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Quantitative Management

3.1-11 The Omega Manufacturing Company has discontinued the production of a certain

unprofitable product line. This act created considerable excess production capacity. Management

is considering devoting this excess capacity to one or more of three products; call them product 1,

2, and 3. The available capacity on the machines that might limit output is summarized in the

following table:

Milling machine 500

Lathe 350

Grinder 150

The number of machine hours required for each unit of the respective product is

Milling machine 9 3 5

Lathe 5 4 0

Grinder 3 0 2

The sales department indicates that the sales potential for products 1 and 2 exceeds the maximum

production rate and that the sales potential for product 3 is 20 units per week. The unit profit would

be $50, $20 and $25, respectively, on products 1, 2, and 3. The objective is to determine how much

of each product Omega should produce to maximize profit.

b. Use a computer to solve this model by the simplex method.

Solution:

Objective function:

Z 50 x1 20 x2 25x3 , Maximize

Where:

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Quantitative Management

x1 product 1

x 2 product 2

x3 product 3

Constraints:

9 x1 3x 2 5 x3 500

5 x1 4 x 2 350

3x1 2 x3 150

x3 20

x1 , x 2 , x3 0

b. simplex model

3.4-10 Web Mercantile sells many household products through an online catalog. The company

needs substantial warehouse space for storing its goods. Plans now are being made for leasing

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Quantitative Management

warehouse storage space over the next 5 months. Just how much space will be required in each of

these months is known. However, since these space requirements are quite different, it may be

most economical to lease only the amount needed each month on a month-by-month basis. On the

other hand, the additional cost for leasing space for additional months is much less than for the

first month, so it may be less expensive to lease the maximum amount needed for the entire 5

months. Another option is the intermediate approach of changing the total amount of space leased

(by adding a new lease and/or having an old lease expire) at least once but not every month. The

space requirement and the leasing costs for the various leasing periods are as follows:

Month Required Space (Sq. Ft.) Leasing Period (Month) Cost per Sq. Ft. Leased

1 30,000 1 $65

2 20,000 2 $100

3 40,000 3 $135

4 10,000 4 $160

5 50,000 5 $190

The objective is to minimize the total leasing cost for meeting the space requirements. (a)

Formulate a linear programming model for this problem. C (b) Solve this model by the simplex

method.

Solution:

i. Defining the value of decision variable of the problem

Let x1,j; be the amount of space leased j and for i is the number of month

Minimize:

C 650(x 11 x 21 x 31 x 41 x 51 ) 1000(x 12 x 22 x 32 x 42 ) 1350(x 13 x 23 x 33 )

1600(x 14 x 24 ) 1900x 5

iii. State the constraints to which the objective function should be optimized

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Quantitative Management

Constraints: x 11 x 21 x 31 x 41 x 51 30,000

x13 x14 x15 x22 x23 x24 x31 x32 x33 40,000

b. Simplex model

Based on the graph above, to obtain the minimized total cost of 76,500,000 for meeting the space

requirement having an optimal solution of x1-5 = 30, 000; x3-1 = 10,000 and x5-1 = 2, 000.

3.4-11. Larry Edison is the director of the Computer Center for the Buckly College. He now

needs to schedule the staffing of the center. It is open from 8 am until midnight. Larry has

monitored the usage of the center at various times of the day, and determined that the following

number of computer consultants are required:

to be on Duty

8 am – Noon 4

Noon – 4 pm 8

4 pm – 8 pm 10

8 pm - Midnight 6

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Quantitative Management

Two types of computer consultants can be hired: full-time and part-time. The full-time

consultants work for 8 hours a day in any time of the following shifts: morning (8am – 4pm),

afternoon (noon- 8pm) and evening (4pm – midnight). Full-time consultants are paid $40 per

hour.

Part-time consultants can be hired to work of any of the 4 shifts listed in the above table.

Part-time consultants are paid $30 per hour.

An additional requirement is that during every time period, there must be at least 2-full-

time consultants on duty for every for every part-time consultant on duty.

Larry would like to determine how many full-time and how many part-time workers

should work each shift to meet the above requirements at minimum possible cost.

Let ft-1 = number of full-time consultants working the morning shift (8 a.m.-4 p.m.)

ft-2 = number of full-time consultants working the afternoon shift (Noon-8 p.m.)

pt2 = number of part-time consultants working the second shift (Noon-4 p.m.)

pt3= number of part-time consultants working the third shift (4 p.m.-8 p.m.)

