Professional Documents
Culture Documents
Operations Research Dec 2017-2
Operations Research Dec 2017-2
SEMESTER I – 2017DECEMBER
CODE : MATH3602
DURATION: 2 HOURS
INSTRUCTIONS:
SECTION A
Instructions: On the computerized answer sheet provided, shade the letter that corresponds
with the CORRECT response for each of the following:
Analysis of Variance
Source of Sum of Degrees of Mean F- Ratio
Variation Squares Freedom Square
Between 28.4 2 MSB F
Samples
Within Sample 56.4 n–k MSW
Error
Total 84.8 11
1. The values of the “Within Sample” Degrees of Freedom (n – k) and “Within Sample”
MeanSquare (MSW) are:
A. 9; 56.4
B. 9; 1.98
C. 9; 6.27
D. 10; 1.98
A. 0.50
B. 1.98
C. 0.44
D. 2.26
4. Given an activity with multiple time estimate values of a = 12, m = 15, b = 20, calculate
the variance of the activity:
A. 10.67
B. 10.33
C. 1.95
D. 1.77
5. An activity’s optimistic (a), most likely (m) and pessimistic (b) times are; 4, 12 and 18
days respectively, the PERT standard deviation for this activity is:
A. 2 .33
B. 5.44
C. 11.67
D. 34.00
6. The expected value from the times of the activity listed in question 5 is:
A. 2 .33
B. 5.44
C. 11.67
D. 34.00
A. 0.98
B. 0.50
C. 0.48
D. 0.02
8. In inventory control, the time which elapses between placing an order and the arrival of
the inventory is called:
A. mean time
B. variance in time
C. lead time
D. cycle time
A cake manufacturer produces two kinds of cake X and Y, which are produced in three
stages; mixing, baking and packaging. The time available for each cake is as follows:
The time available for mixing as well as packaging is 90 minutes each and for baking 180
minutes. The profit on each of cake X is $10 and on each of cake Y is $20.
A. 3X + Y ≤ 90
B. X + 3Y ≤ 90
C. 5X + 4Y ≤ 180
D. 3X + Y ≤ 180
Table 1
A. 72
B. 84
C. 85
D. 89
A. 24.0
B. 28.3
C. 28.0
D. 29.7
A. 4.0
B. -0.3
C. 8.67
D. -1.7
15. The objective function for the dual problem could be expressed as:
i. 3x1 + 4x2 ≤ 12
ii. 2x1 + x2 ≤ 4
iii. x1 ≥ 0
iv. x2 ≥ 0
A. I, ii
B. I, ii
C. Ii, iii
D. Iii, iv
The three factor estimates of completion time for an activity in project analysis is based
optimistic estimate (a), pessimistic estimate (b) and most likely estimate (m).
A.
ab
6
a 4m 6
B.
6
C. ba
6
D.
a 4m b
6
18. The variance of the activity is given by
A. (ba )
2
36
a b
2
B.
6
( a b)
2
C.
6
D.
( a 4m b)
2
36
The graph in Fig.1 below represents a linear programming problem with objective function
Maximize z = 10x + 20y with feasible region OABC.
60
40 A 3x + y = 60
B (12, 24)
4x + 3y = 120
C x
0 20 30
Figure 1
i. 800
ii. 400
iii. 600
A. i only
B. ii only
C. iii only
D. i, ii, iii
A. 3x + y ≥ 60
4x + 3y ≥ 120
B. 3x + y ≥ 60
4x + 3y ≥ 120
C. 3x + y ≤ 60
4x + 3y ≤120
D. 3x + y ≥ 60
4x + 3y ≤ 120
(Total 20 marks)
END OF SECTION A
17/12 The Council of Community Colleges of Jamaica Page 7
MATH3602
SECTION B
JICC (Jamaica) Ltd. wishes to test the thickness of the insulation which covers three bands A, B
and C of the same wire which are competing in the market. Using a sample of five randomly
selected pieces of wire for each brand and carefully measuring the thickness of the insulation in
millimetres (mm) the following results were obtained: -
C. Calculate the within sample sum of the squares error, (SSW). (2 marks)
F. Indicate the degrees of freedom for errors, and using the F-Distribution conduct a test at
the 5% level of significance. (7 marks)
(Total 30 marks)
Question 2
The activities required to service a car at a dealer can be viewed as a mini-project summarised in
the following table:
The variability in times required to perform each activity is due to the different types, sizes and
conditions of the cars to be serviced. Round off times to two decimal places where fractional.
