1. Problem 1
Demand
Total
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
Total
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.

2. Solution to Problem 2

3. Changing Cells

4. RHS

5. LHS

6. LHS

7. Cost Table; Format

8. Production Cost; Regular, Overtime

9. Inventory Cost

10. Inventory Cost for All Periods

11. Backlog Cost

12. Backlog Cost for All Periods

13. Target Cell

14. Changing Cells

15. Constraints

16. Target Cell, Changing Cells, Constraints

17. Change to Min

18. Options

19. Solve

20. Objective Function Value

21. Problem 2

22. LP Formulation; Supply and Demand

23. LP Formulation; Cost Parameters

24. LP Formulation; Sumproduct and Constraints

25. LP Formulation; Optimal Solution