| Parameter | Value | Unit | Notes | |
|---|---|---|---|---|
| 💰 Cost Assumptions | ||||
| 2 | Regular Labour Cost | $/unit | Base wage rate | |
| 3 | Overtime Premium | % | =B2*(1+B3/100) | |
| 4 | Overhead / Fixed Cost | $/unit | Allocated overhead | |
| 5 | Inventory Holding Cost | $/unit/mo | Storage + insurance | |
| 🏭 Production Capacity | ||||
| 7 | Regular Production Cap | units/mo | Factory capacity (regular) | |
| 8 | Overtime Cap | units/mo | Additional OT capacity | |
| 9 | Warehouse / Storage Cap | units | Warehouse size limit | |
| 📦 Inventory Position | ||||
| 11 | Initial Inventory (I₀) | units | On-hand at Jan 1 | |
| Item | $/unit | Formula | |
|---|---|---|---|
| 13 | Effective Overtime Labour Cost | =Regular Labour × (1 + OT Premium%) |
| Month | Raw Mat ($/unit) |
Total Reg ($/unit) | Total OT ($/unit) |
|---|
| Parameter | Value | Notes | |
|---|---|---|---|
| 1 | Trend Equation | Forecast(t) = 1,456.16 + 10.11 × t | t = period number (Jan 1992 = 1) |
| 2 | R² (R-Squared) | 0.8801 | 88% of variation explained by trend |
| 3 | Intercept (β₀) | 1,456.16 | Baseline sales at period 0 |
| 4 | Slope (β₁) | 10.11 units/period | Average monthly growth |
| 5 | Historical Data | Jan 1992 – Dec 2018 | 324 monthly observations |
| 6 | Forecast Year | 2019 (Periods 325–336) | 12 forecasted months |
| Month | Period (t) | Forecasted Demand (units) |
Seasonal Index (ref) |
vs. Reg Cap | |
|---|---|---|---|---|---|
| TOTAL | — | — | — |
Forecasted monthly demand for R03 Respiratory Medicine 2019, derived from the regression equation Forecast(t) = 1,456.16 + 10.11t × Seasonal Index.
Cells highlighted red indicate demand exceeds total capacity (Reg + OT).
Cells highlighted orange indicate demand exceeds regular capacity but OT can help.
The LP solver determines whether to use overtime and inventory to meet demand at minimum cost.
| Month | Demand D(t) |
Reg Prod P(t) |
Overtime O(t) |
Inv End I(t) |
Demand Met? |
Monthly Cost ($) |
|
|---|---|---|---|---|---|---|---|
| TOTAL |
| Month | Constraint | LHS Value | Op | RHS (Limit) | Status |
|---|