Case Study

Mintendo Game Girl

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

Costs for Mintendo/We "R" toys Item Cost 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 $

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
Period 0 1 2 3 4 5 6 # hired -

Lt
# Laid off -

Wt

Ot

It

St

Ct
Subcontract -

# Workforce Overtime 300 -

Inventory Stockout 50,000 -

Aggregate plan Costs Period 1 2 3 4 5 6 Total Cost = Total revenu = profit = Hiring 0 0 0 0 0 0 Lay off 0 0 0 0 0 0 0 53,500,000 53,500,000 Regular time Over time 0 0 0 0 0 0 Inventory 0 0 0 0 0 0 0 0 0 0 0 0 Stockout 0 0 0 0 0 0 Subcontract 0 0 0 0 0 0

Constraints

Pt
Production Demand 100,000 110,000 130,000 180,000 250,000 300,000 Workforce -300 Production Inventory -50,000 -110,000 -130,000 -180,000 -250,000 -300,000 Over Time -

material 0 0 0 0 0 0