OR ASSIGNMENT QUESTIONS for regular

1. An advertising company wishes to pan an advertising campaign in three different media:

television( prime day, prime time), radio and magazine. The purpose of the advertising is to
reach as many potential customers as possible. Following are the results of market study:
Television radio magazine
Prime day prime time
Cost of an advertising unit 40,000 75,000 30,000 15,000
No of potential customers
reached per unit 400,000 900,000 500,000 200,000
no of women customers
reached per unit 300,000 400,000 200,000 100,000

the company does not want to spend more than birr 800,000 on advertising. It is further required
that
i) at least 2 million exposures take place among women
ii) advertising on television be limited to birr 500,000
iii)at least 3 advertising units be bought on prime day and two units during prime time and
iv)the number of advertising units on radio and magazine should each be between 5 and 10.
Formulate this problem as LP model to maximize potential customer reach.

2. The Izmir Aerospace Company has just been awarded a rocket engine development contract. The
contract terms require that at least five other smaller companies be awarded subcontracts for a
portion of the total work. So Izmir requested bids from five small companies ( A, B, C, D, and E ) to
do subcontract work in five areas (I, II, III, IV and V ). The bids are as follow:
Cost information:
Subcontract bids
I II III IV V
Company
A 45000MU 60000MU 75000MU 100000MU 30000MU
B 50000 55000 40000 100000 45000
C 60000 70000 80000 110000 40000
D 30000 20000 60000 55000 25000
E 60000 25000 65000 185000 35000

a. Which bids should Izmir accept in order to fulfil the contract terms at the least
cost?
b. What is the total cost of subcontracts?

3. Mr. Eyuel E., head of logistic and supply chain management Department, has decided to use
decision modelling to assign instructores to courses next semester. As a criterion for judging who
should teach each course, he reviews the past two years’ teaching evaluations (which were filled by
students). Since each of the four instructores taught each of the four courses at one time or
 another during the two-year period, and have been evaluated by the students. The rating for each
instructor for each course is given the following table (a perfect score is 100). The department head
wants to know the optimal assignment of instructors to courses that will maximize the overall
average evaluation. Find the best assignment of instructores to courses to maximize the overall
teaching ratings.

Courses
QM MRKT MIS OR
Instructors Chaltu 90 65 95 40
G/Medhin 70 60 80 75
Wedalate 85 40 80 60
Derebe 55 80 65 55

4. A large manufacturing company is closing three of its existing plants and intends to transfer some of
its more skilled employees to three plants that will remain open. The number of employees available
for transfer from each closing plant is as follows.
Closing Plant Transferable Employees
1 60
2 105
3 70
Total 235

The following number of employees can be accommodated at the three plants remaining open.
Open Plants Employees Demanded
A 45
B 90
C 35
Total 170
Each transferred employee will increase product output per day at each plant as shown in the
following table. The company wants to transfer employees to ensure the maximum increase in
product output.
To
From A B C
1 5 8 6
2 10 9 12
3 7 6 8

a. Find initial feasible solution for this problem by using VAM.

b. Check whether the initial feasible solution optimal or not using:
– stepping stone method and
– MODI methods
c. Determine the number of transferred employee from each closing plant that will
optimally increase product output per day at each plant

5. A data processing manager wishes to formulate a LP model to help him decide how to use
his personnel as programmers (X1) or system analysts (X2) in such a way as to maximise
revenues (Z). Each programmer generates 40 MU/hr in income and system analysts bring in
50 MU/hr.
 Programming work during the coming week is limited to 50 hrs (maximum). The production
scheduler has also specified that the total of programming time plus two times the system
analysis time be limited to 80 hrs or less.
a) State the objective function and constraints.
b) Set up the initial simplex tableau.
c) Find an optimal solution? And From optimal solution
 How many hrs of time should the manager schedule for systems analysis work?
 How many hrs of time (in total) should be scheduled?
 How much revenue can the firm expect to gain from the optimal scheduling plan?
 How much more revenue would be gained if there were one more hr. of programming
work available?
 What is the shadow price associated with the 80 hrs total time constraint?
 How much could the systems analysis time be increased?
 What would be the effect upon profits of such a change (i.e. MU amount of increase or
decrease)?

6. The Magusa Development Co. is building two apartment complexes. It must decide how many units
to construct in each complex subject to labour and material constraints. The profits generated for
each apartment in the first complex is estimated at 900 MU, for each apartment in the second
complex 1 500 MU. A partial initial simplex tableau for Magusa is given in the following table:
Prod. 900 1 500 0 0
Cj Mix Quantity x1 x2 s1 s2
3 360 14 4 1 0
9 600 10 12 0 1
Zj
Cj- Zj
___________ ___ ________________
a) Complete the initial tableau.
b) Reconstruct the problem’s original constraints (excluding slack variables).
c) Write the problem’s original objective function.
d) What is the basis for the initial solution?
e) Which variable should enter the solution at the next iteration?
f) Which variable should leave the solution at the next iteration?
g) How many units of the variable entering the solution next will be in the basis in the second
tableau?
h) How much will profit increase in the next solution?

7. An advertising campaign uses a network as shown below:

Activity to tm tp
12 4 5 6
13 3 4 8
24 1 2 5
25 5 6 9
34 2 3 4
35 2 3 6
46 4 5 6
56 3 4 8
 a. Draw a network and label each activity with its expected time and variance.
b. Show “TE” and “TL” of each event on the network
c. Calculate the expected completion time and variance for the entire project.
d.What is the probability that the project is completed in 18 days?
e. What is the probability that the project be completed in 15 days?
f. What are the PERT assumptions used to calculate the probability in part (c) realistic in this case?
Why or why not?
g.What is the effect of the large variance in activity 13?

8. The following table gives the activities in a construction project and other relevant information:
immediate TIME(months COST (Br.1000)
Activity predecessor )
Norma Crash normal crash
l
A - 4 3 60 90
B - 6 4 150 250
C - 2 1 38 60
D A 5 3 150 250
E C 2 2 100 100

F A 7 5 115 175
G D,B,E 4 2 100 240

Indirect cost vary as follow

Month : 15 14 13 12 11 10 9 8 7 6
Cost (Br.) : 600 500 400 250 175 100 75 50 35 25
a. Draw an arrow diagram for the project
b. Determine the project duration which will result in minimum total project cost

N.B. final date of submission with in two weeks