Exam 13: Linear Optimization

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Use the following information to answer the questions) below. Cerebro Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. The machining centers have a capacity of 250,000 minutes per year. The gross margin per unit and machining requirements are shown in the spreadsheet below. A B C D E F 1 Cerebro Manufacturing Model 2 3 Product Plugs Rails Rivets Clips Machine Capacity mins./year) 4 Gross margin/unit \ 0.40 \ 1.20 \ 0.80 \ 1.10 5 Minutes/unit 1 2 3 1.5 250,000 6 Gross margin/minute 7 Maximum production 8 Profit -When a model has a unique optimal solution, it means that .

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D

Which of the following best defines objective functions?

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Use the table below to answer the following questions). Qualis Investments is a private limited business that manages personal financial portfolios. The company manages six mutual funds and has a client that has acquired $750,000 from an inheritance. Characteristics of the funds are given in the table below. Qualis Mutual Fund Data Expected Annual Return Risk Measure 1 Qualis Low-priced Stock Fund 7.23\% 11.87 2 Qualis Multinational Fund 8.42\% 12.62 3 Qualis Mid-cap Stock Fund 6.66\% 13.72 4 Qualis Mortgage Fund 2.72\% 3.37 5 Qualis Income Equity Fund 8.89\% 8.4 6 Qualis Balanced Fund 3.50\% 6.91 The company recommends that no more than $300,000 be invested in any individual fund, and that at least $80,000 be invested in each of the mid-cap stock and mortgage fund. The total amount invested in the low-priced and multinational funds are at least 35% of the total investment. The client would like an average return of at least 6%. Assume that X1- X6 represent the dollar amounts invested in funds 1 through 6, respectively. -Which of the following is the constraint for the weighted return?

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Consider the spreadsheet for Stone Age Surfboards provided below. Use this data to answer the following questions), using the Standard Solver. Stone Age Surfboards is a small manufacturer of two types of popular low-tide surfboards, the Graystone and the Lava models. The manufacturing process consists of two departments: fabrication and finishing. The fabrication department has 8 skilled workers, each of whom works 9.25 hours per day. The finishing department has 5 workers, each of whom works a 6-hour shift per day. Each pair of Graystone surfboards requires 2.5 labor hours in the fabrication department and 2 labor hours in finishing. The Lava model requires 4.2 labor-hours in fabrication and 3.6 labor-hours in finishing. The company operates 6 days a week. It makes a per unit profit of $40 on the Graystone model and $60 on the Lava model. The company anticipates selling at least twice as many Lava models as Graystone models. A B C D 1 Stone Age Surfboards 2 3 Data 4 Product 5 Department Graystone Lava Limitation hours) 6 Fabrication 2.5 4.2 74 7 Finishing 2 3.6 30 8 9 Profit/Unit \ 40.00 \ 60.00 10 11 12 Model 13 Graystone Lava 14 Quantity Produced Hours Used 15 Fabrication 16 Finishing 17 18 Excess Lava 19 Market Mixture 20 21 Total Profit 22 Profit Contribution -What is the value of slack obtained from the answer report?

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Explain the simplex method used by Solver.

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What are the Excel functions to avoid in linear optimization?

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Use the table below to answer the following questions). The Riviera Transport Company RTC) produces car accessories at two plants: Dallas and Atlanta. They ship them to major distribution centers in Houston, San Jose, Jacksonville, and Memphis. The accounting, production, and marketing departments have provided the information in the table below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. RTC's supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, not exceed available capacity, and meet customer demand. Assume Xij = amount shipped from plant i to distribution center j, where i = 1 represents Dallas, i = 2 represents Atlanta, j = 1 represents Houston, and so on. Transpartation Model Data Distribution Center Plant Houston Sarn Jose Jacksorville Mernphis Capacity Dallas 13.00 15.25 10.99 18.48 1250 Atlarita 10.75 15.16 9.65 18.50 750 Dernand 175 325 480 950 Answer the following questions) using a linear optimization model. -Keychain Publishing is planning to release two books, simultaneously, by the same author. One is a fictional book, while the other is the author's autobiography. The details of its cost, production, and demand are given in the table below. Kaychain Publishing Data Fictimal Autobiography Cast/book \ 1.75 \ 1.50 Price/book \ 11.49 \ 9.86 Base demand 50,000 65,000 Increase/ \1 Adv. 25 35 Min. percent requirement 35\% Max percent limitation 70\% Total Budget \ 150,000 Keychain Publishing has $150,000 available to bind books and advertise them with an objective of maximizing profit contribution. Provide the objective function for maximizing profits, along with its constraints.

