a.
b and c:
Shoemakers of America forecasts the following demand for the next six months: 5000 pairs in month 1;6000 pairs in month 2; 7000 pairs in month 3;9000 pairs in month 4; 6000 pairs in month 5;5000 pairs in month 6 . It takes a shoemaker 20 minutes to produce a pair of shoes. Each shoemaker works 150 hours per month plus up to 40 hours per month of overtime. A shoemaker is paid a regular salary of $2000 per month plus $20 per hour for overtime. At the beginning of each month, Shoemakers can either hire or fire workers. It costs the company $1000 to hire a worker and $1200 to fire a worker. The monthly holding cost per pair of shoes is 5% of the cost of producing a pair of shoes with regular-time labor. The raw materials in a pair of shoes cost $10. At the beginning of month 1 , Shoemakers has 15 workers and 500 pairs of shoes in inventory. Determine how to minimize the cost of meeting (on time) the demands of the next six months. Problem 4.47b is just problem 4.47 where backorders are allowed with a unit shortage cost of $2 per pair of shoes. For 4.47b you should solve the problem with the GRG Nonllinear algorithm as you required to calculate the shortage costs and the holding costs with if() functions, which are forbidden when the Simplex LP method is chosen as the solving method in the Solver. Thus for problem 4.47b you should use if () functions to calculate the shortage costs and the holding costs as was discussed in video Ex. 4.3: AP at SureStep with Backlogs Allowed (Non-linear Solution with if( ) functions to calculate holding and shortage costs). Section 4.9: Problem 4.47c-Uses template file Sh04_47c.xisx Problem 4.47c is just problem 4.47 where backorders are allowed with a unit shortage cost of $2 per pair of shoes. For 4.47c you must solve the problem with the Simplex L.P algorithm as you required to calculate the shortage costs and the holding costs without using forbidden if() functions. Thus for problem 4.47c you must use the over and under trick that produces a linear model and was discussed in video Example 4.3: Aggregate Planning with Backlogging (Linear Model using the Over-Under Trick page 163). Shoemakers of America forecasts the following demand for the next six months: 5000 pairs in month 1;6000 pairs in month 2; 7000 pairs in month 3;9000 pairs in month 4; 6000 pairs in month 5;5000 pairs in month 6 . It takes a shoemaker 20 minutes to produce a pair of shoes. Each shoemaker works 150 hours per month plus up to 40 hours per month of overtime. A shoemaker is paid a regular salary of $2000 per month plus $20 per hour for overtime. At the beginning of each month, Shoemakers can either hire or fire workers. It costs the company $1000 to hire a worker and $1200 to fire a worker. The monthly holding cost per pair of shoes is 5% of the cost of producing a pair of shoes with regular-time labor. The raw materials in a pair of shoes cost $10. At the beginning of month 1 , Shoemakers has 15 workers and 500 pairs of shoes in inventory. Determine how to minimize the cost of meeting (on time) the demands of the next six months. Problem 4.47b is just problem 4.47 where backorders are allowed with a unit shortage cost of $2 per pair of shoes. For 4.47b you should solve the problem with the GRG Nonllinear algorithm as you required to calculate the shortage costs and the holding costs with if() functions, which are forbidden when the Simplex LP method is chosen as the solving method in the Solver. Thus for problem 4.47b you should use if () functions to calculate the shortage costs and the holding costs as was discussed in video Ex. 4.3: AP at SureStep with Backlogs Allowed (Non-linear Solution with if( ) functions to calculate holding and shortage costs). Section 4.9: Problem 4.47c-Uses template file Sh04_47c.xisx Problem 4.47c is just problem 4.47 where backorders are allowed with a unit shortage cost of $2 per pair of shoes. For 4.47c you must solve the problem with the Simplex L.P algorithm as you required to calculate the shortage costs and the holding costs without using forbidden if() functions. Thus for problem 4.47c you must use the over and under trick that produces a linear model and was discussed in video Example 4.3: Aggregate Planning with Backlogging (Linear Model using the Over-Under Trick page 163)
