (including severance pay) are $850 per worker. Holding costs are $4.00 per aggregate unit held per month. Assume that it requires an average of 1 hour and 40 minutes for one worker to assemble one toy. Shortages are not permitted. Assume that the ending inventory for June was 600 of these toys and the manager wishes to have at least 800 units on hand at the end of October. Assume that the current workforce level is 35 workers. Find the optimal plan by formulating as a linear program.

 

Forecasted Demand
Month
Workdays
(in aggregate units)
July
August
September
October
3,825
7,245
2,770
4,440
23
16
20
22
Transcribed Image Text:Forecasted Demand Month Workdays (in aggregate units) July August September October 3,825 7,245 2,770 4,440 23 16 20 22
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