Chapter-2

1. Consider the following time series data. (Old Q)

Week 1 2 3 4 5 6

Value 18 13 16 11 17 14

a) Develop a three week moving average for this time series compute MSE and a forecast for week 7?
b) Use a α = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a
forecast for week 7.
c) Compare the three week moving average forecast with the exponential smoothing forecast using
α = 0.2. Which appears to provide the better forecast based on MSE. Explain.

2. (Table 2.13 / P-45)

a) Develop a three week moving average for this time series compute MSE and a forecast for week 13?
b) Use a α = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a
forecast for week 13.
c) Develop a three week linear progression values for the time series. Compute MSE and a forecast for
week 13.
d) Compare the three week moving average forecast and the exponential smoothing forecast using
α = 0.2 and three week linear progression forecast. Which appears to provide the better forecast
based on MSE. Explain.
3. (P-51)

a) Develop a three week moving average for this time series compute MSE and a forecast for
week 13?
b) Use a α = 0.2 to compute the exponential smoothing values for the time series. Compute MSE
and a forecast for week 13.
c) Develop a three week linear progression values for the time series. Compute MSE and a
forecast for week 13.
d) Compare the three week moving average forecast and the exponential smoothing forecast
using α = 0.2 and three week linear progression forecast. Which appears to provide the better
forecast based on MSE. Explain.

Chapter-4

1. Golden food distributes tinned foodstuff in Great Britain. In a warehouse located in Birmingham,
the demand rate d for tomato puree is 400 pallets a month. The value of a pallet is c = £2500 and the
annual interest rate p is 14.5% (including warehousing costs). Issuing an order costs £30. The
replenishment rate r is 40 pallets per day. Shortages are not allowed. Find the optimal order size q*,
T* and Tr*assumed that the number of workdays in a month equals 20 (hence the demand rate d is 20
pallets per workday). (P-127)

2. Al-Bufeira Motors manufactures spare parts for aircraft engines in Saudi Arabia. Its component
Y02PN, produced in a plant located in Jiddah, has a demand of 220 units per year and a unit
production cost of $1200. Manufacturing this product requires a time-consuming set-up that costs
$800. The current annual interest rate p is 18%, including warehousing costs. Shortages are not
allowed. In the Al-Bufeira Motors problem, a set-up has to be planned seven days in advance, find the
optimal order size q*, T*,total cost and reorder point. (P-129)
 Chapter-6

1. (P-206)
2. NTN is a Swiss intermodal carrier located in Lausanne. When a customer has to transport goods
between an origin and a destination, NTN supplies it with one or more empty containers in which the
goods can be loaded. Once arrived at destination, the goods are unloaded and the empty containers
have to be transported to the pick-up points of new customers. As a result, NTN management needs
to reallocate the empty containers periodically (in practice, on a weekly basis). Empty container
transportation is very expensive (its cost is nearly 35% of the total operating cost). Last 13 May,
several empty ISO 20 containers had to be reallocated among the terminals in Amsterdam (The
Netherlands), Berlin (Germany), Munich (Germany), Paris (France), Milan (Italy), Barcelona (Spain)
and Madrid (Spain). The number of empty containers available or demanded at the various terminals
is reported, along with transportation costs (in euros /container). (P-212)

Figure 6.10 Graph representation of the empty container allocation problem.

3. Boscheim is a German company manufacturing electronics convenience goods. Its VCR-12 video
recorder is specifically designed for the British market. The VCR- 12 is assembled in a plant near
Rotterdam (The Netherlands), then stocked in two warehouses located in Bristol and Middles
borough and finally transported to the retailer outlets. The British market is divided into four sales
districts whose centres of gravity are in London, Birmingham, Leeds and Edinburgh. Yearly demands
amount to 90 000, 80 000, 50 000 and 70 000 items, respectively. The transportation costs per item
from the assembly plant of Rotterdam to the warehouses of Bristol and Middles borough are €24.5
and €26.0, respectively, whereas the transportation costs per item from the warehouses to the sales
districts are reported in Table 6.3. Both warehouses have an estimated capacity of 15 000 items and
are supplied 10 times a year. Consequently their maximum yearly throughput is 150 000 items.(P-216)

(Draw network yourself)

Chapter-7
1. Bengalur Oil manufactures and distributes fuel to filling stations in the Karnataka region (India).
Last 2 July, the firm received five orders (see Table 7.3). The distances between the gas stations and
the firm’s depot are reported in Table 7.4. The vehicles have a capacity of 150 hectolitres. In order to
formulate the problem as an NRPSC, the feasible routes are enumerated (Table 7.5). (P-268)
2. Given a complete graph with a central depot 0 and 5 customers. Please give optimize the tour of
each vehicle with a TSP heuristic.

3. Consider the following network. The numbers above each are represent the distance between the
connected nodes. Find the shortest route from node 1 to node 10 using dynamic programming.

2 7
7 7 8

10 8 5 9

8 3
5 8
10
1 10
10
6 10

5 6 11 6

4 9
4
4. Find the shortest path from node 1 to node 10 using dynamic programming in the network shown
in Fig.

2
7 1
5
4 3 3
8
2 6 3

4 3
2 6
1 6 10
10
3 4 3
9
4 1 3 4

5 3
4 7