GERMAN JORDANIAN UNIVERSITY

SCHOOL OF APPLIED TECHNICAL SCIENCES

INDUSTRIAL ENGINEERING

Operations Research I, IE331

Midterm
Time: 1 hr
Name:
Student Number:

Q.1) 10 points

Shirtstop makes T-shirts with logos and sells them in its chain of retail stores. It contracts with two different plants-
one in Puerto Rico and one in the Bahamas. The shirts from the plant in Puerto-Rico cost $0.46 apiece, and 9% of
them are defective and can’t be sold. The shirts from the Bahamas cost only $0.35 each, but they have an 18%
defective rate. Shirtstop needs 3,500 shirts. To retain its relationship with the two plants, it wants to order at least
1,000 shirts from each. It would also like at least 88% of the shirts it receives to be salable.

(a) Formulate a linear programming model for this problem.

(b) Use the graphical method to solve this model. (Use the grid paper provided)

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Q.2) 10 points

All –Natural Coop makes three breakfast cereals A, B, and C, from four ingredients: rolled oats, raisins, shredded
coconuts, and slivered almonds. The daily availabilities of the ingredients are 5 tons, 2 tons, 1 ton, and 1 ton
respectively. The corresponding costs per ton are $100, $120, $110, and $200. Cereals A is a 50:5:2 mix of oats,
raisins, and almond. Cereal B is a 60:2:3 mix of oats, coconut, and almond. Cereal C is 60:3:4:2 mix of oats, raisins,
coconut, and almond. The cereals are produced in Jumbo 5-lb sizes. All–Natural sells A, B, and C at $2.00, $2.50,
$3.00 per box, respectively. The minimum daily demand for cereals A, B, and C is 500, 600, 500 boxes, respectively.
Develop an LP model to determine the optimal production mix of the cereals and the associated amounts of
ingredients.

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Q.3) 10 points
Ken and Larry, Inc., supplies its ice cream parlors with three flavors of ice cream: chocolate, vanilla, and banana.
Because of extremely hot weather and a high demand for its products, the company has run short of its supply of
ingredients: milk, sugar, & cream. Hence, they will not be able to fill all the orders received from their retail outlets,
the ice cream parlors. Owing to these circumstances, the company has decided to choose the amount of each
product to produce that will maximize total profit, given the constraints on supply of the basic ingredients. The
chocolate, vanilla, and banana flavors generate, respectively, $1.00, $0.90, and $0.95 per profit per gallon sold. The
company has only 200 gallons of milk, 150 pounds of sugar, and 60 gallons of cream left in its inventory. The LP
formulation for this problem has variables C, V, and B representing gallons of chocolate, vanilla, and banana ice
cream produced, respectively.

Max Z=C+0.9V+0.95B
S.t.
0.45C + 0.50V + 0.40B <= 200 ! milk resource
0.50C + 0.40V + 0.40B <= 150 ! sugar resource
0.10C + 0.15V + 0.20B <= 60 ! cream resource

Answer the following questions:

a. What are the optimal profit, and the optimal solution?

b. Suppose the profit per gallon of chocolate changes to 92 cents. Will the optimal solution change, and what can be
said about the effect on total profit?

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c. Suppose the profit per gallon of vanilla changes to 92 cents. Will the optimal solution change, and what can be
said about the effect on total profit?

d. Suppose the company discovers that 3 gallons of cream have gone sour and so must be thrown out. Will the
optimal solution change, and what can be said about the effect on total profit?

e. Suppose that the company has the opportunity to buy an additional 10 pounds of sugar at a total cost of $15.
Should they buy it? Explain!

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