TIP OR Course

Homework 3

Problem 1:

Redo the shortest problem discussed in class, with the addition of a new link as shown in the
diagram below. What is the new value of the shortest distance? Trace the shortest path.

A
70
D
10
40
60
55
O B 10 T
60

Origin 20 Destination
20
40 80
50 E

C 50

Towns

Problem 2:

The Fagersta Steelworks currently is working two mines to obtain its iron ore. This iron ore is
shipped to either of two storage facilities. When needed, it is shipped on to the company’s
steel plant. The diagram below depicts this distribution network, where M1 and M2 are the
two mines, S1 and S2 are the two storage facilities, and P is the steel plant. The diagram also
shows the monthly amounts produced at the mines and needed at the plant, as well as the
shipping cost and the maximum amount that can be shipped per month through each shipping
lane.

40 tons $2,000/ton
M1 S1 $40
produced 30 tons max
$1, 70 0/ton
7 ton
30 00/to sm
ton n a x
sm 100 tons
ax P needed
/ton x
600 a n
/to ax
$1, ons m 00 ns m
t 8
50 $ to
60 tons $1,100/ton 70
M2 50 tons max S2
produced

Management now wants to determine the most economical plan for shipping the iron ore
from the mines through the distribution network to the steel plant.
(a) Identify all the requirements that will need to be expressed in fixed-requirements
constraints.
(b) Express the LP formulation in standard algebraic form.
(c) Solve the LP problem on a spreadsheet (using Excel Solver)
(d) Repeat (a)-(c) assuming that the demand of P has been reduced from 100 tons to 90
tons