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Multiple Period Production-Inventory Model
Example 2.3-5 (pp. 44) Solution of Example 2.3-5 Using TORA
• Acme Manufacturing Company contracted to deliver home
windows over the next 6 months.
• The demands are 100, 250, 190, 140, 220 and 110.
• The production costs are $50, $45, $55, $48, $52 and $50.
• Storage costs $8 per window per month based on end-of-
month inventory.
Multiperiod Production Smoothing Model Crude Oil Refining and Gasoline Blending
Example 2.3-6 (pp. 46) (Example 2.3-7, pp. 52)
• A company will manufacture a product over the • Shale Oil has a capacity of 1,500,000 bbl of crude oil/day.
• Final products include three types of unleaded gasoline (regular with
next four months; March, April, May and June. ON = 87, premium with ON = 89 & super with ON = 92)
• The demands are 520, 720, 520 and 620. • Three stages as shown in the figure.
• Net profit per barrel is $6.7, $7.2 & $8.1.
• The company has a steady workforce of 10
• Input capacity of the cracker unit is 200,000 barrels of feedstock/day.
employees but can hire and fire temporary • Demand limits are 50,000, 30,000 & 40,000 barrels/day.
workers for $200 and $400 per worker.
• A permanent worker can produce 12 units per
month while a temporary worker can produce only
10 units per month.
• Holding cost is $50 per unit per month.
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• Faculty of Engineering