Professional Documents
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Code: 1
Prob 1: An ad campaign for a new snack chip will be conducted in a limited geographical area
and can use TV time, radio time, and newspaper ads. Information about each medium is
shown below:
Audiences
TV 500 10000 30
The company wants to achieve an exposure quality of at least 1000. Also the number of TV ads
must be at least 10 and the number of newspaper ads must be at most 20. The advertising budget
is $10000. The objective is to maximize the number of audiences reached.
a) Set up the linear programming model (variables, objective function, constraints, etc).
(0.75 pts)
Use Excel Solver to answer the following questions:
b) How many of each type of ad should be conducted and what is the maximum number of
audiences reached? (0.75 pts)
c) What is the new optimal number of audiences reached if the budget is increased by $200?
Explain. (0.5 pts)
d) If the company wants to achieve a minimum exposure quality of 900 instead, what is the new
optimal number of audiences reached? Explain. (0.5 pts)
2
Prob 2: Steelco manufactures 3 types of steel at 4 different plants. The costs ($ per ton) at
each plant are shown below:
Plant Steel 1 Steel 2 Steel 3
1 41 30 33
2 40 30 31
3 43 31 32
4 42 34 30
Each week, 120 tons of Steel 1, 110 tons of Steel 2, 130 tons of Steel 3 must be produced.
(DEMAND CONSTRAINTS)
The time required to manufacture 1 ton of steel (regardless of type and plant) is 20 minutes.
Each plant is opened for up to 40 hours per week. The objective is to minimize the cost of
meeting Steelco’s weekly requirements.
Each plant is opened for up to 40 hours per week. The time required to manufacture 1 ton of steel
(regardless of type and plant) is 20 minutes.
40 * 60 : 20 = 120 tons per week => SUPPLY CONSTRAINTS
a) Use Excel Solve to set up and solve this transportation problem. You only need to write
down the final answer, which must include the quantity of each type of steel at each plant, the
corresponding unit cost and the minimum total cost. (2 pts)
b) Write down the name of any plant that does not use all available time and its unused time (in
minutes). (0.5 pts)
3
Prob 3: A project consists of seven activities with the following time estimates:
Optimistic Most likely Pessimistic
Predecessor
Activity estimate of estimate of estimate of
Activity
time (days) time (days) time (days)
A - 12 14 22
B - 16 17 24
C A 14 15 16
D B 13 18 23
E B 15 17 19
F D, E 14 15 22
G C, F 7 9 11
b. What is the expected project completion time? What is the critical path? (0.5 pts)
c. What is the probability that it takes more than 58 days to complete the project?
(0.75 pts)
d. By what time are you 96% sure the project will be completed? (0.5 pts)
4
Prob 4: Wilson Publishing Company produces books for the retail market. Demand for a
current book is expected to occur at a constant annual rate of 7800 copies. The cost of one copy
of the book is $14.50, and the annual holding cost is based on a 25% rate. Production setup costs
are $150 per setup. The equipment on which the book is produced has an annual production
volume of 15000 copies. Current practice calls for production runs of 650 copies per month.