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This Study Resource Was: Time: 1.5 Hour
This Study Resource Was: Time: 1.5 Hour
First and Last Name (in caps please):
Student number:
On the desktop you may have only pens and pencils, eraser, calculator, dictionary,
and ruler. Please put anything else in your bag – including your turned‐off phone;
and the bag on the floor.
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Time: 1.5 hour
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You may write your answers on these pages or use the accompanying booklet.
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Remember to write your name and student ID above as well as in the booklet.
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Question Mark Out of
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1 8
2 9
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3 18
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4 6
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5 5
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Total 46
Out of 23%
https://www.coursehero.com/file/28497651/Midterm-ExampleWithAnswerspdf/
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SCOM 361 MIDTERM Example with ANSWERS
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Formulate linear programming model that could be used to determine a production schedule to
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minimize the sum of costs during the next four quarters. (DO NOT SOLVE.)
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xt = number of sailboats produced by regular‐time labor (at $400/boat) during quarter t (t = 1, 2, 3, 4)
yt = number of sailboats produced by overtime labor (at $450/boat) during quarter t (t = 1, 2, 3, 4)
it = number of sailboats on hand at end of quarter t (t = 1, 2, 3, 4)
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Total cost = cost of producing regular‐time boats + cost of producing overtime boats + inventory costs
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= 400(x1 + x2 + x3 + x4) + 450(y1 + y2 + y3 + y4) +20(i1 + i2 + i3 + i4)
min z 400(x1 + x2 + x3 + x4) + 450(y1 + y2 + y3 + y4) +20(i1 + i2 + i3 + i4)
s.t.
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x1 ≤ 40, x2 ≤ 40, x3 ≤ 40, x4 ≤ 40
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i1 = 10 + x1 + y1 ‐ 40,
i2 = i1 + x2 + y2 ‐ 60,
i3 = i2 + x3 + y3 ‐ 75,
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i4 = i3 + x4 + y4 ‐ 25
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it ≥ 0, yt ≥ 0, and xt ≥ 0 (t = 1, 2, 3, 4)
https://www.coursehero.com/file/28497651/Midterm-ExampleWithAnswerspdf/
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SCOM 361 MIDTERM Example with ANSWERS
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of beer. Because of the size and speed differences of the trucks, the number of deliveries
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(round trips) possible per month for each truck model vary and it is estimated to be as follows:
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‐ 15 deliveries/month for the Super Tanker;
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‐ 20 deliveries/month for the Regular Line; and
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‐ 25 deliveries/month for the Eco Line.
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Based on maintenance and driver availability, the company does not want to add more than 15
new trucks to its fleet. In addition, the company has decided that at least 3 of the purchased
trucks need to belong to Eco Line so it can use them also to serve low demand National Capital
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Region. Finally, The Holly Cow Inc. does not want more than half of the new trucks to be Super
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Tankers.
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Formulate Linear Programming model to help The Holy Cow Inc. with the expansion.
X1 – number of Super Tankers; X2 – number of Regular; X3 – number of Eco
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Min 550 X1 + 425 X2 + 350 X3
S.t.
67000 X1 + 55000 X2 + 46000 X3 ≤ 600000 (Budget)
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Monthly carrying capacities:
Super: 5000x15 = 75000
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Regular: 2500x20 = 50000
Eco: 1000x25 = 25000
75000X1 + 50000X2 + 25000X3 ≤ 550000 (Meet demand)
X1 + X2 + X3 <= 15 (Max on total purchased)
X3 ≥ 3 (Min Eco purchased)
X1 ≤ 0.5(X1 + X2 + X3) 0.5X1 – 0.5X2 – 0.5X3 ≤ 0
X1, X2, X3 ≥ 0
https://www.coursehero.com/file/28497651/Midterm-ExampleWithAnswerspdf/
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SCOM 361 MIDTERM Example with ANSWERS
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NAND 1 1 1 0 450
Display 1 1 1 1 500
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Processor 1 1 1 1 500
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Electronics (other) 8 6 8 6 4500
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Non‐electronics 8 6 4 4 3000
Labour
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Table 3 shows the selling price, the cost, and the profit (calculated as the selling price – the cost) of
each product. The company needs to figure out how much of each product they should produce so
that the total profit can be maximized
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Table 2
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The analyst in charge formulated the profit maximization problem as a linear programming model
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and solved it using Lingo software. The following Answer and Sensitivity Report is forwarded to the
management team.
Answer and Sensitivity Report
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Objective function‐Profit: 99350.00
Variable Value Reduced Cost
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https://www.coursehero.com/file/28497651/Midterm-ExampleWithAnswerspdf/
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SCOM 361 MIDTERM Example with ANSWERS
3A: What is the missing Final Value in the Objective Cell? Justify your answer. (3 points)
Using the constraint of display, we have x1+x2+x3+x4=500. Since x2=0,x3=200,x4=50, we have
x1=250. The optimal value would be 279*250+191*0+119*200+116*50 = 99350.
