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Question 1 (25 Marks)
Muir Manufacturing produces two popular grades of commercial carpeting
among its many other products. In the coming production period, Muir needs
to decide how many rolls of each grade should be produced in order to
capitalize on their profit.
Requirements per roll of carpet are:
Amount
Grade X Grade Y
Synthetic fiber 50 units 40 units < 3000
Production Time 25 hours 28 ours > 1800
Foam Backing 15 units 15 units < 1500
Profit 200 160
The profit per roll of Grade X carpet is $200 and the profit per roll of Grade
Y carpet is $160. In the coming production period, Muir has 3000 units of
synthetic fiber available for use. Workers have been scheduled to provide at
least 1800 hours of production time (overtime is a possibility). The company
has 1500 units of foam backing available for use.
a) Develop a linear programming model for this problem.
b) Solve the linear programming model, (graph Paper on next slide).
c) Find the dual price for each constraint
ANSWERS:
a) Let X = number
of rolls of
Grade X
carpet Y =
number of
rolls of
Grade Y
carpet
Max 200X + 160Y
s.t.
50X + 40Y ≤ 3000 …(1)
25X + 28Y ≥ 1800 …(2)
15X + 15Y ≤1500 …(3)
X, Y ≥ 0
Optimal solution X = 0, Y = 75, OFV = $12000 or X = 30, Y = 37.5, OFV = $12000
c)
Dual price is the improvement in the OFV per unit increase in the right hand side of a
constraint.
Use a t lea st on e bin din g con str a in t in ca lcula tin g dua l pr ice
Dual Price for constraint 1 Dual Price for constraint 2
(RHS of Constraint 1 increased by 1) (RHS of Constraint 2 increased by 1)
50X + 40Y = 3001 …(1) 50X + 40Y = 3000 …(1)
25X + 28Y = 1800 …(2) 25X + 28Y = 1801 …(2)
Multiplying (2) by 2 gives Multiplying (2) by 2 gives
50X + 56Y = 3600 … 50X + 56Y = 3602 …
(3) (3)
Subtracting (3) – (1) gives Subtracting (3) – (1) gives
16Y = 599 16Y = 602
Y = 37.4375 Y = 37.625
Substituting in (1) gives Substituting in (1) gives
50X + 40(37.4375) = 3001 50X + 40(37.625) = 3000
50X = 3001 – 1497.5 = 1503.5 50X = 3000 – 1505 = 1495
X = 1503.5/50 = 30.07 X = 1495/50 = 29.9
New OFV = 200(30.07) – 160(37.4375) = New OFV = 200(29.9) – 160(37.625) =
12004 12000
Dual Price = New OFV c Old Dual Price = New OFV c Old
OFV Dual Price = 12004 – 12000 OFV Dual Price = 12000 – 12000
= 4 = 0
Since constraint 3 is not binding (it does not touch the optimal solution point), its dual price is 0
(There is no need calculating dual price for a non\binding constraint).
The LP problem whose output follows determines how many necklaces, bracelets, rings, and earrings
(variables X1, X2, X3, and X4, respectively) a jewelry store should stock. The objective function measures profit; it
is assumed that every piece stocked will be sold. Constraint 1 measures display space in units, constraint 2
measures time to set up the display in minutes. Constraints 3 and 4 are marketing restrictions:
MAX 100X1 + 120X2 + 150X3 + 125X4
SUBJECT TO 1) X1 + 2X2 + 2X3 + 2X4 ≤108 space
2) 3X1 + 5X2 + X4 ≤ 120 time
3) X1 + X3 ≤ 25 marketing 1
4) X2 + X3 + X4 ≥ 50 marketing 2
OPTIMAL SOLUTION
Objective Function Value = 7475.000
OBJECTIVE COEFFICIENT RANGES
RIGHT HAND SIDE RANGES
Use what you know about linear programming to find the values for the four blanks in the above
linear program computer printout:
e) How many necklaces should be stocked?
f) Now many bracelets should be stocked?
g) How many rings should be stocked?
h) How many earrings should be stocked?
i) How much space will be left unused?
j) How much time will be used?
k) By how much will the second marketing restriction be exceeded?
I) What is the profit?
m) To what value can the profit on necklaces drop before the solution would change?
n) By how much can the profit on rings increase before the solution would change?
o) By how much can the amount of space decrease before there is a change in the profit?
p) You are offered the chance to obtain more space. The offer is for 15 units and the total price is
1500. What should you do? Explain
Solution
a) The missing value (a) is 0 because X2 has a reduced cost of 5.
b) The missing reduced cost (b) is 0 because X4
already has a positive value in the optimal solution.
c) The missing values (c) is calculated by solving for the slack value of constraint 2:
(Note that X1 = 8, X2 = 0, X3 = 17, X4 = 33 at optimal solution)
d) The missing value (d) is 0 because dual price is nonczero.
