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Lecture30aa

# Lecture30aa - Lecture 1 Solution to URS Example 2 Graphical...

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Lecture 4/07/09 1. Solution to URS Example 2. Graphical Sensitivity Analysis

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Variables urs (Example 9, P.186) Mondo Motorcycles Quarter 1 2 3 4 Demand 40 70 50 20 Manufacturing Cost = \$400/unit Holding Cost = \$100/unit/period Cost of increasing production from one period to next= \$700/unit Cost of decreasing production from one period to next = \$600/unit Other Information 1. All demands must be met on time 2. A quarter’s production may be used to meet demand for that quarter. 3. Production preceding quarter 1 = 50 4. Initial inventory = 0.
Definition of variables For t = 1,2,3,4 p t = # of motorcycles produced during period t x t =change between quarter t’s production and quarter t-1’s production. x t = p t - p t-1 x t is urs. x t = x t - x t = p t - p t-1 where x t = increase in production between period t and t-1 x t = decrease in production between period t and t-1

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Example 9, P.186 LP Formulation Min z = 400 p 1 +400 p 2 +400 p 3 + 400 p 4 +100 i 1 + 100 i 2 +100 i 3 +100 i 4 +700 x 1 +700 x 2 +700 x 3 +700 x 4 +600 x 1 +600 x 2 +600 x 3 +600 x 4 s. t. ( Inventory Constraints) i 1 = i 0 + p 1 - Demand period 1 =0+ p 1 - 40 => p 1 - i 1 =40 p 2 + i 1 - i 2 =70 p 3 + i 2 - i 3 =50 p 4 + i 3 - i 4 =20
Example 9, P.186

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