...Chapter 4 – Solving Examples of Linear Programming Models Modeling Examples http://www.youtube.com/watch?v=a2QgdDk4Xjw http://www.ateneonline.it/chase2e/studenti/tn/6184-7_supA.pdf http://www.docstoc.com/docs/15189512/Linear-Programming http://homepages.stmartin.edu/fac_staff/dstout/MBA605/Balakrishnan 2e PPT/Chapter 03.ppt http://gudo.utep.edu/UNICAL/Taylor Chap04 Applications of LP.doc http://emba42.com/PDFs/LinearProgram_apps.pdf Product Mix Example http://www.utdallas.edu/~scniu/OPRE-6201/documents/LP1-Linear_Programming.html http://www.me.utexas.edu/~jensen/ORMM/problems/units/lp_mod/index.html http://www.economicsnetwork.ac.uk/cheer/ch9_3/ch9_3p07.htm http://www.solver.com/stepbystep2.htm http://www.duncanwil.co.uk/solvlp.html YouTube Videos http://www.youtube.com/watch?v=TNLqtmkK4EA&feature=related Investment Example http://www.utdallas.edu/~scniu/OPRE-6201/documents/LP02-Investment.pdf http://rutcor.rutgers.edu/~dpapp/om-07fall/investment_lp.pdf Diet Example http://www.ozgrid.com/Services/linear-dietary.htm http://www-neos.mcs.anl.gov/CaseStudies/dietpy/WebForms/index.html http://www.zweigmedia.com/RealWorld/dietProblem/diet.html http://www.rit.edu/~w-math/Academics/Graduate/PDF/mdf0577.pdf http://or.journal.informs.org/cgi/content/abstract/49/1/1 Transportation Example http://extension.oregonstate.edu/catalog/pdf/em/em8779-e.pdf http://www.econ.ucsd.edu/~jsobel/172aw02/notes8.pdf YouTube Videos http://www.youtube.com/watch...
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...MA 170 Final Exam Answers All Possible Questions http://www.devryguiders.com/downloads/ma-170-final-exam-answers-all-possible-questions/ Points Awarded 100.00 Points Missed 0.00 Percentage 100% Determine whether the system of linear equations has one and only one solution, infinitely many solutions, or no solution. Find all solutions whenever they exist. 1. A) one and only one solution 1. B) one and only one solution 1. C) one and only one solution 1. D) infinitely many solutions 1. E) no solution Points Earned: 4.0/4.0 Solve the linear system of equations 1. A) Unique solution: 1. B) Unique solution: 1. C) Infinitely many solutions: 1. D) No solution Points Earned: 4.0/4.0 Find the simple interest on a $400 investment made for 5 years at an interest rate of 7%/year. What is the accumulated amount? 540. A) The simple interest is $140, the accumulated amount is $540. B) The simple interest is $115, the accumulated amount is $515. C) The simple interest is $120, the accumulated amount is $520. D) The simple interest is $125, the accumulated amount is $555. Points Earned: 4.0/4.0 Find the present value of $40,000 due in 4 years at the given rate of interest 8%/year compounded monthly. 948. A) The present value is $28,948.67. B) The present value is $29,433.94. C) The present value is $29,076.82. D) The present value is $29,748.06. Points Earned: 4.0/4.0 Solve the system of linear equations using the Gauss-Jordan...
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...Linear programming solution examples Linear programming example 1997 UG exam A company makes two products (X and Y) using two machines (A and B). Each unit of X that is produced requires 50 minutes processing time on machine A and 30 minutes processing time on machine B. Each unit of Y that is produced requires 24 minutes processing time on machine A and 33 minutes processing time on machine B. At the start of the current week there are 30 units of X and 90 units of Y in stock. Available processing time on machine A is forecast to be 40 hours and on machine B is forecast to be 35 hours. The demand for X in the current week is forecast to be 75 units and for Y is forecast to be 95 units. Company policy is to maximise the combined sum of the units of X and the units of Y in stock at the end of the week. * Formulate the problem of deciding how much of each product to make in the current week as a linear program. * Solve this linear program graphically. Solution Let * x be the number of units of X produced in the current week * y be the number of units of Y produced in the current week then the constraints are: # 50x + 24y = 45 so production of X >= demand (75) - initial stock (30), which ensures we meet demand # y >= 95 - 90 # i.e. y >= 5 so production of Y >= demand (95) - initial stock (90), which ensures we meet demand The objective is: maximise (x+30-75) + (y+90-95) = (x+y-50) i.e. to maximise the number of units left in stock...
