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A Multiperiod Scheduling Example

PM Computer Services assembles computers from purchased parts and wants to determine a production schedule over 6 weeks to meet customer orders totaling 1,105 computers, minimize costs, and have no leftover inventory. The company has a regular capacity of 160 computers per week but can produce overtime as well, and incurs inventory holding costs to store unsold computers. PM provided its order schedule for each of the 6 weeks and wants to know the optimal regular and overtime production levels each week to meet demand at minimum cost while avoiding leftover inventory.

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Prejit Pillai
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202 views

A Multiperiod Scheduling Example

PM Computer Services assembles computers from purchased parts and wants to determine a production schedule over 6 weeks to meet customer orders totaling 1,105 computers, minimize costs, and have no leftover inventory. The company has a regular capacity of 160 computers per week but can produce overtime as well, and incurs inventory holding costs to store unsold computers. PM provided its order schedule for each of the 6 weeks and wants to know the optimal regular and overtime production levels each week to meet demand at minimum cost while avoiding leftover inventory.

Uploaded by

Prejit Pillai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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A Multiperiod Scheduling Example

PM Computer Services assembles its own brand of personal computers from component parts it
computers locally to different departments at State University as well as to individuals and busin
PM has enough regular production capacity to produce 160 computers per week. It can produce
assembling, inspecting, and packaging a computer during regular time is $190. Overtime produ
$10 per computer per week to hold a computer in inventory for future delivery. PM wants to mee
quality service. PM's order schedule for the next 6 weeks is as follows:

Week Computer Orders


1 105
2 170
3 230
4 180
5 150
6 250

PM Computers wants to determine a schedule that will indicate how much regular and overtime
at the minimum cost. The company wants no inventory left over at the end of the 6-week period.

Decision Variables

Week1 Week2 Week3 Week4 Week5 Week6


Regular 160 160 160 160 160 160
Overtime 0 0 25 20 30 50
Inventory 55 45 0 0 40 0

Constraints

Regular-1 160 160 <=


Regular-2 160 160 <=
Regular-3 160 160 <=
Regular-4 160 160 <=
Regular-5 160 160 <=
Regular-6 160 160 <=
Ot-1 0 50 <=
Ot-2 0 50 <=
Ot-3 25 50 <=
Ot-4 20 50 <=
Ot-5 30 50 <=
Ot-6 50 50 <=
Week 1 105 105 =
Week 2 170 170 =
Week 3 230 230 =
Week 4 180 180 =
Week 5 150 150 =
Week 6 250 250 =

Objective Function

Profit Z $ 216,300.00
from component parts it purchases overseas and domestically. PM sells most of its
to individuals and businesses in the immediate geographic region.
per week. It can produce an additional 50 computers with overtime. The cost of
is $190. Overtime production of a computer costs $260. Furthermore, it costs
elivery. PM wants to meet all customer orders, with no shortages, to provide

uch regular and overtime production it will need each week to meet its orders
end of the 6-week period.

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