Minimize

Constraints

ft1 + pt1 ≥ 4

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Quantitative Management

ft1 + ft2 + pt2 ≥ 8

f3 + pt4 ≥ 6

ft1 ≥ 2pt1

ft3 ≥ 2pt4

B. Simplex Model

Total

Cost Variable Quantity constraints Constant

4106.67 Full-time 1 (8am-4pm) 2.66667 4 ≥ 4

Full-time 3(4pm-

midnight) 4 10 ≥ 10

part-time 4(8pm-

midnight) 2 6.66666667 ≥ 6.66667

4 ≥ 4

Full-time 1 ≥ 0

Full-time 2 ≥ 0

Full-time 3 ≥ 0

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Quantitative Management

part-time 1 ≥ 0

part-time 2 ≥ 0

part-time 3 ≥ 0

part-time 4 ≥ 0

The optimal solution has fractional components. If the number of consultants have to be

integer, then the problem is an integer programming problem and the solution is (3,3,4,1,2,3,2)

with cost of $4,160.

3.4-12. The Medequip Company produces precision medical diagnostic equipment at two

factories. Three medical centers have placed orders for this month’s production output. The table

below shows what the cost would be for shipping each unit from each factory to each of these

customers. Also shown are the number of units that will be produced at each factory and the

number of units ordered by each customer.

A decision now needs to be made about the shipping plan for how many units to ship from each

factory to each customer. (a) Formulate a linear programming model for this problem. C (b) Solve

this model by the simplex method.

From Factory 1, ship 200 units to Customer 2 and 200 units to Customer 3. From Factory 2, ship

300 units to Customer 1 and 200 units to Customer 3

Solution:

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Quantitative Management

Let xij denote the number of units that are shipped from ith factory to the jth consumer. Where i

varies from 1 to 2 and j varies from 1 to 3.

x11+x12+x13=400

x21+x22+x23=500

x11+ x21=300

x12+ x22=200

x13+ x23=400

3.4-13. Al Ferris has $60,000 that he wishes to invest now in order to use the accumulation for

purchasing a retirement annuity in 5 years. After consulting with his financial adviser, he has been

offered four types of fixed-income investments, which we will label as investments A, B, C, D.

Investments A and B are available at the beginning of each of the next 5 years (call them years

1 to 5). Each dollar invested in A at the beginning of a year returns $1.40 (a profit of $0.40) 2 years

later (in time for immediate reinvestment). Each dollar invested in B at the beginning of a year

returns $1.70 three years later.

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Quantitative Management

Investments C and D will each be available at one time in the future. Each dollar invested

in C at the beginning of year 2 returns $1.90 at the end of year 5. Each dollar invested in C at

the beginning of year 5 returns $1.30 at the end of year 5.

Al wishes to know which investment plan maximizes the amount of money that can be

accumulated by the beginning of year 6.

(a) All the functional constraints for this problem can be expressed as equality constraints. To

do this, let At, Bt, Ct and Dt be the amount invested in investment A, B, C, and D,

respectively, at the beginning of year t for each t where the investment is available and will

mature by the end of year 5. Also let Rt be the number of available dollars not invested at

the beginning of year t plus Rt must equal the number of dollars available for investment

at that time. Write such an equation in terms of the relevant variables above for the

beginning of each of the 5 years to obtain the five functional constraints for this problem.

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

(c) Solve this model by the simplex model.

Solution:

a) Functional constraints

𝐴1 + 𝐵1 + 𝑅1 = 60,000

𝐴2 + 𝐵2 + 𝐶2 + 𝑅2 = 𝑅1

𝐴3 + 𝐵3 + 𝑅3 = 𝑅2 + 1.40𝐴1

𝐴4 + 𝑅4 = 𝑅3 + 1.40𝐴2 + 1.70𝐵1

𝐷5 + 𝑅5 = 𝑅4 + 1.40𝐴3 + 1.70𝐵2

b) linear programming model

Constraints:

𝐴1 + 𝐵1 + 𝑅1 = 60,000

𝐴2 + 𝐵2 + 𝐶2 − 𝑅1 + 𝑅2 = 0

−1.40𝐴1 + 𝐴3 + 𝐵3 − 𝑅2 + 𝑅3 = 0

−1.40𝐴2 + 𝐴4 −1.70𝐵1 −𝑅3 + 𝑅4 = 0

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Quantitative Management

−1.40𝐴3 −1.70𝐵2 + 𝐷5 −𝑅4 + 𝑅5 = 0

𝐴𝑡 , 𝐵𝑡 , 𝐶𝑡 , 𝐷𝑡 , 𝑅𝑡 ≥ 0

c) By QM solver

3.4-14 The Metalco Company desires to blend a new alloy of 40 percent tin, 35 percent

zinc, and 25 percent lead from several available alloys having the following properties:

