The Yeasty Brewing Company Produces a popular local beer known as Iron Stomach. Beer sales are somewhat seasonal, and Yeasty is planning its production and workforce levels on March 31 for the next six months. The demand forecasts are as follows: month production days demand(in hundred of cases) April 14 75 May 20 100 June 24 200 July 26 140 August 20 100 September 18 50 As of March 31, Yeasty had 70 workers on the payroll. Over a period of 20 working days when there are 100 workers on the pay roll, Yeasty produced 10,000 cases of beer. The cost to hire each worker is $200 and the cost of laying off each worker is $400. Holding costs amount to 1 dollar per case per month. As of March 31, Yeasty expects to have 3,000 cases of beer in stock. It plans to start October with 3,500 cases on hand. a) Formulate the problem of planning Yeasty’s production levels as a linear program. b) Use Excel solver to solve the problem and give the solution (decision variables and objective value)

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The Yeasty Brewing Company Produces a popular local beer known as Iron Stomach. Beer sales are somewhat seasonal, and Yeasty is planning its production and workforce levels on March 31 for the next six months.

The demand forecasts are as follows:

month production days demand(in hundred of cases)
April 14 75
May 20 100
June 24 200
July 26 140
August 20 100
September 18 50

As of March 31, Yeasty had 70 workers on the payroll. Over a period of 20 working days when there are 100 workers on the pay roll, Yeasty produced 10,000 cases of beer. The cost to hire each worker is $200 and the cost of laying off each worker is $400. Holding costs amount to 1 dollar per case per month. As of March 31, Yeasty expects to have 3,000 cases of beer in stock. It plans to start October with 3,500 cases on hand.

a) Formulate the problem of planning Yeasty’s production levels as a linear program.

b) Use Excel solver to solve the problem and give the solution (decision variables and objective value)

 

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