Thank you for the wonderful explanation .. However, I believe something is missing in the model, particularly affecting t=5 (May). in April, Sales (I3 + P4 + C4 - I4) yields 3580 and that is correct because we have a Stockout, Lost Sales of 220 gone to competitors But in May, (I4 + P5 + C5 - I5) yields 2420, that is 220 higher than the demand of this month. it is assuming that we will compensate lost sales in April, which are already Lost. I added another constraint so that sales can never exceed demand. The results were free of Stockouts, but with further layoffs. Total Cost is 424,780 Ht: 0, 0, 0, 0, 0, 0 Lt: 14, 1, 0, 4, 0, 0 Wt: 66, 65, 65, 61, 61, 61 Ot: 0, 0, 0, 0, 0, 0 Lt: 2040, 1640, 1040, 0, 240, 500 St: 0, 0, 0, 0, 0, 0 Ct: 0, 0, 0, 320, 0, 20 Pt: 2640, 2600, 2600, 2440, 2440, 2440
Thank you a lot but I have a question.. what if the problem says that there could be temporary workers with minimun contract of 3 month. Does it mean that if I choose it, I need to pay them even if they dont produce anything during this 3 month?
If you are interested we have an online analytics certificate program. You will have to take the Fall semester Basic program to be eligible for the Advanced program in the Spring. We will go over modeling and linear programming in the Spring www.fmarion.edu/business/certificate-in-business-analytics/
this lecture is truly masterpiece!
This guy explained it 1000% better than my current teacher.
Excellent! This video helps me a lot. Much appreciated.
thank you, lifesaver!
Thank you for the wonderful explanation .. However, I believe something is missing in the model, particularly affecting t=5 (May).
in April, Sales (I3 + P4 + C4 - I4) yields 3580 and that is correct because we have a Stockout, Lost Sales of 220 gone to competitors
But in May, (I4 + P5 + C5 - I5) yields 2420, that is 220 higher than the demand of this month. it is assuming that we will compensate lost sales in April, which are already Lost.
I added another constraint so that sales can never exceed demand. The results were free of Stockouts, but with further layoffs. Total Cost is 424,780
Ht: 0, 0, 0, 0, 0, 0
Lt: 14, 1, 0, 4, 0, 0
Wt: 66, 65, 65, 61, 61, 61
Ot: 0, 0, 0, 0, 0, 0
Lt: 2040, 1640, 1040, 0, 240, 500
St: 0, 0, 0, 0, 0, 0
Ct: 0, 0, 0, 320, 0, 20
Pt: 2640, 2600, 2600, 2440, 2440, 2440
Very Nice Thanks
Thank you a lot but I have a question.. what if the problem says that there could be temporary workers with minimun contract of 3 month. Does it mean that if I choose it, I need to pay them even if they dont produce anything during this 3 month?
If you have separate costs for idle time then you can set it up so you dont have to pay them when they are not producing
Hi Hari, For revenue, shouldn’t we consider demand met i.e. demand - stockout
The demand is what is met after stockout.
How do you get the price ? Just Assume $40?
Yeah.. given to you
why is my production variables 0?
Not sure, but I suspect you have not set ending stock to zero ? That is the last time period stock out should always be set to zero.
how can we join your class?
If you are interested we have an online analytics certificate program. You will have to take the Fall semester Basic program to be eligible for the Advanced program in the Spring. We will go over modeling and linear programming in the Spring www.fmarion.edu/business/certificate-in-business-analytics/
Can you share the excel file, please
While my CZcams is open to anyone is interested. The Excel files and details are available for students who are in my class
you lost me. :(
sorry to hear that :)