example Month Demand Days Demand per day

Jan 900 22 41
feb 700 18 39
mar 800 21 38
apr 1200 21 57
may 1500 22 68
jun 1100 20 55

PRODUCTION

JAN FEB MAR

REGULAR JAN 900 194.7739532432 3.314634554
FEB 0 505.2260467568 91.26978816
MAR 0 0 705.41557729
APR 0 0 0
MAY 0 0 0
JUNE 0 0 0
SUPPLIED 900 700 800
= = =
DEMAND 900 700 800

COSTS
REGULAR JAN 8.00 13.00 18.00
FEB 9,999.00 8.00 13.00
MAR 9,999.00 9,999.00 8.00
APR 9,999.00 9,999.00 9,999.00
MAY 9,999.00 9,999.00 9,999.00
JUNE 9,999.00 9,999.00 9,999.00
Inventory cost 5 per unit per month Capacity
Subcontracting cost 10 per unit OT/IT
Labor hours 1.5 hr/unit Subcontract
avg. pay rate 8 per unit
Overtime rate 11.20 per unit
Cost of hiring one employee 1.5
Cost of firing one employee 3
one employee can produce 5 units per day

PRODUCTION

PRODUCTION
APR MAY JUN PRODUCED LIMITS DAYS
0 1.9114126495 0 1100 = 1100 22
300.5278195012 0 2.9763457 900 = 900 18
295.3225284949 48.2849652193 0.976929 1050 = 1050 21
604.1496520148 442.250347203 3.6000004 1050 = 1050 21
0 1007.55327516 92.446725 1100 = 1100 22
0 0 1000 1000 = 1000 20
1200.0000000109 1500.0000002319 1100 6200
= = =
1200 1500 1100

COSTS
23.00 28.00 33.00 Obje
18.00 23.00 28.00
13.00 18.00 23.00
8.00 13.00 18.00
9,999.00 8.00 13.00
9,999.00 9,999.00 8.00
Jan Feb Mar Apr May June
90 90 90 150 90 90
200 200 200 200 200 200

REGULAR
EMPLOYEE
10

58,850.00
 PRODUCTION
JAN FEB MAR APR
REGULAR JAN 900 700 28 0
FEB 0 0 0 0
MAR 0 0 528 96
APR 0 0 0 650
MAY 0 0 0 0
JUNE 0 0 0 0
OT/IT JAN 0 0 0 43
FEB 0 0 0 43
MAR 0 0 0 43
APR 0 0 0 62
MAY 0 0 0 0
JUNE 0 0 0 0
SUBCONTRACT JAN 0 0 82 60
FEB 0 0 82 60
MAR 0 0 82 60
APR 0 0 0 84
MAY 0 0 0 0
JUNE 0 0 0 0
SUPPLIED 900 700 800 1200
= = = =
DEMAND 900 700 800 1200

COSTS
REGULAR JAN 8.00 13.00 18.00 23.00
FEB 9,999,999.00 8.00 13.00 18.00
MAR 9,999,999.00 9,999,999.00 8.00 13.00
APR 9,999,999.00 9,999,999.00 9,999,999.00 8.00
MAY 9,999,999.00 9,999,999.00 9,999,999.00 9,999,999.00
JUNE 9,999,999.00 9,999,999.00 9,999,999.00 9,999,999.00
OT/IT JAN 11.20 16.20 21.20 26.20
FEB 9,999,999.00 11.20 16.20 21.20
MAR 9,999,999.00 9,999,999.00 11.20 16.20
APR 9,999,999.00 9,999,999.00 9,999,999.00 11.20
MAY 9,999,999.00 9,999,999.00 9,999,999.00 9,999,999.00
JUNE 9,999,999.00 9,999,999.00 9,999,999.00 9,999,999.00
SUBCONTRACT JAN 10.00 15.00 20.00 25.00
FEB 9,999,999.00 10.00 15.00 20.00
MAR 9,999,999.00 9,999,999.00 10.00 15.00
APR 9,999,999.00 9,999,999.00 9,999,999.00 10.00
MAY 9,999,999.00 9,999,999.00 9,999,999.00 9,999,999.00
JUNE 9,999,999.00 9,999,999.00 9,999,999.00 9,999,999.00
MAY JUN PRODUCED LIMITS PRODUCTION DAYS REGULAR EMPLOYEE
0 0 1628 <= 1650 22 15
0 0 0 <= 1350 18
130 0 754 <= 1575 21
212 169 1030 <= 1575 21
540 197 737 <= 1650 22
0 251 251 <= 1500 20
47 0 90 <= 90
47 0 90 <= 90
47 0 90 <= 90
68 20 150 <= 150
89 1 90 <= 90
0 90 90 <= 90
29 30 200 <= 200
29 30 200 <= 200
29 30 200 <= 200
87 29 200 <= 200
146 54 200 <= 200
0 200 200 <= 200
1500 1100
= =
1500 1100
OBJECTIVE FUNCTION 74,258.08

28.00 33.00
23.00 28.00
18.00 23.00
13.00 18.00
8.00 13.00
9,999,999.00 8.00
31.20 36.20
26.20 31.20
21.20 26.20
16.20 21.20
11.20 16.20
9,999,999.00 11.20
30.00 35.00
25.00 30.00
20.00 25.00
15.00 20.00
10.00 15.00
9,999,999.00 10.00
Name: Obj: minimize cost
Problem: