Problem 2 The C-130 Hercules is a military transport aircraft designed and manufactured by Lockheed Martin....

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Problem 2 The C-130 Hercules is a military transport aircraft designed and manufactured by Lockheed Martin. To prepare for full-time production later this year the company has recently agreed to a contract to deliver 100 propellers in month 1, 200 propellers in month 2, and 50 propellers in month 3. Between labor and raw materials it costs $300 to produce one propeller. Due to issues obtaining the necessary resources on time, Lockheed Martin may backlog demand at a cost of $70 per propeller per month. That is, if a propeller demanded in month 1 is delivered in month 3, a backlogging cost of $140 is incurred. Unfortunately Lockheed Martin cannot deliver propellers ahead of schedule; they must instead be held in inventory at a cost of $100 per propeller per month. Lastly, all demand must be met by the end of month 3. At the beginning of this production cycle Lockheed Martin as eight workers, and during any given month a worker can produce up to 15 propellers. Each worker is paid $5000 per month. New workers can be hired with an initial hiring cost of $4000, and workers can also be let go but require $3000 in compensation (assume workers are hired/fired at the beginning of a month). Additionally, during any month at most two workers can be hired. Formulate an LP to help Lockheed Martin determine a production schedule to minimize cost of fulfilling their contract. Clearly define all decision variables, any parameters/sets used in the model, and provide a description of the objective function and constraints. Problem 2 The C-130 Hercules is a military transport aircraft designed and manufactured by Lockheed Martin. To prepare for full-time production later this year the company has recently agreed to a contract to deliver 100 propellers in month 1, 200 propellers in month 2, and 50 propellers in month 3. Between labor and raw materials it costs $300 to produce one propeller. Due to issues obtaining the necessary resources on time, Lockheed Martin may backlog demand at a cost of $70 per propeller per month. That is, if a propeller demanded in month 1 is delivered in month 3, a backlogging cost of $140 is incurred. Unfortunately Lockheed Martin cannot deliver propellers ahead of schedule; they must instead be held in inventory at a cost of $100 per propeller per month. Lastly, all demand must be met by the end of month 3. At the beginning of this production cycle Lockheed Martin as eight workers, and during any given month a worker can produce up to 15 propellers. Each worker is paid $5000 per month. New workers can be hired with an initial hiring cost of $4000, and workers can also be let go but require $3000 in compensation (assume workers are hired/fired at the beginning of a month). Additionally, during any month at most two workers can be hired. Formulate an LP to help Lockheed Martin determine a production schedule to minimize cost of fulfilling their contract. Clearly define all decision variables, any parameters/sets used in the model, and provide a description of the objective function and constraints.

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To formulate a Linear Programming LP model to help Lockheed Martin determine a production schedule to minimize the cost of fulfilling their contract w... View the full answer