(10 Points) Given your industrial engineering background, you were asked to prepare a production plan with the minimum cost. Formulate the problem of determining the minimum cost plan for Asir Inc. as a linear program. Be sure to define all decision variables, cost components of the objective function, and constraints.

(10 Points) Given your industrial engineering background, you were asked to prepare a production plan with the minimum cost. Formulate the problem of determining the minimum cost plan for Asir Inc. as a linear program. Be sure to define all decision variables, cost components of the objective function, and constraints.

 

Solution

b. Chase Approach (Hiring and Firing):

Starting inventory = 4,500 cases.

100 workers produce 12,000 cases.

1 worker produces 120 cases. So 1 case is equivalent to (1 / 120) worker.

Period

Forecast Demand

Hiring