Assignment 5

1. Problem 6--Ch. 9. Chart is not necessary.

2. Problem 10—Ch. 9

3. Problem 11—C. 9, answer only parts a. to d.

4. Problem 5, supplement C. Do parts a. and b. only.

5. Problem 20—Ch 9. In part c., also calculate the annual cost of holding safety stock.

6. Problem 26—Ch. 9

7. Problem 1—Ch 12

8. Problem 3—Ch 12

9. Pyramids Industries has estimated the aggregate demand, cost, and production data for
the next six months as follows:

Cost Data
Hiring cost/worker $200.00
Layoff cost/worker $100.00
Regular time cost/hour $7.00
Holding cost/unit/month $8.00
Overtime cost/hour $11.00

Production Data
Working hours/month 160
Labour hours/unit 4
Beginning Inventory 250
Beginning Workforce 20
Planning horizon 6
(months)

Monthly Demand Data

May 500
June 700
July 1,200
Aug. 1,300
Sept. 900
Oct. 800

1
Develop three aggregate production schedules to:

i) Produce exactly enough units to satisfy the demand each month using regular time by
varying the size of the workforce. What is the overall cost?
ii) Produce using current workforce size on regular time as well as over time. Build
inventory (using regular time labour) in low demand months. In high demand months,
use the overtime preferably on as needed basis. What is your overall cost?
iii) Assume that hiring-layoff, regular time, overtime and inventory carrying options are
available; however, overtime production in a given month cannot exceed 15% of the
regular time production. Develop a linear programming model assuming that the ending
inventory for October must be at least 80 units.

10. Problem 7--Ch. 11.

In part b), we will use all prior ATP quantities (i.e., we will use cumulative ATP) to fill a
new order. In this case, we can use period 1 and period 2 ATP quantities to fill the new
order, i.e., shipping time will be week 2.

11. Problem 16—Ch. 11.

12. Problem 22---Ch. 11.

Assume that the scheduled receipt for item C of 200 units is in (i.e. at the beginning of)
week 2 and not in week3 as given in the question.