Question

Autoco produces cars. Demand during each of the next 12 months is forecasted to be 945, 791, 364, 725, 268, 132, 160, 304, 989, 293, 279, and 794. It costs $500 to hold a car in inventory for a month. Workers are paid $5,000 per month. It costs $4,000 to hire and $20,000 to fire a worker. Workers are hired and fired at beginning of each month. Each worker can make up to 8 cars a month. At the beginning of month 1 there are 500 cars in inventory and 60 workers. Formulate an appropriate mathematical model to minimize the cost of meeting demand for cars on time.

Answer 1

mulatto gfven belous Theye are 36 Dectstornaiablep H month t . . vepsejent The Invenhory at 术where wets The flo mber o workore available m mnth

B CDE F GHIJK L M NOP QR STU VWX Y Z AA AB AC AD AE 0 P1 P10 P11 P12 624 I5521552 1360 1360 360 360 464 464 464 464 1714 19219 111 3395391595 70 241 426 96 1 .1 1-1 -1 | 7941 = 1794 Total Workers60 7n 78 69 69 45 45 45 45 58 58 58 58 Solver Parameters 0 00o0 0 13 00 0 Set Target Cel: SE$2 Br Changing Cells Units Rate Amount Formula 31 4,000 124,000 03-017 33 20,000 660,000 D18-CI7+D18-D19 D18 018 Subject to the Constraints: Holding Cost 2803 500 1,401,500 AB 705 5,000 3,525,000 C22-SUM(C18:018 C23-SUM(c19:019) C24-SUM(P3 AA3) Change objective Function -Total Cost 5,710,500 Reset Al