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 April May June July August September Production Days 14 20 24 26 20 18 Forecasted Demand (in hundreds of cases) 75 100 200 140 100 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)

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...
icon
Related questions
Question
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
April
May
June
July
August
September
Production
Days
14
20
24
26
20
18
Forecasted Demand
(in hundreds of cases)
75
100
200
140
100
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)
Transcribed Image Text: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 April May June July August September Production Days 14 20 24 26 20 18 Forecasted Demand (in hundreds of cases) 75 100 200 140 100 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)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 6 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
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…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.