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.  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:   \begin{array}{llll}\text { Truck} & \text { Weight Capacity } & \text { Box Capacity } & \text { Cost per pound }\\ \hline 1 & 800 \text { pounds } & 5 & \$ 0.34 \\ 2 & 900 \text { pounds } & 6 & \$ 0.42 \\ 3 & 700 \text { pounds } & 4 & \$ 0.25 \end{array}  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. Y<sub>1 </sub>= weight loaded in truck 1;Y<sub>2 </sub>= weight loaded in truck 2;Y<sub>3 </sub>= weight loaded intruck3;X<sub>i,j </sub>= 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? -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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The MINIMAX objective

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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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