Assignment-I 23oct23
Assignment-I 23oct23
Four strategies of locations are given below. Calculate which of these four strategies is
going to result in a lesser value of the objective function.
The Distance Matrix and the Load Matrix are given below:
Strategy-1: 1 2 3 4
Strategy-2: 1 3 2 4
Strategy-3 4 1 3 2
Strategy-4 4 1 2 3
{Note: Since the matrices are symmetric calculate half of the sum-product and
double it}
Hence calculate which of these-11 parts are selected for machining such that the
profit is maximized and the time constraint of 2000 seconds is met. State the
maximum value of profit and the total time required for processing the jobs.
{Note: For solution of the problem, you may use a solver. Use the Binary Knapsack
method to find a solution to the problem}
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common to other jobs, in other words the tool slot variable 𝑆𝑖 represents a Disjoint-
Set.
Calculate an optimum schedule for this machine-loading problem, given the
processing times of the two machines. The Jobs are to be assigned to a particular
machine such that the Makespan is minimized.
𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒: 𝑢; 𝑤ℎ𝑒𝑟𝑒 𝑢 = 𝑢1 + 𝑢2
The real valued functions 𝑢1 𝑎𝑛𝑑 𝑢2 are the processing times on the Machine M1 and
M2 respectively and are stated as:
𝑢1 = 𝑝11 𝑋11 + 𝑝21 𝑋21 + ⋯ + 𝑝71 𝑋71
𝑢2 = 𝑝12 𝑋12 + 𝑝22 𝑋22 + ⋯ + 𝑝72 𝑋72
Here 𝑋𝑖𝑗 = 0,1 are the decision variables indicating the particular machine loading.
Here, 𝑢 stands for the machine loading in terms of the Makespan, 𝑝𝑖1 and 𝑝𝑖2
indicates the processing times on machine 1&2 respectively, and 𝑋𝑖1 and 𝑋𝑖2 are the
binary decision variables of loading the machine 1&2 with the part-𝑖. It may be noted
that 𝑋𝑖1 &𝑋𝑖2 are mutually exclusive, hence if machine-1 is to be loaded with the part-𝑖
the machine-2 is not to be loaded with the same part.
State the Minimum value of Makespan required.
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D: Lead time demand of items; [number]
f: Some fraction of the demand to meet the Work-in-Process; [number]
s: safety stock; [numbers]
n: kanban size or the number of quantities ordered in a container;
[number]
The demand in the present case is based on the number of output
required by customers, as it is a “pull” type system. The faction 𝑓 is the
portion of the supplied number of raw material which are expected to be
the Work-in-process. The safety stock is denoted by 𝑠 which needs to be
calculated to meet the uncertainties in the lead time demand. The safety
stock is calculated by estimating the probability of meeting the demand,
which is given as:
𝑄 𝐶𝑐 𝐶𝑐 × 𝑛
𝑝𝑚𝑒𝑒𝑡𝑖𝑛𝑔−𝑑𝑒𝑚𝑎𝑛𝑑 = 1 − =1−
𝐷 𝐶𝑠 𝐶𝑠 × 𝜇𝐿𝑇𝐷
Where:
𝐶𝑐 : carrying cost for one unit/day; [Rs/unit/day]
𝑛: number of units to be carried, generally it is the number of items in
a kanban-container;
𝐶𝑠 : shortage cost for one unit per day; [Rs/unit/day]
𝜇𝐿𝑇𝐷 : mean value or the expected value of the lead-time-demand
generally it is the number of units required per day; [units/day]
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𝑛 = 10 [𝑢𝑛𝑖𝑡𝑠 𝑝𝑒𝑟 𝑐𝑜𝑛𝑡𝑎𝑖𝑛𝑒𝑟]; 𝐶𝑎𝑟𝑟𝑦𝑖𝑛𝑔 𝑐𝑜𝑠𝑡, 𝐶𝑐 = 4 [𝑅𝑠. 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝑝𝑒𝑟 𝑑𝑎𝑦];
𝑆ℎ𝑜𝑟𝑡𝑎𝑔𝑒 𝑐𝑜𝑠𝑡, 𝐶𝑠 = 15 [𝑅𝑠. 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝑝𝑒𝑟 𝑑𝑎𝑦];
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛, 𝜎 = 4 [𝑛𝑢𝑚𝑏𝑒𝑟𝑠]
Calculate following:
