GAMS- Case Study
Write the algebraic formulation of Case 6.1 (Giant Motor Company) in your textbook and solve using Excel or GAMS, and report your findings.
Model
| Giant Motor Company | |||||
| Assumptions | |||||
| The Lyra and/or Libra plants can be retooled | |||||
| The Hydra plant must stay open and cannot be retooled | |||||
| There is no incentive to produce more than demand | |||||
| Plant characteristics | |||||
| Lyra | Libra | Hydra | New Lyra | New Libra | |
| Capacity (in millions) | 1 | 0.8 | 0.9 | 1.6 | 1.8 |
| Fixed cost (in $billions) | 2 | 2 | 2.6 | 3.4 | 3.7 |
| Profit margin (in $1000s) per car (large negative numbers mean the plant can't make that car) | |||||
| Lyra | Libra | Hydra | New Lyra | New Libra | |
| Lyra | 2 | -100 | -100 | 2.5 | 2.3 |
| Libra | -100 | 3 | -100 | 3 | 3.5 |
| Hydra | -100 | -100 | 5 | -100 | 4.8 |
| Demand (in millions) | |||||
| Lyra | 1.4 | ||||
| Libra | 1.1 | ||||
| Hydra | 0.8 | ||||
| Demand diversion matrix (from along side, to along top) | |||||
| Lyra | Libra | Hydra | |||
| Lyra | NA | 0.3 | 0.05 | ||
| Libra | 0 | NA | 0.1 | ||
| Hydra | 0 | 0 | NA |
