Study 2
Study 2
1) Kocalar Delivery Company must make deliveries to 20 customers whose respective demands are dj ,
for j = 1, . . . , 20. Each customer can be visited by more than one truck to satisfy the demands. The
company has seven trucks available with capacities Ck and daily operating costs qk for k = 1, . . . , 7.
a) Formulate the model to determine which trucks to use so as to minimize the cost of delivering to
• If a truck visits customer 4 then it has to visit customer 19 or customer 20. (Assume demands
• Either at least two of the customers 5, 6 and 7 or at most three of customers 11, 12, 13 and
2) A paper manufacturer produces rolls of standard fixed width w and of standard length l. Customers
order rolls of width w but with varying lengths. In particular, dk rolls with length lk and width w are
ordered for customer k = 1, . . . , n. (assume lk ≤ l for all k = 1, . . . , n). Model the problem to find the
Hint: Let M be a large number such that M number of rolls are enough to satisfy all demand (e.g.
Pn
M = k=1 dk is such value) Assume the manufacturer has M number of unmanufactured rolls in the
stock. Try to use different decision variables than those we used in class.
3) Reatix must determine how much investment and dept to undertake during the next year. Each TL
invested reduces the net present value (NPV) of the company by 10kr, and each TL of debt increases
the NPV by 50kr (due to deductibility of interest payments). Reatix can invest at most 1 million TL
during the coming year. Dept can be at most 40% of the investment. Reatix now has 800,00 TL in
cash available. All investment must be paid from current cash or borrowed money. Set up an LP that
1
4) Consider the following simplex tableau of a given minimization LP problem:
z x1 x2 x3 s1 s2 s3 RHS
z 1 0 0 A −10 −1 B 32
s3
0 0 0 C 4 −2 1 D
x2 0 0 1 −2 F −1 0 6
x1 0 E 0 −1 1 2 0 4
Give general conditions on each of the unknowns A-F such that each of the following statements is
true. Even if the statement holds independently of the values of a specific variable, you should still
min −x1 − x2
s.t. x1 − x2 − x3 = 1,
−x1 + x2 + 2x3 − x4 = 1,
x1 , x2 , x3 , x4 ≥ 0
a) Construct the Big-M artificial LP. Construct the tableau which is ready to apply Simplex during
Big-M method.
c) What can you say about the problem after solving it by the Big-M method?