1. Probability of meeting demand;
2. Calculate 𝑧 value assuming a Standard Normal Distribution;
3. Number of kanban, 𝑘.
𝑄 = 5𝐾 0.6 𝐿0.4
The rate at which the firm pays the labor, 80 [Rs.per hour], and the rate of interest
for the capital investment is 𝑟 = 10 [%]. The firm wants to know the cheapest way
for producing 100 units of output. Also check whether the stationary condition of
output thus obtained in a Minima or a Maxima, also calculate the total cost of
production.
𝑇𝐶 = 15𝐾 + 100𝐿
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𝑄 = 24𝐾 0.6 𝐿0.4
The rate at which the firm pays the labor, 80 [Rs.per hour], and the rate of interest
for the capital investment is 𝑟 = 18 [%]. What is the maximum output that the firm
can produce for a given budget constraint of 50,000 Rs. Make use of the
Lagrange Multiplier method for calculating the maximum value of production
output corresponding to the stationary condition. Also check whether the
stationary condition of output thus obtained in a Minima or a Maxima, also
calculate the total cost of production.
𝑇𝐶 = 18𝐾 + 80𝐿
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3. What is the value of maximum profit at 𝑝1𝑚𝑎𝑥−𝑝𝑟𝑜𝑓𝑖𝑡 .
4. What is the value of maximum revenue at 𝑝1𝑚𝑎𝑥−𝑟𝑒𝑣.
Perfect-Competition case:
Q6b. (Production Theory – Maximization of profit in Perfect Competition
case)
Consider a case of Perfect Competition where the price of a commodity is decided
by the market and it may be considered as fixed by the market. Given the
production function f and the rate at which the labor is hired and the interest rate
calculate the amount of labor and the capital to be engaged such that the profit is
maximized. The profit function is given below:
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140-units of oranges, while Dev has 210-units of apples and 140-units of oranges
respectively. The utility functions of Salma and Dev given below:
𝑢1 = 𝑥1 𝑦1 ; 𝑢𝑡𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑆𝑎𝑙𝑚𝑎
𝑢2 = 𝑥2 𝑦22 ; 𝑢𝑡𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝐷𝑒𝑣
Both Salma and Dev exchange their endowments such that they are more happy
and more satisfied, however, they are constrained to be within their incomes. Also
assume that the prices of goods are same for both. Hence calculate the following:
1. The initial endowments for both 𝑥𝑏𝑎𝑟1, 𝑦𝑏𝑎𝑟1, 𝑥𝑏𝑎𝑟2 and 𝑦𝑏𝑎𝑟2;
𝑝𝑦
2. Hence calculate the ratio of prices 𝑘 = (𝑝 );
𝑥
3. Form the binding vector, representing the constraint, namely, 𝑏𝑣𝑒𝑐 .
4. Form the A-matrix binding condition and the ratio of prices such that:
𝐴𝑚𝑎𝑡 𝑥𝑣𝑒𝑐 = 𝑏𝑣𝑒𝑐
5. Solve the matrix equation for 𝑥𝑣𝑒𝑐 consisting of the variables:
𝑥1
𝑥2
𝑥𝑣𝑒𝑐 = [𝑦 ]
