Aggregate Planning

Number of Employee as on Dec end 80

Opening Stock 1000 Plant Closing Stock 500
Jan Feb Mar Apr May Jun
Decision variables DEMAND 1600 3000 3200 3800 2200 2200
1 Regular production qty 2600 2600 2600 2560 2560 2560
2 Overtime production qty 0 0 0 20 0 0
3 Sub-contract qty 0 0 0 0 0 0
4 Total produced 2600 2600 2600 2580 2560 2560
5 How many hired 0 0 0 0 0 0
6 How many fired 15 0 0 1 0 0
7 How many employees you got 65 65 65 64 64 64
8 Inventory 2000 1600 1000 -220 140 500
9 Inventory carry forward 2000 1600 1000 0 140 500
10 Inventory Backlog 0 0 0 220 0 0
Difference 2000 1600 1000 -220 140 500
Constraints
1 Regular production capacity 2600 2600 2600 2560 2560 2560
2 Overtime production capacity 162.5 162.5 162.5 160 160 160

Decision Variables Total cost excluding material

Constraints
 Material Cost 10
Total Cost Inventory Holding Cost 2 per unit per month
16000 Backlog or % of canceled order 5 per unit per month
15480 Hiring Cost 300 per person
20 480 Firing Cost 500 per person
0 0 Labour Hours Required per unit 4 per unit
15500 Regular time cost 4 per Hr
0 0 Overtime cost 6 per Hr
16 8000 Subcontracting cost per unit 30 It is not given whether the 30 is
387 247680 with material or without mat
Regular time cost 16
5240 10480 OT pdn cost 24
220 1100 Mat+Regular pdt cost 26
Material + OT cost 34

Number of working days in month 20

Number of hours working per day 8
Max overtime in a month 10
excluding material 267740
her the 30 is
Employee at june end 300
Opening Inventory 50000 Ending inventory 50000
July August SeptemberOctober NovemberDecemberTotal
Demand 100000 110000 130000 180000 250000 300000 1070000
Regular 50000 110000 186880 186880 186880 186880 907520
OT 0 0 0 0 0 46720 46720
Sub-cont 0 0 0 0 0 115760 115760
total pdt 50000 110000 186880 186880 186880 349360 1070000
Hired 0 0 0 0 0 0 0
Fired 8 0 0 0 0 0 8
employee 292 292 292 292 292 292 1752
Inventory 0 0 56880 63760 640 50000 171280
Inv carry 0 0 56880 63760 640 50000 171280
Inv backlog 0 0 0 0 0 0 0
resting inv 0 0 56880 63760 640 50000

Reg cap 186880 186880 186880 186880 186880 186880

OT cap 46720 46720 46720 46720 46720 46720

160 Total Cost

640
186880
 Assumption - Sub contracting cost is including material as regular pdtn cost is 3.75
Cost OT cost is 5.625 so SC cost is with material
Material Cost 12 per unit
11450880 Inv Holding cost 2 per unit/month
262800 Stockout cost 10 per unit/month
2083680 Hiring cost 3000
Layoff cost 5000
0 Labour hour req 0.25 per unit
40000 Regular time cost 15 per hour
4204800 OT cost 22.5 per hour
Sub-contracting cost 18 per unit
342560
0 Regular time cost 3.75 15.75 Including material cost
OT cost 5.625 17.625 Including material cost

No of working days 20 per month

Regular hours 8 per day
OT 40 per month
18384720
640
160