SMQ6014 - OPERATIONAL RESEARCH

GROUP ASSIGNMENT (3-4 people)

SEM 2 2014/2015
Assignment 1 (20 marks):
A company manufactures three products, X, Y, and Z. The sales volume for X is at least 50% of
the total sales of all three products. However, the company cannot sell more than 80 units of X
per day. The three products use one raw material, of which the maximum daily availability is 240
lb. The usage rates of the raw material are 2 lb per unit of X, 4 lb per unit of Y, and 3 lb per unit
of Z. The unit prices for X, Y and Z are RM 20, RM 50 and RM 35 respectively:
a) Formulate a mathematical model for the problem.
b) Determine the optimal product mix for the company:
(i)
by hand (manually) AND
(ii)
using an LP solver (e.g: Lips, TORA, LINDO, LINGO, Microsoft Excel and etc.)
c) Determine the dual price of the raw material resource and its allowable range. If available
raw material is increased by 120 lb, determine the optimal solution and the change in total
revenue using the dual price.
d) Use the dual price to determine the effect of changing the maximum demand for product X
by 10 units.

Instructions:
1. You can write the answer in doc files. You have to submit the soft copy on MyGuru2.
2. All mathematical sentences and symbols must be typed using Equation Editor.
3. You can use internet as your reference, but you also need to use at least two reference
books.
4. Due date: 27/3/2015.

Assignment 2 (20 marks):

Find a research article journal that is related to any latest development in OR (published in 20122015).
Discuss the problem, the computational solution method used and the findings.
You need to prepare presentation slides and present in group (15-20 minutes).
The slides must be uploaded on MyGuru2 before the presentation.
Due Date: by Week 12.