Engineering

Optimization
Technique
Presented by: Asadullah Khan
Syed Hassan Haider Zaidi
Haider Ali Bhatti
Mehran Gull
Background
Inflation Rate

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Background
Devaluation of rupee PKR

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Objective:
Minimize the impact of inflation on a household from multiple source of income

Problem Statement:
Inflation- an increase in the price of goods and services. The currency depreciates in inflation
due to this the value of assets declines until we earn a return that keeps pace with or
exceeds the rate of price increases. A family or an ordinary person should have a second
source of income to combat this increase of inflation otherwise, the depreciation of the
currency and no return on assets will not benefit in the long term.  

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Mathematical Method

 Possible mathematical methods

There are two possible methods to solve this particular problem

1. Dynamic programming
2. Multivariable Optimality Conditions for unconstrained optimization

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Proposed Model

Stage 1 Stage 2 Stage 3 Stage 4

Decision
Multiple Source
Problem Dependency Making/
of Income
Conclusion

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Reference
 The sources of inflation in Hungary https://
www.researchgate.net/publication/366237472
 How Brazil Beat Hyperinflation http://
www.gustavofranco.com.br/uploads/files/how%20Brazil%20beat%20hyper.pdf
 The Dynamic Theories of Inflation http://
pjia.com.pk/index.php/pjia/article/view/488/356
 Impact of Financial Literacy and Investment Experience on Risk Tolerance and
Investment Decisions: Empirical Evidence from Pakistan https://
dergipark.org.tr/en/pub/ijefi/issue/32008/353643
 How Much Does Inflation Vary by Income? Depends on How It's Measured https://
dlib.bc.edu/islandora/object/bc-ir:109556/datastream/PDF/view
 Impact of Inflation and Unemployment on Economic Growth of Pakistan https
://ejbmr.org/index.php/ejbmr/article/view/993
 An Analysis of the Relationship between Inflation and Gold Prices: Evidence from
Pakistan https://ideas.repec.org/a/lje/journl/v18y2013i2p1-35.html
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Unconstrained optimization Problems

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Unconstrained optimization Problems

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Dynamic Programming
Question
Problem Statement
The sales manager for a pharmaceutical company has six traveling salespeople of a
medical ramp team to assign 3 cities namely; Lahore, Karachi and Multan. He has
decided that each city should be assigned at least one salesperson and that each
individual salesperson should be restricted to one of the cities, but now he wants to
determine how many salespeople of a team should be assigned to the respective cities
in order to maximize sales.
Dynamic Programming Question

Cities
Sales person
Lahore Karachi Multan

1 35 21 28

2 48 42 41

3 70 56 63

4 89 70 75
Dynamic Programming
Question
Objective
Maximize the sale in the three cities

Constraints
We have constraints of the sales person in medical ramp team. Total members were 6
in the team if each member was restricted to each city then for each city we were
available with extra three sales persons.
So then each city can have minimum one team or maximum 4 teams.
 Dynamic Programming
Question
Constrained

Formulation by backward recursive

+
number of sales persons still available for allocation to remaining countries
available teams
Dynamic Programming
Question
n=3
     
1 28 1

2 41 2

3 63 3

4 75 4
Dynamic Programming
Question
 
1 2 3    Decision

1 21     21 1
2 49 42   49 1
3 62 70 56 70 2
4 84 83 84 84 1 or 3
Dynamic Programming
Question
 
1 2 3    Decision

4 105 97 91 105 1

. X1= 1 medical ramp sales officer for city n=1

 X2= 2 medical ramp sales officers for city n=2

 X3= 3 medical ramp sales officers for city n=3