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You have seen the planning of beer production at the Hogshead Brewery. It is now time to update the plan in a rolling horizon
You have seen the planning of beer production at the Hogshead Brewery. It is now time to update the plan in a rolling horizon fashion and to take the latest demand forecasts into consideration. To simplify the calculations, the year from March 1, 2020, to February 28, 2021, has been divided into six two-month periods, with demand forecasts given in the table below. Period Demand March/April 700 May/June 900 July/Aug 1200 Sep/Oct 900 Nov/Dec 900 Jan/Feb 21 800 Other data are as given in the class exercise, that is, each worker earns $4000 per month (or $8000 per two-month period) and can make 10 units (thousands of barrels of beer) per month (or 20 units per two-month period). Hiring a worker costs $6000, firing a worker costs $4000. Inventory in storage at the end of each two-month period will be assessed a cost of $200 per unit (thousands of barrels of beer). Due to implementing the previous production plan for January and February, the current work force is 38 workers, and the inventory at the end of February will be 100 units. The intention is to end with the same level of inventory on 28 February, 2021, although the inventory in intermediate months can be varied stockouts occur. There should be no overtime used --- as long as no
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