Operations Research Quiz 1

Please briefly answer the following questions with what you learned in this course.
1. Please briefly describe the origins of operations research. (2 points)
Answer:
Operation Research (OR) was born out of the British and American armies' attempt during World
War II to use science to address the tactical and strategic issues surrounding the distribution of
limited resources. The setting for the emergence of OR was created after the war by developing
OR techniques, the computer revolution, and the need to discover a better solution to address
complicated business problems.

2. Why do OR teams typically spend a surprisingly large amount of time gathering relevant data
about a problem? (2 points)
Answer:
Large amounts of data are typically required in order to accurately comprehend the issue at hand
as well as to supply the necessary input for the mathematical model that is being developed. Many
times, most of the data required for the study won't be available when it starts, either because it
hasn't been kept up to date or because what has been kept is incorrect or outdated. At the moment,
an additional concern brought up is the excess of data. Data may come from thousands of sources,
and its overall size may be expressed in gigabytes or even terabytes. Finding the very pertinent
data in this scenario and spotting the intriguing patterns within it might become a laborious and
time-consuming effort. This is the reason why OR teams typically spend a surprisingly a lot of
time on gathering data.

3. What pitfalls should be avoided when using mathematical models? (2 points)

Answer:
When using mathematical models, there are several pitfalls that should be aware of to avoid to
ensure the reliability and validity of their results:
 Assumption pitfalls: Mathematical models are built on a set of assumptions that may not
always hold true in real-world situations. It's significant to carefully evaluate the validity
and implication of model assumptions.
 Complexity Overload: Overly complex models may be difficult to understand, interpret,
and validate, leading to confusion and uncertainty about their outputs. In developing the
model, a good approach is to begin with a very simple version and then move in
evolutionary fashion toward more elaborate models that more nearly reflect the
complexity of the real problem.
 Ignoring Model Validation: Model validation is essential for assessing the accuracy and
reliability of model predictions or outputs. Failing to validate the model against
independent data or real-world observations can lead to erroneous conclusions.
 Data Quality Issues: Mathematical models rely on input data to make predictions or
optimize decisions. Poor-quality or inaccurate data can significantly impact the
performance and reliability of the model. Validating and cleansing data play crucial roles.
4. Why scientists emphasize the feasibility rather than the optimality of a solution in operations
research? (2 points)
Answer:
Problems due to model assumptions: A solution maybe optimal only with respect to the model
being used. But, in fact, there are too many imponderables and uncertainties associated with real
problems. Meanwhile, the model necessarily is an idealized rather than an exact representation of
the real problem. Hence, there cannot be any utopian guarantee that the optimal solution for the
model will prove to be the best possible solution that could have been implemented for the real
problem. Or, achieving optimality in one aspect may lead to compensates in others that just are not
accounted in the model.
Decision-making tendency: As pointed out by Herbert Simon, in actual practice, managers are
satisfied with a "good enough" solution. It means, if a solution is found that enables all these goals
to be met, it is likely to be adopted without further consideration.
All of these are the reason why scientists emphasize the feasibility rather than the optimality of a
solution in operations research.

5. Consider the following objective function for a linear programming model:

(a) Draw a graph that shows the corresponding objective function lines for , , and
. (1 points)
(b) Find the slope-intercept form of the equation for each of these three objective function lines.
Compare the slope for these three lines. Also, compare the intercept with the axis. (1

points)
Answer:
(a) Draw a graph that shows the given objective function lines

(b) Find the slope-intercept forms of the given equations

 2x1+3x2 = 6  Slope intercept s1 = -2/3
 2x1+3x2 = 12  Slope intercept s2 = -2/3
 2x1+3x2 = 18  Slope intercept s3 = -2/3
Obviously, s1=s2=s3. So, the slope-intercept forms of the given equations all are equal
Find out the intercept of given objective function lines with the x2 axis. Set x1 =0
  2x1+3x2 = 6  x2 = 2
 2x1+3x2 = 12  x2 = 4
 2x1+3x2 = 18  x2 = 6
The intersection points of given objective function lines with the x2 axis are 2 units apart on the
x2 axis

6. Use the graphical method to solve the problem: (3 points)

subject to

and

Answer:

 Build up graphic with given constraint boundaries and determine corner-point solutions
(CPF) as intersections of constraint boundaries;
 CPF Solutions Its Adjacent CPF Solutions
(0,0) (0,10) and (44/3,0)
(0,10) (0,0) and (5,10)
(5,10) (0,10) and (10,8)
(10,8) (5,10) and (13,5)
(13,5) (10,8) and (44/3,0)
(44/3,0) (13,5) and (0,0)
 Choose (0, 0) as the initial CPF solution to examine. Move to a better adjacent CPF
solution until find out the optimal solution. (If a CPF solution has no adjacent CPF
solutions that are better (as measured by Z), then it must be an optimal solution.)
 (10,8) is the optimal solution.

