Problem 1 Demand 1 2 3 4 5 6 7 8 9 Total 190 230 260 280 210 170 160 260 180 1940 There are 20 full time employees, each can produce 10 units per period at the cost of $6 per unit. Therefore the supply of full time workers is as follows 1 2 3 4 5 6 7 8 9 Total 200 200 200 200 200 200 200 200 200 1800 Overtime cost is $13 per unit. Inventory carrying cost $5 per unit per period Backlog cost $10 per unit per period Maximum over time production is 20 units per period Formulated the problem as a Linear Programming model. Using excel and solver find the optimal solution.
Solution to Problem 2
Changing Cells
RHS
LHS
LHS
Cost Table; Format
Production Cost; Regular, Overtime
Inventory Cost
Inventory Cost for All Periods
Backlog Cost
Backlog Cost for All Periods
Target Cell
Changing Cells
Constraints
Target Cell, Changing Cells, Constraints
Change to Min
Options
Solve
Objective Function Value
Problem 2
LP Formulation; Supply and Demand
LP Formulation; Cost Parameters
LP Formulation; Sumproduct and Constraints
LP Formulation; Optimal Solution