Green Mills Aggregate Planning Mode

Input Data Month

Raw softwood per 1000 board feet $400 January
Chile production cost per 1000 board feet $150 February
Transportation Cost per 1000 board feet $50 March
Boards per month per worker 50,000 April
Regular hours per month per worker 160 May
Max Overtime hours allowed 40 June
Initial Employees 20 July
Maximum Shipping Capacity per month 1,500,000 August
Maximum Inventory Capacity 3,000,000 September
Hiring Cost $4,000 October
Laying Off cost $2,000 November
December
Cost Summary - per 1000 boards
Cost Factor Cost
Regular Time $200
Overtime $250
Holding $25
Shipping $50
U.S. Spot Market $350

Production Plan
Months January February March April
Employees 20 20 22 26
Hired 0 2 4 4
Laying off 0 0 0 0
Total 20 22 26 30

Total Raw softwood produced 1000000 1100000 1300000 1500000

>= >= >= >= >=
Demand 1000000 1100000 1300000 1500000

Wood Shipped 1000000 1100000 1300000 1500000

= = = = =
Demand 1000000 1100000 1300000 1500000

Cost Plan
Months January February March April
Regular Cost $200,000 $220,000 $260,000 $300,000
Shipping Cost $50,000 $55,000 $65,000 $75,000
Hiring Cost $0 $8,000 $16,000 $16,000
Laying off Cost $0 $0 $0 $0
Total $250,000 $283,000 $341,000 $391,000
gregate Planning Model

Demand
1000000
1100000
1300000
1500000
1800000
2200000
2500000
2400000
2000000
1600000
1200000
800000

Production Plan
May June July August September October November December
30 36 44 50 48 40 32 24
6 8 6 0 0 0 0 0
0 0 0 2 8 8 8 8
36 44 50 48 40 32 24 16

1800000 2200000 2500000 2400000 2000000 1600000 1200000 800000

>= >= >= >= >= >= >= >=
1800000 2200000 2500000 2400000 2000000 1600000 1200000 800000

1800000 2200000 2500000 2400000 2000000 1600000 1200000 800000

= = = = = = = =
1800000 2200000 2500000 2400000 2000000 1600000 1200000 800000

Cost Plan
May June July August September October November December
$360,000 $440,000 $500,000 $480,000 $400,000 $320,000 $240,000 $160,000
 $90,000 $110,000 $125,000 $120,000 $100,000 $80,000 $60,000 $40,000
$24,000 $32,000 $24,000 $0 $0 $0 $0 $0
$0 $0 $0 $4,000 $16,000 $16,000 $16,000 $16,000
$474,000 $582,000 $649,000 $604,000 $516,000 $416,000 $316,000 $216,000
Total
$3,880,000
 $970,000
$120,000
$68,000
$5,038,000
 Green Mills Aggregate Planning M

Input Data Month

Raw softwood per 1000 board feet $400 January
Chile production cost per 1000 board feet $150 February
Transportation Cost per 1000 board feet $50 March
Boards per month per worker 50,000 April
Regular hours per month per worker 160 May
Max Overtime hours allowed 40 June
Initial Employees 20 July
Maximum Shipping Capacity per month 1,500,000 August
Maximum Inventory Capacity 3,000,000 September
Hiring Cost $4,000 October
Laying Off cost $2,000 November
December
Cost Summary - per 1000 boards
Cost Factor Cost
Regular Time $200
Overtime $250
Holding $25
Shipping $50
U.S. Spot Market $350

Production Plan
Months January February March April
Initial Employees 20 20 20 20
Hired 0 0 0 0
Fired 0 0 0 0
Total 20 20 20 20

Regular Boards Production 1000000 1000000 1000000 1000000

Overtime boards production 0 250000 250000 250000

<= <= <= <= <=
Overtime boards available 250000 250000 250000 250000

Inventory 0 0 150000 100000

Board Production 1000000 1250000 1250000 1250000

<= <= <= <= <=
Board production availability 1000000 1250000 1250000 1250000
Boards for shipping 1000000 1100000 1300000 1350000
<= <= <= <= <=
Total boards available 1000000 1250000 1400000 1350000

U.S. Spot Market 0 0 0 150000

U.S. Spot Market + Boards Shipped 1000000 1100000 1300000 1500000
>= >= >= >= >=
Demand 1000000 1100000 1300000 1500000

Final Inventory 0 150000 100000 0

<= <= <= <= <=
Maximum Capacity 3000000 3000000 3000000 3000000

Cost Plan
Months January February March April
Regular Cost $200,000 $200,000 $200,000 $200,000
Overtime Cost $0 $62,500 $62,500 $62,500
Shipping Cost $50,000 $55,000 $65,000 $67,500
U.S. Spot Market $0 $0 $0 $52,500
Holding Cost $0 $3,750 $2,500 $0
Total $250,000 $321,250 $330,000 $382,500
ggregate Planning Model

Demand
1000000
1100000
1300000
1500000
1800000
2200000
2500000
2400000
2000000
1600000
1200000
800000

Production Plan
May June July August September October November December
20 20 20 20 20 20 20 20
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
20 20 20 20 20 20 20 20

