Question 1

Min 3X 4Y
S.T.
-X + 2Y 8
X + 2Y 12
2X + Y 16
X, Y 0

A)
B)
C)
D)
E)

ADMS 3330 Winter 2007 Final Exam Solutions

Given the linear program
___ (1)
___ (2)
___ (3)

Write the problem in standard form

Solve the problem using graphical solution procedure
Find the dual prices
What are the values of the three slack/surplus variables at the optimal solution?
If the second constraint becomes X + 2Y = 12, what is the feasible region (please mark it
properly)? What is the optimal solution?

ANSWERS:

a) Standard Form: Min 3X 4Y + 0S1 + 0S2 + 0S3

S.T.

-X + 2Y + S1 = 8
X + 2Y S2 = 12
2X + Y + S3 = 16
X, Y, S1, S2, S3 0

2x
+y

1
6

x+

2y

12

-x +

Optimal
Solution

2y

(4.8, 6.4)

Z = - 11. 2

Feasible Region

(2, 5)

Z = - 14
4

(6.67, 2.67)

Z = 9. 33

x
0.5

1.5

2.5

3.5

4.5

Page 1 of 11

5.5

6.5

7.5

8.5

9.5

ADMS 3330 Winter 2007 Final Exam Solutions

Optimal solution occurs at extreme point 1.

At Optimal solution X = 2, Y = 5 OFV = -14
c)

Dual price is the improvement in the OFV per unit increase in the right hand side of a
constraint.
Use at least one binding constraint in calculating dual price
Dual Price for constraint 1
(RHS of Constraint 1 increased by 1)

Dual Price for constraint 2

(RHS of Constraint 2 increased by 1)

Substituting in (2) gives

Substituting in (2) gives

-X + 2Y = 9
___ (1)
X + 2Y = 12
___ (2)
Adding (1) and (2) gives
4Y = 21
Y = 5.25

X + 2(5.25) = 12
X = 12 10.5 = 1.5
New OFV = 3(1.5) 4(5.25) = -16.5
Dual Price = Old OFV New OFV
Dual Price = -14 (-16.5) = 2.5

-X + 2Y = 8
___ (1)
X + 2Y = 13
___ (2)
Adding (1) and (2) gives
4Y = 21
Y = 5.25

X + 2(5.25) = 13
X = 13 10.5 = 2.5
New OFV = 3(2.5) 4(5.25) = -13.5
Dual Price = Old OFV New OFV
Dual Price = -14 (-13.5) = -0.5

Since constraint 3 is not binding (it did not touch the optimal solution point), its dual price is
0.
(Note that Dual Price = Old OFV New OFV for minimization problems. For max, Dual Price = New
OFV Old OFV)
d)

The values of slack/surplus for constraint (1) and (2) will be 0 at optimal solution (X = 2, Y = 5)
because they are binding:
Slack for Constraint 1
-X + 2Y + S1 = 8
-2 + 2(5) + S1 = 8
S1 = 8 8 = 0

Surplus for Constraint 2

X + 2Y S2 = 12
2 + 2(5) + S2 = 12
S2 = 12 12 = 0

Slack for Constraint 3

2X + Y + S3 = 16
2(2) + 5 + S3 = 16
S3 = 16 9 = 7

The slack/surplus values are 0, 0, 7 respectively for constraints 1, 2, and 3.

Page 2 of 11

ADMS 3330 Winter 2007 Final Exam Solutions

e) The feasible region is the set of points on the line x+2y = 12 between extreme points and

The optimal solution remains the same as in part b)

X = 2, Y = 5 OFV = -14

Page 3 of 11

Question 2

ADMS 3330 Winter 2007 Final Exam Solutions

Max X + Y
ST

X kY 1
X, Y 0

where k is a real number.

a) What value(s) of k makes the above LP have alternative optimal solutions?

b) What value(s) of k makes the above LP have a unique optimal solution?

ANSWERS:
a) The slope of the objective function =-1/1 = -1
(Note: The slope for aX + bY is a/b)

The slope of the constraint X kY 1 is -1/-k = 1/k

For the LP to have alternative optimal solutions, the slope of the objective function must equal
the slope of one of the constraints. Since there is only one constraint, alternative optimal
solutions occur when
1 =

= 1

Therefore = 1

b) In the absence of alternative optimal solution, we have a unique one.

