OMIS2010Winter2014

Homework1Instructions
DueWeek5BeginningofLecture
AssignmentInstructions(pleasereadcarefully)
1.Assignmentsaretobetypedonthecomputer(graphscanbegeneratedmanually)
2.Youmustusethecoverpage,givenonthenextpage,fortheassignment,fillyour
groupdetails,sectionanddateandsubmitwithyourassignment.
3.10to12fontshouldbeused(TimesNewRomanorArialforthefonttype).
4.AssignmentshouldincludeExcelprintoutsofthemodel&output.Youmaycopypaste
(orusescreenshotsof)theExcelmodelandoutputintoyourworddocumentattheend
ofeachquestiontoshowyourExcelworking.
5.InadditionyourgroupmustsubmittheExcelfileswithyourassignment,toMoodle.
ThefilenamesshouldbeHw1_LastName1_LastName2_Q1.xlsxwhereLastName1is
lastnameofstudent1,andLastName2islastnameofstudent2(ifdoinghwasagroup)
andQ1referstoquestion1,Q2forquestion2andsoforth.
6.Pagesaretobenumberedinanumberofnumberformat(i.e.3of10,4of10).
7.Assignmentsshouldbeorganizedbyquestion.Thatmeanseverypieceofinformation
forthatquestionisfoundinthesamesectionofthereport.Uselabelingandtitlestomake
sureallisclear.IfIhavetolookforit,itisnotorganized.Youmayuseanappendixto
givefurtherdetailsofyourmodelorcalculationsifrequired.
8.Assignment1isdueatthebeginningoflectureforyoursectioninweek5asperthe
courseoutline.Assignmentsaredueatthestartoftheclassonthespecifiedduedate.
Lateworkwillonlybeacceptedwithagradepenalty(10percentagepointswillbe
deductedeachday.Aweekendcountsastwodays,unlessitisathreedayweekend,in
whichcaseitcountsforthreedays).

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OMIS 2010 - Assignment Cover Page

Winter 2013
Schulich School of Business
Assignment #:
1
Section:
Group
member 1

Group
member 2

Group
member 3

Last Name:
First Name:
Student #:

Group can be between 1 to 3 members only.

Question#
1
2
3
4
5
6
Total

Yourmark

Fullmark

Question1.
Embassymotorcycles(EM)manufacturestwolightweightmotorcyclesdesignedforeasy
handlingandsafety.TheEZRidermodelhasanewengineandalowprofilethatmakeit
easytobalance.TheLadySportmodelisslightlylarger,usesamoretraditionalengine,
andisspecificallydesignedtoappealtowomenriders.Embassyproducestheengines
forbothmodelsatitsIowaplant.EachEZRiderenginerequires6hoursof
manufacturingtimeandeachLadySportenginerequires3hoursofmanufacturingtime.
TheIowaplanthas2100hoursofenginemanufacturingtimeavailableforthenext
productionperiod.EmbassysmotorcycleframesuppliercansupplyasmanyEZRider
framesasneeded.HowevertheLadySportframeismorecomplexandthesuppliercan
onlyprovideupto280LadySportframesforthenextproductionperiod.Finalassembly
andtestingrequires2hoursforeachEZRidermodeland2.5hoursforeachLadySport
model.Amaximumof1000hoursofassemblyandtestingtimeareavailableforthenext
productionperiod.Thecompanysaccountingdepartmentprojectsaprofitcontributionof
$2400foreachEZRiderproducedand$1800foreachLadySportproduced.
(a)FormulateanLPmodelthatcanbeusedtodeterminetheoptimalnumberofunitsof
eachmodeltoproduce.
(b)Solvetheproblemgraphically(usingisolinemethodorcornerpointmethod)Whatis
theoptimalsolution?
(c)Whichconstraintsarebinding?
(d)WhatistheoptimalityrangefortheLadySportOFC?
WhatistheoptimalityrangefortheEZRiderOFC?(DonotuseExcel.Showallyour
working)
(e)Iftheframesuppliersayshecansupply50moreLadySportmodelframes,what
pricewouldyoubewillingtopayforthem?(Pleasestateyouranswerclearlyandexplain
yourlogic.DoNOTuseExcel).
(f)BONUSpart(Thispartisnotrequired.Yougetextrapointsfordoingthispart)
JustinBieberwasrecentlyseendrivinganEZRider.Thishasledtoahugesurgein
popularityofEZRidermotorcyclesandmanagementfeelstheycanchargeahigherprice
suchthatunitprofitforEZRiderbecomes$3600.Showthenewoptimalsolution(s)on
yourfeasibleregionfigure.Explainthenewoptimalsolution(s).

