Planning Plant Production

Store Name:
Owner Name:

The 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.

0
###

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

4. You must use the Solver routine and receive a optimal solution. The model has 8 decision variables (cells that are p
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.

1st (1-13)
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

2,000
338
Numbers

Units of measure
60 employees
6

3,000
2,500

$20.00 per hour

$30.00 per hour
7.5 hours
2 hours

2,000
1,500
1,000

$1.00 per case (per year)

500

$2.40 per case

$5,000.00 per employee
$3,000.00 per employee

1st (1-13)
15.00
2.00

4th (40-52)
2,650
338

Fore cas

450 Cases per hour

Aggregate Plan
Lines run
Overtime hours per day

Quarter (Week Numbers)

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

1st (1-13)

Fo

Quarter (Week Numbers)

2nd (14-26)
3rd (27-39)
15.00
###
2.00
###

4th (40-52)
15.00
2.00

Beginning Inventory
Production
Expected Demand
Demand from simulation
Ending Inventory

200.0
4,168.1
2,000.0
139.0
2,368.1

2,368.1
4,168.1
2,200.0
0.0
4,336.3

4,336.3
4,168.1
2,500.0
0.0
6,004.4

6,004.4
4,168.1
2,650.0
0.0
7,522.5

Deviation from Inventory Target

Employees

2,029.7
90

3,951.6
90

5,596.7
90

7,184.0
90

Cost of Plan

2nd (14-2

Labor Regular Time

Labor Overtime
Hiring and Training
Layoff
Inventory Carry Cost
Stockout Cost
Quarter Budget

$0

$0

$0

$0

Total Cost of Plan

$0

1st (Next Year)

Notes
2,200 Each number is a 13 week forecast.
This is calculated based on 6 weeks of future forecast
demand.
Fore cas t Dem and by Quarte r (1,000 Cas e Units )
3,000
2,500
2,000
1,500
1,000
500
0

1st (1-13)

Profit margin loss

2nd (14-26)

3rd (27-39)

Forecast Demand

Simulation Demand

4th (40-52)

1st (Next Year)

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

1st

2nd

3rd

4th

Wk

Lines Scheduled

Overtime
Scheduled
(hours)

Beginning
Inventory

Scheduled
Production

Forecast Demand

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

15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15

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
400.9
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320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6
320.6

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

Expected Ending Expected WeeksInventory

of-Supply

366.8
567.6
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2.4
3.7
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Actual Production
Rate (cases/hour)

477

Actual Demand (1,000

Actual Production
Cases)

139.0

339.9

Actual Ending
Inventory

400.9
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Actual Costs

Qtr

1st

2nd

3rd

4th

Wk
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

Regular
Production
Cost
72,000

Overtime
Production
Cost
27,000

Inventory
Carrying Cost

Stockout Cost

7,709

Hiring and
Training Cost

Layoff Cost

Total For Week

Cumulative

150,000
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
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
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0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

256,709

256,709
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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