The manufacturing company is planning their next month's production to make product Y and Z. Each product
Question:
The manufacturing company is planning their next month's production to make product Y and Z.
Each product Z needs 2 A components and 4 B components and each product Y needs 3 A components and 1 B component. Both A and B are made of various materials, including rubber and steel .
For producing one component A, it requires 3 m" of rubbers and 5000 g of steels, while one component B requires 1 m" of rubber and 2000 g of steels. Moreover, it takes one hour to produce a component A, and three hours to produce a component B. There are 500 m" of rubbers and 1100 kg of steels are available for next month's production.
Management Board has set the following prioritized goals:
- Priority 1: Use no more than 600 labor-hours during the month.
- Priority 2: Minimize the purchase of additional materials to avoid handling and storage
problems.
- Priority 3: Limit overtime to 20 hours
- Priority 4: Expect a demand for 60 product Y and 100 product Z within a month. Management
Board would like to set up a goal-programing model can meet demand for both Y and Z; however, it is three times as important to meet the demand for product Y.
a. Formulate a Goal Programming model to satisfy the requirement of Management Board.
b. Solve this model and draw conclusions.
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra