Resource Optimization Exercise

Given

Month
1 2 3 4 5
Forecast Demand 200 250 200 180 170
Capacity
Regular 180 150 180 180 160
Overtime 10 20 0 10 10

Cost per
unit
Regular time $ 60.00
Overtime $ 85.00
Subcontract $ 90.00
Inventory, per pe $ 4.00
Backlog $ 6.00

Constraints
Subcontracting <= 20 units/month
Beginning invento= 0 units
Backorders = 0 units
 Solution

Month
6 1 2 3
160 Demand Forecast 200 250 200
Output
160 Regular time 180 150 180
20 Overtime 0 0 0
Subcontract 20 20 20

Output - Forecast 0 0
Inventory
Beginning 0 0 0
Ending 0 -80 0
Average 0 -40 0
Backlog 0 0 0
Costs:
Regular time $ 10,800 $ 9,000 $ 10,800
Overtime $ - $ - $ -
Subonctract $ 1,800 $ 1,800 $ 1,800
Inventory $ - $ (160) $ -
Backlog $ - $ - $ -
Total $ 12,600 $ 10,640 $ 12,600

Objective - Min Cost $ 68,380

Month
4 5 6 Total
180 170 160 1160

180 160 160 1010

0 0 0 0
10 10 10 90

10 0 10

0 0 0 0
20 0 20 -40
10 0 10 -20
-20 0 -20 -40

$ 10,800 $ 9,600 $ 9,600 $ 60,600

$ - $ - $ - $ -
$ 900 $ 900 $ 900 $ 8,100
$ 40 $ - $ 40 $ (80)
$ (120) $ - $ (120) $ (240)
$ 11,620 $ 10,500 $ 10,420 $ 68,380