II. Business Analytics: Optimization & Production Planning Flashcards Preview

OPM 301 - Operations Management > II. Business Analytics: Optimization & Production Planning > Flashcards

Flashcards in II. Business Analytics: Optimization & Production Planning Deck (13)
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1
Q

Why do we use optimization models?

A

For quantitative decision support. Optimization models support decision-making regarding pre-defined objectives and existing constraints (e.g. on capacities or costs).

2
Q

State the components of an optimization problem and their relation to the optimization model.

A
  • Input data:
    • Indices: Elements of an index set, which is used to enumerate parameters and decision variables and to distinguish between similar types.
    • Parameters: Information, which is given in a specific optimization model; input values
  • Decision:
    • Decision variables: Represent the decisions in the model, define all alternative decisions; not determined beforehand. The values of the decision variables are output values.
  • Objective:
    • Objective function: Defines the value to be optimized in the model; indicates how much a variable contributes to this value; can be maximized or minimized
  • Constraints:
    • Constraints restrict the feasibility of certain decisions according to pre-defined conditions.
3
Q

How does the “for all …” symbol look like and how is it used?

A

This symbol is the switched “A” sign used in the fashion as can be seen below.

4
Q

What do we need for a specific integer or linear program?

A
  1. Decision variables
  2. Objective function
  3. Constraints
5
Q

What do we need for an algrebaic integer or linear program?

A
  1. Indices
  2. Parameters
  3. Decision variables
  4. Objective function
  5. Constraints
6
Q

Which constraint must nearly always be given?

A

Xi >= 0 [For all] Vi = 1, … , I

7
Q

What is a chase strategy?

A
  • Production volume equals demand in each period
  • Reactive approach
  • Production volume is adapted to the demand each period using overtime
  • No inventory
8
Q

What is a level strategy?

A
  • Constant production volume (average demand)
  • Increasing and decreasing inventory levels
  • Inventory costs
9
Q

What problem is solved by aggregate planning?

A
  • Problem: time-dependent demand - How much to produce when?
  • Actions:
    • Overtime vs. reduced hours, outsourcing
    • Increasing and decreasing in inventories
  • Characteristics
    • Aggregate product types
    • Global capacities (factory specific)
    • Planning horizon: several months, one to two years
10
Q

How do we make sure that demand is fulfilled in aggregate planning?

A

Through the inventory balance equation.

11
Q

What is lotsizing and what are relevant solution strategies?

A
12
Q

What are the two strategies regarding lot-sizing?

A
  • “Lot for Lot” and “Lot-size = Production capacity”
13
Q

What are the characteristics of lot-sizing?

A