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Solve the below using Winters Mathematical Modelling: Table-2.1 Costs and other information Item Cost Material cost 15/unit Inventory holding cost 0.3/unit/month Marginal cost of stockout/backlog

Solve the below using Winters Mathematical Modelling:

Table-2.1 Costs and other information

Item Cost
Material cost 15/unit
Inventory holding cost 0.3/unit/month
Marginal cost of stockout/backlog 25/unit
Hiring and training cost 1000/worker
Layoff cost 2000/worker
Labour hours required 3 hours/unit
Regular time cost 6/hour
Overtime cost 12/ hour
Cost of subcontracting 38/unit
Starting workforce size 100
Overtime limitation per worker 10 hours/month
Initial inventory 1000 units
End inventory 1000 units
Shift 1
Hours per day 8
Days per month 4 weeks * 5 days
Selling price 40/unit

Table-2.2 Demand Forecast of 2020

Forecast Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 5,000 3,000 4,000 3,000 7,000 6,000 8,000 11,000 20,000 20,000 22,000 8,000

The operational data of costs and other information of South West Electronics (SWE) Ltd are provided in table-2.1. Using the demand forecast given in table-2.2, make an aggregate production plan of 2020 for SWE. Please specify how you build your planning model with necessary calculation progress included and conclude your forecasting results.

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