Planning Plant Production

Store Name:

abc

Owner Name: abcd

The abc business has been a great success. In an effort to diversify into other
markets, the board of directors has purchased controlling stock of Bradford
Manufacturing. Detail of this problem starts on page 552 of your text. The
purpose of this assignment is to use Solver to forecast the number of
production lines and overtime hours for each quarter.

1
5

abc Production Planning

For the Aggregate Plan worksheet
1. You must enter your business name and your name on the Story Problem worksheet.
2. You must put your name as it appears on you student ID on the properties page of this workbook.
3. Examine the Simulation and Actual Costs worksheets. Be sure there are no errors in the cells (#value).
3. Complete the 'Cost of Plan' table on the Aggregate Planning worksheet. You must use the =sum() function for
each cell.
4. You must use the Solver routine and receive a optimal solution. The model has 8 decision variables (cells that
are permitted to vary). This corresponds to the cells for the 'Lines run' and 'Overtime hours per day' for each of
the four quarters.

5. Minimize the 'Total cost of plan'.

1,000 case units.

Forecast Demand
Ending Inventory Target
Planning Data
Initial number of employees
Employees per line
Standard production rate (each line)
Employee pay rate
Overtime pay rate
Standard hours per shift
Maximum overtime per day
Inventory carry cost
Stockout cost
Employee hiring and training cost
Employee layoff cost

1st (1-13)
2,000
338
Numbers
48
6
450
$20.00
$30.00
7.5
2
$1.00
$2.40
$5,000.00
$3,000.00

Aggregate Plan
Lines run
Overtime hours per day
Beginning Inventory
Production
Expected Demand
Demand from simulation
Ending Inventory
Deviation from Inventory Target
Employees
Cost of Plan
Labor Regular Time
Labor Overtime
Hiring and Training
Layoff
Inventory Carry Cost
Stockout Cost
Quarter Budget

1st (1-13)
8.00
2.00

Quarter (Week Numbers)

2nd (14-26)
3rd (27-39)
2,200
2,500
385
408

4th (40-52) 1st (Next Year)

Notes
2,650
2,200 Each number is a 13 week forecast.
338
This is calculated based on 6 weeks of future
forecast demand.

Units of measure
employees

Forecast Demand by Quarter (1,000 Case Units)

3,500

Cases per hour

per hour
per hour
hours
hours
per case (per year)
per case
per employee
per employee

3,000
2,500
2,000

1,500
1,000
500

Profit margin loss

0
1st (1-13)

Quarter (Week Numbers)

2nd (14-26)
3rd (27-39)
8.00
9.00
2.00
2.00

2nd (14-26)

3rd (27-39)
Forecast Demand
Simulation Demand

4th (40-52)

1st (Next Year)

4th (40-52)
10.00
2.00

200.0
2,223.0
2,000.0
1,979.0
423.0

423.0
2,223.0
2,200.0
2,071.0
446.0

446.0
2,500.9
2,500.0
2,602.0
446.9

446.9
2,778.8
2,650.0
2,876.0
575.6

84.5
48

61.4
48

39.2
54

237.2
60

$499,200
$5,760
$240,000
$0
$106
$0
$745,066

$499,200
$5,760
$0
$0
$112
$0
$505,072

$561,600
$6,480
$30,000
$0
$112
$0
$598,192

$624,000
$7,200
$30,000
$0
$144
$0
$661,344

Total Cost of Plan

$2,509,673

Employees are paid for 8 hrs work per day.

60 employees are employed currently.
Carrying cost per year, divided by 4, multiplied by 1,000.
Basic on negative deviation from target.

Simulation Worksheet

Qtr Wk

1st

2nd

3rd

4th

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52

Lines
Scheduled

Overtime
Scheduled
(hours)

Beginning
Inventory

Scheduled
Production

Forecast
Demand

Expected
Ending
Inventory

Expected
Weeks-ofSupply

Actual Production
Rate (cases/hour)

Actual Demand
(1,000 Cases)

Actual
Production

Actual Ending
Inventory

8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
9
9
9
9
9
9
9
9
9
9
9
9
9
10
10
10
10
10
10
10
10
10
10
10
10
10

2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2

200.0
222.8
248.7
278.1
310.3
345.3
382.0
421.1
462.2
502.3
540.7
577.6
611.4
643.1
672.7
701.7
729.2
755.8
780.5
802.3
821.8
838.4
848.1
850.6
846.1
833.8
814.9
809.0
799.8
787.0
770.2
750.7
728.2
702.4
674.5
642.6
608.6
571.1
531.8
489.7
464.8
441.8
419.7
399.9
382.5
367.5
356.4
348.6
344.2
343.7
347.5
355.7

171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
171.0
192.4
192.4
192.4
192.4
192.4
192.4
192.4
192.4
192.4
192.4
192.4
192.4
192.4
213.8
213.8
213.8
213.8
213.8
213.8
213.8
213.8
213.8
213.8
213.8
213.8
213.8

153.8
153.8
153.8
153.8
153.8
153.8
153.8
153.8
153.8
153.8
153.8
153.8
153.8
169.2
169.2
169.2
169.2
169.2
169.2
169.2
169.2
169.2
169.2
169.2
169.2
169.2
192.3
192.3
192.3
192.3
192.3
192.3
192.3
192.3
192.3
192.3
192.3
192.3
192.3
203.8
203.8
203.8
203.8
203.8
203.8
203.8
203.8
203.8
203.8
203.8
203.8
203.8

217.2
239.9
265.9
295.3
327.5
362.5
399.2
438.3
479.4
519.5
557.8
594.8
628.6
644.9
674.4
703.4
730.9
757.5
782.2
804.0
823.6
840.2
849.9
852.3
847.9
835.5
814.9
809.1
799.9
787.0
770.3
750.7
728.3
702.4
674.6
642.7
608.7
571.1
531.8
499.6
474.7
451.7
429.6
409.8
392.4
377.4
366.3
358.5
354.1
353.6
357.4
365.6

