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IQDM

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16 views30 pages

IQDM

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navyajoshi881
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We take content rights seriously. If you suspect this is your content, claim it here.
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IQDM

Session 3
Questions?
Excel Solver
Solving Example 3 using Excel Solver
DVs: x1 , x2 , x3 , x4 , x5 , x6
= The number of officers who begin work at 8AM, Noon,
4PM, 8PM, Midnight and 4AM, respectively.

min z = x1 + x2 + x3 + x4 + x5 + x6
s.t.
x6+x1 ≥ 5
x1+x2 ≥ 6
x2+x3 ≥ 10
x3+x4 ≥ 7
x4+x5 ≥ 4
x5+x6 ≥ 6
x1 ≥ 0, x2 ≥ 0, x3 ≥ 0, x4 ≥ 0, x5 ≥ 0, x6 ≥ 0; all xi int
Example 5
• A product is assembled with 4 units of component A
and 3 units of component B.

• The manufacturing shop runs three different


processes, each of which requires varying amounts
of raw materials and produce different amounts of
A and B.

• Two types of raw materials are used. 100 units of


raw material I (RM I) and 200 units of raw material II
(RM II) are available to the shop each day.
TTN, Proc. AWTOR
The following table gives the information on the
quantities of raw materials consumed by each
process and the yield of A and B from each of
them.

Input per run Output per run


Shop (units) (units)

RM I RM II A B
I 7 5 6 4
II 4 8 5 8
III 2 7 7 3
Formulate as an LP to maximize the number of
completed assemblies produced each day.
Decision Variables

Let x1, x2 and x3 be the number of runs of


processes I, II and III, respectively.
100 units of raw material I (RM I) and 200 units
of raw material II (RM II) are available to the
shop each day.

Input per run Output per run


Shop (units) (units)

RM I RM II A B
I 7 5 6 4
II 4 8 5 8
III 2 7 7 3
Constraints

• 7x1 + 4x2 + 2x3 ≤ 100

• 5x1 + 8x2 + 7x3 ≤ 200

• x1, x2, x3 ≥ 0
100 units of raw material I (RM I) and 200 units
of raw material II (RM II) are available to the
shop each day.

Input per run Output per run


Shop (units) (units)

RM I RM II A B
I 7 5 6 4
II 4 8 5 8
III 2 7 7 3
“A product is
assembled with
4 units of
• Total quantity of A produced component A
= 6x1 + 5x2 + 7x3 and 3 units of
component B”.

• Total quantity of B produced


= 4x1 + 8x2 + 3x3

• Number of completed assemblies


= min { (6x1 + 5x2 + 7x3) / 4 ,
(4x1 + 8x2 + 3x3) / 3 }
Objective
Maximize min { (6x1 + 5x2 + 7x3) / 4 ,
(4x1 + 8x2 + 3x3) / 3 }

Linear?

max z = y
s.t. y ≤ (6x1 + 5x2 + 7x3) / 4
y ≤ (4x1 + 8x2 + 3x3) / 3
LP Formulation of Example 5
x1, x2, x3: number of runs of I, II, III, respectively.
y: number of completed assemblies

max z = y

s.t. y ≤ (6x1 + 5x2 + 7x3) / 4


y ≤ (4x1 + 8x2 + 3x3) / 3
7x1 + 4x2 + 2x3 ≤ 100
5x1 + 8x2 + 7x3 ≤ 200
y, x1, x2, x3 ≥ 0 ; y, x1, x2, x3 : int
Solving Example 5 Using Excel Solver
Questions?
Some Mathematical Background

• Bounded set

• Closed set
• A (Linear) Inequality provides a boundary on
one side.
• Constraints include the boundary.

• That is, constraints are ≤ or ≥ .

• Hence, the resulting regions are closed.


Recall: Open vs. closed intervals
• (0, 1) is open
If x is a point in (0, 1),
then 0 < x < 1

• [0, 1] is closed
and corresponds to 0 ≤ x ≤ 1

• Intervals may also be open on one side.


E.g. [0, 1) corresponds to 0 ≤ x < 1
Questions?
Case Discussion:
Merton Truck Company

• You are the company’s president.

• What is it that you must decide?


– Product mix

• With what objective?


– Maximize profit or contribution or …?
• Merton’s current product mix
(1000, 1500)

• “I know we are operating at capacity in some


of our production lines.”
– Binding constraints or tight constraints

• Slack or non-binding constraints

• Slackness of each constraint


“… As I see it, we are losing $1205 for each
Model 101 truck we sell.” ??

“Why don’t we just stop making Model 101


trucks?”
Other suggested alternatives?
“We would be better off increasing production
of Model 101 trucks, cutting back if necessary
on Model 102 production.”

“We can relieve the capacity problem in engine


assembly by purchasing Model 101 or Model
102 engines from an outside supplier.”
• As the president, which of these alternatives
would you accept?

• Why?

• Or do you have a better alternative?


• What is mentioned about the economies of
scale?

• What if economies of scale?

• Should we look at contribution or profit?

• Does it matter?
Homework

• Find the unit contributions of M101 and M102 trucks.

• Go through the questions at the end of the case and


think about how you will answer them.
Questions?
Thank You

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