Quantitative Techniques in Construction

Assignment-2
Note:
a. Please solve the assignment in your classroom notebook only
b. It is an individual assignment and need to be completed on 31 March 2017

1. Solve the following LP problem with Graphical Method

Minimize Cost = 2X + 3Y

Subject to X + 3Y ≥ 100
8X + 2Y ≥ 180
3X + 2Y ≥ 130
Y ≤ 75
X, Y ≥ 0
2.
Solve the following LP problem with Graphical Method

Minimize C = 3x + 4y

subject to the constraints

3x - 4y ≤ 12,
x + 2y ≥ 4
x ≥ 1, y ≥ 0.

3. A project proposal needs to be prepared for a mixed used development towards housing
and retail area. The housing area would consist of efficiency apartments, duplex and single
family homes. Maximum demand by potential renters is estimated to be of 600 efficiency
apartments, 400 duplexes and 350 single family homes, but the number of duplexes must
equal at least 60% of the number of efficiency apartments and single homes. Retail space
is proportionate to the number of home units at the rates of at least 12 sqft, 18 sqft and 20
sqft for efficiency, duplex, and single family units respectively. However, land availability
limits, rental space to no more than 10000sft. The monthly rental income is estimated at
Rs.25000, Rs.35500 and Rs.50000 for efficiency, duplex and single family units
respectively. The retail space rents for Rs.5500 per sft.
 a. Please write the Objective Function
b. Identify the constraints
c. Arrive at an optimal solution for the LP model developed using simplex method to
determine the optimal retail space area and the number of residences
d. Write the Dual Problem for this LP Problem
e. Using Sensitivity Analysis comment on the change in optimal solution if the local
statutory authorities insist only 6500 sqft of space be made available towards retail.

4. There are six jobs which must go through two machines A and Machines B in the order
A-B. Processing time ( in hours) is given here:

Job Nos. 1 2 3 4 5 6
Machines A 8 10 11 5 16 15
Machines B 7 19 10 14 13 9

Determine the optimum sequence and the total elapsed time. Find out the idle time of
each machine as per job sequence followed.

5. XYZ Company has its project in three locations and is also supplying concrete to three
major construction projects. The shipping cost per truckload of concrete (in Rs. 1000s per
Truckload), daily plant capacities and the daily project requirements are provided in the
table below

Destination
Source Plant Bareilly Merrut Lucknow Capacity
Truckloads
Sahranpur 7 5 3 500
Chandigarh 8 5 4 450
Patiyala 9 7 5 350
Requirement 400 300 500
Truckloads

Solve for a transportation plan to meet the requirement at the minimal cost possible along
with the calculation of the minimum cost to company.

6. Solve the following transportation problem for maximum profit

Warehouse (Profit per Unit Rs.)

A B C D
X 12 18 6 25
Y 8 7 10 18
Manufacturing Z 14 3 11 20
plant
 Availability at Demand at warehouse
Manufacturing plant
X : 300 Units A: 280 Units
Y: 700 Units B: 370 Units
Z: 600 units C: 200 Units
D: 450 Units

Apply VAM for initial solution and check optimality with MODI method

7. A company has four workers, who has to be assigned to four different jobs. The monthly
profit ( per moth) generated by each worker w.r.t their jobs (in lakhs of rupees) are shown
in the table below:

Jobs
Worker 1 2 3 4 5
A 75 80 85 70 90
B 91 71 82 75 85
C 78 90 85 80 80
D 65 75 88 85 90

Suggest optimal assignment of jobs to worker. Which job will remain unassigned?
What will be the maximum profit generated every month? If for certain reasons worker
D cannot be assigned to job 3, will the optimal assignment schedule be different? If so,
show the new assignment schedule/schedules.

8. A. Machine X costs ₹.90000. Annual operating costs are ₹.2500 for the first year and
they increase by ₹.20, 000 every year. Determine the age at which to replace the machine
assuming that it has no resale value. What will be the average yearly cost of operation
and owning the machine, if the optimal replacement policy is followed?

b. Another machine Y costs ₹.110000. Annual operating costs for the first year are
₹.5000 and they increase by ₹. 9000 every year. The firm has a machine of Type A
which is one year old. Should the firm replace it with B and if so, when?

c. When the firm is just ready to replace machine X with another machine of the same
type, it receives information that Machine Y will become available in a year. What
should the firm do?
9. A manufacturing firm has discontinued production of certain unprofitable product-line.
This has created considerable excess production capacity. The management is considering
devoting this excess production capacity to one or more than three products P1, P2 and P3.
The available capacity on the machines which might limit the output is summarized in the
following table:

