10.12.

2020

MARMARA UNIVERSITY
PROD 3061/PROD361/MGT :OPERATIONS MANAGEMENT – I
MIDTERM EXAM

NAME&SURNAME:
STUDENT ID :

QUESTION 1 2 3 TOTAL
POINTS 35 35 30 100
SCORE

1. (35 pts.) You are thinking about starting your ice cream shop. The problem is to decide
how large your shop should be. The annual returns will depend on both the size of your shop
and a number of marketing factors related to the coffee market and demand for ice cream.

Develop the following profit value table by writing random values within the range
500>=value>=-500 (DO NOT COPY FROM INTERNET SOLVED EXAMPLES OR OLD
EXAM QUESTIONS. WRITE YOUR OWN RANDOM VALUES. IT WILL BE CHECKED
WITH THE OTHER STUDENT VALUES ALSO).
Fill the profit value table.

Size of shop Good Market (Lira) Fair Market (Lira) Poor Market (Lira)
Small
Medium
Large
For example, if you construct a small shop and the market is good, determine a profit value
randomly within the range.
a) Develop a decision table for this decision and determine the best investment choices
by applying the maximax, maximin, equally likely, Hurwicz and minimax regret
criteria. (Take α = 0.70 for Hurwicz). (10 pts.)

Fill the summary result table below. Summarize your solutions(Mandatory).

Method Decision Profit Value/Regret

Maximax
Maximin
Equally likely
Hurwicz (α = 0.70)
Minimax regret
b) Develop a decision tree (Draw). Assume each outcome is equally likely, then find the
decision alternative that provides the highest Expected Monetary Value (EMV). (15 pts.)

c) Compute the expected value of perfect information (EVPI). (10 pts.)

EVPI=_____________________

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2. (35pts.) Fast food company requires different number of employees on different days of the
week.
Day id. Number of employees required
1 12
2 8
3 6
4 7
5 9
6 11
7 15
Employees can work X consecutive days and then receive 7-X off depending on their
contract. Employees are paid 150Lira per day for week they work. Formulate an LP that can
be used to minimize the cost of meeting weekly employee requirements of this company.

For X, substitute your student numbers last digit. If it is 0 or 1, take second digit . If it is also
0 or 1, take third digit and so on since it is not 0 or 1.
(State the decision variables, objective and constraints. Do not solve)

3. (30pts) Draw the graph and identify the solution type of given LPs below. (Plot the
constraints and determine the feasible region clearly).
max z= x1+x2
s.t. x1 + x2 4
x1 - x2 5
x1,x20

 Write your answers to blank A4 by your own handwriting. Take a

photo of each of your answer sheets. Paste them to this Word
document one by one to dedicated pages.(three question three pages).
Be careful that they are readable. Write neatly and clearly.(Use one
page for one question answer. Three page Word document is
expected.)
 Show your calculations and drawings on answer sheets clearly. Just
answers without showing calculation details will not be scored.
 Save this file and upload. You can upload only one file for one time.
 Remember ethic codes. Do not share your answers. Solve problems
by yourself.

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QUESTION 1 ANSWER
Fill the two tables in the first page.
Paste photo of your answer 1 here.

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QUESTION 2 ANSWER
Paste photo of your answer 2 here.

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QUESTION 3 ANSWER
Paste photo of your answer 3 here.