AGGREGATE PLANNING

Regular time production cost (rt) 100 Hours/person day

Over time Production Cost (ot) 130 Hours to produce one unit
Inventory cost (i) 20 Number of people (w)
Shortage Cost (s) 500

Month Beg Inv Demand RT days OT days RT Capacity RT Production OT Capacity

Ene 1000 3000 22 4 2288 2288 416

Feb 704 3000 18 4 1872 1872 416
Mar -8 2500 22 5 2288 2288 520
Abr 300 1500 19 4 1976 1976 416
May 1190 2000 23 5 2392 2392 520
Jun 2102 2500 20 4 2080 2080 416
Jul 2098 3000 22 5 2288 2288 520
Ago 1906 4000 22 5 2288 2288 520
Sep 714 3000 18 4 1872 1872 416
Oct -86 2800 21 5 2184 2184 520
Nov -182 2000 20 4 2080 2080 416
Dic 218 1000 22 5 2288 694 520

Total 30300 249 54 25896 24302 5616

 16
10
65

RT Cost OT Cost Inv. Cost Shortage cost

OT Prod. Total Capacity Total Prod. End Inv. (100M) (100M) (100M) (100M) Total Cost

416 2704 2704 704 2.288 0.5408 0.1408 0 2.9696

416 2288 2288 -8 1.872 0.5408 -0.0016 -0.04 2.4512
520 2808 2808 300 2.288 0.6760 0.06 0 3.024
414 2392 2390 1190 1.976 0.5382 0.238 0 2.7522
520 2912 2912 2102 2.392 0.6760 0.4204 0 3.4884
416 2496 2496 2098 2.08 0.5408 0.4196 0 3.0404
520 2808 2808 1906 2.288 0.6760 0.3812 0 3.3452
520 2808 2808 714 2.288 0.6760 0.1428 0 3.1068
328 2288 2200 -86 1.872 0.4264 -0.0172 -0.43 2.7112
520 2704 2704 -182 2.184 0.6760 -0.0364 -0.91 3.7336
320 2496 2400 218 2.08 0.4160 0.0436 0 2.5396
0 2808 694 -88 0.694 0.0000 -0.0176 -0.44 1.1164

4910 31512 29212 8868 24.302 6.383 1.7736 -1.82 34.2786

Minimize ∑24_(𝑡=1)^𝑇▒ 〖 (𝑟_𝑡 𝑅_𝑡+𝑜_𝑡 𝑂_𝑡+𝑖_𝑡 𝐼_𝑡+𝑠_𝑡 𝑆_𝑡) 〗
Subject to
Inventory balance
𝐼_(𝑡−1)−𝑆_(𝑡−1)+𝑅_𝑡+𝑂_𝑡−𝐷_𝑡=𝐼_𝑡−𝑆_𝑡
Capacity Balance
𝑅_𝑡≤𝐾_1 𝑊_𝑡 𝑅𝑇𝑑𝑎𝑦𝑠
Overtime capacity balance
𝑂_𝑡≤𝐾_1 𝑊_𝑡 𝑂𝑇𝑑𝑎𝑦𝑠
All varariables ≥0
+𝑠_𝑡 𝑆_𝑡) 〗
 AGGREGATE PLANNING
Regular time production cost (rt) 100 Hours/person day
Over time Production Cost (ot) 130 Hours to produce one unit
Inventory cost (i) 20 Number of people (w)
Shortage Cost (s) 500

Month Beg Inv Demand RT days OT days RT Capacity RT Production OT Capacity

1000
Ene 1000 3000 22 4 2288 2288 416
Feb 704 3000 18 4 1872 1872 416
Mar -8 2500 22 5 2288 2288 520
Abr 300 1500 19 4 1976 1976 416
May 1190 2000 23 5 2392 2392 520
Jun 2102 2500 20 4 2080 2080 416
Jul 2098 3000 22 5 2288 2288 520
Ago 1906 4000 22 5 2288 2288 520
Sep 714 3000 18 4 1872 1872 416
Oct -86 2800 21 5 2184 2184 520
Nov -182 2000 20 4 2080 2080 416
Dic 218 1000 22 5 2288 2288 520

