Sales & Operations Planning - LP A local firm manufactures children's toys. The projected demand over the next four months for one particular model of toy robot is given in the following table. Month Workdays Demand January February 23 3800 16 7200 March 20 2800 April 22 4400 Assume that a normal day is eight hours. Hiring costs are $350 per worker and firing costs are $850 per worker. Holding costs are $4 per unit held per month. Additionally, assume that it requires an average of two hours for one worker to assemble one toy. Shortages are not permitted. It is given that the ending inventory for December was 900 of these toys and the manager wishes to have at least 800 units on hand at the end of April. Assume that the current workforce level is 35 workers. The firm wants to minimize its cost. Answer the following questions. 1. Formulate the problem as a linear program. For simplicity, use the number from the questions instead of introducing parameter notations. Clearly define your variables and provide the objective function and constraints. 2. By looking at the numbers, could the producer avoid hiring new workers?

Practical Management Science
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Author:WINSTON, Wayne L.
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Sales & Operations Planning - LP
A local firm manufactures children's toys. The projected demand over the next four months for one particular model of toy robot is given in the following table.
Month
Workdays
Demand
January
23
3800
February
16
7200
March
20
2800
April
22
4400
Assume that a normal day is eight hours. Hiring costs are $350 per worker and firing costs are $850 per worker. Holding costs are $4 per unit held per month. Additionally,
assume that it requires an average of two hours for one worker to assemble one toy. Shortages are not permitted. It is given that the ending inventory for December was 900 of
these toys and the manager wishes to have at least 800 units on hand at the end of April. Assume that the current workforce level is 35 workers. The firm wants to minimize its
cost.
Answer the following questions.
1.
Formulate the problem as a linear program. For simplicity, use the number from the questions instead of introducing parameter notations. Clearly define your
variables and provide the objective function and constraints.
2.
By looking at the numbers, could the producer avoid hiring new workers?
Transcribed Image Text:Sales & Operations Planning - LP A local firm manufactures children's toys. The projected demand over the next four months for one particular model of toy robot is given in the following table. Month Workdays Demand January 23 3800 February 16 7200 March 20 2800 April 22 4400 Assume that a normal day is eight hours. Hiring costs are $350 per worker and firing costs are $850 per worker. Holding costs are $4 per unit held per month. Additionally, assume that it requires an average of two hours for one worker to assemble one toy. Shortages are not permitted. It is given that the ending inventory for December was 900 of these toys and the manager wishes to have at least 800 units on hand at the end of April. Assume that the current workforce level is 35 workers. The firm wants to minimize its cost. Answer the following questions. 1. Formulate the problem as a linear program. For simplicity, use the number from the questions instead of introducing parameter notations. Clearly define your variables and provide the objective function and constraints. 2. By looking at the numbers, could the producer avoid hiring new workers?
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