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Mr. Meadows Cookie Company makes a variety of chocolate chip cookies in the plant in Albion, Michigan. Based on the orders received and forecasts of buying habits, it is estimated that the demand for the next four months is 800, 1400, 400 and 1000 expressed in thousands of cookies. During a 46-day period when there were 120 workers, the company produced 1.7 million cookies. Assume that the number of work days over the four months are 26, 24, 20 and 16. There are 100 workers employed and there is no starting inventory of cookies. 1-What is the minimum constant workforce required to meet demand over the next four months? 2-Assume that cI=10 cents per cookie per month, cH=$100 and cF=$200, evaluate the cost of the plan derived in part (a). 3-Formulate the problem as LP. 4-Bonus: Solve part c using Excel solver or any other software.

Operation Management, Management Studies

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