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𝑦2
6. Hence state the values of the following: 𝑥1 , 𝑥2 , 𝑦1 , and 𝑦2 .
7. Calculate the values of utilities: 𝑢1 and 𝑢2
8. Also calculate the marginal rate of substitution for good-x and good-y for both
Salma and Dev, hence check if the condition given below is satisfied:
𝜕𝑢1 𝜕𝑢2
⁄𝜕𝑥 ⁄𝜕𝑥
1 2
=
𝜕𝑢1 𝜕𝑢2
⁄𝜕𝑦 ⁄𝜕𝑦
1 2
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Table 1: Table of the Standard Normal Cumulative Distribution Function φ(z)
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z 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09
0 0.5 0.504 0.508 0.512 0.516 0.5199 0.5239 0.5279 0.5319 0.5359
0.1 0.5398 0.5438 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.5753
0.2 0.5793 0.5832 0.5871 0.591 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141
0.3 0.6179 0.6217 0.6255 0.6293 0.6331 0.6368 0.6406 0.6443 0.648 0.6517
0.4 0.6554 0.6591 0.6628 0.6664 0.67 0.6736 0.6772 0.6808 0.6844 0.6879
0.5 0.6915 0.695 0.6985 0.7019 0.7054 0.7088 0.7123 0.7157 0.719 0.7224
0.6 0.7257 0.7291 0.7324 0.7357 0.7389 0.7422 0.7454 0.7486 0.7517 0.7549
0.7 0.758 0.7611 0.7642 0.7673 0.7704 0.7734 0.7764 0.7794 0.7823 0.7852
0.8 0.7881 0.791 0.7939 0.7967 0.7995 0.8023 0.8051 0.8078 0.8106 0.8133
0.9 0.8159 0.8186 0.8212 0.8238 0.8264 0.8289 0.8315 0.834 0.8365 0.8389
1 0.8413 0.8438 0.8461 0.8485 0.8508 0.8531 0.8554 0.8577 0.8599 0.8621
1.1 0.8643 0.8665 0.8686 0.8708 0.8729 0.8749 0.877 0.879 0.881 0.883
1.2 0.8849 0.8869 0.8888 0.8907 0.8925 0.8944 0.8962 0.898 0.8997 0.9015
1.3 0.9032 0.9049 0.9066 0.9082 0.9099 0.9115 0.9131 0.9147 0.9162 0.9177
1.4 0.9192 0.9207 0.9222 0.9236 0.9251 0.9265 0.9279 0.9292 0.9306 0.9319
1.5 0.9332 0.9345 0.9357 0.937 0.9382 0.9394 0.9406 0.9418 0.9429 0.9441
1.6 0.9452 0.9463 0.9474 0.9484 0.9495 0.9505 0.9515 0.9525 0.9535 0.9545
1.7 0.9554 0.9564 0.9573 0.9582 0.9591 0.9599 0.9608 0.9616 0.9625 0.9633
1.8 0.9641 0.9649 0.9656 0.9664 0.9671 0.9678 0.9686 0.9693 0.9699 0.9706
1.9 0.9713 0.9719 0.9726 0.9732 0.9738 0.9744 0.975 0.9756 0.9761 0.9767
2 0.9772 0.9778 0.9783 0.9788 0.9793 0.9798 0.9803 0.9808 0.9812 0.9817
2.1 0.9821 0.9826 0.983 0.9834 0.9838 0.9842 0.9846 0.985 0.9854 0.9857
2.2 0.9861 0.9864 0.9868 0.9871 0.9875 0.9878 0.9881 0.9884 0.9887 0.989
2.3 0.9893 0.9896 0.9898 0.9901 0.9904 0.9906 0.9909 0.9911 0.9913 0.9916
2.4 0.9918 0.992 0.9922 0.9925 0.9927 0.9929 0.9931 0.9932 0.9934 0.9936
2.5 0.9938 0.994 0.9941 0.9943 0.9945 0.9946 0.9948 0.9949 0.9951 0.9952
2.6 0.9953 0.9955 0.9956 0.9957 0.9959 0.996 0.9961 0.9962 0.9963 0.9964
2.7 0.9965 0.9966 0.9967 0.9968 0.9969 0.997 0.9971 0.9972 0.9973 0.9974
2.8 0.9974 0.9975 0.9976 0.9977 0.9977 0.9978 0.9979 0.9979 0.998 0.9981
2.9 0.9981 0.9982 0.9982 0.9983 0.9984 0.9984 0.9985 0.9985 0.9986 0.9986
3 0.9987 0.9987 0.9987 0.9988 0.9988 0.9989 0.9989 0.9989 0.999 0.999
3.1 0.999 0.9991 0.9991 0.9991 0.9992 0.9992 0.9992 0.9992 0.9993 0.9993
3.2 0.9993 0.9993 0.9994 0.9994 0.9994 0.9994 0.9994 0.9995 0.9995 0.9995
3.3 0.9995 0.9995 0.9995 0.9996 0.9996 0.9996 0.9996 0.9996 0.9996 0.9997
3.4 0.9997 0.9997 0.9997 0.9997 0.9997 0.9997 0.9997 0.9997 0.9997 0.9998
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