Alloy

Property 1 2 3 4 5

Percentage of tin 60 25 45 20 50

Percentage of

zinc 10 15 45 50 40

Percentage of

Lead 30 60 10 30 10

Cost ($/lb) 77 70 88 84 94

The objective is to determine the proportions of these alloys that should be blended to

produce the new alloy at a minimum cost. (a) Formulate a linear programming model for

this problem. C (b) Solve this model by the simplex method.

Solution:

Minimize: 40 x 35 y 25 z m

Subject to/Constraints: 60 x 10 y 30 z 77

25 x 15 y 60 z 70

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Quantitative Management

45 x 45 y 10 z 88

20 x 50 y 30 z 84

50 x 40 y 10 z 94

By the use of QM software application, we obtain the minimum cost for the new alloy, 1%,

0.98% and 0.51% of tin, zinc and lead should be blended to obtain minimum cost of $86.75.

3.4-15. A cargo plane has three compartments for storing cargo: front, center, and back. These

compartments have capacity limits on both weight and space, as summarized below:

Weight Space

Compartment Capacity Capacity

(Tons) (Cubic Feet)

Front 12 7,000

Center 18 9,000

Back 10 5,000

Furthermore, the weight of the cargo in the respective compartments must be the same

proportion of that compartment’s weight capacity to maintain the balance of the airplane.

The following four cargoes have been offered for shipment on an upcoming flight as space

available:

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Quantitative Management

Weight Volume Profit

Cargo

(Tons) (Cubic Feet/Ton) ($/Ton)

1 20 500 320

2 16 700 400

3 25 600 360

4 13 400 290

Any portion of these cargoes can be accepted. The objective is to determine how much (if

any) of each cargo should be accepted and how to distribute each among the compartments to

maximize the total profit for the flight.

(b) Solve this model by the simplex method to find one of its multiple optimal solutions.

Solution:

Maximize: 𝑃 = 320(𝑋1𝐹 + 𝑋1𝐶 + 𝑋1𝐵 ) + 400(𝑋2𝐹 + 𝑋2𝐶 + 𝑋2𝐵 ) + 360(𝑋3𝐹 + 𝑋3𝐶 + 𝑋3𝐵 )

+ 290(𝑋4𝐹 + 𝑋4𝐶 + 𝑋4𝐵 )

Constraints:

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𝑋3𝐹 + 𝑋3𝐶 + 𝑋3𝐵 ≤ 25

1 1

(𝑋1𝐹 + 𝑋2𝐹 + 𝑋3𝐹 + 𝑋4𝐹 ) − (𝑋 + 𝑋2𝐶 + 𝑋3𝐶 + 𝑋4𝐶 ) = 0

12 18 1𝐶

1 1

(𝑋1𝐹 + 𝑋2𝐹 + 𝑋3𝐹 + 𝑋4𝐹 ) − (𝑋 + 𝑋2𝐵 + 𝑋3𝐵 + 𝑋4𝐵 ) = 0

12 10 1𝐵

𝑋1𝐹 , 𝑋2𝐹 , 𝑋3𝐹 , 𝑋4𝐹 , 𝑋1𝐶 , 𝑋2𝐶 , 𝑋3𝐶 , 𝑋4𝐶 , 𝑋1𝐵 , 𝑋2𝐵 , 𝑋3𝐵 , 𝑋4𝐵 ≥ 0

3.4-16 Oxbridge University maintains a powerful mainframe computer for research use by its

faculty, Ph.D. students, and research associates. During all working hours, an operator must be

available to operate and maintain the computer, as well as to perform some programming services.

Beryl Ingram, the director of the computer facility, oversees the operation.

It is now the beginning of the fall semester, and Beryl is confronted with the problem of

assigning different working hours to her operators. Because all the operators are currently enrolled

in the university, they are available to work only a limited number of hours each day, as shown in

the following table.

