Industrial Engineering Operations Research Optimization

Fall

Review Problems for Exam

Note: these problems together are not meant to represent the total length of the exam. Problem . Zales Jewelers uses rubies and sapphires to produce two types of rings, each which require a certain amount of rubies, sapphires, and jewelers labor. e requirements are as follows: Rubies Type Type At present, Zales has rubies, at a cost of per ruby. sapphires, and hours of jewelers labor. Extra rubies can be purchased Sapphires Labor (hrs)

Each type ring sells for , and each type ring sells for . Market demand requires that the company produce at least type rings and type rings. Assume all rings produced by Zales can be sold. To maximize pro t, Zales solves the following LP: max s.t. x + x + x x + x x x x ,x ,r Computer output for the LP is as follows: Variable sensitivity analysis: Optimal Bas Lower Upper Object Reduced Lower Upper Name Value Sts Bound Bound Coef Object Range Range ---------------------------------------------------------------------------------Type 1 Ring 20.0000 BAS 0.000 +infin 400.000 0.000 300.000 +infin Type 2 Ring 25.0000 BAS 0.000 +infin 500.000 0.000 -infin 700.000 Rubies Bought 15.0000 BAS 0.000 +infin -100.000 0.000 -200.000 0.000 Constraint sensitivity analysis: Optimal RHS Lower Upper Name Type Dual Coef Slack Range Range -----------------------------------------------------------------Rubies L 100.000 100.000 0.000 -infin 115.000 Sapphires L 0.000 120.000 10.000 110.000 +infin Labor L 200.000 70.000 0.000 70.000 73.333 Type 1 Demand G 0.000 20.000 0.000 -infin 20.000 Type 2 Demand G -200.000 25.000 0.000 22.500 25.000 x r () ( ) ( ) ( ) ( ) ( ) ( ) x + x r

a. What is the dual of the above LP? b. Suppose that instead of , each ruby costs the new optimal solution to the problem? . Would Zales still purchase Rubies? What would be type rings. What would Zales pro t now

c. Suppose that Zales were only required to produce at least be?

d. What is the most that Zales would be willing to pay for another sapphire? e. Suppose that Zales was o ered additional hour of jewelers labor for f. Suppose that Zales was o ered additional hours of jewelers labor for . Should they do it? total. Should they do it?

Problem . Horizon Cable is about to expand its cable TV o erings in Smalltown by adding MTV and other exciting stations. e activities below must be completed before the service expansion is completed: Activity A B C D E F Description Choose stations Get town council to approve expansion Order converters needed to expand service Install dish to receive new stations Install converters Change billing system Immediate Predecessors A B B C, D B Duration (weeks)

a. Draw the CPM project network for Horizon Cables expansion project. b. Formulate a minimum cost ow problem that nds the critical path of the CPM project network in part a, by drawing the corresponding network indicating the net demands at each node indicating the cost per unit of ow on each arc indicating the capacity of each arc describing what the ow on each arc represents

Your minimum cost ow problem should have total demand equal total supply (total net demand of zero).

Problem . Gomorysport is planning the logistics for its ski jacket production over the next two months. e company has one production plant, one warehouse, two retail stores, and an outlet store. e production plant produces exactly jackets per month. e two retail stores have the following demand for the next two months: Month Retail Store Retail Store Month

e outlet store only receives jackets that are le over in the warehouse in month . Jackets can be shipped from the plant to either retail store, arriving in the same month, from the plant to the warehouse, arriving in the same month, from the warehouse to either retail store, arriving one month later, or from the warehouse to the outlet store, arriving in the same month.

For example, a jacket sent from the plant to the warehouse in month arrives in month . A jacket sent from the warehouse to the outlet store in month arrives in month . However, a jacket sent from the warehouse to either retail store in month arrives in month . e cost of shipping one jacket is as follows (in ): Warehouse Plant Warehouse Retail Retail Outlet -

Holding one jacket at the warehouse from one month to the next costs . e warehouse has a capacity of jackets. ere is no initial inventory at the warehouse. e production plant, retail stores, and outlet store cannot hold inventory. Show how to formulate the problem of determining the least costly shipping and inventory plan as a minimum cost ow problem by drawing the corresponding network, indicating the net demands at each node, indicating the cost per unit of ow on each arc, indicating the capacity of each arc, and describing what the ow on each arc represents.

Your minimum cost ow problem should have total demand equal total supply (total net demand of zero).