This means that there is no surplus.
e) 8 (X1 from optimal solution)
f) 0 (X2 from optimal solution)
g) 17 (X3 from optimal solution)
h) 33 (X4 from optimal solution)
i) 0 (Slack for constraint 1)
j) Time Used = 3(8) + 5(0) + 33 = 57 (substituting optimal solution in the LHS of constraint 2)
Or simply, Available – Slack = 120 – 63 = 57
k) Surplus for constraint 4 is 0
l) 7475 (Objective Function Value)
m) 87.5 (Lower limit for X1 in the objective coefficient ranges)
n) 162.5 – 150 = 12.5 (Upper Limit – Current Value for X3 in the objective coefficient ranges)
o) 0 (The slightest change in space will change profit by a multiple of 75 (dual price))
p) Contribution to profit = 15*75 = 1125; Cost of the 15 units = 1500.
Since cost is higher, reject the offer.
Question 3 (10 marks)
Consider the problem faced by a summer camp recreation director who is trying to choose activities for
a rainy day. Information about possible choices is given in the table below.
Popularity Popularity
Category Activity Time with with
(minutes) Campers Counselors
Art 1 c Painting 30 4 2
2 c Drawing 20 5 2
3 c Nature craft 30 3 1
Music 4 c Rhythm band 20 5 5
Sports 5 c Relay races 45 2 1
6 c Basketball 60 1 3
Computer 7 c Internet 45 1 1
8 c Creative writing 30 4 3
9 c Games 40 1 2
a. Give a general definition of the variables necessary in this problem so that each
activity can be considered for inclusion in the day’s schedule.
b. The popularity ratings are defined so that 1 is the most popular. If the objective is to
keep the campers happy, what should the objective function be?
Write constraints for these restrictions:
c. At most one art activity can be done.
d. No more than two computer activities can be done.
e. If basketball is chosen, then the music must be chosen.
f. At least 120 minutes of activities must be selected.
g. No more than 165 minutes of activities may be selected.
h. To keep the staff happy, the counselor rating should be no higher than 10.
i. Is there anything we are missing to complete the model in terms of constraints?
Please specify
Answers:
a. Let X = 1 if activity i is chosen, 0 otherwise for i = 1, 2… , 9
i
1X c. X + X + X ≤ 1
9 1 2 3
d. X + X + X ≤ 2
7 8 9
e. X ≤X □ X c X ≤ 0
6 4 6 4
f. 30X + 20X + 30X + 20X + 45X + 60X + 45X + 30X + 40X ≥
1 2 3 4 5 6 7 8 9
120 g. 30X + 20X + 30X + 20X + 45X + 60X + 45X + 30X + 40X ≤
1 2 3 4 5 6 7 8 9
165
RVW (Restored Volkswagens) buys 15 used VW's at each of two car auctions each week held at
different locations. It then transports the cars to repair shops it contracts with. When they are restored to
RVW's specifications, RVW sells 10 each to three different used car lots. There are various costs
associated with the average purchase and transportation prices from each auction to each repair shop.
Also there are transportation costs from the repair shops to the used car lots. RVW is concerned with
minimizing its total cost given the costs in the table below.
a. Given the costs below, draw a network representation for this problem.
Repair Shops
S1 S2
Auction 1 550 500
Auction 2 600 450
b. Formulate this problem as a transshipment linear programming model.
a) Network Representation
Car
Lots
5
10
Repair Lot1
Auctions Shops
15 1 550 3
Auction Shop1
1
6
10
Lot2
15 2 450 4
Auction Shop2
2
7 10
Lot3
b) Transshipment linear programming model:
Let Xij = number of cars transported from node i to node j for all i and j.
Min 550X13 + 500X14 + 600X23 + 450X24 + 250X35 + 300X36 + 500X37 + 350X45 + 650X46 + 450X47
S.T.
X13 + X14 ≤ 15
X23 + X24 ≤ 15
X13 + X23 – X35 – X36 – 37 = 0
X14 + X24 – X45 – X46 – X47 =
0
X35 + X45 = 10
X36 + X46 = 10
X37 + X47 = 10
Xij ≥ 0
Question 5 (14 marks)
The following table represents a project that should be scheduled using PERT. All times are in days.
Precedence Most
Activity Optimistic Pessimistic
Activities Probable
A c 1 3 5
B c 1 2 3
C A 1 2 3
D A 2 3 4
E B 3 4 11
F C,D 3 4 5
G D,E 1 4 6
H F,G 2 4 5
a) Construct the appropriate network diagram.
b) Using the forward and backward passes, fill in the following table and indicate the critical path.
c) What is the expected completion time for the project?
d) What is the probability that the project will take more than 14 days but less than 17 days?
a)
Mean (expected) time:
a + 4 m + b
E(T j ) =
6
Variance:
b−a
□ □
o j
2 =□ □
□ 6 □
Network Diagram
b)
CRITICAL PATH: B\E\G\H
c) Expected completion time is 14.666 days
1 D
2 B
3 C
4 D
5 E
None of the
6 listed options
7 B
8 B
9 D
10 B
11 B
12 A
13 B
14 B
15 C
16 D
17 B
18 A
19 D
20 A
21 D