Total 30300 249 54 25896 25896 5616

Month LHS RHS LHS

Ene 704 704 Ene 2288
Feb -16 -16 Feb 1872
Mar 300 300 Mar 2288
Abr 1190 1190 Abr 1976
May 2102 2102 May 2392
Inventory Jun 2098 2098 Capacity Jun 2080
Constraints Jul 1906 1906 Constraints Jul 2288
Ago 714 714 Ago 2288
Sep -172 -172 Sep 1872
Oct -364 -364 Oct 2184
Nov 218 218 Nov 2080
Dic -176 -176 Dic 2288
 16
10
65

RT Cost OT Cost Inv. Cost Shortage cost

OT Prod. Total Capacity Total Prod. End Inv. (100M) (100M) (100M) (100M)
0
416 2704 2704 704 2.288 0.5408 0.1408 0
408 2288 2288 -8 1.872 0.5304 -0.0016 -0.04
512 2808 2808 300 2.288 0.6656 0.06 0
414 2392 2390 1190 1.976 0.5382 0.238 0
520 2912 2912 2102 2.392 0.6760 0.4204 0
416 2496 2496 2098 2.08 0.5408 0.4196 0
520 2808 2808 1906 2.288 0.6760 0.3812 0
520 2808 2808 714 2.288 0.6760 0.1428 0
242 2288 2200 -86 1.872 0.3146 -0.0172 -0.43
252 2704 2704 -182 2.184 0.3276 -0.0364 -0.91
138 2496 2400 218 2.08 0.1794 0.0436 0
-1682 2808 694 -88 2.288 -2.1866 -0.0176 -0.44

2676 31512 29212 8868 25.896 3.4788 1.7736 -1.82

RHS LHS RHS

2288 Ene 416 416
1872 Feb 408 416
2288 Mar 512 520
1976 Abr 414 416
2392 May 520 520
2080 Overtime Jun 416 416
Capacity
2288 Constarints Jul 520 520
2288 Ago 520 520
1872 Sep 242 416
2184 Oct 252 520
2080 Nov 138 416
2288 Dic -1682 520
Total Cost Shortage
0
2.9696 0
2.4408 8
3.0136 0
2.7522 0
3.4884 0
3.0404 0
3.3452 0
3.1068 0
2.5994 86
3.3852 182
2.303 0
0.5238 88

32.9684
 AGGREGATE PLANNING
Regular time production cost (rt) 100
Over time Production Cost (ot) 130
Inventory cost (i) 20
Shortage Cost (s) 500

Manpower
Month Beg Inv Demand RT days OT days Hiring Hiring Layof
58
Ene 1000 3000 22 4 60 2 0
Feb 500 3000 18 4 56 0 4
Mar 0 2500 22 5 62 6 0
Abr 0 1500 19 4 60 0 2
May 0 2000 23 5 66 6 0
Jun 0 2500 20 4 60 0 6
Jul 0 3000 22 5 65 5 0
Ago 0 4000 22 5 64 0 1
Sep 0 3000 18 4 60 0 4
Oct 0 2800 21 5 58 0 2
Nov 0 2000 20 4 55 0 3
Dic 0 1000 22 5 58 3 0

Total 30300 249 54

 Hours/person day 16
Hours to produce one unit 10
Hiring cost (h) 500
Lay off Cost (l) 400
Under utilization (u) 2
Outsourcing (o) 150

RT Capacity RT Production OT Capacity OT Prod. Outsource Total Capacity Total Prod. End Inv.

