This is all there is for your Operations research 1 final exam.

Please work on this exam

individually. Take note that there is an anti-plagiarism tool that checks answer similarities between
students.
Answer the following questions as required. Give your response to each question within 200
words only and with the aid of figures when applicable. Mention case studies whenever possible.
Submit your answer sheets in digital format (pdf) and email to me at ocampo.cov@gmail.com.
Good luck!
Deadline for submission: Jan 17, 9am.
Part I. Discuss in maximum of 200 words only. Illustrate if applicable/ necessary.
1. Identify a specific industry or business where linear programming can be effectively
applied. How might the optimization of resources through linear programming positively
impact the efficiency and profitability of this industry or business?
2. Discuss the importance of sensitivity analysis in linear programming. How can changes in
the coefficients of the objective function or constraints affect the optimal solution? Provide
an example to illustrate the concept.
3. Linear programming typically involves maximizing or minimizing a single objective.
Explore the challenges and considerations involved in extending linear programming
models to address multiple conflicting objectives. Can you think of situations where multi-
objective optimization is crucial?
4. Linear programming decisions often have societal and ethical implications. Discuss a
scenario where linear programming might be used to allocate resources, and explore the
ethical considerations involved. How should decision-makers balance optimization with
fairness and social responsibility?
5. How might the company use linear programming to minimize transportation costs, taking
into account different shipping routes and modes of transportation?

Part II. Problems Solving.

1. A company produces two types of products, A and B. The profit per unit for A is $5, and
for B is $8. The production of A requires 2 hours of labor and 1 hour of machine time, while
the production of B requires 1 hour of labor and 3 hours of machine time. The company
has a maximum of 40 hours of labor and 30 hours of machine time available. Formulate
and solve the linear programming problem graphically to maximize the profit.
2. Solve the linear programming model using simplex method:

3. A company has three warehouses (W1, W2, W3) and three retailers (R1, R2, R3). The
transportation costs (in dollars per unit) from each warehouse to each retailer are given in
the table below. The supply at each warehouse and the demand at each retailer are also
specified.

Formulate and solve the transportation problem to minimize the total transportation cost.

Note: The supply and demand should be balanced (i.e., the total supply equals the total
demand). If necessary, you may need to add dummy sources or destinations to balance
the problem.

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