University Of Windsor

INDUSTRIAL & MANUFACTURING SYSTEMS ENGINEERING

91-503-01/92-590-61 Production & Inventory Control
Fall 2014 Term

Assignment 1 (total 70 points)

Due time: October 16, 2014, 11pm
Chapter 1
Question 1: Problem 30 on page 37 (15 points)

Question2: Problem 34 on page 38 (5 points)

Chapter 2

Question 3: Problem 24 on page 73 (10 points)

Question 4: Problem 30 on page 78 (10 points)


Question 5: Extra problem:(15 points)

ThreeStar, an online computer store, has had the following demand history
by quarters over a three-year period.

2005 demand 2006 demand 2007 demand
1 24 1 32 1 42
2 15 2 19 2 27
3 55 3 66 3 72
4 78 4 85 4 98

a. Determine the seasonal factors for each quarter by the method of
centered moving average
b. Based on the result of part (a), determine the deseasonalized demand
series.
c. Predict the demand for each quarter of 2008 by using regression
analysis to the deseasonalized series.


Chapter 3

Question 6 (15 points)

The Yeasty Brewing Company Produces a popular local beer known as Iron Stomach.
Beer sales are somewhat seasonal, and Yeasty is planning its production and workforce
levels on March 31 for the next six months. The demand forecasts are as follows:

Month Production
Days
Forecasted Demand
(in hundreds of cases)
April 14 75
May 20 100
June 24 200
July 26 140
August 20 100
September 18 50


As of March 31, Yeasty had 70 workers on the payroll. Over a period of 20 working days
when there are 100 workers on the pay roll, Yeasty produced 10,000 cases of beer. The
cost to hire each worker is $200 and the cost of laying off each worker is $400. Holding
costs amount to 1 dollar per case per month.

As of March 31, Yeasty expects to have 3,000 cases of beer in stock, and it wants to
maintain a minimum buffer of 500 cases each month. It plans to start October with 3,500
cases on hand.

a) Based on this information, find the minimum constant workforce plan for Yeasty
over the six months, and determine hiring, firing, and holding costs associated
with that plan.
b) Determine the zero inventory plan and the cost of that plan.

c) Formulate the problem of planning Yeastys production levels as a linear
program.
d) Suppose Yeasty does not wish to fire any workers. How to change your model
subject to this constraint?