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Use the following information to answer the following questions), using the SUMPRODUCT function. Stone Age Surfboards is a small manufacturer of two types of popular high-tide surfboards, the Rockwell and the Limestone models. The manufacturing process consists of two departments: fabrication and finishing. The fabrication department has 15 skilled workers, each of whom -What is the total profit generated?

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Use the following information to answer the following questions), using the SUMPRODUCT function. Stone Age Surfboards is a small manufacturer of two types of popular high-tide surfboards, the Rockwell and the Limestone models. The manufacturing process consists of two departments: fabrication and finishing. The fabrication department has 15 skilled workers, each of whom -What is the total number of hours used for the finishing operation?

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A constraint function is a function of the decision variables in the problem.

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Consider the spreadsheet for Stone Age Surfboards provided below. Use this data to answer the following questions), using the Standard Solver. Stone Age Surfboards is a small manufacturer of two types of popular low-tide surfboards, the Graystone and the Lava models. The manufacturing process consists of two departments: fabrication and finishing. The fabrication department has 8 skilled workers, each of whom works 9.25 hours per day. The finishing department has 5 workers, each of whom works a 6-hour shift per day. Each pair of Graystone surfboards requires 2.5 labor hours in the fabrication department and 2 labor hours in finishing. The Lava model requires 4.2 labor-hours in fabrication and 3.6 labor-hours in finishing. The company operates 6 days a week. It makes a per unit profit of $40 on the Graystone model and $60 on the Lava model. The company anticipates selling at least twice as many Lava models as Graystone models. A B C D 1 Stone Age Surfboards 2 3 Data 4 Product 5 Department Graystone Lava Limitation hours) 6 Fabrication 2.5 4.2 74 7 Finishing 2 3.6 30 8 9 Profit/Unit \ 40.00 \ 60.00 10 11 12 Model 13 Graystone Lava 14 Quantity Produced Hours Used 15 Fabrication 16 Finishing 17 18 Excess Lava 19 Market Mixture 20 21 Total Profit 22 Profit Contribution -What is the shadow price for the finishing hours used?

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Use the table below to answer the following questions). The Riviera Transport Company RTC) produces car accessories at two plants: Dallas and Atlanta. They ship them to major distribution centers in Houston, San Jose, Jacksonville, and Memphis. The accounting, production, and marketing departments have provided the information in the table below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. RTC's supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, not exceed available capacity, and meet customer demand. Assume Xij = amount shipped from plant i to distribution center j, where i = 1 represents Dallas, i = 2 represents Atlanta, j = 1 represents Houston, and so on. Transpartation Model Data Distribution Center Plant Houston Sarn Jose Jacksorville Mernphis Capacity Dallas 13.00 15.25 10.99 18.48 1250 Atlarita 10.75 15.16 9.65 18.50 750 Dernand 175 325 480 950 Answer the following questions) using a linear optimization model. -List out the different types of constraints that help model formulation.

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Use the following information to answer the questions) below. Cerebro Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. The machining centers have a capacity of 250,000 minutes per year. The gross margin per unit and machining requirements are shown in the spreadsheet below. A B C D E F 1 Cerebro Manufacturing Model 2 3 Product Plugs Rails Rivets Clips Machine Capacity mins./year) 4 Gross margin/unit \ 0.40 \ 1.20 \ 0.80 \ 1.10 5 Minutes/unit 1 2 3 1.5 250,000 6 Gross margin/minute 7 Maximum production 8 Profit -An infeasible problem is one for which .

