Parameters

dit

1
22000
12000
20000
13000
13000

1
2
3
4
5

2
30000
13000
30000
18000
15000
Lri

Ui
1
2
3
4
5

3
42000
15000
38000
24000
17000

1.00
2.19
0.94
1.00
2.38

pit

1
$0.50

4
26000
12000
24000
15000
14000
Loi

$8.00
$17.50
$7.50
$8.00
$19.00
2
$0.50

5
31000
14000
29000
18000
16000
Lsi

$12.50
$27.00
$11.00
$12.50
$29.00

3
$5.00

6
21000
15000
19000
12000
18000
hi

$14.00
$28.00
$13.00
$14.50
$30.50

4
$0.50

5
$0.50

$0.56
$1.19
$0.55
$0.58
$1.18

total component cost

15862000

6
$0.50

Aggregation 1 (aggregate products 1, 3, and 4 into regular watches and aggregate products 2 and 5 into regular watches)
dit
1
2
3
4
5
6
Ratio in regular
Ratiowatch
in slim watch
1
55000
78000
104000
65000
78000
52000
39.8%
2
25000
28000
32000
26000
30000
33000
46.6%
37.0%
23.1%
53.4%
r

Ui
1
2

o
i

Li
0.98
2.29

s
i

hi

$7.81
$18.30

$11.94
$28.07

$13.75
$29.34

3
$5.00

4
$0.50

5
$0.50

6
$0.50

Aggregation 2 (aggregate all products into a single product, say watch)

