I.

Multiple choice
1. The term ‘Optimization” in linear programming implies maximization of the following, except?

A. Cost B. Revenue C. Profit D. Sales

2. One of the following cannot be included in the steps of solving problems in operations research?

A. Observation B. Definition of the problem C. Model construction

D. Implementation of results E. None

3. ____________________represents unknown quantities to be solved for.

A. Objective function B. The decision variables C. The constraints D. Parameters

4. Which one of following is odd regarding the application areas of Operations Research?

A. Investment planning B. Production scheduling C. Product marketing

D. Distribution of fertilizer E. None

5. Which one of the following is not a feature of operations research approach?

A. Objectivistic approach B. Non - methodological approach

C. Holistic approach D. Interdisciplinary approach

6. Which one of the following is not true about the similarities between transportation models and
general linear programming models?

A. Both have objective functions B. Both have linear objective functions

C. Both have non - negativity constraints D. Both cannot be solved by simplex method

7. Which one indicates a correct difference between transportation models and general linear
programming models?
A. Transportation model is basically a maximization type of model
B. Transportation model is basically a minimization type of model
C. General linear programming model is only a maximization type of model
D. General linear programming model is only a minimization type of model
8. What should come in the first step while getting a solution to a transportation problem?

A. Obtaining a basic feasible solution B. Balancing the given problem

C. Performing optimality test D. None of the above

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9. Which one is not the property of a basic feasible solution of the transportation problem?
A. The allocation made must satisfy the availability constraints
B. The allocation made must satisfy the requirement constraints
C. The allocation made must satisfy the non-negativity constraint
D. Total number of allocations must be equal to the number of rows plus the number of
columns (m + n)
10. At which cell should we start when finding a basic feasible solution using the North- west
corner cell method?

A. From the left hand side bottom corner cell B. From the right hand side top corner cell

C. From the left hand side top corner cell D. From the right hand side bottom corner cell

11. In transportation matrix, all the cells, which have assigned allocations, are known as:

A. Unloaded cells B. Loaded cells C. Empty cells D. None of the above

12. Which method allocates depending on the opportunity cost of the cell?

A. The North - west corner method B. The Least - cost cell method

C. The Vogel's Approximation Method D. A & B

13. An Integer Program in which all the decision variables are required to be integers is called:

A. A Pure Integer Program B. A Mixed Integer Program

C. Simply an Integer Program D. A & C

14. What is the first step in the Branch-And-Bound method while solving integer programming
problems?
A. Solving the Linear Program relaxation of the problem
B. Splitting the feasible region of the Linear Program relaxation
C. Creating two new sub-problems by branching on a fractional variable
D. Selecting the best Integer Program solution of the sub-problems
15. The PERT (Programmed evaluation and Review Techniques) and CPM (Critical Path Method)
can help project managers to determine:
A. The project completion time
B. The scheduling of key activities
C. The time period by which the non-key activities may be delayed
D. All of the above

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II. Work out: Show the necessary steps
1. The National Fertilizer Company manufactures 2 brands of fertilizers, Sulpha–X and Super–
Nitro. The Sulphur, Nitrate and Potash contents (in percentages) of these brands are 10, 5, 10
and 5, 10, 10 respectively. The rest of the content is an inert matter, which is available in
abundance. The company has made available, during a given period, 1050 tons of Sulphur,
1500 tons of Nitrates, and 2000 tons of Potash respectively. The company can make a profit
of birr. 200 per ton on Sulpha – X and birr 300 per ton of Super– Nitro. A linear programming
problem format is given as follows.
Maximize Z = 200x + 300y
Subject to
10x + 5y ≤ 1,050
5x + 10y ≤ 1,500
10x + 10y ≤ 2,000
And both x and y ≥ 0
Then,
A) How much of each brand should be procured during the given period? Use the graphical
method.
B) Show the binding and non-binding (slack) resources.
2. A company manufactures two products X and Y whose profit contributions are birr. 10 and
birr. 20 respectively. Product X requires 5 hours on machine I and 2 hours on machine II. The
requirement of product Y is 3 hours on machine I and 5 hours on machine II. The available
capacities for the planning period for machine I and II are 30 and 20 hours respectively. Given
the following linear programming format of the problem, find the optimal product mix using
the simplex method.
Maximize Z = 10x + 20y
Subject to
5x + 3y ≤ 30
2x + 5y ≤ 20
And both x and y ≥ 0

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3. Write the duals to the following problems.

A) Max Z = 5x1 + 6x2 B) Min Z = x1 + 2x2

Subject to: Subject to:

2x1+3x2 < 3000 2x1 + 4x2 < 160

5x1 + 7x2 < 1000 x1 - x2 = 30

x1 + x2 < 5000 x1 > 10

x1, x2 > 0 x1, x2 > 0

4. The demand pattern for a product at for consumer centers, A, B, C and D are 4000 units, 6000
units, 3000 units and 1000 units respectively. The supply for these centers is from three
factories X, Y and Z. The capacities for the factories are 2000 units, 5000 units and 7000 units
respectively. The unit transportation cost in birr from a factory to consumer center is given
below in the matrix. Then, develop a feasible transportation schedule using:

A) The North-West Corner method (5 points)

B) The Least Cost Cell Method (5 points)

C) The Vogel’s Approximation Method, and (5 points)

D) Compare the total transportation costs you obtained with the above three techniques (4
points).

From To demand points

Factories (Transportation cost in birr per units) Availability

in units
A B C D
X 8 9 12 8 2,000

Y 3 4 3 2 5,000
Z 5 3 7 4 7,000
Units demand: 4,000 6,000 3,000 1,000

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5. Suppose Adama Furniture Corporation manufactures tables and chairs. A table requires 1 hour
of labor and 9 units of wood. A chair requires 1 hour of labor and 5 units of wood. Currently
8 hours of labor and 54 units of wood are available. Each table contributes birr 10 to profit,
and each chair contributes birr 6 to profit. Solve an Integer Programming Problem to maximize
the Corporation’s profit using the Branch-And-Bound Method (6 points).

Max z = 10x1 + 6x2

S:t: x1 + x2 ≤ 8 (Labor)

9x1 + 5x2 ≤ 54 (Wood)

X1; x2 ≥ 0; integer

Where: x1 = number of tables manufactured;

x2 = number of chairs manufactured.

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