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. ## ##

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 cell. 4. You must use the Solver routine and receive a optimal solution. The model has 8 decision variables (cells that are permitted to vary). This 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. 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 Aggregate Plan Lines run Overtime hours per day Beginning Inventory Production Expected Demand Demand from simulation Ending Inventory Deviation from Inventory Target Employees Cost of Plan Labor Regular Time Labor Overtime Hiring and Training Layoff Inventory Carry Cost Stockout Cost Quarter Budget 1st (1-13) 15.00 2.00 200.0 4,168.1 2,000.0 #VALUE! 2,368.1 2,029.7 90 1st (1-13) 2,000 338 Numbers 60 6 450 $20.00 $30.00 7.5 2 $1.00 $2.40 $5,000.00 $3,000.00

Quarter (Week Numbers) 2nd (14-26) 3rd (27-39) 2,200 2,500 385 408 Units of measure employees

4th (40-52) 1st (Next Year) Notes 2,650 2,200 Each number is a 13 week forecast. 338 This is calculated based on 6 weeks of future forecast demand.
Forecast Demand by Quarter (1,000 Case Units)
3,000

Cases per hour per hour per hour hours hours per case (per year) per case per employee per employee Quarter (Week Numbers) 2nd (14-26) 3rd (27-39) 15.00 15.00 2.00 2.00 2,368.1 4,168.1 2,200.0 #VALUE! 4,336.3 3,951.6 90 4,336.3 4,168.1 2,500.0 #VALUE! 6,004.4 5,596.7 90

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)

4th (40-52) 15.00 2.00 6,004.4 4,168.1 2,650.0 #VALUE! 7,522.5 7,184.0 90

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. $0 $0 $0 $0 $0

Total Cost of Plan

Simulation Worksheet
Lines Scheduled Overtime Scheduled (hours) Beginning Inventory Scheduled Production Forecast Demand Expected Ending Inventory Expected Weeks-ofSupply Actual Production Rate (cases/hour) Actual Demand (1,000 Cases) Actual Production Actual Ending Inventory

Qtr 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

1st

2nd

3rd

4th

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 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

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

366.8 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

2.4 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Actual Costs Regular Qtr Wk Production Cost 1 #VALUE! 2 #VALUE! 3 #VALUE! 4 #VALUE! 5 #VALUE! 6 #VALUE! 1st 7 #VALUE! 8 #VALUE! 9 #VALUE! 10 #VALUE! 11 #VALUE! 12 #VALUE! 13 #VALUE! 14 #VALUE! 15 #VALUE! 16 #VALUE! 17 #VALUE! 18 #VALUE! 19 #VALUE! 2nd 20 #VALUE! 21 #VALUE! 22 #VALUE! 23 #VALUE! 24 #VALUE! 25 #VALUE! 26 #VALUE! 27 #VALUE! 28 #VALUE! 29 #VALUE! 30 #VALUE! 31 #VALUE! 32 #VALUE! 3rd 33 #VALUE! 34 #VALUE! 35 #VALUE! 36 #VALUE! 37 #VALUE! 38 #VALUE! 39 #VALUE! 40 #VALUE! 41 #VALUE! 42 #VALUE! 43 #VALUE! 44 #VALUE! 45 #VALUE! 4th 46 #VALUE! 47 #VALUE! 48 #VALUE! 49 #VALUE! 50 #VALUE! 51 #VALUE! 52 #VALUE! Overtime Production Cost #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Inventory Carrying Cost #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Stockout Cost #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Hiring and Training Cost 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 Total For Week #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Layoff Cost 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

Cumulative #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!