dit
1
2
3
4
5
1
80000
106000
136000
91000
108000

6
85000

pit

1
$0.50

2
$0.50

Lri

Ui
1

pit

$1.35

1
$0.50

2
$0.50

Loi

$0.56
$1.18

Lsi

Ratio in watch
28.4%
13.4%
26.4%
16.5%
15.3%
hi

$10.83

$16.57

$18.22

3
$5.00

4
$0.50

5
$0.50

$0.74

6
$0.50

The LP formulation without aggregation

Parameters
dit

1
22000
12000
20000
13000
13000

1
2
3
4
5

2
30000
13000
30000
18000
15000
r

Ui

Li

1
2
3
4
5
pit

3
42000
15000
38000
24000
17000

1.00
2.19
0.94
1.00
2.38

4
26000
12000
24000
15000
14000
L

$8.00
$17.50
$7.50
$8.00
$19.00

o
i

5
31000
14000
29000
18000
16000
L

$12.50
$27.00
$11.00
$12.50
$29.00

6
21000
15000
19000
12000
18000

s
i

hi
$14.00
$28.00
$13.00
$14.50
$30.50

$0.56
$1.19
$0.55
$0.58
$1.18

1
$0.50

2
$0.50

3
$5.00

4
$0.50

5
$0.50

6
$0.50

1
2
3
4
5

1
22000
12000
0
13000
20526

2
30000
13000
0
18000
14132

3
42000
7171
4000
24000
10342

4
26000
12000
6533
15000
15421

5
31000
14000
0
18000
12789

6
21000
15000
0
12000
18605

subtotal
172000
73171
10533
100000
91816

1
0
0
20000
0
0

2
0
0
32000
0
0

3
0
0
32000
0
0

4
0
0
17467
0
0

5
0
0
29000
0
1184

6
0
0
19000
0
0

subtotal

1
2
3
4
5

1
0
0
0
0
0

2
0
0
0
0
0

3
0
7829
0
0
0

4
0
0
0
0
0

5
0
0
0
0
0

6
0
0
0
0
0

subtotal

1
2
3
4
5

1
0
0
0
0
7526

2
0
0
2000
0
6658

3
0
0
0
0
0

4
0
0
0
0
1421

5
0
0
0
0
0

6
0
0
0
0
0

subtotal

1
2
3
4
5

1
0
0
0
0
0

2
0
0
0
0
0

3
0
0
0
0
0

4
0
0
0
0
0

5
0
0
0
0
605

6
0
0
0
0
0

subtotal

1
2
3
4
5

Constraints
regular time used
110000

110000

110000

110000

110000

110000

limited by
110000

30000

30000

16375

30000

17813

limited by
30000

Decision variables
Xrit

Xoit

Xsit

+
it

I-it

overtime used
18750
Inventory balance

0
0
149467
0
1184

0
7829
0
0
0

0
0
2000
0
15605

0
0
0
0
605

equals
0

0
0
0
0
I+i6, I-i6 = 0
Nonnegativity
Objective funstion
23059492

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

The LP formulation of aggregation into regular and slim watches

Parameters (aggregated)
dit
1
1
55000
2
25000

2
78000
28000

Lri

Ui
1
2

pit

3
104000
32000

0.98
2.29

1
$0.50

Loi
$7.81
$18.30

2
$0.50

4
65000
26000

3
$5.00

5
78000
30000

Lsi
$11.94
$28.07

4
$0.50

Parameters (original)
dit
1
2
3
4
5

6
52000
33000

hi
$13.75
$29.34

5
$0.50

1
22000
12000
20000
13000
13000

2
30000
13000
30000
18000
15000
Lri

Ui
$0.56
$1.18

1
2
3
4
5
pit

6
$0.50

Decision variables

3
42000
15000
38000
24000
17000

1.00
2.19
0.94
1.00
2.38

4
26000
12000
24000
15000
14000
Loi

$8.00
$17.50
$7.50
$8.00
$19.00

$12.50
$27.00
$11.00
$12.50
$29.00

1
$0.50

2
$0.50

3
$5.00

4
$0.50

1
2
3
4
5

1
21421
11689
19927
12454
13421

2
18828
12984
17514
10947
14907

3
29180
7815
27144
16965
8973

4
20591
12103
19154
11971
13897

1
2
3
4
5

1
477
0
444
277
0

2
12227
0
11374
7109
0

3
12227
0
11374
7109
0

4
5289
0
4920
3075
0

1
2
3
4
5

1
0
0
0
0
0

2
0
0
0
0
0

3
0
7081
0
0
8130

4
0
0
0
0
0

1
2
3
4
5

1
0
0
370
0
421

2
954
0
0
0
328

3
361
0
0
0
431

4
241
0
0
0
328

1
2
3
4
5

1
102
311
0
269
0

2
0
328
741
213
0

3
0
431
222
139
0

4
0
328
148
93
0

Disaggregation

Xrit

1
53802
25109

2
47289
27891

3
73289
16789

4
51717
26000

5
47289
27891

6
30383
35109

subtotal
303769
158789

Xrit

1
2

1
1198
0

2
30711
0

3
30711
0

4
13283
0

5
30711
0

6
21617
0

subtotal
128231
0

Xoit

1
2

1
0
0

2
0
0

3
0
15211

4
0
0

5
0
0

6
0
0

subtotal

Xsit

1
2

1
0
109

2
0
0

3
0
0

4
0
0

5
0
0

6
0
0

subtotal

1
2

