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Case Problem EZ Trailers, Inc.

The document describes a goal programming model to optimize production levels of two trailer models (EZ-190 and EZ-250) across two months (March and April) given demand levels and constraints. The model seeks to minimize deviations from meeting demand and limiting labor fluctuations while satisfying inventory constraints. Additional constraints are added to ensure minimum ending inventory levels and limit maximum storage levels. The optimal production schedules and corresponding ending inventories are provided for the original and updated models.

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452 views3 pages

Case Problem EZ Trailers, Inc.

The document describes a goal programming model to optimize production levels of two trailer models (EZ-190 and EZ-250) across two months (March and April) given demand levels and constraints. The model seeks to minimize deviations from meeting demand and limiting labor fluctuations while satisfying inventory constraints. Additional constraints are added to ensure minimum ending inventory levels and limit maximum storage levels. The optimal production schedules and corresponding ending inventories are provided for the original and updated models.

Uploaded by

Something Chic
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Case Problem: EZ Trailers, Inc.

Let
x11 = number of EZ-190 trailers
produced in March x12 = number of EZ-
190 trailers produced in April x21 = number
of EZ-250 trailers produced in March x22 =
numb r of EZ-250 trailers produced in April
s11 = EZ-190 ending inventory in March s12 =
EZ-190 ending inventory in April s21 = EZ-250
ending inventory in March s22 = EZ-250
ending inventory in April

P1 Goal: Meet demand for the EZ-250:

d+ d− (1)
March: 300 + x21 - s21 - 1 + 1 = 1000

d+ d− (2)
April: s21 + x22 - s22 - 2 + 2 = 1200

P Goal: Meet demand for the EZ-190: 2

d+ d− (3)
March: 200 + x11 - s11 - 3 + 3 = 800

d+ d− (4)
April: s11 + x12 - s12 - 4 + 4 = 600

P Goal: Limit labor fluctuations from month to month to at most 1000: 3

March:
5300 ≤ 4 x11 + 6 x21 ≤ 7300
4 x11 + 6 x = 5300 (5)
4 x11 + 6 x = 7300 (6)

April:
(4 x11 + 6 x21) - 1000 ≤ 4 x12 + 6 x22 ≤ (4 x11 + 6 x21) + 1000

4 x12 + 6 x22 = [(4 x11+ 6 x21) - 1000] + or


4 x12 + 6 x22 - 4 x11 - 6 x = -1000 (7)

d+ d−
4 x12 + 6 x22 = [(4 x11 + 6 x21) + 1000] + 8 + 8

or
d+ d− (8)
4 x12 + 6 x22 - 4 x11 - 6 x21 - 8 + 8 = 1000
Chapter 14

The complete goal programming model is

Min P d1 ( )+P d ( )+P d ( )+P d ( )+P d ( )+P d ( )+P d ( )+P d ( )


1− 1 2− 2 3− 2 4− 3 5− 3 6+ 3 7− 3 8+

s.t.
x21 – s21 – d1+ + d–1 =800
+ – x22 + s 21
– s 22 – d2 + d2 =1200
+ –

x11 – s 11 – d3 + d3 =600 x12

+ s 11 – s 12 – d4+ + d–4 =600


+ –

4x11 +6x21 – d5 + d5 =5300


+ –

4x11 +6x21 – d6 + d6 =7300


–4x11 +4x12 –6x21 +6x22 – d+7 + d–7 =–1000

–4x11 +4x12 –6x21 +6x22 – d+8 + d–8 = 1000

all variables ≥ 0

Information Needed for the Managerial Report

1.

March April

EZ-190 775 425


EZ-250 800 1200

2. No changes since the ending inventories for the optimal production schedule are as follows:

March April

EZ-190 175 0
EZ-250 0 0
3. The following constraints must be added to the model:

April ending inventory: s12 ≥ 100, s22 ≥ 100

Maximum storage of 300 units in each month: s11 ≤ 300, s12 ≤ 300, s21 ≤ 300, s22 ≤ 300

The new optimal production schedule is as follows:

March April

EZ-190 900 400


EZ-250 800 1300

The corresponding ending inventories are:

March April

EZ-190 300 100


EZ-250 0 100

Solutions to Case Problems

4. The new optimal production schedule is:

March April

EZ-190 625 275


EZ-250 800 1200

The corresponding ending inventories are:

March April

EZ-190 25 0
EZ-250 0 0

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