AEM 805: Operations Research

Fall 2015: Midterm Exam

Name___________Adefemi Ajayi________________________
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. [1 point each]
1. Management science modeling techniques provide results that are known
with certainty.
2. The term "sensitivity analysis" refers to testing how a problem solution reacts
to changes in one or more of the model parameters.
3. The objective function always consists of either maximizing or minimizing
some value.
4. A constraint is a linear relationship representing a restriction on decision
making.
5. The marginal value of any scarce resource is the dollar amount one should be
willing to pay for one additional unit of that scarce resource.
6. In a mixed integer model, all decision variables have integer solution values.
7. In a 0-1 integer programming problem involving a capital budgeting
application (where xj = 1, if project j is selected, xj = 0, otherwise) the
constraint x1 - x2 0 implies that if project 2 is selected, project 1 cannot
be selected.
8. The linear programming model for a transportation problem has constraints
for supply at each source and demand at each destination.
9. Flows in a network can only be in one direction.
10. The minimal spanning tree problem is to connect all nodes in a network so
that the total branch lengths are minimized.

1. _F_______
2. ___T_____
3. ____T____
4. ___T_____
5. ____T____
6. ___F_____
7. ___F_____

8. ___T_____
9. ___F_____
10. ___T_____

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the
question. [2 points each]
11.
In a constraint, the __Slack______ variable represents unused resources.
12.

In a(n) __Unbalanced______ transportation problem, supply exceeds demand.

13.

If we are solving a 0-1 integer programming problem, the constraint x1 + x2 1 is a _Mutually

Exclusive_ constraint.

14.

In order to model a "prohibited route" in a transportation or transshipment problem, the cost

assigned to the route should be __Large______.

15.

A company plans to use an automatic guided vehicle for delivering mail to ten departments. The
vehicle will begin from its docking area, visit each department, and return to the docking area.
Cost is proportional to distance traveled. The type of network model that best represent this
situation is ___Shortest Route Network_____.

AEM 805: Operations Research

Fall 2015: Midterm Exam
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the
question. [2 points each]
16.

The steps of the management science process are:

a. observation, implementation, problem definition, model
construction, model solution.
b. model construction, problem definition, observation, model
solution, implementation.
c. problem definition, model construction, observation, model
solution, implementation.
d. observation, problem definition, model construction, model
solution, implementation.

16.

___D_____

17.

Which of the following could be a linear programming objective

function?
a. Z = 1A + 2B + 3C + 4D
b. Z = 1A + 2B2 + 3D

17.

__A______

c. Z = 1A + 2B / C + 3D
d. Z = 1A + 2BC + 3D
18.

The production manager for Beer etc. produces two kinds of beer:
light (L) and dark (D). Two resources used to produce beer are malt
and wheat. The manager can obtain at most 4800 oz of malt per week
and at most 3200 oz of wheat per week, respectively. Each bottle of
light beer requires 12 oz of malt and 4 oz of wheat, while a bottle of
dark beer uses 8 oz of malt and 8 oz of wheat. Profits for light beer
are $2 per bottle, and profits for dark beer are $1 per bottle. If the
production manager decides to produce of 400 bottles of light beer
and 0 bottles of dark beer, it will result in slack of:
a. wheat only.
b. both malt and wheat.
c. malt only.
d. neither malt nor wheat.

18.

___C_____

19.

The production manager for the Softy soft drink company is

considering the production of two kinds of soft drinks: regular and
diet. Two of her resources are production time (8 hours = 480
minutes per day) and syrup (1 of the ingredients) limited to 675
gallons per day. To produce a regular case requires 2 minutes and 5
gallons of syrup, while a diet case needs 4 minutes and 3 gallons of
syrup. Profits for regular soft drink are $3.00 per case and profits for
diet soft drink are $2.00 per case. What is the time constraint?

19.

___B_____

a.
b.
c.

3R + 2D 480
2R + 4D 480
2D + 4R 480

AEM 805: Operations Research

Fall 2015: Midterm Exam
20.

d. 2R + 3D 480
You have been asked to select at least 3 out of 7 possible sites for oil
exploration. Designate each site as S1, S2, S3, S4, S5, S6, and S7. The
restrictions are:

___A___

Restriction 1.
Evaluating sites S1 and S3 will prevent you from exploring site S7.
Restriction 2.
Evaluating sites S2 or S4 will prevent you from assessing site S5.
Restriction 3.
Of all the sites, at least 3 should be assessed.
Assuming that Si is a binary variable, the constraint for the first
restriction is :
a.
b.
c.
d.

S1 + S3 + S7 2
S1 + S3 + S7 1
S1 + S3 + S7 = 2
S1 + S3 + S7 1

ESSAY. Write your answer in the space provided or on a separate sheet of paper. [5 points each]
21.