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Consider the spreadsheet for Stone Age Surfboards provided below. Use this data to answer the following questions), using the Standard Solver. Stone Age Surfboards is a small manufacturer of two types of popular low-tide surfboards, the Graystone and the Lava models. The manufacturing process consists of two departments: fabrication and finishing. The fabrication department has 8 skilled workers, each of whom works 9.25 hours per day. The finishing department has 5 workers, each of whom works a 6-hour shift per day. Each pair of Graystone surfboards requires 2.5 labor hours in the fabrication department and 2 labor hours in finishing. The Lava model requires 4.2 labor-hours in fabrication and 3.6 labor-hours in finishing. The company operates 6 days a week. It makes a per unit profit of $40 on the Graystone model and $60 on the Lava model. The company anticipates selling at least twice as many Lava models as Graystone models. A B C D 1 Stone Age Surfboards 2 3 Data 4 Product 5 Department Graystone Lava Limitation hours) 6 Fabrication 2.5 4.2 74 7 Finishing 2 3.6 30 8 9 Profit/Unit \ 40.00 \ 60.00 10 11 12 Model 13 Graystone Lava 14 Quantity Produced Hours Used 15 Fabrication 16 Finishing 17 18 Excess Lava 19 Market Mixture 20 21 Total Profit 22 Profit Contribution -What will be the total profit contribution from Lava surfboards?

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Which of the following best defines constraints in an optimization problem?

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Consider the spreadsheet for Stone Age Surfboards provided below. Use this data to answer the following questions), using the Standard Solver. Stone Age Surfboards is a small manufacturer of two types of popular low-tide surfboards, the Graystone and the Lava models. The manufacturing process consists of two departments: fabrication and finishing. The fabrication department has 8 skilled workers, each of whom works 9.25 hours per day. The finishing department has 5 workers, each of whom works a 6-hour shift per day. Each pair of Graystone surfboards requires 2.5 labor hours in the fabrication department and 2 labor hours in finishing. The Lava model requires 4.2 labor-hours in fabrication and 3.6 labor-hours in finishing. The company operates 6 days a week. It makes a per unit profit of $40 on the Graystone model and $60 on the Lava model. The company anticipates selling at least twice as many Lava models as Graystone models. A B C D 1 Stone Age Surfboards 2 3 Data 4 Product 5 Department Graystone Lava Limitation hours) 6 Fabrication 2.5 4.2 74 7 Finishing 2 3.6 30 8 9 Profit/Unit \ 40.00 \ 60.00 10 11 12 Model 13 Graystone Lava 14 Quantity Produced Hours Used 15 Fabrication 16 Finishing 17 18 Excess Lava 19 Market Mixture 20 21 Total Profit 22 Profit Contribution -Which of the following solving methods is selected in the Solver dialog for linear and linear integer optimization problems?

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Use the following information to answer the following questions), using the SUMPRODUCT function. Stone Age Surfboards is a small manufacturer of two types of popular high-tide surfboards, the Rockwell and the Limestone models. The manufacturing process consists of two departments: fabrication and finishing. The fabrication department has 15 skilled workers, each of whom -What is the total number of hours used for fabrication?

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Use the table below to answer the following questions). The Riviera Transport Company RTC) produces car accessories at two plants: Dallas and Atlanta. They ship them to major distribution centers in Houston, San Jose, Jacksonville, and Memphis. The accounting, production, and marketing departments have provided the information in the table below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. RTC's supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, not exceed available capacity, and meet customer demand. Assume Xij = amount shipped from plant i to distribution center j, where i = 1 represents Dallas, i = 2 represents Atlanta, j = 1 represents Houston, and so on. Transpartation Model Data Distribution Center Plant Houston Sarn Jose Jacksorville Mernphis Capacity Dallas 13.00 15.25 10.99 18.48 1250 Atlarita 10.75 15.16 9.65 18.50 750 Dernand 175 325 480 950 Answer the following questions) using a linear optimization model. -Which of the following gives the constraint for the demand met at a distribution center?

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Any solution that satisfies all constraints of a problem is called a feasible solution.

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What are the four possible outcomes that can be obtained by solving a linear optimization model?

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