You are on page 1of 3

73-220 Quantitative Decision Models I Assignment #3 2012 Winter Term Due Date: Wednesday, Mar 21, 2012 Instructions:

1. Assignments are only accepted electronically through the clew website. To submit your assignment, under the ASSESSMENT tool in CLEW, click on the Assignments tab. Note: Clicking on the Submit button in CLEW means you are submitting your final copy of your assignment, and you will not be able to open your files again and make changes to them. Always save your temporary work as a Draft document until you are ready to submit your final copy before or on the due date. The server is open to accept your submission until 11:55pm on Wednesday, Mar. 21, 2012. Please allow sufficient time for the server to complete your submission and last-minute technical failures are not acceptable reasons for extensions. 2. For each question, your mathematical model and answers to each individual part should be typed in Microsoft Word. Also, for each question, state your model by clearly defining your decision variables (with appropriate units), the objective function (min or max), and all the relevant (including the nonnegativity) constraints. 3. Excel spreadsheet models are required for each question. For how to use Solver for solving integer programming models, refer to Appendix 7.1 on Page 358 in your textbook 13e (or Page 362 in textbook 12e). Appendix 6.1 on Page 308 of textbook 13e (or Page 311 of textbook 12e) has examples of building Excel spreadsheet models for network models. 4. Summarize your answers in one single word file and one single Excel file. Note that you can add as many worksheets as possible in one single excel file. Make sure that each worksheet carries the name of the question you are answering. Question #1. Problem 3 of Chapter 6 on Page 289 of textbook 13e (or Pages 292-293 of textbook 12e). Question #2. Problem 19 of Chapter 6 on Pages 296-297 of textbook 13e (or Pages 299-300 of textbook 12e).

Question #3. A local consulting firm currently has 5 jobs that have to be completed by its contract employees. After analyzing the time that it would take each specific employee to complete each specific job, and, the wages each specific employee is paid per hour, it determined how much it would cost if specific employees were assigned to specific jobs. These costs were calculated to be:
1-3

Cost ($) Employee A B C D E F G

1 1,200 1,175 1,080 1,190 1,250 1,200 1,075

2 1,850 1,920 1,885 1,905 1,900 1,950 1,820

Job 3 1,375 1,540 1,475 1,400 1,390 1,465 1,480

4 3,500 3,375 3,400 3,600 3,520 3,400 3,250

5 1,900 2,050 2,010 2,100 1,975 1,950 1,920

a. If each employee can only be assigned at most one job and each job requires only one employee, which employees should be assigned to which jobs? For remaining parts, the changes are separately made based on the base model in part a. b. Because of some unprofessional conduct of employee C when he was previously assigned to job 1, he can no longer be assigned to job 1. Now which employees should be assigned to which jobs? Who benefits and who loses because of this unprofessional conduct? c. Because employees B and E belonged to designated groups, these two employees must be assigned jobs. Now, which employees should be assigned to which jobs? Who benefits and who loses because of this designation? d. Because the consulting firm has a policy that states that only one relative can be assigned a job, employees A and C cannot both be assigned jobs. Now which employees should be assigned to which jobs? Who benefits and who loses because of this company policy? e. Employees F and G took the consulting firm to court as the firm would only allow them to work one job, therefore, the firm now is forced to allow F and G to work up to two jobs. Given this new fact, which employees should be assigned to which jobs? Note: This question is not a standard Assignment problem of the network models. It should be regarded as an integer programming problem with binary decision variables. Binary constraints are needed in both model formulation and solver solutions.

Question #4. The board of directors of General Wheels Co. is considering seven large capital investments. Each investment can be made only once. These investments differ in the estimated long-run profit (net present value) that they will generate as well as in the amount of capital required, as shown by the following table.

2-3

Investment opportunity 1 2 3 4 5 6 7

Estimated profit ($million) $17 $10 $15 $19 $7 $13 $9

Capital required ($million) $43 $28 $34 $48 $17 $32 $23

The total amount of capital available for these investments is $100 million. Investment opportunities 1 and 2 are mutually exclusive (i.e., they cannot be chosen simultaneously), and so are 3 and 4. Furthermore, 5 can be undertaken only if both 1 and 3 are taken. Opportunity 7 has to be chosen if both 2 and 4 are selected, and Opportunity 7 cannot be invested unless at least one of 5 and 6 is invested. The objective is to select the combination of capital investments that will maximize the total estimated long-run profit (net present value). Formulate this problem as an integer programming model and solve it for the optimal solution.

3-3

You might also like