Weakly Production Allocation

Axjax has 3 types of computers the desktop (alpha), the laptop (beta) and the workstation (gamma). The net profit of each alp available on the A-line test equipment where assembled alphas and betas are tested and 48 hours are availabe on C-line test production is constrained by the avialability of 2000 labour hours for product assembly. Each alpha requires, 10 labour hours, Produce atleast 20 beta Suppose Ajax can outsourse A-line testing equipment at Rs. 40/hour in unlimited quantities and can hire additional labour at company. Alpha Net Profit Labour Testing 350 10 1 Beta 470 15 1 Gamma 610 20 1 A-line Hours Available 120

Alpha Alpha A-line Alpha Max 20 20 20 20 1 Beta 1 Beta Max 20 20 20 20 Gamma Max 20 20 20 20 Labour 1

Min Week 1 Week 2 Week 3 Week 4

Min 60 80 120 140

Min 40 40 40 40

50 40 30 70

Carrying costs are 9$ for alpha, 10$ for beta, $18 for gamma. Initial inventory at the start of the week is 22 alpha, 42 beta and 36 gamma.

gamma). The net profit of each alpha sold is 350, of each beta sold is 470 and of each gamma sold is 610. This week 120 hours are 8 hours are availabe on C-line test equipment where assemble gammas are tested. The testing of each computer takes 1 hour in addition h alpha requires, 10 labour hours, each beta requires 15 labour hours and each gamma requires 20 labour hours.

and can hire additional labour at Rs. 30/hour in unlimited quantities. How it will affect this additional cost towards the profit of the

C-line 48

Beta 1

Gamma 1 <= 2000

0. This week 120 hours are omputer takes 1 hour in addition ur hours.

ost towards the profit of the

inventory at the beginning prodcution demand inventory at the end

alpha 1st week 2nd 22 40 -18

3rd -18 50 -68 -68 70 -138

4th

beta 1st week 2nd -138 42 80 -218 30 12

3rd 12 30 -18 -18 30 -48

profit holding cost net profit

14000 -162 14162 231306

17500 -612 18112

24500 -1242 25742

28000 -1962 29962

14100 120 13980

14100 -180 14280

14100 -480 14580

4th

gamma 1st week 2nd -48 36 30 -78 35 1

3rd 1 30 -29 -29 25 -54

4th -54 45 -99

14100 -780 14880

21350 18 21332

18300 -522 18822

15250 -972 16222

27450 -1782 29232

<<==inventory holding cost*units

During the next four months Surestep should meet (on time) demand for next four months. Demand is 3000 in month 1, 500 100 workers. A worker is paid 1500$ per month and each worker can work upto 160 hours before he/she receives overtime.

It takes 4 hours of labor and $15 of raw material to produce a pair of shes. At the beginning of each month workers costs $16 of the production in a given month can be used to meet that month's demand. Use LP to determine its optimal production sc Objective: To minimize cost of production while meeting the demand. Aggregate planning Input data Initial laptops Initial no of workers Regular h/worker/month Overtime h/worker/month Regular wage/worker/month overtime/hour inventory holding/month/unit Hiring cost/worker Firing cost/worker hour per laptop raw material laptop Bcklog costfor alaptop Worker Plan from previous month hired fired workers available after hiring & firing Regular time available overtime available Max time available for production Overtime labour used Production Plan laptops produced production capacity inventory after production forecasted demand ending inventory month 1

1000 30 <= 160 40 3000 25 10 1000 2000 1 600 100

reduce it to 500 in June 40

month 1 month 2 month 3 month 4 month 5 month 6 30 30 25 25 25 25 0 0 0 0 0 0 0 5 0 0 0 0 30 25 25 25 25 25 4800 1200 6000 0 month 2 4000 1000 5000 0 month 3 4000 1000 5000 0 month 4 4905.32 5000 5615 5115 500 4000 1000 5000 0 4000 1000 5000 0 4000 1000 5000 0

5027.007 4568.007 4959.173 4959.084 4951.409 6000 5000 5000 5000 5000 5607.68

6027.007 5568.014 5744.187 5618.272 5027 1000.007

4783 5085 4962 4898 785.014 659.1874 656.2718 709.6804

Regular production Overtime production Overtime hours Monetary Output Hiring cost Firing cost Regular time wages Overtime wages Raw material cost Holding cost Total

4800 4000 4000 4000 4000 4000 0 0 0 0 0 0 0 0 0 0 0 0 month 1 month 2 month 3 month 4 month 5 month 6 0 0 90000 0 3016204 10000.07 3116204 0 0 0 0 10000 0 0 0 75000 75000 75000 75000 0 0 0 0 2740804 2975504 2975451 2970845 7850.14 6591.874 6562.718 7096.804 2833655 3057096 3057013 3052942 0 0 75000 0 2943192 5000 3023192

d is 3000 in month 1, 5000 in month 2, 2000 in month 3 and 1000 in month 4. At the beginning of first month 500 pair of shoes are on han e/she receives overtime. A worker can work upto 20 hours of overtime per month and is paid $13 per hour for overtime labor.

month workers costs $1600 and each fired workers costs $2000. At the end of each month, a holding cost of $3 per pair of shoes left in in its optimal production schedule and labor policy.