The owner of Chips etc. produces two kinds of chips: lime (L) and vinegar (V). He has a limited
amount of the three ingredients used to produce these chips available for his next production
run: 4800 ounces of salt, 9600 ounces of flour, and 2000 ounces of herbs. A bag of lime chips
requires 2 ounces of salt, 6 ounces of flour, and 1 ounce of herbs to produce; while a bag of
vinegar chips requires 3 ounces of salt, 8 ounces of flour, and 2 ounces of herbs. Profits for a bag
of lime chips are $0.40, and for a bag of vinegar chips $0.50.
What is the formulation (Decision Variables, Objective Function, Constraints) for this problem?
Answer:
Decision Variables are : Quantity of lime chips and vinegar chips to produce in number of bags.
Objective Function : Maximize Profit , Max Z = 0.4L + 0.5V
Constraints are : 2L + 3V < = 4800 (Limited salt)
6L + 8V < = 9600 (Limited Flour)
1L + 2V < = 2000
(Limited herbs)

22.

Consider the following linear programming problem:

3x1 + 2x2
MIN Z =
Subject to:
2x1 + 3x2 12
5x1 + 8x2 37
x1, x2 0
What is minimum cost and the value of x1 and x2 at the optimal solution?

AEM 805: Operations Research

Fall 2015: Midterm Exam
Answer: X1 = 0, X2 = 4.625, and Minimum Cost Z = $9.25

23.

A popular performer is scheduled to appear at a major city. The promoter is deciding between
two venues, the larger of which costs $20,000 to rent and the smaller of which costs $12,000 to
rent. Ticket prices for the smaller venue are $20, but the promoter is unsure what to charge per
ticket for the larger venue. If exactly 1000 customers arrive, what percentage change in ticket
prices would make the profit at the large venue identical to that of the smaller venue?
Answer: A 40% increase in the ticket price will make the profit at the large venue similar.

AEM 805: Operations Research

Fall 2015: Midterm Exam
24.

A group of professors struggles to craft a set of assessment questions for their operations
management intro class. They want to cover four topic areas with at least four questions each and
have no more than twenty questions total for the assessment. What would a set of constraints look
like if they chose an optimization approach to the assessment?
Answer: X1 >= 4
X2 >= 4
X3 >= 4
X4 >= 4
X1 + X2 + X3 + X4 < = 20

25.

The poultry farmer decided to make his own chicken scratch by combining alfalfa and corn in rail
car quantities. A rail car of corn costs $400 and a rail car of alfalfa costs $200. The farmer's
chickens have a minimum daily requirement of vitamin K (500 milligrams) and iron (400
milligrams), but it doesn't matter whether those elements come from corn, alfalfa, or some other
grain. A unit of corn contains 150 milligrams of vitamin K and 75 milligrams of iron. A unit of
alfalfa contains 250 milligrams of vitamin K and 50 milligrams of iron. Formulate the linear
programming model for this situation.
Answer: Decision Variable is to find out the quantity of Corn and Alfalfa to use
Objective function is to Minimize Z = $4005C + $200A
Subject to Constraints: 150C + 250A 500 (Minimum Vitamin K daily requirement)
75C + 50A 400
(Minimum iron daily requirement)
C, A 0
(Non Negative constraint)

26.

Quickbrush Paint Company makes a profit of $2 per gallon on its oil-base paint and $3 per gallon
on its water-base paint. Both paints contain two ingredients, A and B. The oil-base paint contains
90 percent A and 10 percent B, whereas the water-base paint contains 30 percent A and 70 percent
B. Quickbrush currently has 10,000 gallons of ingredient A and 5,000 gallons of ingredient B in
inventory and cannot obtain more at this time. The company wishes to use linear programming to
determine the appropriate mix of oil-base and water-base paint to produce to maximize its total
profit. How much oil-based and water-based paint should the Quickbrush make?
Answer: Decision variable is to find quantity of oil-based in gallons and water based in gallons
Objective function: Maximize profit Z = 2oil + 3water
Subject to constraints: 0.90 o + 0.30 w <= 10000 and 0.l0 o + 0.70w <= 5000

AEM 805: Operations Research

Fall 2015: Midterm Exam
9167 gallons of water based paint and 5833 gallons of oil based paint.
27.

Cat Kennels provides overnight lodging for a variety of pets. An attractive feature is the quality of
care the pets receive, including well balanced nutrition. The kennel's cat food is made by mixing
two types of cat food to obtain the "nutritionally balanced cat diet." The data for the two cat foods
are as follows:

Cat Kennels wants to be sure that the cats receive at least 5 ounces of protein and at least 3 ounces
of fat per day. What is the cost of this plan, and how much fat and protein do the cats receive?
Answer: Minimize Z = 0.2M + 0.15F
Subject to constraints: 0.30M + 0.15F >= 5
0.10M + 0.30F >=3
M.F >= 0
The plan will Cost = $3.60,
The cat receives 14 cans of meow munch and 5.3333 cans of feline feed.
That is, for protein, the cat receives 14 * 0.30 + 0.15 * 5.3333 = 5 Ounces
For fat, the cat receives 14 * 0.10 + 5.3333 * 0.30 = 3 Ounces

28.

