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OR Examination 28 April 2009

The document outlines the final examination for the Applied Methods of Operations Research course at Haramaya University, including various questions related to transportation problems, linear programming, and integer programming. It provides specific scenarios and data for students to analyze and solve, focusing on profit maximization and optimization techniques. Instructions for the exam and the format for answering questions are also included.

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3 views

OR Examination 28 April 2009

The document outlines the final examination for the Applied Methods of Operations Research course at Haramaya University, including various questions related to transportation problems, linear programming, and integer programming. It provides specific scenarios and data for students to analyze and solve, focusing on profit maximization and optimization techniques. Instructions for the exam and the format for answering questions are also included.

Uploaded by

Lemma Bali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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HARAMAYA UNIVERSITY

SCHOOL OF GRADUATE STUDIES


APPLIED METHODS OF OPERATIONS RESEARCH (AgEc 531)
Final Examination

Date: 28 2009
Time Allowed: NO LIMIT

INSTRUCTIONS:

1) Write your Full Name and ID No. on each and every blank sheet of paper you are
provided with.
2) Attempt all exam questions.
3) Show your answers clearly and neatly on the answer sheet.

Question 1: A company has four factories, namely: F1, F2, F3 and F4 manufacturing the
same product. Production and raw material cost differ from factory to factory and are
given in the following Table in the first two rows. The transportation costs from the
factories to sales depots, namely: S1, S2, S3 are also given. The last two columns in the
Table give the sales price and the total requirement at each depot. The production
capacity of each factory is given in the last row.

F1 F2 F3 F4 Sales Requirement
Price/Unit
Production Cost/Unit 15 18 14 13
Raw Material Cost/Unit 10 9 12 9
S1 3 9 5 4 34 80
Transportation Cost/Unit S2 1 7 4 5 32 120
S3 5 8 3 6 31 150
Production Capacity 10 150 50 100

Construct the Profit Matrix that enables us to determine the most profitable production
and distribution schedule.

Question 2: Is it possible to obtain more than one optimal allocations in a Transportation


Problem? What is its significance?

Question 3: An agri-business firm has 3 agro-processing plants and four warehouses.


The supply and demand in units and the corresponding transportation costs are given in
the Table given below, which has been taken from the solution procedure of the
transportation problem.

1
Table. Transportation Problem – A solution

Warehouse
Plants I II III IV Supply
10
A 5 10 4 5 10
20 5
B 6 8 7 2 25
5 10 5
C 4 2 5 7 20
Demand 25 10 15 5 55

Note: Numbers in the bold faces denote units which are being transported from
processing plants to warehouses. And all other numbers in each cell denote the cost of
transportation of a unit.

Based on the above given information, answer the following questions with brief reasons:
a) Is this solution feasible?
b) Is this solution degenerate?
c) Is this solution optimal?
d) Does this problem have more than one optimal solutions? Show one of them.
e) If the cost for the route Plant B to Warehouse III is reduced from 7 monetary
units to 6 monetary units, what will be the optimal solution?

Question 4: Consider the linear programming problem (25 points)


Maximize Π = 4X1 + 6X2 + 2X3
Subject to:
X1 + X2 + X3 ≤ 3
X1 + 4X2 + 7X3 ≤ 9
X1 ≥ 0; X2 ≥ 0; X3 ≥ 0

The optimal solution to this problem is given by:

Iteration Basic 4 6 2 0 0 Solution


Variable X1 X2 X3 X4 X5 value
X1 1 0 -1 4/3 -1/3 ?
Final X2 0 1 2 -1/3 1/3 ?
∆j 0 0 6 10/3 2/3 ?

Based on the data given above, answer the following questions carefully.
a) Write the solution values and the corresponding Π value for this problem. [Hint:
trace the B and B- (B inverse) matrices.
b) Write the shadow prices of the resources that are fully utilized. What are the
economic meanings of these values.
c) Show the marginal opportunity costs of the excluded real activity(ies).
d) If you reformulate the above problem as follows, what would happen to the
solution values and the corresponding Π value for the modified problem.

2
Maximize Π = 4X1 + 6X2 + 2X3
Subject to:
X1 + X2 + X3 ≤ 3
X1 + 4X2 + 7X3 ≤ 9
X3 = 1
X1 ≥ 0; X2 ≥ 0; X3 ≥ 0
e) What result would you obtain if the variation right-hand-side vector transposed
changes from [3 9] to a transposed vector of [3 10].

Question 5: The final simplex tableau for the problem is given below. (10 points)

Maximize π = 3X1 + 4X2 + X3

Subject to the constraints:


X1 + 2X2 + 3X3 ≤ 90 (constraint for operation I)
2X1 + X2 + 2X3 ≤ 60 (constraint for operation II)
3X1 + X2 + 2X3 ≤ 80 (constraint for operation III)

Where;
X1 ≥ 0; X2; X3 ≥ 0

Iteration Basic 3 4 1 0 0 0 Solution


Variable X1 X2 X3 S1 S2 S3 value
X2 0 1 10/6 4/3 -1/3 0 40
Final X1 1 0 -1/3 -1/3 2/3 0 10
S3 0 0 8/6 8/6 -10/6 1 10
∆j 0 0 34/6 10/6 2/3 0

a) Find the solution, maximum profit, idle capacity and unit contribution of every
one unit increased to the right hand side of the constraints.
b) Write the dual of the given problem and give the initial simplex tableau.
c) Interpret the ∆j value that corresponds to X3.

Question 6: Use dual to solve the following problem. [Hint: use the simplest method]

Maximize π = 2X1 + 3X2 + X3

Subject to the constraints:


4X1 + 3X2 + X3 = 6
X1 + 2X2 + 5X3 = 4
Where;
X1 ≥ 0; X2; X3 ≥ 0

3
Question 7: Solve the following pure integer programming problem using the branch and
bound algorithm. [Hint: use the graphical method to solve the sub-problems you have
under each iteration]. (10 points)

Maximize Π = 7X1 + 6X2


Subject to:
2X1 + 3X2 ≤ 12
6X1 + 5X2 ≤ 30
Where X1, X2 must be non-negative integers.

Question 8. Interpret the linkages between rows and columns depicted in the following
linear programming tableau. (10 points)

X1 X2 X3 X4 X5 X6 Relation Right-hand
Side
R1 6 5 1.5 3 -1 ≤ 300
R2 20 12 7 -1 ≤ 290
R3 1 ≤ 25
R4 1 ≤ 60

If you work hard, you will succeed!

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