Question

makes skis, unow boar and high end sledding equsipment As shown below,t Slopes & S the demand for its peoducts is highly seasonal. The company empleys 10 workers who can each produce 200 units of various eqipmest per s limaited to regla production each period Subcontracting is unlimined Haring and fxing costs are $500 per workn laventory holding coss are $2 per unit per month Grven the estimates of demand below, a. the current workforce level (uapplemented with overtime and create an aggregate production plam for Slopes&Sleds and calcvlate the cost of the plan using b chase demand c. linear peogramming with Solver d subcontracting The global souecing departmest of Slopes &Sleds has locannd a company in China that can make S&S peodacts for $9 a unit Revine the production plan using Solver. How much money can be saved by outsourcing to Chna January 6400 Felesary 7000 March Apnl May 1500 600 Jaly Asgust2000 Septersber1400 October 1500 November $200 December 6900 Slopes & Sleds (S&S) makes skis, snowboards, and high-end sledding equipment As shown below, the demand for its products is highly seasonal. The company employs 10 workers who can each produce 200 units of various equipment per month. The cost of regular production is $8 per unit, overtime $12, and subcontracting $16. Overtime is limited to regular production each period Subcontracting is unlimited. Hiring and firing costs are $500 per worker. Inventory holding costs are $2 per unit per month. Given the estimates of demand below, create an aggregate production plan for Slopes & Sleds and calculate the cost of the plan using I a. The current workforce level (supplemented with overtime and subcontracting as needed), Chase demand c. Linear programming with Solver. d. Subcontracting. The global sourcing department of Slopes &Sleds has located a company in China that can make S&S products for $9 a unit. Revise the production plan using Solver How much money can be saved by outsourcing to China? MONTH DEMAND January 6400 February 7000 March April May June July August September 1400 October1500 November 5200 December 6900 1500 500 600 1400 1600 2000

Answer 1

Month Demand Forecast anuary 6400 March 1500 Month Demand Forecast February 7000 November 5200 a. Current Workforce with Overtime and Subcontracting as needed $500 $500 InputBeg. Wkrs 10 0 2 Subk #wkrs #Hired #Fired 6400 2,000 2,000 2,400 7000 2,000 2,000 3,000 1 5 0 2,600 36,000 24,000 6,600 5,400 31,500 120 Cost: $421,800

5 0 0 0 0 3 0 0 0 36 ir 0 0 22 300141201 19 9 60 35 8 3 3 7 8 10 7 8 26 35 180 32 0 0 0 0 0 0 0 0 0 0 0 0 n 0 0 0 04529 1121156 3 0 4604529 1121156 th Non Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tea C