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30
per unit-quarter
per unit
units per worker hour
hours per day
days per season
Fall
Winter
Spring
Summer
Fall
Winter
Spring
Summer
Workers
Hired
0
0
0
20
Workers
Actual
Fired Production
0
7200
0
10300
0
7200
20
11800
Bakorder Overtime
Cost
Cost
Fall
Winter
Spring
Summer
23000
0
0
0
Total cost
413600
0
49600
0
0
Overtime
Hours
0
6200
0
0
Ending
Inventory
-2300
0
200
0
Hiring
Cost
Firing
Cost
0
0
0
2000
0
0
0
4000
Inventory Straighttime
Holding
Cost
Cost
0
72000
0
72000
1000
72000
0
118000
Class Example
Problem 2: Chase, no overtime, work hours not flexible
Number of Workers
Recruitment costs
Hiring cost
Firing cost
Wages
Straight time cost
Overtime cost
Inventory costs
Holding cost
Backorder cost
Productivity
Working hours
30
per unit-quarter
per unit
units per worker-hour
hours per day
days per season
Forecast Beginning
Inventory
Fall
Winter
Spring
Summer
Fall
Winter
Spring
Summer
Total
10000
8000
7000
12000
500
100
20
220
Actual
Production
Ending
Inventory
Hiring
Cost
Firing
Cost
9600
7920
7200
12000
100
20
220
220
1000
0
0
2000
0
1400
600
0
Straight Inventory
time Holding
Cost
Cost
96000
500
79200
100
72000
1100
120000
1100
Note:
Production requirement is obtained by considering nonzero ending inventories.
Workers
Fired
0
7
3
0
Total
Cost
97500
80700
73700
123100
375000
Class Example
Problem 3: Chase, no overtime, flexible hours
Number of Workers
Recruitment costs
Hiring cost
Firing cost
Wages
Straight time cost
Overtime cost
Inventory costs
Holding cost
Backorder cost
Productivity
Working hours
Fall
Winter
Spring
Summer
Fall
Winter
Spring
Summer
Total
30
per unit-quarter
per unit
units per worker-hour
hours per day
days per season
Net Production
Production
Hours
Requirement Required
9500
19000
8000
16000
7000
14000
12000
24000
Hiring
Cost
Firing
Cost
1000
0
0
2100
0
1200
800
0
Note:
Working hour is assumed to be flexible.
Workers
Required
Workers
Hired
Workers
Fired
40
34
30
51
10
0
0
21
0
6
4
0
Straight
time
Cost
95000
80000
70000
120000
Total
Cost
96000
81200
70800
122100
370100
Class Example
Problem 4: Constant workforce, no overtime, no shortages
Number of Workers
Recruitment costs
Hiring cost
Firing cost
Wages
Straight time cost
Overtime cost
Inventory costs
Holding cost
Backorder cost
Productivity
Working hours
30
per unit-quarter
per unit
units per worker hour
hours per day
days per season
Fall
Winter
Spring
Summer
10
0
40
Forecast Beginning
Inventory
Fall
Winter
Spring
Summer
10000
8000
7000
12000
Total cost
425000
500
100
1700
4300
1000
0
1000
384000
Actual
Production
Ending
Inventory
9600
9600
9600
9600
100
1700
4300
1900
Inventory Backorder
Holding
Cost
Cost
500
0
8500
0
21500
0
9500
0
Class Example
Problem 5: Constant workforce with 6 new workers, no overtime, shortages allowed
Number of Work
30
Recruitment costs
Hiring cost
Firing cost
Wages
Straight time co
Overtime cost
Inventory costs
Holding cost
Backorder cost
Productivity
Working hours
Workers hired
Workers fired
Total workers
per unit-quarter
