G_APP_Linear_Programming

G_APP_Linear_Programming - Aggregate Production Planning...

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BIT 3414 Copyright 2011 p. 1 Aggregate Production Planning with Linear Programming The optimal solution for an aggregate production plan can be found with a linear programming model. Model Formulation Decision Variables Objective Function Minimize cost Constraints Demand, Capacity, Production, Workforce Decision Variables Consider a Trial and Error table for a mixed strategy of Level Production, Overtime, and Subcontracting: Reading Pages 618 – middle 619 R t = units produced w/ regular production in period t O t = units produced w/overtime production in period t S t = units produced w/ subcontracted production in period t I t = inventory at end of period t W t = workforce size for period t H t = # hired for period t F t = # fired for period t Regular Overtime Subcontract Quarter Demand Production Production Production Inventory
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BIT 3414 Copyright 2011 p. 2 Given the following information: Regular Prod. Capacity = 2000 units/qtr Regular Prod. Cost = $10/unit Overtime Prod. Capacity = 500 units/qtr
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G_APP_Linear_Programming - Aggregate Production Planning...

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