So, the Max Z = 260 when (x1, x2) = (10, 8)

7. The Apex Television Company has to decide on the number of 27- and 20-inch sets to be
produced at one of its factories. Market research indicates that at most 40 of the 27-inch sets and
10 of the 20-inch sets can be sold per month. The maximum number of work-hours available is
500 per month. A 27-inch set requires 20 work-hours and a 20-inch set requires 10 work-hours.
Each 27-inch set sold produces a profit of $120 and each 20-inch set produces a profit of $80. A
wholesaler has agreed to purchase all the television sets produced if the numbers do not exceed the
maxima indicated by the market research.
(a) Formulate a linear programming model for this problem. (1 points)
(b) Use the graphical method to solve this model. (2 points)
Answer:
(a) Formulate a linear programming model for the given problem
The decision variables are defined as below:
 x 1: The number of 27-inch sets (unit) to produce
 x 2: The number of 20-inch sets (unit) to produce

The total profit: Z = 120 x 1 + 80 x 2

The constraints that we need consider:

 Work-hour available: 20 x 1 + 10 x 2 ≤ 500
 Capacity constraints
0 ≤ x 1 ≤ 40
0 ≤ x 2 ≤ 10

So, the resulting linear programming model for this problem is:
Maximize: Z = 120 x 1 + 80 x 2
Subject to
20 x 1 + 10 x 2 ≤ 500
0 ≤ x 1 ≤ 40
0 ≤ x 2 ≤ 10
(b) Use the graphical method to solve the model
 Build up graphic with given constraint boundaries and determine corner-point solutions
(CPF) as intersections of constraint boundaries;
CPF Solutions Its Adjacent CPF Solutions
(0,0) (0,10) and (25,0)
(0,10) (0,0) and (20,10)
(20,10) (0,10) and (25,0)
(25,0) (20,10) and (0,0)
 Choose (0, 0) as the initial CPF solution to examine. Move to a better adjacent CPF
solution until find out the optimal solution. (If a CPF solution has no adjacent CPF
solutions that are better (as measured by Z), then it must be an optimal solution.)
 (20,10) is the optimal solution with max Z = 3200

So, the Apex Television Company will get max profit of $3200 if it produces 20 27-inch sets and
10 20-inch sets.

8. The Fagersta Steelworks currently is working two mines to obtain its iron ore. This iron ore is
shipped to either of two storage facilities. When needed, it then is shipped on to the company’s
steel plant. The diagram below depicts this distribution network, where M1 and M2 are the two
mines, S1 and S2 are the two storage facilities, and P is the steel plant. The diagram also shows the
monthly amounts produced at the mines and needed at the plant,
as well as the shipping cost and the maximum amount that can be shipped per month through each
shipping lane. (Go to the left column below the diagram.)
(a) Please formulate a linear programming model for this problem. (1 points)
(b) Solve this model by the simplex method. (3 points)
Answer:
(a) Formulate the linear programing model for the problem
The decision variables are defined as below:
 x 1: The number of unit (tons) shipped from Mine 1 (M1) to Storage Facility 1 (S1)
 x 2: The number of unit (tons) shipped from Mine 1 (M1) to Storage Facility 2 (S2)
 x 3: The number of unit (tons) shipped from Mine 2 (M2) to Storage Facility 1 (S1)
 x 4 : The number of unit (tons) shipped from Mine 2 (M2) to Storage Facility 2 (S2)
 x 5: The number of unit (tons) shipped from Storage Facility 1 (S1) to the Plant (P)
 x 6: The number of unit (tons) shipped from Storage Facility 2 (S2) to the Plant (P)

The total shipping cost are: Z = 2 x 1 + 1.7 x 2 + 1.6 x 3 + 1.1 x 4 + 0.4 x 5 + 0.8 x 6 ($ thousand)

The constraints that we need consider:

 Capacity constraints:
0 ≤ x 1, x 2 ≤ 30
0 ≤ x 3, x 4 ≤ 50
0 ≤ x 5, x 6 ≤ 70
 Supply constraints:
x 1 + x 2 = 40
x 3 + x 4 = 60
 Shipping flow:
x1 + x3 - x5 = 0
x2 + x4 - x6 = 0
x 5 + x 6 = 100

So, the resulting linear programming model for this problem is:
Minimize Z = 2 x 1 + 1.7 x 2 + 1.6 x 3 + 1.1 x 4 + 0.4 x 5 + 0.8 x 6
Subject to:
0 ≤ x 1, x 2 ≤ 30
0 ≤ x 3, x 4 ≤ 50
0 ≤ x 5, x 6 ≤ 70
x 1 + x 2 = 40
x 3 + x 4 = 60
 x1 + x3 - x5 = 0
x2 + x4 - x6 = 0
x 5 + x 6 = 100
(b) Solve the problem by simplex model
Using the Excel Solver, which employs the simplex method to solve the model
Shipping Flow Capacity
Requirement x1 x2 x3 x4 x5 x6 Total Constraint
M1 Capacity 1 1 0 0 0 0 40 40
M2 Capacity 0 0 1 1 0 0 60 60
S1 Capacity 1 0 1 0 0 0
S2 Capacity 0 1 0 1 0 0
P Need 0 0 0 0 1 1 100 100
Cost per shipping
channel ($ 2 1.7 1.6 1.1 0.4 0.8
thousand)
Constraints for
30 30 50 50 70 70
shipping flow
Conservation-of-
flow constraint on 40 40
S1
Conservation-of-
flow constraint on 60 60
S2
Solution 30 10 10 50 40 60
Total cost 212

Results:
Min shipping cost = $212,000
With
 x 1 = 30 tons
 x 2 = 10 tons
 x 3 = 10 tons
 x 4 = 50 tons
 x 5 = 40 tons
 x 6 = 60 tons