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...Natural Computing Series Series Editors: G. Rozenberg Th. Bäck A.E. Eiben J.N. Kok H.P. Spaink Leiden Center for Natural Computing Advisory Board: S. Amari G. Brassard K.A. De Jong C.C.A.M. Gielen T. Head L. Kari L. Landweber T. Martinetz Z. Michalewicz M.C. Mozer E. Oja G. P˘ un J. Reif H. Rubin A. Salomaa M. Schoenauer H.-P. Schwefel C. Torras a D. Whitley E. Winfree J.M. Zurada For further volumes: www.springer.com/series/4190 Franz Rothlauf Design of Modern Heuristics Principles and Application Prof. Dr. Franz Rothlauf Chair of Information Systems and Business Administration Johannes Gutenberg Universität Mainz Gutenberg School of Management and Economics Jakob-Welder-Weg 9 55099 Mainz Germany rothlauf@uni-mainz.de Series Editors G. Rozenberg (Managing Editor) rozenber@liacs.nl Th. Bäck, J.N. Kok, H.P. Spaink Leiden Center for Natural Computing Leiden University Niels Bohrweg 1 2333 CA Leiden, The Netherlands A.E. Eiben Vrije Universiteit Amsterdam The Netherlands ISSN 1619-7127 Natural Computing Series ISBN 978-3-540-72961-7 e-ISBN 978-3-540-72962-4 DOI 10.1007/978-3-540-72962-4 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2011934137 ACM Computing Classification (1998): I.2.8, G.1.6, H.4.2 © Springer-Verlag Berlin Heidelberg 2011 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations...
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...0 1 Integer Linear Programs: Using INT Command in LINDO restricts a variable to being either 0 or 1. These variables are often referred to as binary variables. In many applications, binary variables can be very useful in modeling all or nothing situations. Examples might include such things as taking on a fixed cost, building a new plant, or buying a minimum level of some resource to receive a quantity discount. Example: Consider the following Knapsack Problem Maximize 11X1 + 9X2 + 8X3 + 15X4 Subject to: 4X1 + 3X2 + 2X3 + 5X4 8, and Xi either o or 1. Using LINDO, the problem statement is Max 11X1 + 9X2 + 8X3 + 15X4 S.T. 4X1 + 3X2 + 2X3 + 5X4 8 END INT X1 INT X2 INT X3 INT X4 The click on SOLVE. The output shows the optimal solution and the optimal value after 8 Branch and Bound Iterations Note that instead of repeating INT four times one can use INT 4. The first four variables appeared in the objective function. OBJECTIVE FUNCTION VALUE 1) 24.00000 VARIABLE VALUE REDUCED COST X1 0.000000 11.000000 X2 1.000000 9.000000 X3 0.000000 8.000000 X4 1.000000 15.000000 ROW SLACK OR SURPLUS DUAL PRICES 2) 0.000000 0.000000 NO. ITERATIONS= 8 ...
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...ted it all. Some of their names are von Neumann, Kantorovich, Leontief, and Koopmans. The first two were famous mathematicians. The last three received the Nobel Prize in economics. In the years from the time when it was first proposed in 1947 by the author (in connection with the planning activities of the military), linear programming and its many extensions have come into wide use. In academic circles decision scientists (operations researchers and management scientists), as well as numerical analysts, mathematicians, and economists have written hundreds of books and an uncountable number of articles on the subject. Curiously, in spite of its wide applicability today to everyday problems, it was unknown prior to 1947. This is not quite correct; there were some isolated exceptions. Fourier (of Fourier series fame) in 1823 and the wellknown Belgian mathematician de la Vallée Poussin in 1911 each wrote a paper about it, but that was about it. Their work had as much influence on Post-1947 developments as would finding in an Egyptian tomb an electronic computer built in 3000 BC. Leonid Kantorovich’s remarkable 1939 monograph on the subject was also neglected for ideological reasons in the USSR. It was resurrected two decades later after the major developments had already taken place in the West. An excellent paper by Hitchcock in 1941 on the transportation problem was also overlooked until after others in the late 1940’s and early 1950’s had independently rediscovered...
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...ADVANCED OPERATION RESEARCH ASSIGNMENT OF O.R. METHODOLOGY DEVELOPMENT DEVELOPMENT OF TRANSPORTATION METHODOLOGY IN OPERATION RESEARCH “PENGEMBANGAN METODE TRANSPORTASI DALAM OPERASI PENELITIAN” TYPE II – COMPARE & CONTRAST IQBAL TAWAKKAL - 1506694736 PROGRAM MAGISTER TEKNIK INDUSTRI - SALEMBA UNIVERSITAS INDONESIA 1. INTRODUCTION A special class of linear programming problem is Transportation Problem, where the objective is to minimize the cost of distributing a product from a number of sources (e.g. factories) to a number of destinations (e.g. warehouses) while satisfying both the supply limits and the demand requirement. Because of the special structure of the Transportation Problem the Simplex Method of solving is unsuitable for the Transportation Problem. The model assumes that the distributing cost on a given rout is directly proportional to the number of units distributed on that route. Generally, the transportation model can be extended to areas other than the direct transportation of a commodity, including among others, inventory control, employment scheduling, and personnel assignment. Transportation was one of the earliest application areas of operations research, and important transportation problems, such as the traveling salesman problem, vehicle routing problem, and traffic assignment problem, contributed to fundamental knowledge in operations research. Transportation remains one of the most important and vibrant areas of operations...
