Question: Standard Pump recently won a $ 1 4 million contract with the U . S . Navy t o supply 2 , 0 0 0

Standard Pump recently won a $14 million contract with the U.S. Navy to supply 2,000 custom-designed submersible pumps over the next four months. The contract calls for the
delivery of200 pumps at the end of May, 600 pumps at the end of June, 600 pumps at the end of July, and 600 pumps at the end of August. Standard's production capacity is
500 pumps in May, 400 pumps in June, 800 pumps in July, and 500 pumps in August. Management would like to develop a production schedule that will keep monthly ending
inventories low while at the same time minimizing the fluctuations in inventory levels from month to month. In attempting to develop a goal programming model of the problem,
the company's production scheduler let xm denote the number of pumps produced in month m and sm denote the number of pumps in inventory at the end of month m. Here,
m=1 refers to May, m=2 refers to June, m=3 refers to July, and m=4 refers to August. Management asks you to assist the production scheduler in model development.
(a) Using these variables, develop a constraint for each month that will satisfy the following demand requirement.
(BeginningInventory)+(CurrentProduction)-(EndingInventory)=(ThisMonth'sDemand)
May
June
July
August
xi,si0,i=1,2,3,4dnibe the deviation variable below the
target value of goal i, and dbe the deviation variable above the target value of goal i for i=1,2,3.xi,si,d'dni0,i=1,2,3,4dnibe the deviation variable below the target value of goal i, and dbe the deviation variable above the target value of goal i for
i=4,5,6.xi,si,d'dni0,i=1,2,3,4dnibe the deviation variable below the target value of goal i, and dbe the deviation variable above the target value of goal i for
i=4,5,6si'dpj'dnj0,i=1,2,3 and j=4,5,6
(d)In addition to the goal equations developed in parts (b) and (c), develop constraints for the production capacities for each month.
May
June
July
August
xi0,i=1,2,3,4
(e) Assuming the production fluctuation and inventory goals are of equal importance, write an objective function for a goal programming model which, when used with the
constraints constructed in parts (a)-(d), can be used to determine the best production schedule. Develop and solve a goal programming model to determine the best
production schedule.
Min
What is the optimal solution to the goal programming model?
(x1,x2,x3,x4,s1,s2,s3,s4)=(,)
Standard Pump recently won a $ 1 4 million

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