NAME: ra 2 3 4 [s No: MARK THE CANCELLED QUESTION 1£334/3034 Operations Research I!- Midterm I May 6, 2016 LY THE FOU! IVEN FIVE IS 4) A copying service incurs machine operating costs of: $0.10 for copies 1 to 4, $0.05 for copies 5to 8, $0.025 for copies 9 and over, and has a capacity of 1000 pages per hour. One hour has been reserved for copying a 10-page article to be sold to engineering students. Assuming that all copies can be sold for $0.50 per article, formulate the problem as an IP model to find how many copies of the article should be made. (25P) Q2) Consider the following data of a 4-city traveling salesman problem (TSP). a ee) 1f- 43 21 20 aio - 9 22 "3/20 10 - 5 4l27 50 42 - a) Solve the problem by the branch&bound algorithm using the assignment problem relaxation. (a5?) b) Why the assigment problem is used as a relaxation of the TSP in the branch&bound algorithm?. Which methods can be used to solve TSP optimally or heuristically rather than the branch&bound 2(10P) Q3) A manufacturer has contracted to deliver 20 tons of a special product at the end of the current month, and 140 tons at the end of the next month. If production occurs in any month then the setup cost of 7500 TL is incurred. The production cost in the first month (current month) is ¢1(x:) = 7500 + (x, ~ 50)? per ton, and it is ¢2(x2) = 7500 + (x; - 40)’ per ton for the next month; x; and x; are the number of tons of the product in the respective months. For example, if the company does not produce in the second month, the cost of this month will 1600 TL (because of the economical lower capacity).The company must produce in batches where the size of each batch is 20 tons. If the company chooses to produce more than 20 tons in the first month, any excess production is carried to the second month at a storage cost of 3 TL per ton. Assuming that there is no initial inventory and that the contracted demands must be satisfied in each month (that is, no back-ordering is allowed), you are required to derive the production plan that minimizes total cost using dynamic programming. 2) Define the stages (SP) b) Define state variables in each stage (5?) ) Define the recursive relations between the stages and apply the dynamic programming to find the production plan (15P).Q4) Each month, customers are equally likely to demand 1 or 2 computers from a dealer. All orders must be met from current stock. Two ordering policies are under consideration: Policy! : If ending inventory is 2 ur or less, order enough to bring next month's beginning inventory to 4 units. Policy2: If ending inventory is 1 unit or less, order enough to bring next month’s beginning inventory to 3 units. The following costs are incurred by the dealer: It costs $4000 to order per computer. It cost $100 to hold a computer in inventory for a month. It costs $500 to place an order for computers. a) b) ¢ Respresent the two policies as a Markov chain. (clearly define the associated states). (5P) Which ordering policy has a lower expected monthly cost? (10?) Assume that beginning inventory is 1 computer. Compute the expected cost of the current ‘month to the next month according to the policy2. (10P) QS) Consider the two-person-zero-sum game with the following payoff matrix designated to player A Player A has three strategies, whereas B has two strategies. Player B Player A 1 2 1 [100 -80 =40, 50 3 [60 -40 b) ¢) dq) Does the game has a pure saddle point solution? Explain. (4P) Find the optimal probabilities for both players to mix their respective strategies randomly Using the graphical technique. (10P) What is the value of the game? (5P) Formulate the linear programming models for the both players for the same purpose given in part b. 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