The ABC Company is making a production plan for the next year, given the sales forecast for the next year as: Quarter 1 2 3 4 Total Sales Forecast (units) 9,000 12,000 16,000 12,000 49,000 Currently, the firm has 12 employees, each producing up to 1,000 units per quarter and earning $2,000 per quarter. The firm estimates its inventory carrying cost to be $2 per unit of ending inventory per quarter and its hiring or layoff costs to be $1,600 per employee. The company currently has an inventory of 2,000 units and wishes to have an ending inventory of at least 1,000 units at the end of each quarter. The company does not plan to incur inventory shortages. Find the optimal production plan that minimizes the total cost by Excel solver
The ABC Company is making a production plan for the next year, given the sales forecast for the next year as: Quarter 1 2 3 4 Total Sales Forecast (units) 9,000 12,000 16,000 12,000 49,000 Currently, the firm has 12 employees, each producing up to 1,000 units per quarter and earning $2,000 per quarter. The firm estimates its inventory carrying cost to be $2 per unit of ending inventory per quarter and its hiring or layoff costs to be $1,600 per employee. The company currently has an inventory of 2,000 units and wishes to have an ending inventory of at least 1,000 units at the end of each quarter. The company does not plan to incur inventory shortages. Find the optimal production plan that minimizes the total cost by Excel solver
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...
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