Question2
Edwardsmanufacturingcompanypurchasestwocomponentpartsfromthreedifferent
suppliers.Thesuppliershavelimitedcapacityandnoonesuppliercanmeetallthe

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companysneeds.Inaddition,thesupplierschargedifferentpricesforthecomponents.
Componentpricedata(inpriceperunit)isasfollows:
Component1
Component2

Supplier1
$12
$10

Supplier2
$13
$11

Supplier3
$14
$10

Eachsupplierhasalimitedcapacityintermsofthetotalnumberofcomponentsitcan
supply.HoweveraslongasEdwardsprovidessufficientadvanceorders,eachsupplier
candevoteitscapacitytocomponent1,component2,oranycombinationofthetwo
components,ifthetotal#ofunitsiswithinitscapacity.Suppliercapacitiesareas
follows:
Supplier:
Capacity:

1
600

2
1000

3
800

IftheEdwardsproductionplanforthenextperiodincludes1000unitsofcomponent1
and800unitsofcomponent2,whatpurchasesdoyourecommend?Whatisthetotal
purchasecostforthecomponents?YoumustprovideacompleteLPformulation.You
mayuseExceltosolve.

Question3
KeeleSteakhouseoffersavarietyoflowcostmealsandquickservice.Otherthan
management,thesteakhouseoperateswithtwofulltimeemployeeswhowork8hours
perday.Therestoftheemployeesareparttimeemployeeswhowork4hourshifts
4

duringpeakmealtimes.Thesteakhouseisopenfrom11:00amto10:00pm.Management
wantstodevelopascheduleforparttimeemployeesthatwillminimizelaborcostsand
stillprovideexcellentcustomerservice.Theaveragewageratefortheparttime
employeesis$7.60perhour.Thetotalnumberofemployees(fulltimeorparttime)
neededvarieswiththetimeofthedayasshown.
Time
11:00amtonoon
Noonto1:00pm
1pmto2pm
2pmto3pm
3pmto4pm
4pmto5pm
5pmto6pm
6pmto7pm
7pmto8pm
8pmto9pm
9pmto10pm

Total#ofEmployeesneeded
9
9
9
3
3
3
6
12
12
7
7

Onefulltimeemployeecomesondutyat11:00am,works4hours,takesanhouroff,and
returnsforanother4hours.Theotherfulltimeemployeecomestoworkat1:00pmand
worksthesame4hourson,1houroff,4hoursonpattern.
a)DevelopanLPformulationfortheoptimalscheduleforparttimeemployees.
b)Solvetofindtheoptimalsolution.Whatisthetotalpayrollfortheparttime
employees?Howmanyparttimeshiftsareneeded?
c)Assumethatparttimeemployeescanbeassignedeithera3hourora4hourshift.
Developaminimumcostschedulefortheparttimeemployees(pleasestatethenewLP
formulationaswell).Howmanyparttimeshiftsareneededandwhatisthecostsavings
comparedtothepreviousschedule?

Question4.
TheBaysideArtGalleryisconsideringinstallingavideocamerasecuritysystemto
reduceitsinsurancepremiums.AdiagramoftheeightdisplayroomsthatBaysideuses
forexhibitionsisshownbelow(figure713);theopeningsbetweentheroomsare
numbered1through13.Asecurityfirmproposedthattwowaycamerasbeinstalledat

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someroomopenings.Eachcamerahastheabilitytomonitorthetworoomsbetween
whichthecameraislocated.Forexample,ifacamerawerelocatedatopeningnumber4,
rooms1and4wouldbecovered;ifacamerawerelocatedatopening11,rooms7and8
wouldbecovered;andsoon.Managementdecidednottolocateacamerasystematthe
entrancetothedisplayrooms.Theobjectiveistoprovidesecuritycoverageforalleight
roomsusingtheminimumnumberof2waycameras.
a) FormulateabinaryLPmodelthatwillenableBaysidesmanagementtodetermine
thelocationsforthecamerasystems.
b) SolvethemodelusingExceltodeterminehowmanytwowaycamerasystems
needtobepurchasedandwherewilltheybelocated?
c) Supposethatmanagementwantstoprovideadditionalsecuritycoverageforroom
7.Specifically,managementwantsroom7tobecoveredby2cameras.Providea
newformulationtoincludethischange.
d) Solvethenewmodelformulatedinpart(c)andshowhowmanytwowaycamera
systemswillneedtobepurchasedandwheretheywillbelocated.

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Question5.
Coach Nights Team
Coach Night is trying to choose the starting lineup for the basketball team. The team
consists of seven players who have been rated (on a scale of 1=poor to 3 = excellent)
according to their ball-handling, shooting, rebounding, and defensive abilities. The
positions that each player is allowed to play and the players abilities are listed in the
table below.
The five player starting line-up must satisfy the following restrictions:
1. At least 4 members of the starting team must be able to play guard (G), at least 2
members must be able to play forward (F), and at least 1 member of the starting
team must be able to play center (C)
2. The average ball-handling, shooting, and rebounding level of the starting lineup
must be at least 2
3. If player 2 starts, then player 6 cannot start
4. If player 1 starts, then players 4 and 5 must both start
5. Either player 2 or player 3 must start
Given these constraints, coach Night wants to maximize the total defensive ability of the
starting team. Formulate an IP that will help coach Night choose his starting team. Solve
the IP using Excel and state your answer.
Player

Position

1
2
3
4
5
6
7

G
C, G
G, F
F, C
G, F, C
F, C, G
G, F

Ball
Handling
3
2
2
1
1
3
3

Shooting

Rebounding

Defense

3
1
3
3
3
1
2

1
3
2
3
1
2
2

3
2
2
1
2
3
1