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Quantitative Management

Wage Maximum Hours of Availability

Operators

Rate Monday Tuesday Wednesday Thursday Friday

K.C. $25/hour 6 0 6 0 6

D.H. $26/hour 0 6 0 6 0

H.B. $24/hour 4 8 4 0 4

S.C. $23/hour 5 5 5 0 5

K.S. $28/hour 3 0 3 8 0

N.K. $30/hour 0 0 0 6 2

There are six operators (four undergraduate students and two graduate students). They all

have different wage rates because of differences in their experience with computers and in their

programming ability. The above table shows their wage rates, along with the maximum number of

hours that each can work each day.

Each operator is guaranteed a certain minimum number of hours per week that will

maintain an adequate knowledge of the operation. This level is set arbitrarily at 8 hours per week

for the undergraduate students (K. C., D. H., H. B., and S. C.) and 7 hours per week for the graduate

students (K. S. and N. K.).

The computer facility is to be open for operation from 8 A.M. to 10 P.M. Monday through

Friday with exactly one operator on duty during these hours. On Saturdays and Sundays, the

computer is to be operated by other staff.

Because of a tight budget, Beryl has to minimize cost. She wishes to determine the number

of hours she should assign to each operator on each day.

Solution:

i. Decision Variable

Let xij be the number of hours operator i is assigned to work on day j for

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Quantitative Management

i = KC, DH, HB, SC, KS, NK

j = M, Tu, W, Th, F

ii. Objective Function

Minimize;

𝑍 = (𝑥𝐾𝐶,𝑀 + 𝑥𝐾𝐶,𝑊 + 𝑥𝐾𝐶,𝐹 ) + 26(𝑥𝐷𝐻,𝑇𝑢 + 𝑥𝐷𝐻,𝑇𝑢 + 𝑥𝐷𝐻,𝑇ℎ ) + 24(𝑥𝐻𝐵,𝑀 + 𝑥𝐻𝐵,𝑇𝑢 +

𝑥𝐻𝐵,𝑊 + 𝑥𝐻𝐵,𝐹 ) + 23(𝑥𝑆𝐶,𝑀 + 𝑥𝑆𝐶,𝑇𝑢 + 𝑥𝑆𝐶,𝑊 + 𝑥𝑆𝐶,𝐹 ) + 28(𝑥𝐾𝑆,𝑀 + 𝑥𝐾𝑆,𝑊 + 𝑥𝐾𝑆,𝑇ℎ ) +

30(𝑥𝑁𝐾,𝑇ℎ + 𝑥𝑁𝐾,𝐹 )