1000000 1000000 1000000 1000000 1000000 1000000 1000000 1000000

250000 250000 250000 250000 250000 250000 200000 0

<= <= <= <= <= <= <= <=
250000 250000 250000 250000 250000 250000 250000 250000

0 0 0 0 0 0 0 0

1250000 1250000 1250000 1250000 1250000 1250000 1200000 800000

<= <= <= <= <= <= <= <=
1250000 1250000 1250000 1250000 1250000 1250000 1200000 1000000
 1250000 1250000 1250000 1250000 1250000 1250000 1200000 800000
<= <= <= <= <= <= <= <=
1250000 1250000 1250000 1250000 1250000 1250000 1200000 800000

550000 950000 1250000 1150000 750000 350000 0 0

1800000 2200000 2500000 2400000 2000000 1600000 1200000 800000
>= >= >= >= >= >= >= >=
1800000 2200000 2500000 2400000 2000000 1600000 1200000 800000

0 0 0 0 0 0 0 0
<= <= <= <= <= <= <= <=
3000000 3000000 3000000 3000000 3000000 3000000 3000000 3000000

Cost Plan
May June July August September October November December
$200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000
$62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $50,000 $0
$62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $60,000 $40,000
$192,500 $332,500 $437,500 $402,500 $262,500 $122,500 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$517,500 $657,500 $762,500 $727,500 $587,500 $447,500 $310,000 $240,000
Total
$2,400,000
$612,500
$712,500
$1,802,500
$6,250
$5,533,750
 Green Mills Aggregate Planning

Input Data Month

Raw softwood per 1000 board feet $400 January
Chile production cost per 1000 board feet $150 February
Transportation Cost per 1000 board feet $50 March
Boards per month per worker 50,000 April
Regular hours per month per worker 160 May
Max Overtime hours allowed 40 June
Initial Employees 20 July
Maximum Shipping Capacity per month 1,500,000 August
Maximum Inventory Capacity 3,000,000 September
Hiring Cost $4,000 October
Laying Off cost $2,000 November
December
Cost Summary - per 1000 boards
Cost Factor Cost
Regular Time $200
Overtime $250
Holding $25
Shipping $50
U.S. Spot Market $350

Production Plan
Months January February March April
Initial Employees 20 20 22 26
Hired 0 2 4 4
Fired 0 0 0 0
Total 20 22 26 30

Regular Boards Production 1000000 1100000 1300000 1500000

Overtime boards production 0 0 0 0

<= <= <= <= <=
Overtime boards available 250000 275000 325000 375000

Inventory 0 0 0 0

Board Production 1000000 1100000 1300000 1500000

<= <= <= <= <=
Board production availability 1000000 1100000 1300000 1500000
Boards for shipping 1000000 1100000 1300000 1500000
<= <= <= <= <=
Total boards available 1000000 1100000 1300000 1500000

U.S. Spot Market 0 0 0 0

U.S. Spot Market + Boards Shipped 1000000 1100000 1300000 1500000
>= >= >= >= >=
Demand 1000000 1100000 1300000 1500000

Final Inventory 0 0 0 0
<= <= <= <= <=
Maximum Capacity 3000000 3000000 3000000 3000000

Cost Plan
Months January February March April
Regular Cost $200,000 $220,000 $260,000 $300,000
Overtime Cost $0 $0 $0 $0
Shipping Cost $50,000 $55,000 $65,000 $75,000
U.S. Spot Market $0 $0 $0 $0
Holding Cost $0 $0 $0 $0
Hiring Cost $0 $8,000 $16,000 $16,000
Firing Cost $0 $0 $0 $0
Total $250,000 $283,000 $341,000 $391,000
gregate Planning Model

Demand
1000000
1100000
1300000
1500000
1800000
2200000
2500000
2400000
2000000
1600000
1200000
800000

Production Plan
May June July August September October November December
30 36 47 47 47 40 32 24
6 11 0 0 0 0 0 0
0 0 0 0 7 8 8 8
36 47 47 47 40 32 24 16

1800000 2350000 2350000 2350000 2000000 1600000 1200000 800000

0 0 0 50000 0 0 0 0
<= <= <= <= <= <= <= <=
450000 587500 587500 587500 500000 400000 300000 200000

0 0 150000 0 0 0 0 0

1800000 2350000 2350000 2400000 2000000 1600000 1200000 800000

<= <= <= <= <= <= <= <=
1800000 2350000 2350000 2400000 2000000 1600000 1200000 800000
 1800000 2200000 2500000 2400000 2000000 1600000 1200000 800000
<= <= <= <= <= <= <= <=
1800000 2350000 2500000 2400000 2000000 1600000 1200000 800000

0 0 0 0 0 0 0 0
1800000 2200000 2500000 2400000 2000000 1600000 1200000 800000
>= >= >= >= >= >= >= >=
1800000 2200000 2500000 2400000 2000000 1600000 1200000 800000

0 150000 0 0 0 0 0 0
<= <= <= <= <= <= <= <=
3000000 3000000 3000000 3000000 3000000 3000000 3000000 3000000

