Professional Documents
Culture Documents
-By
Aditya Karam( 04), Gurjinder Singh(10), Deepti
Sana(40), Kaushik Mandal(41), Pankaj Bajaj(59)
He tries to acquire information about the age groups of account holders, their
internet usage ability, income levels, and investment behavior. AmeriBank wants
to interview 2,000 customers with at least 20 percent from the first age group, at
least 27.5 percent from the second age group, at least 15 percent from the third
age group, and at least 15 percent from the fourth age group. Rob wants to
ensure that the survey includes a mix of customers who know the Internet well
and those that have less exposure to the Internet. To ensure that AmeriBank
obtains the correct mix, he wants to interview at least 15 percent of customers
from the Silicon Valley where Internet use is high, at least 35 percent of
customers from big cities where Internet use is medium, and at least 20 percent
of customers from small towns where Internet use is low.
Sophisticated Surveys has performed an initial analysis of these survey
requirements to determine the cost of surveying different populations. The costs
per person surveyed are listed in the following table:
Region
Silicon Valley
18 to 25
$4.75
26 to 40
$6.50
41 to 50
$6.50
51 and over
$5.00
Big cities
Small towns
$5.25
$6.50
$5.75
$7.50
$6.25
$7.50
$6.25
$7.25
Min z=4.75 x1+ 6.50 x2+ 6.50 x3+5 x4+5.25 x5+5.75 x6+ 6.25 x7+ 6.25 x8+ 6.50
x9+ 7.50 x10+ 7.50 x11+ 7.25 x12
Constraints:
x1+ x2+ x3+ x4+ x5+ x6+ x7+ x8+ x9+ x10+ x11+ x12=2000 .(1)
x1+ x2+ x3+ x4>=300... (2)
x5+ x6+ x7+ x8>=700 . (3)
x9+ x10+ x11+ x12=>400... (4)
x1+x5+x9>=400 .. (5)
3
x2+x6+x10>=5500. (6)
x3+x7+x11>=300... (7)
x4+ x8+ x12>= 300... (8)
x1, x2, x3, x4, x5, x6, x7, x8, x9, x10, x11, x12>=0.....(9)
X1=600
X2=0
X3=0
X4=300
X5=0
X6=550
X7=150
X8=0
X9=250
X10=0
X11=150
X12=0
(b) If the profit margin for Sophisticated Surveys is 15 percent of cost, what bid
will they submit?
Ans. Given that the profit margin is 15%, Sophisticated Surveys will submit the
following bid:
= (2850+0+0+1500+0+3162.50+937.5+0+1625+0+1125+0)*1.15 $
= (11199.5)*1.15 $
=12879.4 $
(c) After submitting its bid, Sophisticated Surveys is informed that it has the
lowest cost but that AmeriBank does not like the solution. Specifically, Rob feels
that the selected survey population is not representative enough of the banking
customer population. Rob wants at least 50 people of each age group surveyed in
each region. What is the new bid made by Sophisticated Surveys?
Ans. The additional constraints will look like:
X1, x2, x3, x4, x5, x6, x7, x8, x9, x10, x11, x12 >50
The new bid will be:
= (237.50+325+975+250+262.5+625+3125+1950+4500+375+362.5)1.15
=14935.6 $
(d) Rob feels that Sophisticated Surveys oversampled the 18- to 25-year-old
population and the Silicon Valley population. He imposes a new constraint that no
more than 600 individuals can be surveyed from the 18- to 25-year-old population
and no more than 650 individuals can be surveyed from the Silicon Valley
population. What is the new bid?
Ans. In addition to 1st 20 constraints of the 1st bid these two constraints are
added:
X1+x5+x9<= 600 (21)
X1+x2+x3+x4<=650. (22)
(e) When Sophisticated Surveys calculated the cost of reaching and surveying
particular individuals, the company thought that reaching individuals in young
population would be easiest. In a recently completed survey, however,
Sophisticated Surveys learned that this assumption was wrong. The new costs for
surveying the 18- to 25-year-old population are listed below:
$6.50
Big cities
$6.75
Small towns
$7.00
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From the above table we get the values of allowable increases of the decision
variables (for X1, X5, X9):
I1= (5.00-4.75) =0.25 &
C1=6.50-4.75=1.75
C5=6.75-5.25=1.50
C9=7.00-6.50=0.50
Now,
R1=1.75/0.25=7.00 i.e. 700%
R5=1.50/0=
R9=0.50/0.13=3.8 i.e. 380%
rj= more than 1000%
So its far greater than 100%, the new z value will definitely.
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(f) To ensure the desired sampling of individuals, Rob imposes even stricter
requirements. He fixes the exact percentage of people that should be surveyed
from each population. The requirements are listed below:
18 to 25
26 to 40
41 to 50
51 and over
25%
35%
20%
20%
Silicon Valley
Big cities
Small towns
20%
50%
30%
By how much would these new requirements increase the cost of surveying for
Sophisticated Surveys? Given the 15 percent profit margin, what would
Sophisticated Surveys bid?
Ans. In the light of these stricter requirements imposed, there will be no change
in the objective function. Only a few constraints will be added. These have been
given below:
Min Z= 6.50 x1+ 6.50 x2+ 6.50 x3+5 x4+6.75 x5+5.75 x6+ 6.25 x7+ 6.25 x8+ 7.0 x9+
7.50 x10+ 7.50 x11+ 7.25 x12
But all the constrains can be rewritten as follows:
x1+ x2+ x3+ x4+ x5+ x6+ x7+ x8+ x9+ x10+ x11+ x12=2000.(1)
x1+x5+x9=500.. (2)
x2+x6+x10=700... (3)
x3+x7+x11=400 (4)
x4+x8+x12=400... (5)
x1+ x2+ x3+ x4=400.. (6)
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