A. Draw the activity network for this problem (either AON or AOA). (8 marks)
B. Determine the Expected Time and Variance for each activity. (4 marks)
C. Show the activity schedule (ES, EF, LS, and LF) as well as slack (in table). (12 marks)
D. Determine and state the critical path for this project. This must be based on your work in
(C.) and not by inspection. (3 marks)
E. What are the expected time and the variance of the project? (3 marks)
(Total 30 marks)
Question 3
The managers of ‘Upscale’ Promotions Ltd. need to make a decision regarding the venue to use
for the launch of their exiting new product line. They have developed a payoff table for three
locations: Altamont, Blaze, and Coast, and have also identified three states of nature (the crowd
response / turn-out) Large, Moderate and Low:
A. What decision should “Upscale” managers make if the maximax criterion is used?
(1 mark)
B. What decision should “Upscale” managers make if the maximin criterion is used?
(1 mark)
C. What decision should “Upscale” managers make if the LaPlace criterion is used?
(4 marks)
D. Using the Hurwicz criterion with α = 0.65, what decision should “Upscale” managers
make? (4 marks)
E. Using a minmax regret approach, what decision should “Upscale” managers make?
(6 marks)
F. If the probability of getting out a large crowd is 43%, the probability of getting out a
moderate size crowd is 22%, and the probability of getting out a small crowd is 35%. Using
expected monetary values, what decision should be made and what is that optimal expected
value? (6 marks)
G. Construct the appropriate decision tree to help “Upscale” managers make the appropriate
decisions. This tree must be constructed in logical order with labels and net payoffs.
(4 marks)
H. What is the most should Upscale’s managers be willing to pay to obtain further (perfect)
information (EVPI) concerning the actual crowd turnout? (4 marks)
(Total 30 marks)
Question 4
A. The Thrill Company wants to predict their sales for the first five months of the year 2016.
i. Use the three-month moving average to forecast the demand from April to July in
the table above. (7 marks)
ii. Given an alpha (α) value of 0.35, use the exponential smoothing method of
forecasting to predict the demand from February to July in the table above.
(6 marks)
iii. Use the Mean Absolute Deviation (MAD) to compare the two methods and state
which is the most efficient one to use. (3 marks)
B. The Pentium Company makes three types of pens: ballpoints, mechanical pencils and
fountain pens. These are made from plastic, chrome and steel and the table gives the ounces
of each of these ingredients that are used to make one pen. The company also uses labour,
packaging and quality control techniques in the production process and the profitability of
these pens, shown in the table are derived from the accounting process after all inputs are
taken into account. For example, plastic cost $5.00 per ounce and this is taken into account
to get the profit.
i. Write the decision variables that will be used in the model and state the decision
that the manager must make. (4 marks)
ii. Write the objective function and state clearly what Pentium’s objective is.
(2 marks)
iii. Write down all the constraints that should be used to solve the problem presented.
(4 mark)
iv. Explain what the solution would mean in terms of the decision variables and the
objective function. (2 marks)
(Total 30 marks)
END OF EXAMINATION
CODE : MATH3602
DURATION: 2 HOURS
SOLUTIONS
SECTION A
1 C 11 D 21
2 D 12 C 22
3 C 13 B 23
4 D 14 C 24
5 A 15 C 25
6 C 16 D 26
7 D 17 B 27
8 C 18 A 28
9 B 19 C 29
10 C 20 C 30
SECTION B
Question # 1
a) JICC (Jamaica) Ltd. wishes to test the thickness of the insulation which covers three bands A, B and C of the
same wire which are competing in the market. Using a sample of five randomly selected pieces of wire for
each brand and carefully measuring the thickness of the insulation in millimetres (mm) the following results
were obtained:-
MSW = SSWn
= 2.896 ÷–(15
k – 3)
= 0.2413
v) Indicate the degrees of freedom for errors (1 mark)
Degrees of freedom v1 = k – 1 = 3 – 1 = 2
and v2 = n – k = 15 – 3 = 12
vi) Outline and state the hypotheses to be tested (2 marks)
H0 : µ1 = µ2= µ3
H1 : µ1 ≠ µ2 ≠ µ3
vii) Using the F-Distribution conduct a test at the 5% level of significance(5 marks)
Question # 2
The activities required to service a car at a dealer can be viewed as a mini-project summarised in the following table:
The variability in times required to perform each activity is due to the different types, sizes and conditions of the cars
to be serviced. Round off times to two decimal places where fractional.
