EG 3336 E / 6333 A Operations Research II Spring 2009 Homework Assignment #1 Due: at 6:30 PM in Class On Monday February 09, 2009

EG 3336 E / 6333 A Operations Research II
Spring 2009
Homework Assignment #1
Due: At 6:30 PM in class on Monday February 09, 2009
Note: Please show all your work. Full credit will NOT be given for a correct answer without work.
1. A company has known weekly orders for varying numbers of a given product over the next 5
weeks. These requirements are 50, 30, 60, 45, and 25. To make a production run for this
product, it costs $55 to setup the machine and each unit produced costs an additional $100. The
company has production capacity and storage space for as many units of the products as needed;
however, it costs $1 per unit per week to store the products required in the future time periods.
The production capacity is such that all five future period demands could be produced in a
single run. Of course, the company would incur a cost considerable holding cost. Thus, the
problem is to determine in which periods to make production runs and how many items to
produce on each run. This analysis is to be based on a minimum cost basis. Formulate the
recursion equation for the above problem and solve using the techniques of dynamic
programming.
2. The demand for a product over the next four time periods is 2, 3, 4, and 2 units. The cost of
placing an order is $20, independent of the number of units ordered. The cost of an individual
item is $100, and the holding cost is $3 per unit per period. Due to the company accounting
system, holding costs are charged on the inventory units at the beginning of a period, that is, on
entering inventory. A maximum of four units can be held from period to period. The company
orders from a local supplier, so we can consider that units ordered in a period are available for
use in the same period. However, due to the limited production capacity of the supplier, orders
are limited to once a period with a maximum of 5 units. Formulate the recursion equation for the
above problem and solve using the techniques of dynamic programming.
3. A 6-ton vessel can be loaded with one or more of three items. The following data gives the unit
weight, wi, in tons and the unit revenue in thousands of dollars, ri, for item i.
w1 = 4, w2 = 1, w3 = 2, r1 = 70, r2 = 20, r3 = 40.
How should the vessel be loaded to maximize the total return?
a. Formulate an integer program for the above problem.
b. Formulate the recursion equation for the above problem and solve using the techniques
of dynamic programming.
4. A wilderness hiker must pack three items: food, first-aid kits, and clothes. The backpack has a
capacity of 3 ft3. Each unit of food takes 1 ft3. A first aid kit occupies ¼ ft3 and each piece of
cloth takes about ½ ft3. The hiker assigns the priority weights 3, 4, and 5 to food, first aid, and
clothes, which means that the clothes are the most valuable of the three items. From experience,
the hiker must take at least one unit of each item and no more than two first-aid kits. How many
of each item should the hitch hiker take?
5. A pharmaceutical supply chain (supply chain for essential/critical prescription drugs) consists of
three echelons: supply, production, and distribution. The three echelons operate in series so that
the failure of one echelon causes the failure of the supply chain. The reliability (probability of
no failure) of the supply chain can be improved by sourcing (or contracting) multiple players (or
supply chain partners) in each echelon. The following data gives the reliability, ri, and contract
cost, ci, for contracting multiple players in echelon i.
No. of Supply Echelon Production Echelon Distribution Echelon

Players r1 c1 r2 c2 r3 c3
1 0.6 $1,000,000 0.7 $3,000,000 0.5 $2,000,000
2 0.8 $2,000,000 0.8 $5,000,000 0.7 $4,000,000
3 0.9 $3,000,000 0.9 $6,000,000 0.9 $5,000,000
The total capital available for investment is $10,000,000. How should the supply chain be
configured?
Hint: The objective is to maximize the reliability (probability of no failure) of the supply chain.
This means that the objective function components are multiplicative rather than additive.
------------------------------

EG 3336 E / 6333 A Operations Research II Spring 2009 Homework Assignment #1 Due: at 6:30 PM in Class On Monday February 09, 2009

Uploaded by

Copyright:

Available Formats

EG 3336 E / 6333 A Operations Research II Spring 2009 Homework Assignment #1 Due: at 6:30 PM in Class On Monday February 09, 2009

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

EG 3336 E / 6333 A Operations Research II Spring 2009 Homework Assignment #1 Due: at 6:30 PM in Class On Monday February 09, 2009

Uploaded by

Copyright:

Available Formats

EG 3336 E / 6333 A Operations Research II

No. of Supply Echelon Production Echelon Distribution Echelon

You might also like