EM4457E - MANUFACTURING PLANNING AND CONTROL

Homework No. 2

1. Introduction
An island was hit by a natural disaster. You are responsible for coordinating the
disaster relief efforts of the United Nations. For the next 5 months, 8 ships from around
the world are available to transport supplies to one of the two remaining ports on the
island. From the ports the emergency supplies must then be distributed to the six first aid
camps established all over the island. For each month it must be decided which ship
transports supplies to which port. Each ship has a maximum load capacity which cannot
be exceeded. Preparing a ship for the journey and loading the supplies results in fixed
preparation costs. Within each month a ship can only be sent to one port. The details are
presented in Table 1.
Ship 1 2 3 4 5 6 7 8
Capacity 1250 2740 1890 4980 2630 16000 9610 3540
Prep_cost 250,000 655,000 412,30 876,900 470,025 3,655,000 1,914,500 700,000
s 0
Table 1: Maximum load capacity in tons and fixed preparation costs in euros per ship
usage

Depending on the ship and its destination port, different transportation costs apply
per ton of loaded supplies. Furthermore, the distribution within the country to the first aid
camps incurs costs as well. The cost relationships are given in Table 2 and 3.
Ships
Ports 1 2 3 4 5 6 7 8
Port1 129 132 129 132 178 160 161 144
Port2 134 155 130 139 142 139 154 122
Table 2: Transportation costs for each ship to the ports per ton of supplies

Camps
Ports 1 2 3 4 5 6
Port1 130 81 77 83 89 116
Port2 71 125 114 85 86 86
Table 3: Distribution costs from ports to the camps within the country per ton of supplies

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 The quantity of supplies that must be delivered to each camp on the island per
month is already determined. All demand must be completely satisfied each month. From
the ports, supplies are to be distributed to the first aid camps according to their reported
demands given in Table 4.
Month
Camps 1 2 3 4 5
1 11 5 1 1 1
2 3 0 3 0 2
3 6 3 4 3 7
4 5 5 5 2 6
5 7 1 7 1 4
6 0 3 5 0 0
Table 4: Demand of supplies in first aid camps (in 1000s tons) per month

Additionally, during the preparation of each supply ship you must account for the
workers and machines required for loading the ship. Therefore, whenever a ship is sent
out, 360 machine hours and 3840 man hours must be scheduled. Per month only 22,200
man hours and 2520 machine hours are available.
The goal is to minimize the total cost of this operation. The ideal schedule of ships
per month must be determined as well as how the supplies are distributed from ports to
camps. The demand of each camp must be satisfied

2. Questions
a) Design a generic mixed integer programming formulation of the described
problem. Define sets, parameters and decision variables. State and describe briefly the
objective function and constraints. Ensure that your model has a linear objective function
subject to linear constraints. Present your results properly.
Hint: Note that this is a two-stage supply chain problem. Thus, use separate decision
variables for the deliveries to the ports and for the deliveries to the camps

b) Implement the LP model as developed in a) in an OPL project and use CPLEX

Studio IDE to solve the problem (Please submit one OPL project). Separate model and

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data into different files. Label constraints appropriately using indexed constraint labels.
Use decision expressions for the components of the objective function.
Please answer the following questions:
- What are the minimum possible costs?
- What are the transportation costs (ships to port), distribution costs (ports to camps)
and preparation costs (fixed costs) respectively?
- Present the optimal schedule of ships. Which ship is launched in which month to
which port?
- Present the optimal distribution schedule for the camps. Which port supplies
which camp in which month?
- What is the amount of slack in the capacity constraints of man hours and machine
hours?
- What is the general economic interpretation of slack?
- Looking at the slack in the capacity constraints, how would you interpret the
current situation? Assuming the next mission would require larger quantities of supplies,
would you rather increase the available number of man hours, machine hours, both, or
leave them as they are?

c) In three consecutive months, a ship can only be deployed at most two times.
Extend the generic formulation of a) to take this into account (It is sufficient to write
down the additional constraints to the original model). Also, implement these constraints
in the OPL project (use the same model file as in b).