OPERATIONS RESEARCH
ASSIGNMENT
GROUP 7
Paricheta Verma (93KB)
Parvathareddy Sai Bharath (94KB)
Pranav Gopal Nawandar (95KB)
Pritika Arora (96KB)
Puneet Singla (97KB)
Raghav Sandeepkumar Jhawar (98KB)
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ANSWER 1
Here, the objective function is to maximize the profit.
Following data is available:
Following would be the decision variables:
X1= Number of wooden windows to be produced
X2= Number of aluminium windows to be produced
The Objective function for the problem is-
Z = (60*X1)+(30*X2)
Subject to following constraints-
1. X1 <= 6 (Doug’s capacity)
2. X2 <= 4 (Linda’s capacity)
3. (6*X1) + (8*X2) <= 48 (Bob’s capacity)
4. X1, X2 are integer values only.
So, after solving in excel by using Simplex LP,
So, Maximum profit per day = (60*6) + (30*1) = $390
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ANSWER 2
In this particular case, following are the posts for the recruitment:
Post 1 = Accounting (No. of posts = 2)
Post 2 = Data (No. of posts = 3)
Post 3 = General (No. of posts = 6)
Total posts = 11
There are 4 groups of the shortlist:
The salary will be decided in the following way:
Here, Objective Function is to minimize salary cost
Subject to the following constraints:
1. Total number of post 1 = 2
2. Total number of post 2 = 3
3. Total number of post 3 = 6
4. Total number of post = 11
5. Total number of shortlists in group 1 = 2
6. Total number of shortlists in group 2 = 4
7. Total number of shortlists in group 3 = 5
8. All posts have to be filled
9. Number of recruitment from each group cannot be more than number of shortlists
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Interpretation of the result obtained:
1. 2 people from group 2 shortlist hired for post 1 @10000 salary,
2. 2 people from group 1 shortlist hired for post 2 @9000 salary
3. 1 person from group 3 shortlist hired for post 2 @9000 salary
4. 6 people from group 4 shortlist hired for post 3 @8000 salary
Total salaries to be paid = (2*10000)+(2*9000)+(1*9000)+(6*8000) = 95000
And total minimum salary which company have to pay is Rs.95000.
ANSWER 3
Here, the objective Function is to maximise chips transfer.
The decision variables for this problem are:
Number of productions in London industry
Number of productions in Birmingham industry
Number of productions in Glasgow industry
Number of chips transferred to warehouse 1(WH 1)
Number of chips transferred to warehouse 2(WH 2)
Number of chips transferred to warehouse 3(WH 3)
Number of chips transferred to warehouse 4(WH 4)
Number of chips transferred to warehouse 5(WH 5)
This is transportation problem, and a maximization profit.
The profit per ton from different industry to different warehouse are
So, by solving in Excel using Simplex LP,
The chips transferred from Birmingham industry to warehouse 1 is 300 tonnes, to warehouse 2 is
200 tones.
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From London to warehouse 3 is 300 tonnes and warehouse 4 is 300 tonnes, and to warehouse 5
is150 tonnes.
And from Glasgow to warehouse 2 is 100 tonnes and to warehouse 5 is 150 tonnes.
The maximum monthly profit is 2770 pounds.
ANSWER 4
Objective Function = Maximize Total Assignment Points
The data for the problem is as follows:
Subject to the following constraint –
Selections are binary value
The maximum number of subjects per student is 2
The maximum number of students per subject is 3
Decision Variables are
0 = Subject has not been selected
1 = Subject is selected
So, by solving in Excel using Simplex LP
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ANSWER 5
The material Cost and orders are as follows:
The contributions are as follows:
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(a) Net contribution of each velvet shirt = $22. As contribution >$0, the production can be
undertaken. Maximum demand = 6000
Net contribution for full demand = 22*6000 = $132000 Fixed cost = $500000
So the fad will not cover its fixed cost but if production is not undertaken the fixed cost will
become sunk cost. Thus, we disagree with Ted’s logic of dropping an item because it cannot
cover its fixed cost because then the fixed cost will become sunk cost as fixed cost undertaken
will not change irrespective of decision to produce or not.
(b) The objective function will be to maximize the profit, Z = Sum of all contributions – fixed
cost. Contribution of an item = Contribution per * total production of item.
Fixed cost = Fashion show + Designer show = $3560000
The variables can be defined as production of number of items X1, X2, X3, …, X11 for tailored
wool slacks, cashmere sweater, silk blouse, silk camisole, tailored skirt, wool blazer, velvet pants,
Cotton sweater, cotton miniskirt, velvet shirt, button-down blouse respectively.
The constraints are as follows:
The production of items in variable X1, X2, X3, X4, X6, X7 and X10 should not exceed
demand.
Production for item in variable X1, X6 should not be less than 60% of demand.
Production for item in variable X5 should be at least 2800.
Production is subjected to raw material constraint.
Total profit thus received is $3302787.375
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(c) No change in production plan. Refer excel.
(d) Intuitive economic explanation is that raw material forecast is very important any
production plan as profit due to returns are not considered while developing production plan.
(e) The objective coefficient of X6 decreases to 75.25 and profit decreases to $2967909.13
(f) The acetate constraint will increase from 28000 to 38000. The profit will increase to
$4021250.13.
(g) The material saved will be used in production. Also the contributions will change as
follows:
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Also fixed cost will not be considered in after-September sales as it has been considered and
covered in September profits.
Net profits = September profits + after september sales = $3302787.375 + $60000 =
$3362787.375
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