Machine type Available time in hours

Milling machine 300
Lathe 200
Grinder 100
The number of machine hours required for each unit of the respective products are given
below:

Productivity (in machines hours per unit)

Machine type Product P1 Product P2 Product P2
Milling machine 9 3 4
Lathe 5 4 -
Grinder 3 - 2

The unit profit is ₹.20, ₹.6 and ₹.8 for product P1, P2 and P3 respectively.
a) What should be the product mix to maximize the profit?
b) What should be the product mix to maximize the product if the potential to the Product
P3 is exactly 25 units?
c) What should be the product mix if at least 25 units of Product P3 are to be
manufactured?
d.) Write the duality of the problem.
e.) Perform the sensitivity analysis for the same.

10. You have an opportunity to pick up either of the following three kinds of projects viz.
Bridge, Housing or Roads having varying predicted returns. The returns are further
governed by the prevailing growth in market conditions. There is a 15% chance that the
market growth will be low, 60% that it will remain moderate and 25% chance that growth
will be high. The following table provides the percentage change in the type of Project
under the three conditions.

Percentage Return on Investment

Project Type Growth Low (%) Growth Moderate Growth High (%)
(%)
Roads 4 5 8
Housing -9 5 20
Bridge 3 -6 15
 Represent the problem as a decision tree. Which project will you pick up?

11. A company solicits bids for each of its four projects from five shortlisted contractors. Only
one project will be assigned to any contractor. The bids received in (Rupees Crores) are
given in the accompanying table of quotes. Contractor D feels unable to carry out Project
3 and therefore submits no bid.

Contractors
Project A B C D E
Noida 20 30 23 27 27
Gurgaon 29 32 28 29 26
Ghaziabad 30 34 32 - 33
Mathura 29 26 29 29 32

Find the set of assignments of Projects to Contractors with the smallest possible total cost
to the company. What is the minimum total achievable cost?

12. The maintenance costs and the resale price of a Machine A whose purchase price is Rs
12000 are given as follows

Year 1 2 3 4 5 6 7
Maintenance 1600 1900 2200 3000 3700 5000 6500
Cost (Rs.)
Resale Price 5000 3500 2000 1000 800 700 500
(Rs.)

Suggest an optimal period for the replacement of the machine. When the mixer is 2 years
old, another mixer B, which is a new model of mixer A is made available. The optimal
period for replacement of this mixer B is 4 years, with an average cost of Rs.3900. Should
we change the mixer A with B? If so when?

13. A light weight equipment dealer finds that the cost of equipment in stock for a month is ₹
300 and the cost of unit shortage is ₹ 700. For a particular model of equipment, the
probability distribution of monthly sales is as follows:

Monthly
sales 0 1 2 3 4 5 6

Probability 0.20 0.10 0.10 0.25 0.15 0.15 0.05

How many units per week should the dealer order? Also find the EVPI?
14. A lumber mill can produce pallets of high quality lumber. Its lumber capacity is
limited by its kiln size. It can dry 200 mbf per day. Similarly, it can produce a
maximum of 600 pallets per day. In addition, it can only process 400 logs per
day through its main saw. Quality lumber sells for $490 per mbf, and pallets sell
for $9 each. It takes 1.4 logs on average to make one mbf of lumber, and four
pallets can be made from one log. Of course, different grades of logs are used
in making each product. Grade 1 lumber logs cost $200 per log, and pallet-grade
logs cost only $4 per log. Processing costs per mbf of quality lumber are $200
per mbf, and processing costs per pallet are only $5. How many pallets and how
many mbf of lumber should the mill produce?
Write an LPP for above problem.

15. A grocery receives its weekly supply of eggs every Thursday morning. This
shipment must last until the following Thursday when a new shipment is
received. Any eggs left unsold by Thursday are destroyed. Eggs sell for $10
per hundred and cost $8 per hundred. The weekly demand for eggs at this
grocery varies from week to week. From past experience, the following
probability distribution is assigned to weekly demand:

Demand (hundreds of eggs): 10 11 12 13 14

Probability: 0.1 0.2 0.4 0.2 0.1

This pattern of demand remains stable throughout the year and the demand
for eggs is not seasonal, and the trend is flat. The problem is: How many eggs
should be ordered for delivery every Thursday?