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...Porters Five Force Analysis 1.7 The Value Chain 1.8 Enterprise Application Architecture 2.0 Design Methodology 3.0 Dimensions of Information Systems 4.0 Conclusion 0965944 1 1.Introduction Aalsmeer Flower Auction, located in the Netherlands is the biggest flower auction of the world. It offers global growers, wholesalers and exporters a central place for the buying and selling of floricultural products with a range of marketing channels, facilities for growers, buyers and logistics. Every phase of the trade of flowers is managed in the Netherlands, pricing, packaging, distribution and quality control. Most of the flowers come from the Netherlands also Spain, Israel and Kenya among others. (Boonstra A & Van Dantzig,06 pg2). This has made AFA a prominent link in the International Chain of the flower auction market. New developments in the auction market has threatened the comfortable position of AFA. E-Networks the emergence of alternative electronically driven flower markets. Mergers and acquisition among retailers increased their size and power this has forced the board of AFA to react to changes to be able to connect with suppliers and buyers. The change of customers needs, retailers asked for fresher products more varieties and multiple deliveries each week. With these developments AFA Value Chain has become under increasing pressure. It is necessary to begin a strategic repositioning of...
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...Linear Programming: Using Solver in Excel Linear Programming was conceptually developed before World War II by the outstanding Russian mathematician A.N.Kolmogorov and gained its popularity ever since the development of Simplex method by George B. Dantzig in 1947. Linear programming deals with problems of maximizing or minimizing a linear function in the presence of linear equality and/or inequality constraints. In these problems, we find the optimal, or most efficient way of using limited resources to achieve the objective of the situation. Linear Programming enables users to model large and complex problems and solve in a short amount of time by the use of effective algorithm, hence it is a powerful and widely used tool in various fields such as science, industrial engineering, financial planning and management decision making. Nowadays, with the development of technology, most of the real world Linear Programming problems are solved by computer programs. Excel Solver is a popular one. We work through different examples to demonstrate the applications of linear Programming model and the use of Excel Solver for various decision making in operation and supply chain management. Components of Linear Programming model To solve the linear programming problems, we first need to formulate the mathematical description called a mathematical model to represent the situation. Linear programming model usually consists of the following components * Decision variables: These represent...
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...Chapter 1 introduction True-False Questions 1-1 Managers need to know the mathematical theory behind the techniques of management science so that they can lead management science teams. F 1-2 Spreadsheets allow many managers to conduct their own analyses in management science studies. T 1-3 Management science is a discipline that attempts to aid managerial decision making by applying a scientific approach to managerial problems that involve quantitative factors. T 1-4 The discovery of the simplex method in 1947 was the beginning of management science as a discipline. F 1-5 Managers make decisions based solely on the quantitative factors involved in the problem. F 1-6 A management science team will try to conduct a systematic investigation of a problem that includes careful data gathering, developing and testing hypotheses, and then applying sound logic in the analysis. T 1-7 The mathematical model of a business problem is the system of equations and related mathematical expressions that describes the essence of the problem. T 1-8 Once management makes its decisions, the management science team typically is finished with its involvement in the problem. F 1-9 A cost that varies with the production volume would be a fixed cost. F 1-10 A cost that varies with the production volume would be a variable cost. T 1-11 At the break-even point, management is indifferent between producing a product and not producing it. T 1-12 A constraint is an algebraic variable...
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...Brief History of the Production and operations Management function by V S Rama Rao on January 24, 2009 At the turn of the 20th century, the economic structure in most of the developed countries of today was fast changing from a feudalistic economy to that of an industrial or capitalistic economy. The nature of the industrial workers was changing and methods of exercising control over the workers, to get the desired output, had also to be changed. This changed economic climate produced the new techniques and concepts. Individual Efficiency: Fredric W Taylor studied the simple output to time relationship for manual labor such as brick-laying. This formed the precursor of the present day ‘time study’. Around the same time, Frank Gilberth and his leaned wife Lillian Gilberth examined the motions of the limbs of the workers (such as the hands, legs, eyes etc) in performing the jobs and tried to standardize these motions into certain categories and utilize the classification to arrive at standards for time required to perform a given job. This was the precursor to the present day ‘motion study’. Although to this day Gilberth’s classification of movements is used extensively, there have been various modifications and newer classifications. Collective Efficiency: So far focus was on controlling the work output of the manual laborer or the machine operator. The primary objective of production management was that of efficiency – efficiency of the individual operator. The aspects...