Therefore a unique solution occurs when

Page 4 of 11

ADMS 3330 Winter 2007 Final Exam Solutions

Question 3

Molton Canadian is only making beer at 3 different locations. The capacity (in thousand bottles) or
3 plants in different locations: 200, 250 and 150. Once beer is made, it is shipped and stored in
either one, two warehouses. Table 1 gives the production and shipping cost per thousand bottles of
beer made at a particular location and shipped to a particular warehouse. Table 2 shows the cost of
shipping a thousand bottles of beer from each warehouse a customer. Customers would like to
receive 200 (thousand bottles for customer I), and 250 (thousand bottles for customer 2). Table 3
gives the annual fixed cost of operating each plant and warehouse. Molton Canadian is to minimize
the annual cost of marketing customer demands. Now we want to formulate this problem as a
mixed-integer linear program problem. Please answer the following questions.
Table I
From
Table 2
From

Table 3

Location 1
Location 2
Location 3

To
Warehouse Warehouse
1
2
$900
$1,000
$1,100
$800
$800
$700

Customer 1 Customer 2
Warehouse 1
$40
$80
Warehouse 2
$70
$40

Fixed Annual
Cost
Location 1
$20,000
Location 2
$35,000
Location 3
$30,000
Warehouse 1
$40,000
Warehouse 2
$25,000
a) This is a combination of the transshipment problem and the fixed cost problem. Please
draw the network for the included transshipment problem.
b) Define your decision variable properly
c) Write down the objective function
d) Write down all constraints.

Page 5 of 11

ANSWER:
a)

ADMS 3330 Winter 2007 Final Exam Solutions

b) Let

Xij = number of bottles (in thousands) shipped from node i to node j

for all i and j
Yi = 1 if node i is used, 0 otherwise for i = 1, 2, 3, 4, 5

c) Objective Function
Min 900X14 + 1000X15 + 1100X24 + 800X25 + 800X34 + 700X35 + 40X46 + 80X47 + 70X56 +
40X57 + 20,000Y1 + 35,000Y2 + 30,000Y3 + 40,000Y4 + 25,000Y5
d) Constraints

X14 + X15 - 200Y1 0

X14 + X24 + X34 X46 X47 = 0

X46 + X47 450Y4

X34 + X35 - 150Y3 0

X46 + X56 = 200

Xij > 0 for all i, j

X24 + X25 - 250Y2 0

X15 - X25 + X35 X56 X57 = 0

X47 + X57 = 250

Page 6 of 11

X56 + X57 450Y5

Yi = 0, 1 i = 1, 2, 3, 4, 5

ADMS 3330 Winter 2007 Final Exam Solutions

Question 4

Dale Adams operates a delivery truck in South-Western Ontario. He has received 8 potential

shipments for the month of May. Dale realizes that he cannot accept all the shipments since their

combined total time exceeds 20 days, a limit on the number of days he is allowed to work in any
one month. The shipment duration in days and profit in dollars are given below.
Shipment

Profit

Duration

(a) Formulate a 0-1 programming model to help Dale decide on the shipments he should select
to maximize his profits.
i)

ii)

Define the decision variables

Write the formulation and explain the objective function and constraint(s)

(b) Suppose shipments number 3 and 5 belong to the same customer. The customer has

required that if Dale selects any of these 2 shipments, he should also select the other. Write
a constraint to reflect this.

(c) Suppose shipment number 1 cannot be selected unless both shipment number 6 and
shipment number 7 are also selected. Formulate a constraint to reflect this.

ANSWERS:
a)

i)

ii)

Xi = 1 if Dale accepts shipment 1, 0 if not i =1, 2, , 8

Max 5X1 + 8X2 + 7X3 + 6X4 + 3X5 + 9X6 + 5X7 +2X8

s.t.

2X1 + 7X2 + 3X3 + 6X4 + 2X5 + 8X6 + 1X7 +4X8 20

Xi = 0, 1
b) X3 X5 = 0

c) X1 X6 + X7 1
Page 7 of 11

ADMS 3330 Winter 2007 Final Exam Solutions

Question 5

Many firms that have tried to enter notebook computer market have failed. Suppose your firm believes that
there is a big demand in this market because existing products have not been designed' correctly. They are
too heavy, too large, or too small to have standard size keyboards. Your intended computer will be small
enough to carry inside a jacket pocket if need be. The ideal size will be no longer than 5 inches x 9.5 inches
x1 inch with a folding keyboard. It should weigh no more than 15 ounces and have an LCD display, a micro
disk drive, and an Ethernet port. This should appeal to traveling business people, but it could have a much
wider market, including students. It should be priced $200-$350
The project, then, is to design, develop and produce a prototype of this small computer. The activities, their
immediate predecessors, and the activity time estimates (in weeks) are as follows:
Activity
A
B
C
D
E
F
G

Immediate
Most
Optimistic
Pessimistic
Predecessor
Probable
1
4
7
A
2
6
7
A
6
12
14
B,C
3
4
6
C
3
6
12
B,D
6
8
16
E,F
1
5
6

a) Construct the appropriate network diagram

b) Prepare an activity schedule.
c) What is the expected completion time for the project and what is the critical path?
d) What is the probability of completing this project in less than 36 weeks?
e) If your firm wants a 0.94 probability of completing the project on time, how far ahead of the scheduled
date should they begin working on the project?