hired fired

0 0

0 5

0 0 1000

0 0

0 0

0 0

if hired or fired? 1 0 1 1000 0

0 1 1 0 0

0 1 1 0 0

0 1 1 0 0

0 1 1

0 1 1

Total 0 10000 315000 0 11707963 31004.8 18140102

-214.993

-125.827

-2.91555

month 500 pair of shoes are on hand and company has our for overtime labor.

ost of $3 per pair of shoes left in inventory is incurred. All

Aggregate planning Input data Initial inventory of shoes Initial no of workers Regular h/worker/month Overtime h/worker/month Regular wage/worker/month overtime/hour inventory holding/month/unit Hiring cost/worker Firing cost/worker hour per pair of shoes raw material per pair

500 100 160 20 1500 13 3 1600 2000 4 15

hired fired

0 6

Worker Plan month 1 month 2 month 3 month 4 from previous month 100 94 94 49 hired 0 0 0 0 fired 6 0 45 24 workers available after hiring & firing 94 94 49 25 Regular time available overtime available Max time available for production Overtime labour used Production Plan shoes produced production capacity inventory after production forecasted demand ending inventory Regular production Overtime production Overtime hours Monetary Output Hiring cost Firing cost month 1 3760 376 1410 1786 1 month 2 3767.23 376 1410 1786 1 month 3 1972.77 196 735 931 1 month 4 1000 100 375 475 1

if hired or fired? 0 1 1 0 1000

297.6667 297.6667 155.1667 79.16667 4260 3000 1260 62.66667 3697.333 22184 month 1 0 0 5027.23 5000 27.22995 62.66667 3704.563 22227.38 month 2 0 0 2000 1000

2000 1000 0 0 32.66667 16.66667 1940.103 983.3333 11640.62 5900 month 3 month 4 Total 0 0 0 0 0 0

Regular time wages Overtime wages Raw material cost Holding cost Total

0 0 0 0 0 0 0 0 0 0 353440 354119.6 185440.4 94000 987000 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

0 0

0 45 1000

0 24

if hired or fired? 0 1 1 0 0 0 1 1 0 0 0 1 1 0 0

During the next four months Surestep should meet (on time) demand for next four months. Demand is 3000 in month 1, 500 100 workers. A worker is paid 1500$ per month and each worker can work upto 160 hours before he/she receives overtime.

It takes 4 hours of labor and $15 of raw material to produce a pair of shes. At the beginning of each month workers costs $16 of the production in a given month can be used to meet that month's demand. Use LP to determine its optimal production sc Objective: To minimize cost of production while meeting the demand. Aggregate planning Input data Initial laptops Initial no of workers Regular h/worker/month Overtime h/worker/month Regular wage/worker/month overtime/hour inventory holding/month/unit Hiring cost/worker Firing cost/worker hour per laptop raw material laptop Bcklog costfor alaptop Worker Plan from previous month hired fired workers available after hiring & firing Regular time available overtime available Max time available for production Overtime labour used Production Plan laptops produced production capacity inventory after production forecasted demand ending inventory month 1 4027 6000 5027 5027 0

1000 30 <= 160 40 3000 25 10 1000 2000 1 600 100

reduce it to 500 in June 40

month 1 month 2 month 3 month 4 month 5 month 6 30 30 30 30 30 30 0 0 0 0 0 0 0 0 0 0 0 0 30 30 30 30 30 30 4800 1200 6000 0 month 2 4800 1200 6000 0 month 3 4800 1200 6000 0 month 4 4800 1200 6000 0 4800 1200 6000 0 4800 1200 6000 0

4783 5139.974 5140.005 5140.009 5140.013 6000 6000 6000 6000 6000 5615 5115 500

4783 5139.974 5194.978 5372.987 4783 5085 4962 4898 0 54.97356 232.9784 474.9875

Regular production Overtime production Overtime hours Monetary Output Hiring cost Firing cost Regular time wages Overtime wages Raw material cost Holding cost Total

4800 4800 4800 4800 4800 4800 0 0 0 0 0 0 0 0 0 0 0 0 month 1 month 2 month 3 month 4 month 5 month 6 0 0 90000 0 2416200 0 2506200 0 0 0 0 8000 0 0 0 90000 90000 90000 90000 0 0 0 0 2869800 3083984 3084003 3084005 0 549.7356 2329.784 4749.875 2967800 3174534 3176333 3178755 0 0 90000 0 3084008 5000 3179008

d is 3000 in month 1, 5000 in month 2, 2000 in month 3 and 1000 in month 4. At the beginning of first month 500 pair of shoes are on han e/she receives overtime. A worker can work upto 20 hours of overtime per month and is paid $13 per hour for overtime labor.

month workers costs $1600 and each fired workers costs $2000. At the end of each month, a holding cost of $3 per pair of shoes left in in its optimal production schedule and labor policy.

hired fired

0 0

0 4

0 0 1000

0 0

0 0

0 0

if hired or fired? 1 0 1 1000 0

0 1 1 0 0

0 1 1 0 0

0 1 1 0 0

0 1 1

0 1 1

Total 0 8000 360000 0 11453987 2879.52 18282629

-1000

month 500 pair of shoes are on hand and company has our for overtime labor.

ost of $3 per pair of shoes left in inventory is incurred. All