Professional Documents
Culture Documents
Optimization
Homework One
2/19/2013
Amber Readnour
Contents
Problem One: ................................................................................................................................................ 2
Given: ........................................................................................................................................................ 2
Solutions: .................................................................................................................................................. 3
Problem Two: ................................................................................................................................................ 6
Assumptions/Simplifications: ................................................................................................................... 6
Equations: ................................................................................................................................................. 6
Solver Constraints: .................................................................................................................................... 7
Solutions: .................................................................................................................................................. 8
Other Results (Inventory, Backlog, Overtime, Hiring, Laying Off, Capacity):............................................ 9
Cost Analysis: .......................................................................................................................................... 10
Amber Readnour
Page |1
Problem One:
After analyzing the given data, it was found that a Seasonal Forecast would fit. The results below
are found by using the Seasonal Forecasting Method.
Given:
Year
2005
2006
2007
2008
2009
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time
2005
2005.25
2005.5
2005.75
2006
2006.25
2006.5
2006.75
2007
2007.25
2007.5
2007.75
2008
2008.25
2008.5
2008.75
2009
2009.25
2009.5
2009.75
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Solutions:
2010
2011
2012
2010
2011
2012
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2010
2010.25
2010.5
2010.75
2011
2011.25
2011.5
2011.75
2012
2012.25
2012.5
2012.75
2010
2010.25
2010.5
2010.75
2011
2011.25
2011.5
2011.75
2012
2012.25
2012.5
2012.75
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y = 956.47x + 2195.4
5000
Yearly Average
4000
3000
2000
1000
0
0
Forcast
6000
4000
2000
0
2004
2005
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2006
2007
2008
2009
2010
2011
2012
2013
2014
Page |4
y = 399.39x + 4330.6
4000
Yearly Average
3000
2000
1000
0
0
20000
15000
Demand
Forcast
10000
5000
0
2004
2005
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2006
2007
2008
2009
2010
2011
2012
2013
2014
Page |5
Problem Two:
Assumptions/Simplifications:
Lowest Inventory Holding Cost: $4 + $10 (using public) +$2 (transportation) = $16/000 lbs
1 unit = 1000 lbs
Backlog = 0 for both sheets and containers
Match Container Production with Demand
Sheet Production must be at least equal to that of Container Production
Combine Clear and Black Plastic, taking into account capacity loss of extruder
Equations:
These equations are set up for the Extruder. If they were to be performed for the Press the
number of workers would change (1 worker per Press) and the capacity would change from 2.85 to 2.
Legend
Symbol/Operator
It
Ot
Ext
Capacity
Reg Time
OT
Ct
# Workers for Extruder
Overtime:
Hiring:
(
(
Description
Inventory
Overtime
Extruders
2.85
Regular Time = 504
Overtime = 60
Capacity
6
)
)
Layoff:
(
(
Amber Readnour
Page |6
Capacity:
(
(
) (
) (
)
)
Solver Constraints:
The solver here is trying to minimize the overall cost. So the objective cell was set to minimize
the total cost (Cell $D$46). The variable cells that it was changing was Production, Subcontract, and
Extruders ($D$19: $H$30). The constraints that were set were:
The excel solver found that a combination of using Public and Private Warehousing was more cost
effective than solely using either public or private warehousing.
Amber Readnour
Page |7
Solutions:
Year
Quarter
I
II
III
IV
I
II
III
IV
I
II
III
IV
2010
2011
2012
Production
Subcontract
Sheet
Container
Sheet
Demand
14,112
22,826
15,187
17,841
15,858
25,504
16,947
19,906
17,602
28,182
18,708
21,971
16785
18666
16392
17797
19171
21336
19046
18984
20364
22504
20243
20636
Total Cost
Year
2007
2008
2009
Quarter
I
II
III
IV
I
II
III
IV
I
II
III
IV
985
985
592
561
498
440
373
311
255
198
134
9
$13,117,869
Inventory
Public Warehouse Private Warehouse
Cost
3657.606472
0.0
3,658 Public
482.2149747
0.0
482 Lease
2279.246317
0.0
2,279 Operating
2795.774833
0.0
2,796 Ratio
6606.449826
2,659.0
3,947
2879.110893
0.0
2,879
5351.477917
1,404.0
3,947
4741.295193
793.8
3,947
7758.883102
3,811.4
3,947
2277.968002
0.0
2,278
3947.462072
0.0
3,947
2621.561386
0.0
2,622
Public Cost
Private Cost
$726,385
$628,508
Private storage
Combination Cost
3,947
$512,989
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14112
22826
15187
17841
15858
25504
16947
19906
17602
28182
18708
21971
Equipment
Extruder
Press
0
0
12
14
12
21
11
15
12
16
13
16
13
23
13
17
13
18
14
18
14
25
14
19
14
19
16
4
4
1.2
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Amber Readnour
14
7
0
1
0
7
0
1
0
7
0
1
Backlog
Sheet
Container
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Layoff
Extruder Press
0
0
1
0
0
0
0
0
0
0
0
0
0
0
6
0
0
0
6
0
0
0
6
0
Overtime
Extruder
Press
37
697
0
0
37
796
0
0
89
840
47
185
0
866
0
893
0
1197
0
918
0
1499
0
1169
Capacity
Extruder Press
1881
0
1951
2119
2166
0
2267
2260
2139
0
2260
1867
1679
779
1813
124
2031
357
2130
315
2571
0
2650
0
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Cost Analysis:
Material
Sheet
$176,682
$196,482
$172,548
$187,334
$201,798
$224,593
$200,486
$199,836
$214,361
$236,879
$213,087
$217,225
Subcontract
Sheet
$59,088
$59,088
$35,521
$33,646
$29,870
$26,420
$22,391
$18,684
$15,318
$11,854
$8,053
$525
Overtime
Extruder
Press
$4,951
$11
$94,061
$19,482
$0
$0
$0
$20,101
$4,942
$0
$107,518
$26,930
$2
$0
$0
$20,652
$12,071
$0
$113,400
$33,728
$6,332
$0
$24,951
$26,295
Hiring
Layoff
Extruder
Press
Extruder
Press
$174,189 $34,998
$0
$0
$0
$17,319
$3
$0
$0
$0
$3,610 $17,567
$14,669 $2,139
$0
$0
$13,260
$0
$0
$204
$0
$17,670
$0
$0
$0
$0
$255
$18,043
$0
$2,536
$774
$0
$11,749
$0
$0
$129
$1
$17,751
$0
$0
$1
$0
$0
$18,150
$0
$1,359
$0
$0
Total Cost
Amber Readnour
Inventory
Sheet
Container
$58,522
$0
$7,715
$0
$36,468
$0
$44,732
$0
$105,703
$0
$46,066
$0
$85,624
$0
$75,861
$0
$124,142
$0
$36,447
$0
$63,159
$0
$41,945
$0
$13,117,869
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