1
0
0

2
0
0

3
0
0

4
0
0

5
0
2109

6
0
0

subtotal

1
2

Constraints
regular time used
110000

110000

110000

110000

110000

110000

limited by
110000

30000

30000

12976

30000

21117

limited by
30000

0
0

0
0

0
0

0
0

0
0

Xoit

Xsit

I+it

I-it

overtime used
1170
Inventory balance

0
15211

I+it

0
109

I-it

0
2109

equals
0
0

I+i6, I-i6 = 0
Nonnegativity
Objective funstion
23121083

Actual total cost

23129346

5
31000
14000
29000
18000
16000

6
21000
15000
19000
12000
18000

Lsi

Ratio in regular
Ratio in slim
39.8%
46.6%
37.0%
23.1%
53.4%
hi

$14.00
$28.00
$13.00
$14.50
$30.50

$0.56
$1.19
$0.55
$0.58
$1.18

5
$0.50

6
$0.50

5
18828
12984
17514
10947
14907

6
12097
16344
11253
7033
18765

subtotal
120945
73919
112507
70317
84870

5
12227
0
11374
7109
0

6
8607
0
8006
5004
0

subtotal
51055
0
47493
29683
0

5
0
0
0
0
0

6
0
0
0
0
0

subtotal

5
296
0
0
0
0

6
0
0
0
0
0

subtotal
1852
0
370
0
1507

5
0
1344
259
37
765

6
0
0
0
0
0

subtotal
102
2741
1370
750
765

0
7081
0
0
8130

The LP formulation of aggregation into regular and slim watches

Parameters (aggregated)
dit
1
1
80000

2
106000

Lri

Ui
1

pit

3
136000

1.35

1
$0.50

Loi
$10.83

2
$0.50

4
91000

3
$5.00

5
108000

Lsi
$16.57

4
$0.50

Parameters (original)
dit
1
2
3
4
5

6
85000

hi
$18.22

5
$0.50

2
30000
13000
30000
18000
15000

1
2
3
4
5
pit

6
$0.50

3
42000
15000
38000
24000
17000
Lri

Ui
$0.74

Decision variables

1.00
2.19
0.94
1.00
2.38

4
26000
12000
24000
15000
14000
Loi

$8.00
$17.50
$7.50
$8.00
$19.00

$12.50
$27.00
$11.00
$12.50
$29.00

1
$0.50

2
$0.50

3
$5.00

4
$0.50

1
2
3
4
5

1
23071
10865
21462
13414
12475

2
23071
10865
21462
13414
12475

3
23071
10865
21462
13414
12475

4
23071
10865
21462
13414
12475

1
2
3
4
5

1
6292
2963
5853
3658
3402

2
6292
2963
5853
3658
3402

3
6292
2963
5853
3658
3402

4
2757
1298
2565
1603
1491

1
2
3
4
5

1
0
0
0
0
0

2
0
0
0
0
0

3
3302
1555
3072
1920
1785

4
0
0
0
0
0

1
2
3
4
5

1
7364
1828
7315
4072
2877

2
6727
2656
4630
3144
3754

3
0
3040
0
0
4416

4
0
3203
0
0
4381

1
2
3
4
5

1
0
0
0
0
0

2
0
0
0
0
0

3
2607
0
2983
1865
0

4
2779
0
2957
1848
0

Disaggregation

Xrit

1
81286

2
81286

3
81286

4
81286

5
81286

6
81286

subtotal
487719

Xrit

1
22169

2
22169

3
22169

4
9714

5
22169

6
8258

subtotal
106648

Xoit

1
0

2
0

3
11633

4
0

5
0

6
0

subtotal
11633

Xsit

1
23456

2
20911

3
0

4
0

5
0

6
0

subtotal
44367

I+it

1
0

2
0

3
0

4
0

5
4544

6
0

subtotal
4544

I-it

Constraints
regular time used
110000

110000

110000

110000

110000

110000

limited by
110000

30000

30000

13145

30000

11175

limited by
30000

Xoit

Xsit

I+it

I-it

overtime used
30000
Inventory balance

equals
0

I+i6, I-i6

1
22000
12000
20000
13000
13000

=0

Nonnegativity
Objective funstion
23156694

Actual total cost

23226823

5
31000
14000
29000
18000
16000

6
21000
15000
19000
12000
18000

Lsi

Ratio in watch
28.4%
13.4%
26.4%
16.5%
15.3%
hi

$14.00
$28.00
$13.00
$14.50
$30.50

$0.56
$1.19
$0.55
$0.58
$1.18

5
$0.50

6
$0.50

5
23071
10865
21462
13414
12475

6
23071
10865
21462
13414
12475

subtotal
138428
65190
128771
80482
74848

5
6292
2963
5853
3658
3402

6
2344
1104
2180
1363
1267

subtotal
30270
14255
28158
17599
16367

5
0
0
0
0
0

6
0
0
0
0
0

subtotal
3302
1555
3072
1920
1785

5
0
3031
0
0
4258

6
0
0
0
0
0

subtotal
14091
13758
11945
7216
19686

5
4415
0
4642
2776
0

6
0
0
0
0
0

subtotal
9801
0
10583
6489
0