Business Homework Solutions
Problem
#3341

Production Planning/needs to be solved as a 4-week model as a Mixed Integer LP

A certain production line makes two products.  Relevant data has been collected as indicated below. total time available (for production & setup) each week is 80 hours. The firm has no inventory of either product at the start of week 1 and no inventory is allowed at the end of week 4.  The cost of carrying a unit of inventory from one week to the next is $4 for each product. One unit of unsatisfied demand costs $10 for product A and $15 for product B. Demand data are also given below. The line is shutdown & cleaned each weekend. as a result, if a product is produced in a week the appropriate setup cost is incurred. Only 1 product can be produced in a week.   No production can take place during the time that the line is being setup.
Formulate and solve this 4 week planning model as a mixed integer lp. The objective is to maximize the profit over a 4-week period.  Provide your recommendations for production & inventory of the two products in a form of a memo to the CEO. (Brainmass disregard but recommend) Provide STORM (excel) output to support your statements.

Product Data
                               product
                          A                        B
setup time               5hrs                   10hrs
perunit production time  0.5hrs               0.75hrs
setup cost               $200                  $400
perunit production cost   $10                   $15
Selling price             $20                   $30

Demand Data
                        week
Product        1         2           3          4
A             80        100         75          80
B             15         20         50          30

Note: I really need the Variable & coefficients as well as the constraints and the decision variables. If it can be done in excel that would be good, need help thanks.

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