3B: The management team looked at the above report and found that the names of some of the
constraints were badly chosen as “Missing”. Can you help find out what each of the constraints
identified in the above report is about? (i.e. label each as NAND, Display, Processor, etc.). Justify
your answer. (3 points)
1 – labour, 2 –NAND, 5 – electronics (3900+600 as RHS), 6 – non‐electronics.
Objective Coefficient Ranges
Current Allowable Allowable Reduced
Variable Coefficient Increase Decrease Cost
Tablet 279.0000 72.00000 16.00000 0.000000
Smartphone 191.0000 8.000000 INFINITY 8.000000
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PDA 119.0000 160.0000 3.000000 0.000000
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PAGER 116.0000 3.000000 36.00000 0.000000
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Righthand Side Ranges
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Current Allowable Allowable Dual
Constraint RHS Increase Decrease Price
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1. Missing
2. Missing rs e
1000.000 0.000000 500.0000
450.0000 50.00000 200.0000
80.00000
3.000000
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3. Display 500.0000 0.000000 50.00000 36.00000
4. Processor 500.0000 INFINITY 0.000000 0.000000
5. Missing 4500.000 INFINITY 600.0000 0.000000
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3C: Reading the above report made the management team uncomfortable because no smartphones
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are produced. They are considering cutting down the cost of a smartphone from 139 to 134. Do
you think this will help produce more smartphones or not? Justify your answer. (4 points)
Since profit = selling price-cost. Reducing cost by 5 units is equivalent to increasing profit by 5
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units, which is still within allowable increase. The solution won’t change, so this does not help. (3
pts for just an answer without any justification.)
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3D: The management team recently learned that the processors’ price had dropped to a historic low
and think it can be a great opportunity to increase significantly the level of supply above the
currently proposed 500. Should the manager seize this opportunity or not? Justify your answer
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based on the above report. (4 points)
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No. Although, the allowable increase is infinity, but the dual price is zero. Thus, increasing
RHS to any value won’t improve the optimal value. (2 pts for an answer without justification)
3E: The management team recently learned the price of a display had dropped to a historic low and
think it can be a great opportunity to increase significantly the level of supply above the currently
proposed 500. Should the manager seize this opportunity or not? Justify your answer based on
the above report. (4 points)
No. Although, the dual price is 36, but the allowable increase is zero. Thus, an increase of
RHS won’t improve the optimal value. (2 pts for an answer without justification)
https://www.coursehero.com/file/28497651/Midterm-ExampleWithAnswerspdf/
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SCOM 361 MIDTERM Example with ANSWERS
Question 4: (6 points)
The Sweet smell Fertilizer Company markets bags of manure labeled “not less than 30 kilograms dry
weight.” The packaged manure is a combination of compost and sewage. To provide good quality
fertilizer, each bag should contain at least 10 kilograms of compost and not more than 20 kilograms
of sewage. Each kilogram of compost costs Sweet Smell $1.30 and each kilogram of sewage costs
$0.95.
4A: Formulate algebraically this problem as a Linear Program to determine the least cost blend of
compost and sewage in each bag. (1 point)
Let X = number of kilograms of compost, in each bag, Y = number of kilograms of sewage in each
bag.
Objective: Minimize cost = $1.30X + $0.95Y
Subject to:
X + Y >=30 Kilograms per bag
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X >=10 Min compost, kg
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Y <= 20 Max sewage, kg
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X, Y >= 0 Non-negativity
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4B: Using the grid below, graph the constraint lines and mark them clearly with the numbers to
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indicate which line corresponds to which constraint. Darken the feasible region. Establish
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optimal values of the decision variables and objective function. (2 points)
30
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20
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Compost
10 20 30
4C: Give example of such an objective function that there would be alternate optimal solutions. One
of the optimal solutions would be obtained in 4B and there would be another alternate optimal
solution in which no sewage is used. (4 points).
https://www.coursehero.com/file/28497651/Midterm-ExampleWithAnswerspdf/
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SCOM 361 MIDTERM Example with ANSWERS
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A liter of Slimi Somi must have at least 0.4% of vitamin A. A liter of Healty Moning must have at
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least 0.5% of vitamin D. Daily demand for Slimi Somi is 8000 liters. FashionMilk can sell as much
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of Healty Moning is it can produce. It can get as much soya milk as it is required but only 5000
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liters of cow milk.
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How many liters of each type of milk should be used in the two types of drink so that daily
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demand is met? Formulate the FashionMilk production problem as an LP model. (do not solve)
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Xij = liters of milk type “i” used to produce “j” drink (j=1 is Slimi Somi)
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s.t.
0.4% of vitamin A requirement for Slimi Somi
0.002X11 + 0.005X21 >= 0.004(X11 + X21) Points: 2
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0.5% of vitamin D requirement for Healty Moning
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0.003X12 + 0.006X22 >= 0.005(X12 + X22) Points: 2
Daily demand requirement (If constraints below are
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written as the equations, then amounts of A and B can be calculated.) No penalty for >=.
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X11 + X21 = 8000 Points: 1
X12 + X22 = 5000 Points: 1
Xij >= 0 Points: 1
https://www.coursehero.com/file/28497651/Midterm-ExampleWithAnswerspdf/
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