Regular Production Overtime Production Outside Production

Variable x1 x2 x3 x4 y1 y2 y3 y4 p1
Values 120 120 120 100 5 15 15 0 0
Cost/Unit 80 80 80 80 120 120 120 120 125
Daily Cost 9600 9600 9600 8000 600 1800 1800 0 0

xi Regular Production on Day i Supply

yi Overtime Production on Day i 60 200 160 100
pi Outside Production on Day i = = = =
wi Underutilization on Day i 60 200 160 100
Ii Inventory on Day i
Outside Production Underutilization Inventory
p2 p3 p4 w1 w2 w3 w4 I1 I2 I3
0 25 0 0 0 0 20 65 0 0
125 125 125 60 60 60 60 4 4 4
0 3125 0 0 0 0 1200 260 0 0

Regular Production Capacity Daily Hours Number of Employees

120 120 120 120 8 15
= = = =
120 120 120 120
Objective Function
Overtime production Capacity
5 15 15 0 45585
<= <= <= <=
15 15 15 15
I4
0
4
0
 Regular Production Overtime Production Outside Production
Variable x1 x2 x3 x4 y1 y2 y3 y4 p1
Values 112 112 112 96 28 28 28 4 0
Cost/Unit 20 20 20 20 60 60 60 60 125
Daily Cost 2240 2240 2240 1920 1680 1680 1680 240 0

xi Regular Production on Day i Supply

yi Overtime Production on Day i 60 200 160 100
pi Outside Production on Day i = = = =
wi Underutilized Hour on Day i 60 200 160 100
Ii Inventory on Day i
ni Number of People on Day i Regular Manpower
hi Hired on Day i 15 14 14 12
li Laid-off On Day i = = = =
15 14 14 12

Number of People Working Number of People Hired Number of People Laid-Off

Variable n1 n2 n3 n4 h1 h2 h3 h4 l1
Values 14 14 14 12 0 0 0 0 1
Cost/Unit 480 480 480 480 200 200 200 200 200
Daily Cost 6720 6720 6720 5760 0 0 0 0 200
Outside Production Underutilization Inventory
p2 p3 p4 w1 w2 w3 w4 I1 I2 I3
0 0 0 0 0 0 0 80 20 0
125 125 125 40 40 40 40 4 4 4
0 0 0 0 0 0 0 320 80 0

Regular Production Capacity Daily Hours Number of Employees

112 112 112 96 8 15
= = = = Overtime (hrs)
112 112 112 96 2
Objective Function
Overtime production Capacity
28 28 28 4 40840
<= <= <= <=
28 28 28 24

Number of People Laid-Off

l2 l3 l4
0 0 2
200 200 200
0 0 400
I4
0
4
0
From To Shipment (Cubic Feet) Limit
Stuttgart Rotterdam 50 <= 50
Stuttgart Lisbon 30 <= 40
Stuttgart Bordeaux 70 <= 70
Rotterdam New York 50 <= 60
Lisbon New Orleans 30 <= 30
Bordeaux New York 30 <= 40
Bordeaux New Orleans 40 <= 50
New York Los Angeles 80 <= 80
New Orleans Los Angeles 70 <= 70

Maximum Flow 150

Nodes Outflow Inflow Net Flow
Stuttgart 150 0 150
Rotterdam 50 50 0 = 0
Lisbon 30 30 0 = 0
Bordeaux 70 70 0 = 0
New York 80 80 0 = 0
New Orleans 70 70 0 = 0
Los Angeles 0 150 -150
 Ki = Choice of keeping the old car in i-th year (i=0,1,2,3,4)
Sj = Choice of new purchase in j-th year (j=1,2,3,4,5)

Expenses Year Ended Year Begun Yes/No Available Choice Out

12 K0 S1 0 K0 1
2 K0 K1 1 S1 0
3.5 S1 S2 0 K1 1
2 S1 K2 0 S2 1
3.5 K1 S2 1 K2 0
3 K1 K2 0 S3 1
3.5 S2 S3 1 K3 0
2 S2 K3 0 S4 1
5.5 K2 S3 0 K4 0
4.5 K2 K3 0 S5 0
3.5 S3 S4 1
2 S3 K4 0
7.5 K3 S4 0 Net Expense
6.5 K3 K4 0 16 <=
3.5 S4 S5 1
9 K4 S5 0
In Net Constraint
0 1 = 1
0 0 = 0
1 0 = 0
1 0 = 0
0 0 = 0
1 0 = 0
0 0 = 0
1 0 = 0
0 0 = 0
1 -1 = -1

Balance
21
 Volume (cubic
Variables Weight (tons) Total (tons) Available (tons) metres/ton) Profit ($/ton)
C1 x1 0 2 <= 18 480 310
x2 2 480 310
x3 0 480 310
C2 x4 7 15 <= 15 650 380
x5 0 650 380
x6 8 650 380
C3 x7 3 15 <= 23 580 350
x8 12 580 350
x9 0 580 350
C4 x10 0 2 <= 12 390 285
x11 2 390 285
x12 0 390 285

2 <= 18
15 <= 15
15 <= 23
2 <= 12
10 <= 10
16 <= 16
8 <= 8
6290 <= 6800
8700 <= 8700
5200 <= 5300
1 = 1
1 = 1
 Front Centre Rear
C1 C2 C3 C4 C1 C2 C3 C4 C1 C2 C3 C4
0 7 3 0 2 0 12 2 0 8 0 0
Total (tons) 10 16 8
<= <= <=
Capacity (tons) 10 16 8
Capacity (cm3) 6800 8700 5300
<= <= <=
480 650 580 390 480 650 580 390 480 650 580 390
Volume (cm3) 6290 8700 5200

Ratio 1 1 1

Profit 12140