per unit
units per worker hour
hours per day
days per season
6
0
36
Forecast Beginning
Inventory
Fall
Winter
Spring
Summer
Fall
Winter
Spring
Summer
10000
8000
7000
12000
Actual Ending
Production Inventory
500
-860
-220
1420
8640
8640
8640
8640
Inventory Backorder
Holding
Cost
Cost
0
8600
0
2200
7100
0
0
19400
Total
Total
Cost
8600
2200
7100
19400
383500
-860
-220
1420
-1940
600
0
600
345600
Class Example
Problem 6: Constant workforce with 7 new workers, overtime is used to prevent shortages
Number o
30
Recruitment costs
Hiring co
100
Firing co
200
Wages
Straight
5
Overtime
8
Inventory costs
Holding
5
Backorde
10
Productiv
0.5
Working
8
60
Workers h
Workers fi
Total work
7
0
37
Forecast Beginning
Regular
Inventory Production
Fall
Winter
Spring
Summer
Fall
Winter
Spring
Summer
Units
Units
Available Overtime
Before OT
-620
620
880
0
2760
0
-360
360
10000
8000
7000
12000
500
0
880
2760
8880
8880
8880
8880
Ending
Inventory
Inventory
Holding
Cost
0
4400
13800
0
Overtime
Cost
Total
Cost
9920
0
0
5760
9920
4400
13800
5760
389780
0
880
2760
0
Total
700
0
700
355200
Class Example
Problem 7: Linear optimization
Number of Workers
Recruitment costs
Hiring cost
Firing cost
Wages
Straight time cost
Overtime cost
Inventory costs
Holding cost
Backorder cost
Productivity
Working hours
30
Fall
Winter
Spring
Summer
Fall
Winter
Spring
Summer
10000
8000
7000
12000
Total cost
Beginning
Inventory
0
0
0
50000
368041.67
Workers
Hired
Workers
Fired
Total Overtime
Workers
Hours
500 9.58333333
0 39.583333
0
0
6.25 33.333333
0
0 4.166667 29.166667
0
0
0 29.166667
Regular
Actual
Production Production
Hours
Units
19000
9500
16000
8000
14000
7000
14000
7000
Bakorder
Cost
Fall
Winter
Spring
Summer
per unit-quarter
per unit
units per worker hour
hours per day
days per season
Overtime
Cost
0
0
0
0
Ending
Positive Backorder Ending
Inventory Inventory
Inventory
Computed
Chosen
0
0
0
0
0
0
0
0
0
0
0
0
-5000
0
5000
-5000
Hiring
Cost
Firing
Cost
0 958.333333
0
0
0
1250
0
0 833.3333
0
0
0
Inventory StraightHolding
time
Cost
Cost
0
95000
0
80000
0
70000
0
70000
Class Example
Problem 8: Linear optimization, rounding off
Number of Workers
Recruitment costs
Hiring cost
Firing cost
Wages
Straight time cost
Overtime cost
Inventory costs
Holding cost
Backorder cost
Productivity
Working hours
Fall
Winter
Spring
Summer
30
per unit-quarter
per unit
units per worker hour
hours per day
days per season
Forecast
Beginning
Inventory
Workers
Hired
Workers
Fired
10000
8000
7000
12000
500
0
0
0
9
0
0
0
0
6
4
0
Total Overtime
Workers
Hours
39
33
29
29
280
160
80
0
.
Fall
Winter
Spring
Summer
Regular
Actual
Production Production
Hours
Units
18720
9500
15840
8000
13920
7000
13920
6960
Ending
Positive Backorder Ending
Inventory Inventory
Inventory
Computed
Chosen
0
0
0
0
0
0
0
0
0
0
0
0
-5040
0
5040
-5040
Bakorder
Cost
Overtime
Cost
Hiring
Cost
Firing
Cost
Fall
Winter
Spring
Summer
0
0
0
50400
2240
1280
640
0
900
0
0
0
0
1200
800
0
Total cost
369460
Inventory StraightHolding
time
Cost
Cost
0
93600
0
79200
0
69600
0
69600