Aggregate Planning at Canada Carts

This problem uses the forecasts from assignment 3 as input to the aggregate planning problem
It also uses the following costs and production data. The other sheets link to these costs.
The following sheets include one for level, one chase and two which allow more flexibility.
Right now they are the same. Try changing Mixed 2 to see if you can come up with a lower cost strategy.
Opening Inventory
Closing Inventory Required
Opening workforce
Production per worker
Costs
Regular
Overtime
Hiring
Firing
Inventory Carrying Cost

200
200
10 workers
300 units/mo.
60 per unit
68 per unit
1500 per worker
3000 per worker
2 per unit/month

LEVEL PRODUCTION SCHEDULE

Dec
Requirements
Production
Overtime Production
Inventory
Workforce
300
Hire

Fire

Jan
Feb Mar Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
Cost/unit
3000 3100 3400 3250 2950 2800 2400 2100 1800 3050 3150 3450
34450

Level

Opening Inventory
Closing Inventory Required
Opening workforce

200
200
14 workers

Costs
Regular
Overtime
Hiring
Firing
Inventory Carrying Cost
Production per worker

60 per unit
68 per unit
1500 per worker
3000 per worker
2
300 units/mo.

Total Cost of this model

$
2,309,850
Dec

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
Cost/unit
3000
3100
3400
3250
2950
2800
2400
2100
1800
3050
3150
3450 34450

Requirements
Production
Overtime Production
Inventory
200
Workforce

LEVEL PRODUCTION SCHEDULE

3150

3150

3150

3150

3150

3150

3150

3150

3150

3150

3150

3150

37800

350

400

150

50

250

600

1350

2400

3750

3850

3850

3550

20550

10

60
68
2

$2,268,000
$0
$41,100

300
Hire

0.5

0.5

1500

$750

Fire

3000

$0

Level

2871
9.569

$ 2,309,850

Closing Inventory

200

Total Cost of this model

$ 2,097,650
Dec

Jan
Feb
Mar
Apr
May
Jun
3000 3100 3400 3250 2950 2800

Requirements
Production
Overtime Production
Inventory
200
Workforce

CHASE PRODUCTION SCHEDULE

2800

3100

3400

3250

2950

2800

10 9.3333 10.333 11.333 10.833 9.8333 9.3333

300

Hire

Fire

0.6667

0.5

0.5

Level

2871
9.5694

UCTION SCHEDULE
Jul
Aug
Sep
Oct
Nov
Dec
Total
Cost/unit
2400 2100 1800 3050 3150 3450 34450
2400

2100

1800

3050

3150

3650

34450

200

200

60
68
2

6 10.167

0 4.1667 0.3333 1.6667 8.16667

1500

1.3333

3000

10.5 12.167

Cost/unit

$2,067,000
$0
$400

$12,250
$18,000

2,097,650

Closing Inventory

200

Total Cost of this model

$
2,092,800
Dec

MIXED PRODUCTION SCHEDULE

Jan
Feb
Mar
Apr
May
Jun
3000 3100 3400 3250 2950 2800

Requirements
Production
Overtime Production
Inventory
200

3000

3300
0
0

3300
0
50

3000

2700

200

3000
0
100

100

Workforce

10.00

10.00

11.00

11.00

10.00

9.00

Hire

0.0

0.0

1.0

0.0

0.0

0.0

Fire

0.0

0.0

0.0

0.0

1.0

1.0

10
300

Cost comparisons
Inventory vs overtime

Inventory - $2/unit

Overtime = $8/unit

Overtime vs hiring

Overtime $8/unit

Hiring = $1500 for 300 units

Fire then hire

$4500 for 300 units = $15/unit

UCTION SCHEDULE
Jul
Aug
Sep
Oct
Nov
Dec
Total
Cost/unit
2400 2100 1800 3050 3150 3450
34450
2400

2100

3000

3300

3300

2100
0
0

300

250

400

250

8.00

7.00

7.00

10.00

11.00

11.00

0.0

0.0

0.0

3.0

1.0

1.0

1.0

0.0

0.0

0.0

me = $8/unit

= $1500 for 300 units

34500
0
1650

60
68
2

0.0

5.0

1500

0.0

4.0

3000

Cost/unit

$2,070,000
$0
$3,300

$7,500
$12,000

2,092,800

Closing Inventory

200

Total Cost of this model

$
2,092,800
Dec
Requirements

MIXED PRODUCTION SCHEDULE

Jan Feb
Mar
Apr
May
Jun
Jul
3000 3100 3400 3250 2950 2800 2400

Production
3000
Overtime Production
Inventory
200
200

3000
0
100

3300
0
0

3300
0
50

3000

2700

2400

100

Workforce

10 10.00

10.00

11.00

11.00

10.00

9.00

8.00

Hire

0.0

0.0

1.0

0.0

0.0

0.0

0.0

Fire

0.0

0.0

0.0

0.0

1.0

1.0

1.0

300

Try Changing the numbers to see if you can improve on the curren

SCHEDULE
Aug
Sep
Oct
Nov
Dec
Total
Cost/unit
2100 1800 3050 3150 3450
34450
2100
0
0

2100

3000

3300

3300

300

250

400

250

7.00

7.00

10.00

11.00

11.00

0.0

0.0

3.0

1.0

1.0

0.0

0.0

0.0

prove on the current best solution.

34500
0
1650

60
68
2

$2,070,000
$0
$3,300

0.0

5.0

1500

$7,500

0.0

4.0

3000

$12,000

2,092,800