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?
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
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.