Question: ( Factory Physics, Chapter 2 Problem 9 ) Nozone, Inc., a manufacturer of Freon recovery units ( for automotive air conditioner maintenance ) , experiences
Factory Physics, Chapter Problem Nozone, Inc., a manufacturer of Freon recovery units
for automotive air conditioner maintenance experiences a strongly seasonal demand patter,
driven by the summer air conditioning season. This year Nozone has put together a month
production plan, where the monthly demands for recovery units are given in the table
below. Each recovery unit is manufactured from one chassis assembly plus a variety of other
parts. The chassis assemblies are produced in the machining center. Since there is a single
chassis assembly per recovery unit, the demands in the table below also represent the demands
for the chassis assemblies. The unit cost, fixed setup cost, and the monthly holding cost for
chassis assemblies are also given in this table. The fixed setup cost is the firm's estimate of
the cost to change over the machining center to produce chassis assemblies, including labor
and materials cost and the cost of disruption of other product lines.
a Formulate the problem of production scheduling for chassis assemblies as an MILP.
b Formulate the above problem as a shortest least costly path problem. In particular,
draw the corresponding network and compute the various edge costs.
c Solve the above shortest path problem. You may find it less cumbersome to compute
edge costs and the optimal solution if you use Excel, Python, etc.
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