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Problem Description NYY is a winter jacket manufacturer company with manufacturing facilities in the US.A. Winter jacket demand is seasonal peaking in the winter as
Problem Description NYY is a winter jacket manufacturer company with manufacturing facilities in the US.A. Winter jacket demand is seasonal peaking in the winter as the temperatures along the East Coast dipping well below zero. Production of winter jackets requires some certain amount of work and NYY jacket manufacturer has multiple options to handle seasonal demand. The first option is NYY can prefer to increase number of workers by adding workers during the peak season. Second option is NYY can subcontract out partial work to outside companies. Third option is NYY can build up inventory capacity to produce and store extra winter jackets during slow seasons. Fourth option is that NYY can make late order deliveries by creating backlog of orders. President of NYY wants to know how to make best use of these available options through an aggregate plan. Demand forecast for upcoming months are shown in following Table 1. Table 1: Demand Forecast for NYY Jacket Manufacturer Month Demand 1,600 November3,200 800 Each winter jacket is sold for $40 through retailers and also NYY has 1,000 jackets in their inventory in September as well as 80 workers working with the company at the beginning of September. Each month consists of 20 working days and each worker works 8 hours per day straight and rest on overtime. S4 is paid to each worker regular time. Please note that production operation is not limited by the machine capacity as production operation is directly related to the number of labor hours worked. Overtime per employee per month is limited to 10 hours. Table 2 shows the related costs. Table 2: Costs for Jacket Material cost 10/unit S300/worker unit mon $30/unit ing more workers cost ng cost Subcontracting cost Inventory cost unit time cost Overtime cost $6/hour 0/wor yoff cost urs/unit Keep it in mind that NYY does not have any limits on subcontracting out, backlogging, and inventories. Cost of inventory is paid at the end of inventory in the month. All stockouts are supplied from the following month's production or previous month's inventory. President of NYY wants to find the optimal plan that will let them stock 500 jackets in inventory and have no stockouts waiting at the end of February 1. Formulate the problem as an LP model. You need to clearly define () decision variables, (i) objective function, and (iii constraints. Complete LP formulation should be included in the main report. 2. Create an AMPL code to solve the formulated LP and run it. In addition to the main report, you need to turn in four files: (a) a model file, (b) a data file, (c) a script file containing the commands you issue in AMPL to solve the model and display the result, and (d) an output file containing the result of running Problem Description NYY is a winter jacket manufacturer company with manufacturing facilities in the US.A. Winter jacket demand is seasonal peaking in the winter as the temperatures along the East Coast dipping well below zero. Production of winter jackets requires some certain amount of work and NYY jacket manufacturer has multiple options to handle seasonal demand. The first option is NYY can prefer to increase number of workers by adding workers during the peak season. Second option is NYY can subcontract out partial work to outside companies. Third option is NYY can build up inventory capacity to produce and store extra winter jackets during slow seasons. Fourth option is that NYY can make late order deliveries by creating backlog of orders. President of NYY wants to know how to make best use of these available options through an aggregate plan. Demand forecast for upcoming months are shown in following Table 1. Table 1: Demand Forecast for NYY Jacket Manufacturer Month Demand 1,600 November3,200 800 Each winter jacket is sold for $40 through retailers and also NYY has 1,000 jackets in their inventory in September as well as 80 workers working with the company at the beginning of September. Each month consists of 20 working days and each worker works 8 hours per day straight and rest on overtime. S4 is paid to each worker regular time. Please note that production operation is not limited by the machine capacity as production operation is directly related to the number of labor hours worked. Overtime per employee per month is limited to 10 hours. Table 2 shows the related costs. Table 2: Costs for Jacket Material cost 10/unit S300/worker unit mon $30/unit ing more workers cost ng cost Subcontracting cost Inventory cost unit time cost Overtime cost $6/hour 0/wor yoff cost urs/unit Keep it in mind that NYY does not have any limits on subcontracting out, backlogging, and inventories. Cost of inventory is paid at the end of inventory in the month. All stockouts are supplied from the following month's production or previous month's inventory. President of NYY wants to find the optimal plan that will let them stock 500 jackets in inventory and have no stockouts waiting at the end of February 1. Formulate the problem as an LP model. You need to clearly define () decision variables, (i) objective function, and (iii constraints. Complete LP formulation should be included in the main report. 2. Create an AMPL code to solve the formulated LP and run it. In addition to the main report, you need to turn in four files: (a) a model file, (b) a data file, (c) a script file containing the commands you issue in AMPL to solve the model and display the result, and (d) an output file containing the result of running
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