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...Brief History of the Production and operations Management function by V S Rama Rao on January 24, 2009 At the turn of the 20th century, the economic structure in most of the developed countries of today was fast changing from a feudalistic economy to that of an industrial or capitalistic economy. The nature of the industrial workers was changing and methods of exercising control over the workers, to get the desired output, had also to be changed. This changed economic climate produced the new techniques and concepts. Individual Efficiency: Fredric W Taylor studied the simple output to time relationship for manual labor such as brick-laying. This formed the precursor of the present day ‘time study’. Around the same time, Frank Gilberth and his leaned wife Lillian Gilberth examined the motions of the limbs of the workers (such as the hands, legs, eyes etc) in performing the jobs and tried to standardize these motions into certain categories and utilize the classification to arrive at standards for time required to perform a given job. This was the precursor to the present day ‘motion study’. Although to this day Gilberth’s classification of movements is used extensively, there have been various modifications and newer classifications. Collective Efficiency: So far focus was on controlling the work output of the manual laborer or the machine operator. The primary objective of production management was that of efficiency – efficiency of the individual operator. The aspects...
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...Linear Programming (LP) Linear programming, simply put, is the most widely used mathematical programming technique. It has a long history dating back to the 1930s. The Russian mathematical economist Leonid Kantorovich published an important article about linear programming in 1939. George Stigler published his famous diet problem in 1945 (“The Cost of Subsistence”). Of course, no one could actually solve these problems until George Dantzig developed the simplex method, which was published in 1951. Within a few years, a variety of American businesses recognized that they could save millions of dollars a year using linear programming models. And in the 1950s, that was a lot of money. In his book Methods of Mathematical Economics (Springer-Verlag, 1980), Joel Franklin talks about some of the uses of linear programming (LP). In fact, about half of his book is devoted to LP and its extensions. Today, we will analyze one of the examples provided in that book. The example comes from a 1972 article published in the Monthly Review of the Federal Reserve Bank of Richmond. Alfred Broaddus, the author, was trying to explain to bankers how Bankers Trust Company used linear programming models in investment management. His example was simple and effective. The bank has up to 100 million dollars to invest, a portion of which can go into loans (L), and a portion of which can go into securities (S). Loans earn 10%, securities 5%. The bank is required to keep 25% of its invested...
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...Production and Operation Management Cheng Guoping Chapter 1 Introduction 1. Production System 2. Production and operations in the organization 3. Function and jobs of POM 4. Decision Making in POM 5. The emergence of production and operation management 1. Production System Production and operation management (POM) is the management of an organization's production system, which converts input into the organization 's products and services. 1.1 Production system model Inputs conversions subsystem output Feedback Feedback Figure 1 A production System Model 2. Common ground and differences between manufacturing and services 1.2.1 Common Ground: • Entail customer satisfaction as a key measure of effectiveness • Require demand forecasting • Require design of both the product and the process • Involve purchase of materials, supplies, and services • Require equipment, tools, buildings, and skills, etc. 1.2.2 Differences: • Customer contact Service involves a much higher degree of customer contact than manufacturing does. The performance of a service typically occurs at the point of consumption. Manufacturing allows a separation between production and consumption. • Uniformity of input Service operations are subject to more variability of inputs than manufacturing operations are. Each patient, each lawn, each TV presents a specific problem. • Labor content of jobs Manufacturing ---capital...
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...Production and Operation Management Cheng Guoping Chapter 1 Introduction 1. Production System 2. Production and operations in the organization 3. Function and jobs of POM 4. Decision Making in POM 5. The emergence of production and operation management 1. Production System Production and operation management (POM) is the management of an organization's production system, which converts input into the organization 's products and services. 1.1 Production system model Inputs conversions subsystem output Feedback Feedback Figure 1 A production System Model 2. Common ground and differences between manufacturing and services 1.2.1 Common Ground: • Entail customer satisfaction as a key measure of effectiveness • Require demand forecasting • Require design of both the product and the process • Involve purchase of materials, supplies, and services • Require equipment, tools, buildings, and skills, etc. 1.2.2 Differences: • Customer contact Service involves a much higher degree of customer contact than manufacturing does. The performance of a service typically occurs at the point of consumption. Manufacturing allows a separation between production and consumption. • Uniformity of input Service operations are subject to more variability of inputs than manufacturing operations are. Each patient, each lawn, each TV presents a specific...
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