Cost Plan
May June July August September October November December
$360,000 $470,000 $470,000 $470,000 $400,000 $320,000 $240,000 $160,000
$0 $0 $0 $12,500 $0 $0 $0 $0
$90,000 $110,000 $125,000 $120,000 $100,000 $80,000 $60,000 $40,000
$0 $0 $0 $0 $0 $0 $0 $0
$0 $3,750 $0 $0 $0 $0 $0 $0
$24,000 $44,000 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $14,000 $16,000 $16,000 $16,000
$474,000 $627,750 $595,000 $602,500 $514,000 $416,000 $316,000 $216,000
Total
$3,870,000
$12,500
$970,000
$0
$3,750
$108,000
$62,000
$5,026,250
 Green Mills Aggregate Planning

Input Data Month

Raw softwood per 1000 board feet $400 January
Chile production cost per 1000 board feet $150 February
Transportation Cost per 1000 board feet $50 March
Boards per month per worker 50,000 April
Regular hours per month per worker 160 May
Max Overtime hours allowed 40 June
Initial Employees 20 July
Maximum Shipping Capacity per month 1,500,000 August
Maximum Inventory Capacity 3,000,000 September
Hiring Cost $4,000 October
Laying Off cost $2,000 November
December
Cost Summary - per 1000 boards
Cost Factor Cost
Regular Time $200
Overtime $250
Holding $25
Shipping $50
U.S. Spot Market $350

Production Plan
Months January February March April
Initial Employees 20 20 22 26
Hired 0 2 4 4
Fired 0 0 0 0
Total 20 22 26 30

Regular Boards Production 1000000 1100000 1300000 1500000

Overtime boards production 0 0 0 0

<= <= <= <= <=
Overtime boards available 250000 275000 325000 375000

Inventory 0 0 0

Board Production 1000000 1100000 1300000 1500000

<= <= <= <= <=
Board production availability 1000000 1100000 1300000 1500000
Boards for shipping 1000000 1100000 1300000 1500000
<= <= <= <= <=
Total boards available 1000000 1100000 1300000 1500000

Boards for shipping 1000000 1100000 1300000 1500000

<= <= <= <= <=
Shipping capacity 1500000 1500000 1500000 1500000

U.S. Spot Market 0 0 0 0

U.S. Spot Market + Boards Shipped 1000000 1100000 1300000 1500000
>= >= >= >= >=
Demand 1000000 1100000 1300000 1500000

Final Inventory 0 0 0 0
<= <= <= <= <=
Maximum Capacity 3000000 3000000 3000000 3000000

Cost Plan
Months January February March April
Regular Cost $200,000 $220,000 $260,000 $300,000
Overtime Cost $0 $0 $0 $0
Shipping Cost $50,000 $55,000 $65,000 $75,000
U.S. Spot Market $0 $0 $0 $0
Holding Cost $0 $0 $0 $0
Hiring Cost $0 $8,000 $16,000 $16,000
Firing Cost $0 $0 $0 $0
Total $250,000 $283,000 $341,000 $391,000
gregate Planning Model

Demand
1000000
1100000
1300000
1500000
2000000
2200000
2500000
2400000
2000000
1600000
1200000
800000

Production Plan
May June July August September October November December
30 30 30 30 30 30 30 24
0 0 0 0 0 0 0 0
0 0 0 0 0 0 6 8
30 30 30 30 30 30 24 16

1500000 1500000 1500000 1500000 1500000 1500000 1200000 800000

0 0 0 0 0 0 0 0
<= <= <= <= <= <= <= <=
375000 375000 375000 375000 375000 375000 300000 200000

0 0 0 0 0 0 0 0

1500000 1500000 1500000 1500000 1500000 1500000 1200000 800000

<= <= <= <= <= <= <= <=
1500000 1500000 1500000 1500000 1500000 1500000 1200000 800000
 1500000 1500000 1500000 1500000 1500000 1500000 1200000 800000
<= <= <= <= <= <= <= <=
1500000 1500000 1500000 1500000 1500000 1500000 1200000 800000

1500000 1500000 1500000 1500000 1500000 1500000 1200000 800000

<= <= <= <= <= <= <= <=
1500000 1500000 1500000 1500000 1500000 1500000 1500000 1500000

300000 700000 1000000 900000 500000 100000 0 0

1800000 2200000 2500000 2400000 2000000 1600000 1200000 800000
>= >= >= >= >= >= >= >=
2000000 2200000 2500000 2400000 2000000 1600000 1200000 800000

0 0 0 0 0 0 0 0
<= <= <= <= <= <= <= <=
3000000 3000000 3000000 3000000 3000000 3000000 3000000 3000000

Cost Plan
May June July August September October November December
$300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $240,000 $160,000
$0 $0 $0 $0 $0 $0 $0 $0
$75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $60,000 $40,000
$105,000 $245,000 $350,000 $315,000 $175,000 $35,000 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $12,000 $16,000
$480,000 $620,000 $725,000 $690,000 $550,000 $410,000 $312,000 $216,000
Total
$3,180,000
$0
$795,000
$1,225,000
$0
$40,000
$28,000
$5,268,000