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Solver Aggregate Planning Example in

This document contains information about level production and demand for four quarters. It provides production levels, workforce levels, hiring and firing costs, and inventory levels for different scenarios: level production, chasing demand, and using a linear programming model. The linear programming model results in the lowest total costs by optimizing production levels and workforce adjustments each quarter to meet changing demand while minimizing costs.

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Gopichand Athukuri
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173 views5 pages

Solver Aggregate Planning Example in

This document contains information about level production and demand for four quarters. It provides production levels, workforce levels, hiring and firing costs, and inventory levels for different scenarios: level production, chasing demand, and using a linear programming model. The linear programming model results in the lowest total costs by optimizing production levels and workforce adjustments each quarter to meet changing demand while minimizing costs.

Uploaded by

Gopichand Athukuri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Level Production

Example - Level Production Cost $70,000

Beg Wkforce 100 Beg Inv. 0 Firing cost $500


Units/wker 1000 Inv. Cost $0.50 Hiring cost $100

Quarter Demand Production Inventory


Spring 80,000 100,000 20,000
Summer 50,000 100,000 70,000
Fall 120,000 100,000 50,000
Winter 150,000 100,000 0
Total 400,000 400,000 140,000

Page 1
Chase Demand

Example- Chase Demand Cost $35,000

Beg Wkforce 100 Beg Inv. 0 Firing cost $500


Units/wker 1000 Inv. Cost $0.50 Hiring cost $100

Workers Workers Workers


Quarter Demand Production Needed Hired Fired
Spring 80,000 80,000 80 0 20
Summer 50,000 50,000 50 0 30
Fall 120,000 120,000 120 70 0
Winter 150,000 150,000 150 30 0
Total 400,000 400,000 100 50

Page 2
LP Model

Example- LP Model Cost $32,000 Solve

Beg Wkforce 100 Beg Inv. 0 Firing cost $500


Reset
Units/wker 1000 Inv. Cost $0.50 Hiring cost $100

Wkers Wkers Demand


Qtr Demand Production Inventory Needed Wkers Hired Fired Constraint
1 80,000 80,000 0 80 0 20 80,000
2 50,000 80,000 30,000 80 0 0 50,000
3 120,000 90,000 0 90 10 0 120,000
4 150,000 150,000 0 150 60 0 150,000
Total 400,000 400,000 30,000 70 20

Page 3
LP Model

Production Wkforce
Constraint Constraint
80,000 80
80,000 80
90,000 90
150,000 150

Page 4
Optimal Solution

80000 0 80 0 20
80000 30000 80 0 0
90000 0 90 10 0
150000 0 150 60 0

Page 5

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