1. IE 312 Project Fall 2012 IE 312 1  This is a group project. You can form your own group of 2-3 people in each group. If you have problems finding partners let me know as soon as possible and I will pair you up  The project is due on December 7 th  There are three deliverables:  Two high-level PowerPoint presentations  A technical report

2. My Expectations Fall 2012 IE 312 2  Use LINGO with SETS  The grading will be:  How well you formulate this problem (50%),  How well you code your formulation in LINGO (15%),  How well you interpret the output (15%), and  Quality of your Powerpoint presentations (20%)  No single correct formulation for the problem:  Assumptions will have to be made  Make sure all of them are well justified  Use sensitivity analysis in interpreting the output

3. Problem Background Fall 2012 IE 312 3  You will work as an operations research analysis for the Scottish conglomerate McBain International, the world’s leading producer of Haggis, a Scottish delicacy.  After conducting extensive market research, McBain has decided to add two new flavors to its product line: Mexican Haggis and Taiwanese Haggis.  The new haggis products will be produced at its USA Midwest facility, located in Ames, IA.  This facility currently makes only American and Vegetarian Haggis, and it was chosen due to its current low utilization

4. Fall 2012 4 IE 312

5. There’s a problem … Fall 2012 IE 312 5  Production is scheduled to start in January 2013.  Unfortunately manufacturing engineering at the USA Midwest recently reported that they will be unable to meet the demand for the new products without adding an overtime shift.  This was discovered when they attempted to put together a production schedule for January

6. Your boss has a perspective … Fall 2012 IE 312 6  Given the current utilization and the expected demand for the new products, your boss is convinced that the facility can handle the production, and she has asked you to help the USA Midwest facility fix the problem.  Given the current economic climate, your boss has made it clear that she does not want to pay for any overtime or additional capital investments.

7. You’ll need to find a solution Fall 2012 IE 312 7  Use your expertise to find the optimal solution to this problem.  If you believe that you have insufficient information, you can make assumptions (if they can be justified)  You will need to write a report, which may use optimization jargon (5 pages), as well as two PowerPoint presentation to be given to your boss  Your recommendations should be available by December 7 th

8. Project Presentation Due 11/16  Rhetorical Issues Audience – Management outside engineering Context – Introducing new products causes a problem with production scheduling Purpose – Convince management that you are the right team to solve the problem  Formatting Issues Slide 1: Overview of problem Slide 2: Describe at a high level how optimization is the answer to the problem. What can optimization do? Slide 3: Outline your proposed solution approach Fall 2012 8 IE 312

9. Bon Appétit … … Haggis with Neeps and Tatties Fall 2012 9 IE 312