Dit = Demand of product i in period t, i=1..

2, t=112
Xit = Production on regular time of product i in period t, i=1..2, t=112
Iit = Inventory of product i at the end of period t, i=1..2, t=112; I i0 = 0 for
all i
Sit = Sales of product i at the end of period t, i=1..2, t=112
Wt = Work Force in period t t= 112; W0 = 200
Ht = Hired in period t t= 112
Oit = Overtime hours for product i in period t i=1..2, t= 112; O 1t+O2t
40Wt
All variables 0
s.t.
Workers Wt = Wt-1 +Ht for all t
Work 5X1t + 1X2t O1t+O2t + 160Wt for all t
Sales X1t + O1t/5+ I1t-1 S1t for all t
Sales X2t + O2t/1 + I2t-1 S2t for all t
Sales Sit Dit for all i and all t

Inventory I1t I1t-1 + X1t + O1t/5 S1t = 0 for all t

Inventory I2t I2t-1 + X2t +O2t/1 S2t = 0 for all t

12 12

Income 350 S 1 t +45 S2 t

t=1 t =1

12 2 12

Cost [ 3800 W t +36 ( O1 t +O2 t )+5000 H t ] + I it

t =1 i=1 t =1

Maximize Income - Cost