Assignment 8 – Discrete Optimization

Due Date: 30 October 11:59PM

Note:
1. This assignment is graded and will contribute to your CA and final marks of
the module. Thus, any acts of academic dishonesty pertaining to this
assignment (cheating) is subject to disciplinary actions.
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members. Information exchange can only occur in your own team. Discussing
or sharing your assignment workings or solutions with persons not belonging
to your team, is considered to be an act of academic dishonesty. If you are
struggling and need help with your assignment, you should reach out to your
sectional instructors.
3. The assignment is a team-based assignment. Each team member is “jointly
and severally responsible” for the final version of your assignment submitted
to LumiNUS. In the event of an act of academic dishonesty pertaining to this
assignment, each member of the team will incur the same penalty and
disciplinary consequences.

Q1. The Research and Development Division of the GOOD PRODUCTS COMPANY has
developed three possible new products. However, to avoid undue diversification of the
company's product line, management has imposed the following restriction.

Restriction 1: From the three possible new products, at most two should be chosen to
be produced.

Each of these products can be produced in either of two plants. For administrative reasons,
management has imposed a second restriction in this regard.

Restriction 2: Just one of the two plants should be chosen to be the sole producer of the
new products.

The production cost per unit of each product would be essentially the same in the two plants.
However, because of differences in their production facilities, the number of hours of
production time needed per unit of each product might differ between the two plants. These
data are given in the table below, along with other relevant information, including
marketing estimates of the number of units of each product that could be sold per week if
it is produced. Please construct a discrete optimization model to solve this decision problem.
The objective of this task is to choose the products, the plant, and the production rates
of the chosen products so as to maximize total profit.

In answering this question, you need to provide a mathematical model first and solve
it using Excel solver. Both must be submitted.

Q2. The office manager of a large law firm needs to replace the aging and out-of-style
office furniture in their Singapore offices. The firm has decided to purchase 2,000 new
desk/chair/credenza furniture sets for all offices in Singapore. The company has received
bids from four different furniture companies who are willing to supply the furniture sets,
as follows:

 Tim Woodworks has bid to deliver up to 1,000 furniture sets at a cost of $2,500
per set and with a one-time delivery charge of $10,000.
 Millworks has bid to supply up to 1,200 furniture sets at a cost of $2,450 per set
and with a one-time delivery charge of $20,000.
 ABC Designs has bid to deliver up to 800 furniture sets at a cost of $2,510 per set
but with no delivery charge.
 Lim Artisan has bid to deliver up to 1,100 furniture sets at a cost of $2,470 per set
and with a one-time delivery charge of $13,000.

Construct a discrete optimization model to determine how many furniture sets to

purchase from each of these four potential suppliers.
In answering this question, you need to provide a mathematical model first and solve
it using Excel solver. Both must be submitted.