A
B
C
D
E
F
G

Immediate
Predecessor
A
A
B,C
C
B,D
E,F

Optimistic
(a)
1
2
6
3
3
6
1

Most
Probable (m)
4
6
12
4
6
8
5

Pessimistic
(b)
7
7
14
6
12
16
6

Page 8 of 11

Mean
t
4
5.5
11.3333
4.1667
6.5
9
4.5

Variance
2
1
0.6944
1.7778
0.25
2.25
2.7778
0.6944

+ +

ADMS 3330 Winter 2007 Final Exam Solutions

a)

B)

Activity Schedule
Activity
ES
A
0
B
4
C
4
D
15.3333
E
15.3333
F
19.5
G
28.5

EF

4
9.5
15.3333
19.5
21.8333
28.5
33

LS

LF

0
9.8333
4
15.3333
22
19.5
28.5

4
15.3333
15.3333
19.5
28.5
28.5
33

Expected Project Completion Time E(T) = 33 Weeks

C)

Critical Path A-C-D-F-G

D)

P(T < 36) ?

Slack

Variance
0
1
5.8333
0
1.7778
0
0.25
6.6667
0
2.7778
0
0.6944
Project Variance 2
6.5
Standard Dev . 2.5495

() 36 33
=
= 1.7667

2.5495

P(T < 36) = P(Z < 1.77) = 0.5 + 0.4616 =

0.9616.
E)

Page 9 of 11

ADMS 3330 Winter 2007 Final Exam Solutions

()
=

1.555 =

T 33 =(1.555)(2.5495)

33
2.5495

T 33 =3.9645

T = 36.9645 37 weeks

They should begin working on the project 37 weeks before the scheduled completion date.
For part E), better use

T = E(T) + z = 33 + 1.555(2.5495) = 36.9645 37 weeks

Question 6 (10 marks) (from chapter 15)

Jimmy owns a local insurance claims company with help desks set up to service his customers. Fifty five
percent of customers arriving at a help desk can be handled by the person who greets them at the primary
desk, but the remaining forty-five of the will need to be referred to someone else at a secondary desk
Assume that every customer requires one minute of attention by the person who is at the primary help desk
(either to answer the question or to figure out how the referral should be handled. Customers that are
referred need an additional amount of time, as given in the table below:
Time
Required
5 minutes
7 minutes
8 minutes

Probability
.25
.30
.45

Customers are served on a first come, first served basis, and are asked to wait until the desks are free.

(a)
Use the random numbers to simulate what happens to 10 customers. Specifically, look at whether
the customers are referred or not and if they are referred how much additional time it took to service the
customer. (You may not use all of the random numbers; use the random numbers in order from left to right,
one after the other).
66, .49, .26, .69, .46, .52, .23, .04, .52, .71, .95, .42, .75, .80, .63, .02, .56, .03, .96, .47

(b) What percentage of customers needed to be referred?

(c) Of those who had to be referred, what is the average referral time?

Page 10 of 11

ADMS 3330 Winter 2007 Final Exam Solutions

Solution
a)
Primary Desk
Not Referred
Referred

Probability Interval
0.55
0 < 55
0.45
55 < 100

Secondary Desk
Time
Probability
5 mins 0.25
7 mins 0.3
8 mins 0.45

Interval
0 < 25
25 < 55
55 < 100

66, .49, .26, .69, .46, .52, .23, .04, .52, .71, .95, .42, .75, .80, .63, .02, .56, .03, .96, .47
Customer

1
2
3
4
5
6
7
8
9
10

RND

66
26
69
52
23
4
52
71
42
75

Referred?
Referred
Not Referred
Referred
Not Referred
Not Referred
Not Referred
Not Referred
Referred
Not Referred
Referred

RND

49

Service
Time

46

7
7

95

60

(b) The percentage of customers that needed to be referred = 4/10 = 40%

(c) Of those referred, the average referral time = (7 + 7 + 8 + 8)/4 = 30/4 = 7.5 minutes

Multiple Choice
1
C

11
A
21
C

2
B

12
C
22
D

3
A

13
D
23
C

4
D

14
A
24
A

5
C

15
D
25
C

6
D

16
A

Page 11 of 11

7
D

17
B

8
C

18
D

9
A

19
C

10
A
20
D