Group work 3: BETTER PRODUCT case study

GROUP 4
STUDENT ID NAME CONTRIBUTION
31211020953 Hồ Thị Kim Ngân 100%
31211023012 Nguyễn Hoàng Lâm 100%
31211022472 Nguyễn Nguyên 100%
31211022803 Đỗ Ni Na 100%
31211025015 Lê Ngọc Hải Dương 100%

Case 7.1
1. Variables
Let Xij be the number of products each plant produces, for i = 1, 2, 3 and j = 1, 2, 3, 4 where i
presents the three plants and j represents the four new products.

2. Constraints
Required production of the 4 new products at 3 plants:
X11+ X21 + X31 = 20
X12+ X22 + X32= 30
X13+ X23 + X33= 30
X14 + X24 + X34 = 40
X23= 0

Capacity available in three plants:

X11+ X12+ X13 + X14<= 75
X21+ X22+ X23 + X24 <= 75
X31+ X32+ X33 + X34 <= 45
and Xij >= 0 (i=1, 2, 3; j=1, 2, 3, 4), Xij is integer number

3. Objective:
The objective is to minimize the total cost, meaning minimize the following function:
41X11 + 27X12 + 28X13 + 24X14 + 40X21 + 29X22 + 23X24 + 37X31 + 30X32 + 27X33 + 21X34

4. Solve by QM for Windows application and Result

4.1. Solve by QM for Windows application
• Step 1: Open QM for Window application and choose Linear Programming in the Module
Tree
• Step 2: Adjust the Number of Constraints to 8. Number of Variable to 12, and the Objective is
to Minimize

• Step 3: Fill in the table with the data from the case
• Step 4: Click Solve or Solution to get the results
 The results:

4.2. Resul by Solver

5. Conclusion:
Based on the results, the company should produce
• 60 units of products at Plant 1, including 30 units of Product 2 and 30 units of Product 3
• 15 units of Product 4 at Plant 2
• 45 units of products at Plant 3, including 20 units of Product 1 and 25 units of Product 4
in order to have a minimum total cost of $3,260.

Case 7.2
1. Variables: X11, X12, X13, X21, X22, X23, X31, X32, X33, X41, X42, X43

2. Objective function is to minimize this function: 820X11 + 800X12 + 740X13 + 810X21 +

870X22 + 900X23 + 840X31 + 0X32 + 810X33 + 960X41 + 920X42 + 840X43.

3. Constraints:
• X11 + X12 +X13 = 1
• X21 + X22 + X23 = 1
• X31 + X32 + X33 = 1
• X41 + X42 + X43 = 1
• X11 + X21 + X31 + X41 = 2
• X12 + X22 + X32 + X42 = 1
• X13 + X23 + X33 + X43 = 1
• X32 = 0

4. Solve by QM for Windows application and Result

4.1. Solve by QM for Windows application
Step 1: Choose Linear Programming in Module
Step 2: Choose New in File

Step 3: Adjust Number of Constraints, Number of Variables and Objective

Step 4: Fill the data

Step 5: Choose Solve

4.2. Result by Solver

5. Conclusion
Minimizing the total cost of assigning each plant to at least one new product where each products is to
be produced in only one plant amounts to 3290 dollars. In particular,
- Plant 1 produced Product 2 and Product 3
- Plant 2 produced Product 1
- Plant 3 produced Product 4