TIE 5208 OPERATIONS RESEARCH GROUP ASSIGNMENT MARCH 2024

Instructions and information to students:

Use Microsoft Word to present your solutions, no scanned pictures.

Each group member has to submit a PDF file.

Name your pdf file in this format: Operations Research TIE 5208 Group XX Assignment

Late Submissions will incur a penalty of 10 marks deduction per day of tardiness.

Answer All Questions.

Question 1

a) Describe how you would use Operations Research techniques to solve problems in the
following areas;
i. Traffic flow optimization [4]
ii. Resource allocation [4]
iii. Staff allocation [4]
iv. Fraud prevention, Anti money laundering [4]

b) Discuss the principle behind the Bayesian Probability. [3]

c) Detail the major advantages and disadvantages of using the Inter-disciplinary Team
approach in solving Operations Research problems. [6]

Question 2

Cars are shipped by truck from three distribution centres to five dealers. The shipping cost is
based on the mileage between sources and destinations. This cost is independent of whether
the truck makes the trip with a partial or a full load. Table Q2 below summarizes the mileage
between the distribution centres and the dealers as well as the monthly supply and demand
figures estimated in number of cars. Each truck can carry a maximum of 18 cars.
 Table Q2

Dealers

1 2 3 4 5 Supply

Distribution 1 100 150 200 140 35 100

Centres
2 50 70 60 65 80 200

3 40 90 100 150 130 150

100 200 150 160 140

a) Given that the transportation cost per truck mile is $10, formulate and solve this
problem as a transportation model. [20]
b) Calculate the total mileage and the cost of this distribution. [5]

Question 3

a) A company produces two types of cowboy hats. Each hat of the first type requires
twice as much labour time as does each hat the second type. If all hats are of the
second type only, the company can produce a total of 500 hats a day. The market
limits daily sales of the first and second types to 150 and 200 hats. Assume that the
profit per hat is $8 for type 1 and $5 for type 2. Determine the optimal allocation of
the raw material to the two products. [15]
b) Describe the role of slack variables in the Simplex Algorithm. [4]
c) Two products are manufactured by passing sequentially through three machines. The
machine time allocated to the two products is limited to 10 hours per day. The
production time and profit per unit of each product are given in Table Q3. below.
 Table Q3

Minutes per Unit

Product Machine 1 Machine 2 Machine 3 Profit

A 10 6 8 $2

B 5 20 15 $3

d) Find the optimal mix of the two products. [6]

Question 4

a) Using an example of your choice, explain how Data Mining can be used as an
Operations Research tool. [4]
b) Explain how models can assist a manager in decision making. [4]
c) Discuss the advantages and limitations of models in decision making. [12]

Question 5

What transpires in each of the seven phases of an Operations Research Project. [20]
Question 6

(a) Table Q6 below provides data for building a new house.

Table Q6

Activity Description Immediate Duration

Predecessor (s) (Days)

A Clear Site - 1

B Bring utilities to site - 2

C Excavate A 1

D Pour foundation C 2

E Outside plumbing B, C 6

F Frame house D 10

G Electric wiring F 3

H Lay floor G 1

I Lay roof F 1

J Inside plumbing E, H 5

K Shingling I 2

L Outside sheathing insulation F, J 1

M Install windows and outside F 2

doors

N Brick work L, M 4

O Insulate walls and ceiling G, J 2

p Cover walls and ceiling O 2

Q Insulate roof I, P 1

R Finish interior P 7
 S Finish exterior I, N 7

T Landscape S 3

i. Construct the associated network model. [8]

ii. Carryout the critical path computations. [10]
iii. Construct the new network model if the duration for activities B, C and K are 5, 6 and
7 respectively. [7]

Question 7

A manager is considering whether or not to build a Manufacturing Plant in Hwange. His

decision is summarized in Table Q7 below.

Table Q7
Alternatives Favourable Market Unfavourable Market
Build Large Plant $400 000 -$300 000
Build Small Plant $80 000 -$10 000
Don’t Build $0 $0
Market Probabilities 0.4 0.6

a) Construct a decision tree. [7]

b) Determine the best strategy, using Expected Monetary Value. [4]
c) What is the expected value of perfect information? [9]
Question 8

A project has been defined to contain the list of activities shown in Table Q8, along with their
required times for completion.

Table Q8: Activities and their precedence relationships

Activity Time Immediate
(Days) Predecessor
A 1 -
B 4 A
C 3 A
D 7 A
E 6 C, D
F 2 E, F
G 7 D
H 9 G, H
I 4

a) Draw the network diagram [6]

b) Explain what is meant by float [2]
c) Establish the critical path and project duration [6]
d) Determine the project duration [2]
e) What would happen if activity F was revised to take four days instead of two? [4]

Question 9

Tide Turn Computer Company manufactures one product, an inkjet printer, which is
currently in short supply. Four of Tide Turn's main outlets, large speciality computer shops at
Amaveni, Bosh, Carlic and Dinyane, already have requirements which in total exceed the
combined capacity of its three production plants at Belmont, Workington and Kelvin. The
company needs to know how to allocate its production capacity to maximize profit. Each
printer is packed in a separate box after being carefully wrapped to prevent damage.
Distribution costs per unit horn each production plant to each speciality shop are given in
Table Q9 below.
 Table Q9: Distribution costs per unit
TO Amaveni Bosh Carlic Dinyane
FROM

Belmont 22 24 22 30
Workington 24 20 18 28
Kelvin 26 20 26 24

Since the 4 speciality shops are in different parts of the country, and as there are differing
transportation costs between the production plants and the speciality shops, along with
slightly different production costs at each of the production plants, there is a pricing structure
that enables different prices to be charged at the 4 shops. Currently the price per unit charged
is $230, at Amaveni, $235, at Bosh, $225 at Carlic and $240 at Dinyane. The variable unit
production costs are $150 at plants Belmont and Kelvin, and $155 at plant Workington.

a) Set up a matrix showing the unit contributing to profit associated with each
production plant/speciality shop allocation. [5]
b) The demands at Amaveni, Bosh, Carlic and Dinyane are 850, 640, 380 and 230
respectively. The plant capacity at Belmont is 625, at Workington is 825 and at
Kelvin is 450. Use the transportation algorithm to determine the optimal allocation.
[10]
c) Determine the contribution to profit the optimal allocation. [5]

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