Question:
Owens Corning makes different size Fibergias mats in its composite materials facility in Anderson, S. Carolina.3 For simplicity', consider only two products: light (3/4 ounce per square foot, 76 inches wide), and heavy (1.5 ounces per square foot, 76 inches wide) mats. Both are made on the same production line. The line can make 370,000 pounds of light or 185.000 pounds of heavy mats per week. The forecast weekly demand for the next eight weeks for light mats is 110,000 pounds, and for heavy mats is 120,000 pounds. The economic production quantity (EPQ) for light mats is 370,000 pounds (one week of production), and for heavy mats is 555,000 pounds (three weeks of production). That is, the line is expected to produce light mats for 1 week, and then produce the heavy mats for 3 weeks, There are 120,000 pounds of inventory of each product currently on hand. Starting with light mats in week 1, determine the plan tied production for the two products so that neither product's projected on hand becomes negative, but their production lot sizes are close to their EPQ. If one of the products will be short, interrupt tire production of the other and start making the short product.