Question
35. The Mr. Meadows Cookie Company can obtain accurate forecasts for 12 months based on firm orders. These forecasts and the number of workdays
35. The Mr. Meadows Cookie Company can obtain accurate forecasts for 12 months based on firm orders. These forecasts and the number of workdays per month are as follows: Month Demand Forecast (in thousands of cookies) Workdays 11 12 -23456 7 0 0 0 =2 850 26 1,260 24 510 20 980 18 770 22 850 23 1,050 14 8 1,550 21 9 1,350 23 10 1,000 24 970 21 680 13 During a 46-day period when there were 120 workers, the firm produced 1,700,000 cookies. Assume that there are 100 workers employed at the beginning of month 1 and zero starting inventory. a. Find the minimum constant workforce needed to meet monthly demand. b. Assume c = $0.10 per cookie per month, c = $100, and c = $200. Add columns that give the cumulative on-hand inventory and inventory cost. What is the total cost of the constant workforce plan? c. Solve for the optimal plan using linear programming. Compare your solution to b.
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