2112 2112 384 384 4 2496 2500 500

1612.8 1612.8 358.4 358.4 528.8 1971.2 2500 0
2182.4 2182.4 496 317.6 0 2678.4 2500 0
1824 1500 384 0 0 2208 1500 0
2428.8 2000 528 0 0 2956.8 2000 0
1920 1920 384 384 196 2304 2500 0
2288 2288 520 520 192 2808 3000 0
2252.8 2252.8 512 512 1235.2 2764.8 4000 0
1728 1728 384 384 888 2112 3000 0
1948.8 1948.8 464 464 387.2 2412.8 2800 0
1760 1760 352 240 0 2112 2000 0
2041.6 1000 464 0 0 2505.6 1000 0

24099.2 22304.8 5230.4 3564 29329.6 29300

 Under
RT Cost OT Cost Inv. Cost Shortage cost Hiring Cost Layof cost Utilization Total Cost
(100M) (100M) (100M) (100M) (100M) (100M) (100M) (100M)

2.112 0.4992 0.1 0 0.01 0 0 2.7212

1.6128 0.4659 0 0 0 0.016 0 2.09472
2.1824 0.4129 0 0 0.03 0 0 2.62528
1.5 0.0000 0 0 0 0.008 0 1.51448
2 0.0000 0 0 0.03 0 0.0086 2.038576
1.92 0.4992 0 0 0 0.024 0.0000 2.4432
2.288 0.6760 0 0 0.025 0 0 2.989
2.2528 0.6656 0 0 0 0.004 0 2.9224
1.728 0.4992 0 0 0 0.016 0 2.2432
1.9488 0.6032 0 0 0 0.008 0 2.56
1.76 0.3120 0 0 0 0.012 0 2.084
1 0.0000 0 0 0.015 0 0.020832 1.035832

27.27189
LP approach to aggregate planning
Dt: demand (it's konwn)
Variables
RTt: Regular time production used in period t
Ot: Over time production used in period t
It: ending inventory for period t
St: shortage at the end of period t
OUTt: # units outsourcing in period t Minimize ∑_
Ut: under utilization in period t 𝐿_𝑡+ 〖� ��〖
Ht: # of people hired in period t Subject to
Wt: # of people working in period t Inventory b
Lt: # of people laid off in period t
Costs 𝐼_(𝑡−1)−𝑆_
rt: Regular time production used in period t
ot: Over time production used in period t Capacity Bal
it: ending inventory for period t 𝑅_𝑡+𝑈_𝑡=𝐾
st: shortage at the end of period t Overtime ca
outt: # units outsourcing in period t
ut: under utilization in period t 𝑂_𝑡≤𝐾_1 𝑊
ht: # of people hired in period t Manpower b
lt: # of people laid off in period t 𝑊_(𝑡−1)+𝐻
All varariable
Minimize ∑_(𝑡=1)^𝑇▒ 〖 (𝑟_𝑡 𝑅_𝑡+𝑜_𝑡 𝑂_𝑡+𝑖_𝑡 𝐼_𝑡+𝑠_𝑡 𝑆_𝑡+ℎ_𝑡 𝐻_𝑡+𝑙_𝑡
𝐿_𝑡+ 〖� ��〖 〗 _𝑡 〖� ��〖 _𝑡+𝑢_𝑡
〗 𝑈_𝑡) 〗
Subject to
Inventory balance
𝐼_(𝑡−1)−𝑆_(𝑡−1)+𝑅_𝑡+𝑂_𝑡+ 〖� ��〖 _𝑡−𝐷_𝑡=𝐼_𝑡−𝑆_𝑡
〗

Capacity Balance
𝑅_𝑡+𝑈_𝑡=𝐾_1 𝑊_𝑡 𝑅𝑇𝑑𝑎𝑦𝑠
Overtime capacity balance
𝑂_𝑡≤𝐾_1 𝑊_𝑡 〖𝑂𝑇𝑑𝑎𝑦𝑠〗 _𝑡
Manpower balance
𝑊_(𝑡−1)+𝐻_𝑡−𝐿_𝑡=𝑊_𝑡
All varariables ≥0
 𝑡 𝑆_𝑡+ℎ_𝑡 𝐻_𝑡+𝑙_𝑡

−𝑆_𝑡