Question

the paris paint company is in the process of planning labor force requirements and production levels for the next four quarters. the marketing department has provided production with the following forecasts of demand for paris paint over the next year:Assume that Paris currently has 80,000 gallons of paint in inventory and would like to end the year with an inventory of at least 20,000 gallons a. Determine the minimum constant workforce plan for Paris Paint and the cost of the plan. Assume that stock-outs are not allowed. b. If Paris were able to back-order excess demand at a cost of $2 per gallon per quar ter, determine a minimum constant workforce plan that holds less inventory than the plan you found in part (a), but incurs stock-outs in quarter 2. Determine the cost of the new plan. c. Formulate this as a linear program. Assume that stock-outs are not allowed. d. Solve the linear program. Round the variables and determine the cost of the resulting plan.

Answer 1

Net demand for the 4 quarters: (380 - 80), 630, 220, (160+20), i.e., 300, 630, 220, 180 So, the demand rises from 300 to 630 and then reduces gradually. The production level should be chosen at the midpoint of 300 and 630 so that the ending inventory