Case Study

Mintendo Game Girl

Demand for Game Girls
Month Demand Forcast
July 100,000
August 110,000
September 130,000
October 180,000
November 250,000
December 300,000
Total 1,070,000

Costs for Mintendo/We "R" toys

Item
Material cost/unit
Inventory holding cost/unit/month
Marginal cost of a stockout/unit/month
Hiring and training costs/worker
Layoff cost/worker
Labor hour required/unit
Regular-time cost/hour
Overtime cost/hour
Cost of subcontracting/unit
Cost
$ 12.00
$ 4.00
$ 10.00
$ 3,000.00
$ 5,000.00
0.25
$ 15.00
$ 22.50
$ 18.00
Aggregate Plan Decision Variables
Ht Lt Wt Ot It St Ct
Period # hired # Laid off # Workforce Overtime Inventory Stockout Subcontract
0 - - 300 - 50,000 - -
1 - - - - - - -
2 - - - - - - -
3 - - - - - - -
4 - - - - - - -
5 - - - - - - -
6 - - - - - - -

Aggregate plan Costs

Period Hiring Lay off Regular time Over time Inventory Stockout Subcontract
1 0 0 0 0 0 0 0
2 0 0 0 0 0 0 0
3 0 0 0 0 0 0 0
4 0 0 0 0 0 0 0
5 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0

Total Cost = 0
Total revenu = 53,500,000
profit = 53,500,000
 Constraints
Pt
Production Demand Workforce Production Inventory Over Time
-
- 100,000 -300 - -50,000 -
- 110,000 - - -110,000 -
- 130,000 - - -130,000 -
- 180,000 - - -180,000 -
- 250,000 - - -250,000 -
- 300,000 - - -300,000 -

material
0
0
0
0
0
0