The following question is based on the Buckeye

The following question is based on the Buckeye Manufacturing Case that we covered in class. Buckeye produces three types of engine heads, P-Heads, H-heads, and R-heads. Each week, the production line is set up to produce one of the three products (the line can only produce the type of engine heads that it is set up to produce during a given week – production of the other two engine head types is not possible). Each weekend, a decision is made as to whether to keep the current setup for the production line or to change over the line. If the line is “changed-over” from one week to the next, then a $1000 cost is incurred. At present, the line is set up to make H-Heads. The requirements for the next four weeks, beginning (current) inventories, inventory holding costs ($/unit/week based on ending inventory), and maximum production per week are shown below:

Week 1

Week 2

Week 3

Week 4

Week 5

Beginning

Inventory

Holding

Cost

Maximum

Production

P-Heads

45

24

45

36

40

115 units

$15/week

90

H-Heads

33

30

48

58

30

115units

$19/week

75

R-heads

25

30

20

50

40

80 units

$14/week

80

An integer linear programming formulation is used to determine a production / changeover schedule for a five-week period. The objective is to minimize total costs: inventory + changeover, subject to constraints that meet demand and balance inventory, limit production, and pick-up changeovers. The decision variables are shown below:

xj = the number of P-heads produced in week jj = 1,2,3,4,5;

yj = the number of H-heads produced in week jj = 1,2,3,4,5;

zj = the number of R-heads produced in week jj = 1,2,3,4,5;

pj = the ending inventory of P-heads in week jj = 1,2,3,4,5;

hj = the ending inventory of H-heads in week jj = 1,2,3,4,5;

rj = the ending inventory of R-heads in week jj = 1,2,3,4,5;

sj = 1 if the production line is setup to produce P-heads in week j, 0 otherwise j = 1,2,3,4,5;

tj = 1 if the production line is setup to produce H-heads in week j, 0 otherwise j = 1,2,3,4,5;

uj = 1 if the production line is setup to produce R-heads in week j, 0 otherwise j = 1,2,3,4,5;

cj = 1 if the production line was “changed-over” from week j – 1 to week j, 0 if the setup for the line was the same for weeks j-1 and jj = 1,2,3,4;

Objective function:

1. Write the constraints (for each week) for R-heads that will guarantee that demand for the R-heads is satisfied and also accurately balance the inventory for this item.

2. Write the constraints (for each week) that will guarantee that only one type of engine head is produced and also limit accordingly the production of each type of engine block.

3. Write constraints (for each week) that will collect changeovers if they occur

 

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