IE $2252$ MODELLING IN OPERATIONS RESEARCH

TERM PROJECT$-2$

Vision Corporation: Production Planning and Shipping

Vision is a large company that produces video capturing devices for military applications such

as missiles, long$-$range cameras, and aerial drones. Four different types of cameras $($differing

mainly by lens type$)$ are made in the three plants in the system. Each plant can produce any of

the four camera types, although each plant has its own individual constraints and unit costs.

These constraints cover labor and machining restrictions, and the specific values are given in

Tables $13.$ Note that even though the products are identical in the three plants, different

production processes are used and thus the products use different amounts of resources in

different plants. The corporation controls the material that goes into the lenses; the material

requirements for each product are given in the last column of Tables $810.$ A total of $3,500$

pounds of material is available for the entire system during the planning period.

Table $1$: Product$-$Resource Constraints: Plant $1$

Table $2$: Product$-$Resource Constraints: Plant $2$

Table $3$: Product$-$Resource Constraints: Plant $3$

Transport has $3$ major customers $($RAYco$,$ HONco, and MMco$)$ for its products. The maximum

sales for each customer$$product pair is given in Table $4.$ Product sales prices are given in Table

$5,$ and the shipping costs from each plant to each customer are detailed in Table $6.$ Table $7$

contains the production costs for each product$$plant pair.

Table $4$: Maximum Product Sales $($$$)$ per Unit

Table $5$: Product Sales Price $($$$)$ per Unit

Table $6$: Shipping Costs $($$$)$ per Unit

Table $7$: Production Costs $($$$)$ per Unit

All shipping from plants $1$ and $2$ that goes to RAYco or HONco must go through a special

inspection. These units are sent to a central site, inspected, and then sent to their destination.

The capacity of this special inspection site is $1,500$ pieces.

Your job is to determine a recommendation for the company. A recommendation must include

a plan for production and shipping as well as the cost and revenue generated from each plant.

In addition, you should address the following potential issues in your recommendation:

$$ If you could get more material, how much would you like? How would you use it$?$

What would you be willing to pay?

$$ If you could get more inspection capacity, how much would you like? How would you

use it$?$ What would you be willing to pay?

$$ At what plant$($s$)$ would you like to add extra machine hours? How much would you be

willing to pay per hour? How many extra hours would you like?

$$ Marketing is trying to get RAYco to consider a $50\%$ increase in its demand. Can we

handle this with the current system or do we need more resources? How much more

money can we make if we take on the additional demand?