(a) Draw the activity network for this problem (either AON or AOA) [6 marks]
A 3.5 B 2 C
2.67
0.997 4.50 4.50 6.50 6.50 9.17
9.17 0.17
0 0
G1
Start
9.17 0.17
0 0
0 3 3 6.17 6.17 9.17
D 3 E 3.17 F 3
0 3 3 6.17 6.17 9.17
(b) Determine the Expected Time and Variance for each activity. [4
marks]
Activity A B C D E F G
Mean 3.5 2 2.667 3 3.1667 3 1
Variance 0.25 0.111 0.111 0.111 0.25 0.111 0.0278
(c) Show the activity schedule (ES, EF, LS, and LF) as well as slack (in table). [4
marks]
Activity Schedule
Activities E(T) Var(T) ES EF LS LF Slack
A 3.5 0.25 0 3.5 0.997 4.50 1
B 2 0.111 3.5 5.5 4.50 6.50 1
C 2.667 0.111 6.17 8.84 6.50 9.17 0.33
D 3 0.111 0 3 0 3 0
E 3.1667 0.25 3 6.17 3 6.17 0
F 3 0.111 6.17 9.17 6.17 9.17 0
G 1 0.0278 9.17 10.17 9.17 10.17 0
(d) Determine and state the critical path for this project. This must be based on your work
in (c) and not by inspection. [4
marks]
marks]
P(T ≤ 10)
= P(Z ≤ (10 – 10.1667) / √0.4998)
= P(Z ≤ - 0.24)
= 0.5 – 0.0948
= 0.4052
Question # 3
The managers of ‘Upscale’ Promotions Ltd. need to make a decision regarding the venue to use for the launch of their
exiting new product line. They have developed a payoff table for three locations: Altamont, Blaze, and Coast, and
have also identified three states of nature (the crowd response / turn-out) Large, Moderate and Low:
Payoffs are Profits
Crowd Response (State of Nature)
Locations Large Moderate Low
Altamont 750 370 –75
Blaze 650 410 – 20
Coast 600 450 120
(a) What decision should ‘Upscale’ Promotion’s managers make if the maximax criterion is
used?
[1 mark]
MAXIMAX:
Altamont --- 750
Blaze --- 650
Coast --- 600
Decision: Choose Altamount
(b) What decision should ‘Upscale’ Promotions managers make if the maximin criterion is
used? [1 mark]
MAXIMIN:
Altamont --- – 75
Blaze --- – 20
Coast --- 120
Decision: Choose Coast
(c) What decision should ‘Upscale’ Promotion’s managers make if the LaPlace criterion is
used? [2 marks]
LAPLACE:
Altamont --- (750 + 370 – 75) ÷ 3 = 348.33
Blaze --- (650 + 410 – 20) ÷ 3 = 346.66
Coast --- (600 + 450 + 120) ÷ 3 = 390.00
Decision: Choose Coast
(d) Using the Hurwicz criterion with α = 0.65, what decision should ‘Upscale’ Promotions’
managers make?
[3 marks]
Hurwicz: Altamont --- [(750×0.65) + ( – 75×0.35)] = 461.25
Blaze --- [(650×0.65) + (– 20×0.35) ] = 415.50
Coast --- [(600×0.65) + (120×0.35) ] = 432.00
Decision: Choose Altamont
(e) Using a minmax regret approach, what decision should ‘Upscale’ Promotions managers
make? [4 marks]
Regret Table
Locations Large Moderate Low
Altamont 0 80 195
Blaze 100 40 140
Coast 150 0 0
MINIMAX: Altamont --- 195
Blaze --- 140
Coast --- 150
Decision: Choose Blaze
(f) If the probability of getting out a large crowd is 43%, the probability of getting out a
moderate size crowd is 22%, and the probability of getting out a small crowd is 35%. Using
expected monetary values, what decision should be made and what is that optimal expected
value?
[3 marks]
EMV: Altamont = [(750×0.43) + (370×0.22) + ( –75×0.35)] = $377.65
Blaze = [(650×0.43) + (410×0.22) + (–20×0.35)] = $362.70
Coast = [(600×0.43) + (450×0.22) + (120×0.35)] = $399.00
Optimal EMV = $399.00
Decision: Choose Blaze
(g) Construct the appropriate decision tree to help ‘Upscale’ Promotions managers make the
appropriate decisions. This tree must be constructed in logical order with labels and net
payoffs.
[4 marks]
750
Large
$377.6 0.43
5
0.22 Moderate
2 370
0.35 Low
Altamont –75
Large 700
$422.70 $422.70
0.43
1 Blaze 0.22 Moderate
3 410
0.35 Low
Coast
90
120
(h) What is the most should ‘Upscale’ Promotions ’s managers be willing to pay to obtain
further (perfect) information (EVPI) concerning the actual crowd turnout? [2
marks]
EVWoPI = EMV = $399.00
EVWiPI = (750×0.43) + (450×0.22) + (120×0.35)
= $463.50
EVPI = EVWiPI – EVWoPI
= 463.50 – 399.00
= $64.50
Question # 4
The Thrill Company wants to predict their sales for the first five months of the year 2016.
3-month Exponential
Actual moving avg |e| Smoothing |e|
MONTH Sales (F) (F)
Jan 15 15.00
i. Use the three-month moving average to forecast the demand from April to July in the table above.
[2 marks]
ii. Given an alpha (α) value of 0.35, use the exponential smoothing method of forecasting to predict the
demand from February to July in the table above. [5 marks]
i) Write the decision variables that will be used in the model and state the decision that the manager
must make. [3 marks]
Objective Function = 3B + 3M + 5F
Objective: Maximize profit
iii. Write down all the constraints that should be used to solve the problem presented. [4 marks]