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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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