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.

2

>Model

and/or

plants can be retooled

plant must stay open and cannot be retooled

Lyra Libra Hydra

.8

2 2

.4

Lyra Libra Hydra New Lyra New Libra

Lyra 2

-100

Libra -100 3 -100 3

Hydra -100 -100 5 -100

Lyra

Libra

Hydra 0.8
Lyra Libra Hydra
Lyra

Libra 0 NA

Hydra 0 0 NA

			Giant Motor Company
Assumptions
The						Lyra						Libra
The						Hydra
There is no incentive to produce more than demand
Plant characteristics
	New Lyra		New Libra
Capacity (in millions)	1					0	0.9	1.6	1.8
Fixed cost (in $billions)	2.6			3	3.7
Profit margin (in $1000s) per car (large negative numbers mean the plant can’t make that car)
						-100	2.	5	2.3
3.5
4.8
Demand (in millions)
1.4
1.1
Demand diversion matrix (from along side, to along top)
		NA	0.3	0.05
0.1