iii. Constraints

𝑥𝐾𝐶,𝑀 ≤ 6, 𝑥𝐾𝐶,𝑊 ≤ 6, 𝑥𝐾𝐶,𝐹 ≤ 6

𝑥𝐷𝐻,𝑇𝑢 ≤ 6, 𝑥𝐷𝐻,𝑇ℎ ≤ 6

𝑥𝐻𝐵,𝑀 ≤ 4, 𝑥𝐻𝐵,𝑇𝑢 ≤ 8, 𝑥𝐻𝐵,𝑊 ≤ 4, 𝑥𝐻𝐵,𝐹 ≤ 4

𝑥𝑆𝐶,𝑀 ≤ 5, 𝑥𝑆𝐶,𝑇𝑢 ≤ 5, 𝑥𝑆𝐶,𝑊 ≤ 5, 𝑥𝑆𝐶,𝐹 ≤ 5

𝑥𝐾𝑆,𝑀 ≤ 3, 𝑥𝐾𝑆,𝑊 ≤ 3, 𝑥𝐾𝑆,𝑇ℎ ≤ 8

𝑥𝑁𝐾,𝑇ℎ ≤ 6, 𝑥𝑁𝐾,𝐹 ≤ 2

𝑥𝐷𝐻,𝑇𝑢 + 𝑥𝐷𝐻,𝑇ℎ ≥ 8

𝑥𝐻𝐵,𝑀 + 𝑥𝐻𝐵,𝑇𝑢 +𝑥𝐻𝐵,𝑊 + 𝑥𝐻𝐵,𝐹 ≥ 8

𝑥𝑆𝐶,𝑀 + 𝑥𝑆𝐶,𝑇𝑢 + 𝑥𝑆𝐶,𝑊 + 𝑥𝑆𝐶,𝐹 ≥ 8

𝑥𝐾𝑆,𝑀 + 𝑥𝐾𝑆,𝑊 + 𝑥𝐾𝑆,𝑇ℎ ≥ 7

𝑥𝐷𝐻,𝑇𝑢 + 𝑥𝐻𝐵,𝑇𝑢 + 𝑥𝑆𝐶,𝑇𝑢 = 14

𝑥𝐾𝐶,𝑊 + 𝑥𝐻𝐵,𝑊 + 𝑥𝑆𝐶,𝑊 + 𝑥𝐾𝑆,𝑊 = 14

𝑥𝐷𝐻,𝑇ℎ + 𝑥𝐻𝐵,𝑇ℎ + 𝑥𝑁𝐾,𝑇ℎ = 14

𝑥𝐾𝐶,𝐹 + 𝑥𝐻𝐵,𝐹 + 𝑥𝑆𝐶,𝐹 + 𝑥𝑁𝐾,𝐹 = 14

xij ≥ 0 for all i, j

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Quantitative Management

b. Using Simplex Method

3.14-17. Joyce and Marvin run a day care for preschoolers. They are trying to decide what to feed

the children for lunches. They would like to keep their costs down, but also need to meet the

nutritional requirements of the children. They have already decided to go with peanut butter and

jelly sandwiches, and some combination of graham crackers, milk, and orange juice. The

nutritional content of each food choice and its cost are given in the table below.

Food Item Calories from Total calories Vitamin C Protein (g) Cost

fat (mg)

Bread (1 10 70 0 3 5

slice)

Peanut butter 75 100 0 4 4

(1 tbsp)

Strawberry 0 50 3 0 7

jelly (1 tbsp)

Graham 20 60 0 1 8

cracker (1

cracker)

Milk (1 cup) 70 150 2 8 15

Juice (1 cup) 0 100 200 1 35

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Quantitative Management

The nutritional requirements are as follows. Each child should receive between 400 and 600

calories. No more than 30 percent of the total calories should come from fat. Each child should

consume at least 60 milligrams (mg) of vitamin C and 12 grams (g) of protein. Furthermore, for

practical reasons, each child needs exactly 2 slices of bread (to make the sandwich), at least twice

as much peanut butter as jelly, and at least 1 cup of liquid (milk and/or juice).

Joyce and Marvin would like to select the food choices for each child which minimize cost while

meeting the above requirements.

Solution:

Let C = cost

X1 = slices of bread

X2 = tablespoons of peanut butter

X3 = tablespoons of strawberry jelly

X4 = graham crackers

X5 = cups of milk

X6 = cups of juice.

C 5X1 4X2 7X3 8X4 15X5 35X6

Constraints:

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Quantitative Management

70X1 100X 2 50X 3 60X4 150X5 100X6 400

70X1 100X 2 50X 3 60X4 150X5 100X6 600

10X1 75X 2 20X4 70X5 0.370X1 100X 2 50X 3 60X4 150X5 100X6

3X 3 2X5 120X6 60

3X1 4X 2 X4 8X5 X6 12

X1 2

X2 2X3

X5 X6 1

X1 , X 2 , X 3 , X4 , X5 , X6 0

3.5-4. You are given the following data for a linear programming problem where the objective is

to minimize the cost of conducting two nonnegative activities so as to achieve three benefits that

do not fall below their minimum levels.

Benefit contribution per Minimum

Benefit Unit of each Activity Acceptable

Activity 1 Activity 2 Level

1 5 3 60

2 2 2 30

3 7 9 126

Unit Cost $60 $50

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Quantitative Management

b. Use the graphical method to solve this model.

c. Display the model on an Excel spreadsheet.

d. Use the spreadsheet to check the following solutions: (x1, x2) _ (7, 7), (7, 8), (8, 7), (8, 8), (8,

9), (9, 8). Which of these solutions are feasible? Which of these feasible solutions has the best

value of the objective function?

e. Use the Excel Solver to solve this model by the simplex method.

Solution:

a. Linear Programming model

Minimize: P=60X1+50X2

Subject to:

5 X1+3 X2=60 (1)

2 X1+2X2=30 (2)

7 X1+9 X2=126 (3)

Where,

X1=Activity 1

X2=Activity 2

(1) = Benefit 1 constraint

(2) = Benefit 2 constraint

(3) = Benefit 3 constraint

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Quantitative Management

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Quantitative Management

d. Using Excel Spreadsheet, base from the profit obtained using the following solutions from

the table below, (8,8), (8,9) and (9,8) are the only feasible solutions for the model. And (8,8)

has the best value of the objective function.

(7,7) not Feasible 770

(7,8) not Feasible 820

(8,7) not Feasible 830

(8,8) Feasible 880 (best)

(8,9) Feasible 930

(9,8) Feasible 940

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