Exam 7: Goal Programming and Multiple Objective Optimization
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Exhibit 7.4
The following questions are based on the problem below.
Robert Gardner runs a small,local-only delivery service.His fleet consists of three smaller panel trucks.He recently accepted a contract to deliver 12 shipping boxes of goods for delivery to 12 different customers.The box weights are: 210,160,320,90,110,70,410,260,170,240,80 and 180 for boxes 1 through 12,respectively.Since each truck differs each truck has different load capacities as given below:
Truck Weight Capacity Box Capacity Cost per pound 1 800 pounds 5 \ 0.34 2 900 pounds 6 \ 0.42 3 700 pounds 4 \ 0.25 Robert would like each truck equally loaded,both in terms of number of boxes and in terms of total weight,while minimizing his shipping costs.Assume a cost of $50 per item for trucks carrying extra boxes and $0.10 per pound cost for trucks carrying less weight.
The following integer goal programming formulation applies to his problem.
Y1 = weight loaded in truck 1;Y2 = weight loaded in truck 2;Y3 = weight loaded intruck3;Xi,j = 0 if truck i not loaded with box j;1 if truck i loaded with box j.
Given the following spreadsheet solution of this integer goal programming formulation,answer the following questions.
-Refer to Exhibit 7.4.Given the solution indicated in the spreadsheet,which trucks,if any,are under an equal weight
amount,and which trucks are over an equal weight amount?

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Exhibit 7.1
The following questions are based on the problem below.
A company wants to advertise on TV and radio.The company wants to produce about 6 TV ads and 12 radio ads.Each TV ad costs $20,000 and is viewed by 10 million people.Radio ads cost $10,000 and are heard by 7 million people.The company wants to reach about 140 million people,and spend about $200,000 for all the ads.The problem has been set up in the following Excel spreadsheet.
A B C D E 1 Problem Data TV Radio 2 Cost 20 10 3 Coverage 10 7 4 5 Goal Constraints TV Radio Cost Coverage 6 Actual Amount 0 0 7 +Under 0 0 0 0 8 - Over 0 0 0 0 9 F Goal 0 0 0 0 10 Target Value 6 12 200 140 11 12 Percentage Deviation: 13 Under 1 1 1 1 14 Over 0 0 0 0 15 16 Weights 17 Under 18 Over 19 20 Objective 0
-Refer to Exhibit 7.1.Which cells are the variable cells in this model?
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Exhibit 7.3
The following questions are based on the problem below.
An investor has $150,000 to invest in investments A and B.Investment A requires a $10,000 minimum investment,pays a return of 12% and has a risk factor of .50.Investment B requires a $15,000 minimum investment,pays a return of 10% and has a risk factor of .20.The investor wants to maximize the return while minimizing the risk of the portfolio.The following minimax formulation of the problem has been solved in Excel.
A B C D E 1 Problem data A B 2 Expected return 12\% 10\% 3 Risk rating 0.50 0.20 4 5 Variables A B Total 6 Amount invested 0 0 0 7 Minimum required \ 10,000 \ 15,000 \ 150,000 8 9 Weighted 10 Goals Actual Target Weights \% Deviation 11 Average return 0 11.8\% 1 0 12 Average risk 0 0.22 1 0 13 14 Objective: 0
-Refer to Exhibit 7.3.What formula goes in cell E11?
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Suppose that profit and human variables are assigned the weight of zero.Then the "triple bottom line" approach reduces to:
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