Question: The Mr. Meadows Cookie Company can obtain accurate forecasts for 12 months based on firm orders. These forecasts and the number of workdays per month are as follows:
During a 46-day period when there were 120 workers, the firm produced 1,700,000 cookies. Assume that there are 100 workers employed at the beginning of month 1 and zero starting inventory.
a. Find the minimum constant workforce needed to meet monthly demand.
b. Assume c1 = $0.10 per cookie per month, cH = $100, and cF = $200. Add columns that give the cumulative on-hand inventory and inventory cost. What is the total cost of the constant workforce plan?
c. Solve for the optimal plan using linear programming. Compare your solution to b.