CaseAssignment 0222
The University of Wisconsin – Milwaukee
Business Administration 478-Supply Chain Analytics
Case Assignment 02 – Dec. 8 at 5:30 PM
Note 1: There are three case studies in this assignment. Each group should select only one case study. Also, each group is required to submit a written report in doc file along with Excel file to D2L dropbox that is assigned to the project.
Note 2: These case studies can be done in self-selected of groups of at most 5 people.
A single grade will be assigned to the group. It is expected that all group members do the fair amount of work and equal contribution.
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CASE ONE
Giant Motor Company
This case deals with strategic planning issues for a large company. The main issue is planning the company’s production capacity for the coming year. At issue is the overall level of capacity and the type of capacity—for example, the degree of flexibility in the manufacturing system. The main tool used to aid the company’s planning process is a mixed integer linear programming (MILP) model. A mixed integer program has both integer and continuous variables.
Problem Statement
The Giant Motor Company (GMC) produces three lines of cars for the domestic (U.S.) market: Lyras, Libras, and Hydras. The Lyra is a relatively inexpensive subcompact car that appeals mainly to first-time car owners and to households using it as a second car for commuting. The Libra is a sporty compact car that is sleeker, faster, and roomier than the
Lyra. Without any options, the Libra costs slightly more than the Lyra; additional options increase the price. The Hydra is the luxury car of the GMC line. It is significantly more expensive than the Lyra and Libra, and it has the highest profit margin of the three cars.
Retooling Options for Capacity Expansion
Currently GMC has three manufacturing plants in the United States. Each plant is dedicated to producing a single line of cars. In its planning for the coming year, GMC is considering the retooling of its Lyra and/or Libra
Business Administration 478-Supply Chain Analytics
Case Assignment 02 – Dec. 8 at 5:30 PM
Note 1: There are three case studies in this assignment. Each group should select only one case study. Also, each group is required to submit a written report in doc file along with Excel file to D2L dropbox that is assigned to the project.
Note 2: These case studies can be done in self-selected of groups of at most 5 people.
A single grade will be assigned to the group. It is expected that all group members do the fair amount of work and equal contribution.
-1-
CASE ONE
Giant Motor Company
This case deals with strategic planning issues for a large company. The main issue is planning the company’s production capacity for the coming year. At issue is the overall level of capacity and the type of capacity—for example, the degree of flexibility in the manufacturing system. The main tool used to aid the company’s planning process is a mixed integer linear programming (MILP) model. A mixed integer program has both integer and continuous variables.
Problem Statement
The Giant Motor Company (GMC) produces three lines of cars for the domestic (U.S.) market: Lyras, Libras, and Hydras. The Lyra is a relatively inexpensive subcompact car that appeals mainly to first-time car owners and to households using it as a second car for commuting. The Libra is a sporty compact car that is sleeker, faster, and roomier than the
Lyra. Without any options, the Libra costs slightly more than the Lyra; additional options increase the price. The Hydra is the luxury car of the GMC line. It is significantly more expensive than the Lyra and Libra, and it has the highest profit margin of the three cars.
Retooling Options for Capacity Expansion
Currently GMC has three manufacturing plants in the United States. Each plant is dedicated to producing a single line of cars. In its planning for the coming year, GMC is considering the retooling of its Lyra and/or Libra