RT Cost

OT Cost
Inventory Carrying Cost
Shortage Cost

100
130
20
500

per unit
per unit
per unit per month
per unit per month

January February

Period
Demand
Beginning Inventory
RT Days
OT Days
RT Capacity
RT Production
OT Capacity
OT Production
Total Capacity (RT + OT Capacity)
RT Cost
OT Cost
Ending Inventory (- -> Shortage)
Inventory Cost
Shortage Cost

24 Capacity constraints

March

April

May

3000
1000
22
4
2288
2288
416
412
2704
228800
53560
700
14000
0

3000
700
18
4
1872
1872
416
378
2288
187200
49140
-50
0
25000

2500
-50
22
5
2288
2288
520
512
2808
228800
66560
250
5000
0

1500
250
19
4
1976
1976
416
374
2392
197600
48620
1100
22000
0

2000
1100
23
5
2392
2392
520
508
2912
239200
66040
2000
40000
0

296360

261340

300360

268220

345240

700

-50

250

1100

2000

700

-50

250

1100

2000

<=

12 RT prodn. Variables
12 OT prodn. Variables
12 inventory variables
12 shortage quantity

(I3 - S3 + R4 + O4) - D4 = I4
(((It-1) - (St-1) + Rt + Ot) - Dt) = It - St

RT
People
Prodn. Time

16
65
10

Inventory

Cpacity
RT Days
Total Capacity

104 units per day

249
25896 with RT only

Beginning Inventory + RT Prodn. Quantity + OT Prodn. Quantity

June

July

August September

October

November

December

3000
550
18
4
1872
1872
416
378
2288
187200
49140
-200
0
100000

2800
-200
21
5
2184
2184
520
516
2704
218400
67080
-300
0
150000

2000
-300
20
4
2080
2080
416
320
2496
208000
41600
100
2000
0

1000
100
22
5
2288
900
520
2808
90000
0
0
0
0

Total
30300
8850
249
54
25896
24508
5616
4792
31512
2450800
622960
7850
168000
275000

2500
2000
20
4
2080
2080
416
370
2496
208000
48100
1950
39000
0

3000
1950
22
5
2288
2288
520
512
2808
228800
66560
1750
35000
0

4000
1750
22
5
2288
2288
520
512
2808
228800
66560
550
11000
0

295100

330360

306360

336340

435480

251600

90000

3516760

1950

1750

550

-200

-300

100

1950

1750

550

-200

-300

100

OT Days
Capacity addition with OT
Total Capacity (RT + OT)

54
5616
31512

If Inventory > Demand --> Inventory Carrying Cost

If Inventory < Demand --> Shortage Cost