Operations Management homework help-5-1
review the prompt and grading rubric in the document. Data
Use in Exhibit 1: Product Production Requirements
Criteria/Vendor Face Cream Body Cream Hand Cream
Labor (hour/carton)
Stage 1 1.5 1.8 1.0
Stage 2 0.8 1.0 0.5
Material (pounds/carton)
Water 8.0 6.0 7.0
Oil 1.0 3.0 2.0
Scents and Colors 0.5 0.3 0.4
Emulsifiers 0.5 0.7 0.6
A. Labor Stages – Material Req
SHIFT DETAILS
Face Cream, Shift 1 Item Resource Required $/Unit Cost ($) Face Cream, Shift 2 Item Resource Required $/Unit Cost ($)
Labor Stage 1 1.50 Labor Stage 1 1.50
Labor Stage 2 0.80 Labor Stage 2 0.80
Water 8.00 Water 8.00
Oils 1.00 Oils 1.00
Scents/Colors 0.50 Scents/Colors 0.50
Emulsifiers 0.50 Emulsifiers 0.50
Total 0.00 Total 0.00
Body Cream, Shift 1 Item Resource Required $/Unit Cost ($) Body Cream, Shift 1 Item Resource Required $/Unit Cost ($)
Labor Stage 1 1.80 Labor Stage 1 1.80
Labor Stage 2 1.00 Labor Stage 2 1.00
Water 6.00 Water 6.00
Oils 3.00 Oils 3.00
Scents/Colors 0.30 Scents/Colors 0.30
Emulsifiers 0.70 Emulsifiers 0.70
Total 0.00 Total 0.00
Hand Cream Shift 1 Item Resource Required $/Unit Cost ($) Hand Cream, Shift 1 Item Resource Required $/Unit Cost ($)
Labor Stage 1 1.00 Labor Stage 1 1.00
Labor Stage 2 0.50 Labor Stage 2 0.50
Water 7.00 Water 7.00
Oils 2.00 Oils 2.00
Scents/Colors 0.40 Scents/Colors 0.40
Emulsifiers 0.60 Emulsifiers 0.60
Total 0.00 Total 0.00
B. Summary Table
Linear Programming Model Formulation (8 production variable, 11 constraints, minimization problem)
Face Cream, Shift 1 Face Cream, Shift 2 Face Cream, Subcontracted Body Cream, Shift 1 Body Cream, Shift 2 Body Cream, Subcontracted Hand Cream, Shift 1 Hand Cream, Shift 2
Cost min
Labor 11 ≤
Labor 21 ≤
Labor 12 ≤
Labor 22 ≤
Water ≤
Oils ≤
Scents/Colors ≤
Emulsifiers ≤
Amount (FC) 1 1 1 ≥
Amount (BC) 1 1 1 ≥
Amount (HC) 1 1 ≥
C. Production Schedule
Production Schedule – Based on Sensitivity Analysis
Optimal Production Plan
Method/Product Face Cream Body Cream Hand Cream
Shift 1 0
Shift 2 0 0
Vendor N/A
Total
Total cost:
D. Decision Tree
Create a Production Decision Tree
E. Graphs
Graphs with Product Amount Changes – Costs Remain the Same
Optimal Production Plan – ORIGINAL Optimal Production Plan – increase production by 10%
Method/Product Face Cream Body Cream Hand Cream Method/Product Face Cream Body Cream Hand Cream
Shift 1 0 Shift 1 0 0 0
Shift 2 0 0 Shift 2 0 0 0
Vendor N/A Vendor 0 0 0
Total 18,000 Total 0 0 0
Total cost: $1,368,178.00 Total cost: 0.00
Optimal Production Plan – increase production by 15% Optimal Production Plan – increase production by 20%
Method/Product Face Cream Body Cream Hand Cream Method/Product Face Cream Body Cream Hand Cream
Shift 1 0 Shift 1 0
Shift 2 0 0 Shift 2 0 0
Vendor 0 Vendor 0
Total Total
Total cost: 0.00 Total cost: 0.00
