Month Demand

Forecast
Jan 1000
Feb 1100
Mar 1000
Apr 1200
May 150
Jun 1600
Jul 1600
Aug 900
Sep 1100
Oct 800
Nov 1400
Dec 1700
Item Cost Cost Hours of working
Material cost $20/unit 20 overtime max
Inventory holding cost $3/unit/month 3
Marginal cost of stockout/backlog $5/unit/month 5
Hiring and training costs $300/worker 0
Layoff cost $500/worker 0
Labor hours required 0.16667/unit 0.166667
Regular time cost $20/hour 20
Overtime cost $30/hour 30
Cost of subcontracting $26/unit 26
Hours of working 160
overtime max 20
Aggregate Plan Decision Variables
Period Ht Lt Wt Ot It St
#Hired #Laid off #Workforce Overtime Inventory Stockout

0 0 0 1250 0 50000 0
Jan 0 1 1250 0 0 0
Feb 0 1 1250 0 0 0
Mar 0 1 1250 0 150000 0
Apr 0 1 1250 0 150000 0
May 0 1 1250 25000 0 0
Jun 0 1 1250 25000 0 0
Jul 0 1 1250 25000 0 0
Aug 0 1 1250 0 0 0
Sep 0 1 1250 0 0 0
Oct 0 1 1250 0 400000 0
Nov 0 1 1250 0 200000 0
Dec 0 1 1250 25000 50000 0
Aggregate Plan Costs
Period Hiring Layoff Regular time Overtime Inventory Stockout
1 $ - $ - $ 4,000,000.00 $ - $ - $ -
2 $ - $ - $ 4,000,000.00 $ - $ - $ -
3 $ - $ - $ 4,000,000.00 $ - $ 450,000.00 $ -
4 $ - $ - $ 4,000,000.00 $ - $ 450,000.00 $ -
5 $ - $ - $ 4,000,000.00 $ 750,000.00 $ - $ -
6 $ - $ - $ 4,000,000.00 $ 750,000.00 $ - $ -
7 $ - $ - $ 4,000,000.00 $ 750,000.00 $ - $ -
8 $ - $ - $ 4,000,000.00 $ - $ - $ -
9 $ - $ - $ 4,000,000.00 $ 0.00 $ - $ -
10 $ - $ - $ 4,000,000.00 $ - $ 1,200,000.00 $ -
11 $ - $ - $ 4,000,000.00 $ - $ 600,000.00 $ -
12 $ - $ - $ 4,000,000.00 $ 750,000.00 $ 150,000.00 $ -

Total cost = $ 356,050,000.00 Cost $ 23.90

Disaggregating the Aggregate plan for Period 1

Family Setup Average Batch size Production Production Number of Setup time
time/ Time/ Quatity Setups (Hours)
Batch(Hou Unit(Hour)
r)

A 8 50 5.6 95000 1900 15200

B 6 150 3 237500 1583 9498
C 8 100 3.8 190000 1900 15200
D 10 50 4.8 95000 1900 19000
E 6 100 3.6 190000 1900 11400
F 5 75 4.3 142500 1900 9500
79798
 Constraints
Ct Pt Demand
Subcontract Production

Workforce Capacity Inventory

0
0 950000 1000000 1250 250000 0
0 1100000 1100000 1250 100000 0
0 1150000 1000000 1250 50000 0
0 1200000 1200000 1250 0 0
0 1350000 1500000 1250 0 0
250000 1350000 1600000 1250 0 0
250000 1350000 1600000 1250 0 0
0 900000 900000 1250 300000 0
0 1100000 1100000 1250 100000 0
0 1200000 800000 1250 0 0
0 1200000 1400000 1250 0 0
200000 1350000 1700000 1250 0 0
14900000
Subcontract Material
$ - $ 19,000,000.00
$ - $ 22,000,000.00
$ - $ 23,000,000.00 1291666.67
$ - $ 24,000,000.00
$ - $ 27,000,000.00
$ 6,500,000.00 $ 27,000,000.00
$ 6,500,000.00 $ 27,000,000.00
$ - $ 18,000,000.00
$ - $ 22,000,000.00
$ - $ 24,000,000.00
$ - $ 24,000,000.00
$ 5,200,000.00 $ 27,000,000.00
356050000
48
1
1
0
Production time
(hours)

1
532000 0
712500 0
722000 1
456000 0
684000 32767
612750 0
3719250
Overtime

25000
25000
25000
25000
0
0
0
25000
25000
25000
25000
0
Aggregate Plan Decision Variables
Period Ht Lt Wt Ot It St Ct
#Hired #Laid off #Workforce Overtime Inventory Stockout Subcontract
0 0 0 1250 0 50000 0 0
Jan 0 0 1250 0 0 0 0
Feb 0 0 1250 0 0 0 0
Mar 0 0 1250 0 0 0 0
Apr 0 0 1250 0 0 0 0
May 0 0 1250 0 0 0300000
Jun 0 0 1250 0 2 0400002
Jul 0 0 1250 0 0 0399998
Aug 0 0 1250 0 0 0 0
Sep 0 0 1250 0 0 0 0
Oct 0 0 1250 0 200000 0 0
Nov 0 0 1250 0 0 0 0
Dec 0 0 1250 0 50000 0550000
Aggregate Plan Costs 1650000
Period Hiring Layoff Regular time Overtime Inventory Stockout Subcontract
1 $0 $0 $4,000,000 $0 $0 $0 $0
2 $0 $0 $4,000,000 $0 $0 $0 $0
3 $0 $0 $4,000,000 $0 $0 $0 $0
4 $0 $0 $4,000,000 $0 $0 $0 $0
5 $0 $0 $4,000,000 $0 $0 $0 $7,800,000
6 $0 $0 $4,000,000 $0 $6 $0 $10,400,052
7 $0 $0 $4,000,000 $0 $0 $0 $10,399,948
8 $0 $0 $4,000,000 $0 $0 $0 $0
9 $0 $0 $4,000,000 $0 $0 $0 $0
10 $0 $0 $4,000,000 $0 $600,000 $0 $0
11 $0 $0 $4,000,000 $0 $0 $0 $0
12 $0 $0 $4,000,000 $0 $150,000 $0 $14,300,000

Total cost = $ 356,650,006.00 Cost $ 23.94

 Constraints
Pt Demand
Production WorkforceCapacity Inventory Overtime

950000 1000000 1250 250000 0 25000

1100000 1100000 1250 100000 0 25000
1000000 1000000 1250 200000 0 25000
1200000 1200000 1250 0 0 25000
1200000 1500000 1250 0 0 25000
1200000 1600000 1250 0 0 25000
1200000 1600000 1250 0 0 25000
900000 900000 1250 300000 0 25000
1100000 1100000 1250 100000 0 25000
1000000 800000 1250 200000 0 25000
1200000 1400000 1250 0 0 25000
1200000 1700000 1250 0 0 25000
14900000
Material
$19,000,000
$22,000,000
$20,000,000 1291667
$24,000,000
$24,000,000
$24,000,000
$24,000,000
$18,000,000
$22,000,000
$20,000,000
$24,000,000
$24,000,000