1.4
1.6
1.7
1.9
2.1
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.7
3.8
4.0
4.2
4.3
4.5
4.6
4.8
4.8
4.7
4.7
4.6
4.5
4.3
4.2
4.2
4.2
4.1
4.0
3.9
3.8
3.6
3.4
3.2
3.0
2.8
2.6
2.5
2.3
2.2
2.1
2.0
1.9
1.9
1.8
1.8
1.7
1.7
1.8
1.8

481
484
488
490
492
494
495
495
495
493
492
489
486
483
479
475
470
465
460
454
449
444
438
433
428
424
419
416
412
410
408
406
405
405
405
407
408
411
414
417
421
425
430
435
440
446
451
456
462
467
472
476

160.0
158.0
156.0
154.0
152.0
151.0
149.0
147.0
148.0
149.0
150.0
152.0
153.0
154.0
153.0
153.0
152.0
152.0
153.0
153.0
154.0
159.0
164.0
169.0
175.0
180.0
185.0
187.0
189.0
192.0
194.0
196.0
199.0
201.0
205.0
208.0
212.0
215.0
219.0
223.0
223.0
224.0
224.0
224.0
224.0
223.0
222.0
221.0
220.0
218.0
216.0
214.0

182.8
183.9
185.4
186.2
187.0
187.7
188.1
188.1
188.1
187.3
187.0
185.8
184.7
183.5
182.0
180.5
178.6
176.7
174.8
172.5
170.6
168.7
166.4
164.5
162.6
161.1
179.1
177.8
176.1
175.3
174.4
173.6
173.1
173.1
173.1
174.0
174.4
175.7
177.0
198.1
200.0
201.9
204.3
206.6
209.0
211.9
214.2
216.6
219.5
221.8
224.2
226.1

222.8
248.7
278.1
310.3
345.3
382.0
421.1
462.2
502.3
540.7
577.6
611.4
643.1
672.7
701.7
729.2
755.8
780.5
802.3
821.8
838.4
848.1
850.6
846.1
833.8
814.9
809.0
799.8
787.0
770.2
750.7
728.2
702.4
674.5
642.6
608.6
571.1
531.8
489.7
464.8
441.8
419.7
399.9
382.5
367.5
356.4
348.6
344.2
343.7
347.5
355.7
367.8

Actual Costs
Regular
Qtr Wk Production
Cost
1
38,400
2
38,400
3
38,400
4
38,400
5
38,400
6
38,400
1st 7
38,400
8
38,400
9
38,400
10
38,400
11
38,400
12
38,400
13
38,400
14
38,400
15
38,400
16
38,400
17
38,400
18
38,400
19
38,400
2nd 20
38,400
21
38,400
22
38,400
23
38,400
24
38,400
25
38,400
26
38,400
27
43,200
28
43,200
29
43,200
30
43,200
31
43,200
32
43,200
3rd 33
43,200
34
43,200
35
43,200
36
43,200
37
43,200
38
43,200
39
43,200
40
48,000
41
48,000
42
48,000
43
48,000
44
48,000
45
48,000
4th 46
48,000
47
48,000
48
48,000
49
48,000
50
48,000
51
48,000
52
48,000

Overtime
Production
Cost
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
14,400
16,200
16,200
16,200
16,200
16,200
16,200
16,200
16,200
16,200
16,200
16,200
16,200
16,200
18,000
18,000
18,000
18,000
18,000
18,000
18,000
18,000
18,000
18,000
18,000
18,000
18,000

Inventory
Carrying
Cost
4,284
4,783
5,349
5,968
6,640
7,347
8,098
8,889
9,660
10,397
11,108
11,758
12,368
12,936
13,494
14,023
14,534
15,009
15,428
15,804
16,123
16,310
16,357
16,272
16,034
15,671
15,558
15,382
15,134
14,812
14,436
14,004
13,507
12,971
12,359
11,705
10,982
10,226
9,418
8,939
8,496
8,071
7,691
7,357
7,068
6,854
6,704
6,620
6,609
6,683
6,840
7,073

Stockout
Cost
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Hiring and
Training
Cost
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30,000
0
0
0
0
0
0
0
0
0
0
0
0
30,000
0
0
0
0
0
0
0
0
0
0
0
0

Layoff Cost

Total For
Week

Cumulative

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

57,084
57,583
58,149
58,768
59,440
60,147
60,898
61,689
62,460
63,197
63,908
64,558
65,168
65,736
66,294
66,823
67,334
67,809
68,228
68,604
68,923
69,110
69,157
69,072
68,834
68,471
104,958
74,782
74,534
74,212
73,836
73,404
72,907
72,371
71,759
71,105
70,382
69,626
68,818
104,939
74,496
74,071
73,691
73,357
73,068
72,854
72,704
72,620
72,609
72,683
72,840
73,073

57,084
114,667
172,816
231,584
291,024
351,171
412,069
473,758
536,218
599,415
663,323
727,882
793,050
858,785
925,079
991,902
1,059,236
1,127,045
1,195,274
1,263,878
1,332,801
1,401,912
1,471,069
1,540,140
1,608,974
1,677,445
1,782,403
1,857,184
1,931,718
2,005,931
2,079,767
2,153,171
2,226,078
2,298,450
2,370,208
2,441,313
2,511,695
2,581,321
2,650,139
2,755,078
2,829,574
2,903,644
2,977,335
3,050,692
3,123,760
3,196,614
3,269,318
3,341,938
3,414,547
3,487,229
3,560,070
3,633,143