5-1

5-1-2.xlsx

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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