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    Capacity Production Planing

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    Uchenna 'Bonex' Ogbonna
    The document outlines a production planning model with the goal of minimizing total costs. It includes inputs like workforce size, production rates, costs per shirt for regular and overtime production. The model tracks inventory levels and costs like hiring, firing, inventory holding over multiple months. It aims to determine the optimal workforce levels and production quantities to meet a forecasted demand while staying under budget.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Capacity Production Planing

    Uploaded by

    Uchenna 'Bonex' Ogbonna
    91 views4 pages
    The document outlines a production planning model with the goal of minimizing total costs. It includes inputs like workforce size, production rates, costs per shirt for regular and overtime production. The model tracks inventory levels and costs like hiring, firing, inventory holding over multiple months. It aims to determine the optimal workforce levels and production quantities to meet a forecasted demand while staying under budget.

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    Cap

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    The document outlines a production planning model with the goal of minimizing total costs. It includes inputs like workforce size, production rates, costs per shirt for regular and overtime production. The model tracks inventory levels and costs like hiring, firing, inventory holding over multiple months. It aims to determine the optimal workforce levels and production quantities to meet a forecasted demand while staying under budget.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    91 views4 pages

    Capacity Production Planing

    Uploaded by

    Uchenna 'Bonex' Ogbonna
    The document outlines a production planning model with the goal of minimizing total costs. It includes inputs like workforce size, production rates, costs per shirt for regular and overtime production. The model tracks inventory levels and costs like hiring, firing, inventory holding over multiple months. It aims to determine the optimal workforce levels and production quantities to meet a forecasted demand while staying under budget.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Inputs in blue

    decision variables in gold


    objective in yellow
    Starting work force 10 (number of associates)
    Production rate 500 (shirts per month per associate)
    Overtime cap 100 (shirts per month per associate)

    Cost per shirt (regular time) $14


    Cost per shirt (overtime producti $18
    Cost to Hire $1,200
    Cost to Fire $1,200

    Initial Inventory 0
    Inventory holding cost $0.28 (cost per month per shirt)

    regular
    Month Forecast Hire Fire Workforce production
    0
    1 4000 0 0 10 5000
    2 5000 2 0 12 6000
    3 4000 0 0 12 6000
    4 10000 0 0 12 6000
    5 5000 0 2 10 5000
    6 4000 0 0 10 5000

    $1,200 $1,200 $14


    Costs $2,400 $2,400 $0 $462,000

    Total Cost $469,040


    nth per associate)
    nth per associate)

    overtime regular Overtime


    production Inventory Workforce production capacity Inventory
    10 0
    0 1000 10 5000 1000 1,000
    0 2000 12 6000 1200 2,000
    0 4000 12 6000 1200 4,000
    0 0 12 6000 1200 0
    0 0 10 5000 1000 0
    0 1000 10 5000 1000 1,000

    $18 $0.28
    $0 $2,240 $462,000 $2,240
    Inputs in blue
    decision variables in gold
    objective in yellow
    Starting work force 10 (number of associates)
    Production rate 500 (shirts per month per associate)
    Overtime cap 100 (shirts per month per associate)

    Cost per shirt (regular time) $14


    Cost per shirt (overtime producti $18
    Cost to Hire $1,200
    Cost to Fire $1,200

    Initial Inventory 0
    Inventory holding cost $0.28 (cost per month per shirt)

    regular
    Month Forecast Hire Fire Workforce production
    0 10
    1 4000 0 0 10 5000
    2 5000 2 0 12 6000
    3 4000 0 0 12 6000
    4 10000 0 0 12 6000
    5 5000 0 2 10 5000
    6 4000 0 0 10 5000

    Costs $2,400 $2,400 $462,000

    Total Cost $469,040


    onth per associate)
    onth per associate)

    nth per shirt)

    overtime Overtime
    production capacity Inventory
    0
    0 1000 1,000
    0 1200 2,000
    0 1200 4,000
    0 1200 0
    0 1000 0
    0 1000 1,000

    $0 $2,240

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