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

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 of 200 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
=
This Month'sDemand
May
x1s1=200
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June
s1+x2s2=600
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July
s2+x3s3=600
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August
s3+x4s4=600
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xi, si 0, i =1,2,3,4
(b)
Write goal equations that represent the fluctuations in the production level from May to June, June to July, and July to August. (Let
dni
be the deviation variable below the target value of goal i, and
dpi
be the deviation variable above the target value of goal i for
i =1,2,3.)
May to June
Your answer(s) should be in the form of expression(s).June to July
July to August
xi, si, dpi, dni 0, i =1,2,3,4
(c)
Inventory carrying costs are high and Standard Pump would like to keep their monthly ending inventories low. Develop goal equations with a target of zero for the ending inventory in May, June, and July. (Let
dni
be the deviation variable below the target value of goal i, and
dpi
be the deviation variable above the target value of goal i for
i =4,5,6.)
May
June
July
si, dpj, dnj 0, 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
xi 0, 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)=

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