Reference no: EM132308417

Kims Kitchen Company makes a variety of chocolate chip cookies in the plant in Evanston, Illinois. Based on orders received and forecast of buying habits, it is estimated that the demand for the next four months is 850, 1260, 510, and 980, 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 workdays over the next four months is respectively 26, 24, 20 and 16. There are currently 100 workers employed, and there is not any starting inventory of cookies. Also the cost of holding cookies in inventory is 10 cents per cookie per month and cost of hiring and firing are $100 and $200, respectively. Formulate the problem as a linear program.

a. Define the decision variables using complete sentences

b. Write down the objective function in words

c. Write down the constraints using complete sentences

d. Express the objective function mathematically using the decision variables defined in part a

e. Express the constraints mathematically using the decision variables defined in part a

f. Input the mathematical formulation into an Excel worksheet in an organized fashion. Once done organizing the worksheet then copy paste the table from Excel into Word showing the setup of your worksheet.

g. What is the optimal solution? (Use solver to determine the solution)

h. What is the optimal objective function value? (use solver to determine the optimal objective function value)