Consider a capital budgeting example with five projects from which to select. Let x1 = 1 if project
a is selected, 0 if not, for a = 1, 2, 3, 4, 5. Projects cost $100, $200, $150, $75, and $300, respectively.
The budget is $450. Write the appropriate constraint for the following condition:
Choose no fewer than 3 projects.

Answer: x1 + x2 + x3 + x4 + x5 > 3 (No fewer than 3 projects must be selected)

100x1 + 200x2 + 150x3 + 75x4 + 300x5 < 450 (Limited budget constraint)

AEM 805: Operations Research

Fall 2015: Midterm Exam

29.

Consider the following integer linear programming problem:

3x1 + 2x2
Max Z =
Subject to:
3x1 + 5x2 30
5x1 + 2x2 28
x1 8
x1, x2 0 and integer
The solution to the linear programming formulation is: x1 = 5.714, x2 = 2.571.
What is the optimal solution to the integer linear programming problem?
State the optimal values of decision variables and the value of the objective function.
Answer: Using QM for windows, X1 = 4, X2 = 3, Optimal Value = 18

30.

Saba conducts regular tours of his favorite city in the world, Paris. Each semester he selects
among the finest students in the university and escorts them to the City of Lights. In addition to a
world-class education on conducting business in Europe, he arranges a number of cultural
outings for them to help them immerse themselves in all that France has to offer. He collects an
extra $100 from each student for this purpose and limits his tour group to ten lucky individuals.
Some of the events (and their prices) he proposes to the students include:
Eiffel Tower visit, $40 per student, E
Paris Sewer spelunking, $20 per student, S
Half day passes to the Louvre, $60 per student, L
Bon Beret tour, $50 per student, B
What would the constraints be if the Eiffel Tower visit needed to take place at the same time as
the half day at the Louvre and if students taking the Paris Sewer tour had to wear the special
sanitary beret available only from the Bon Beret tour?
Answer:
Let Eiffel Tower X1

AEM 805: Operations Research

Fall 2015: Midterm Exam
Paris Sewer X2
Louvre Half Day X3
Bon Beret Tour - X4
If Eiffel Tower visit needed to take place at the same time as half day at the Louvre, then it means
both are mutually exclusive, that is the students can only attend one out of the two or none of the
two.
Therefore, X2 + X3 <= 1
However, if it is compulsory the student attend atleast one out of Eiffel and Louvre, then it is a
multiple choice constraint which forces a choice between the two. Meaning, the student must
attend one or the other but cannot attend the two.
i.e, X1 + X3 = 1
To go Paris Sewer, the students must have gone to Bon Beret tour to get the sanitary beret.
That is, Paris Sewer depends on Bon Beret. This is a conditional constraint.
i.e., X2 <= X4.
31.

Due to increased sales, a company is considering building three new distribution centers (DCs) to
serve four regional sales areas. The annual cost to operate DC 1 is $500 (in thousands of dollars).
The cost to operate DC 2 is $600 (in thousands of dollars.). The cost to operate DC 3 is $525 (in
thousands of dollars). Assume that the variable cost of operating at each location is the same, and
therefore not a consideration in making the location decision.
The table below shows the cost ($ per item) for shipping from each DC to each region.
Region

The demand for region A is 70,000 units; for region B, 100,000 units; for region C, 50,000 units;
and for region D, 80,000 units. Assume that the minimum capacity for the distribution center will
be 500,000 units.
Write the objective function for this problem.
Answer:
1Dc1A + 3Dc1B + 3Dc1C + 2Dc1D + 2Dc2A + 4Dc2B + 1Dc2C + 3Dc2D + 3Dc3A + 2Dc3B +
2Dc3C + 3Dc3D

AEM 805: Operations Research

Fall 2015: Midterm Exam

Figure 1. Delivery Routes

32.

Consider the network diagram given in Figure 1. Assume that the amount on each branch is the
distance in miles between the respective nodes. What is the shortest route from the source node
(node 1) to nodes 2, 3, and 4? Indicate the total distance for each route.
Answer:

Total distance = 13, Node 1 node 2 = 6, Node 1 to Node 3 = 8, Node1 to Node 4 = 11

33.

Consider the network diagram given in Figure 1. Assume that the numbers on the branches
indicate the length of cable (in miles) between each pair of the six nodes on a telecommunication
network. What is the minimum number of miles of cable to be used to connect all six nodes?
Answer:

AEM 805: Operations Research

Fall 2015: Midterm Exam

The minimum number of miles of cable is 18

34.

Consider the following network, which shows the location of various facilities within a youth
camp and the distances (in tens of yards) between each facility. There is a swampy area between
facilities A and E.

effec
Walking trails will be constructed to connect all the facilities. In order to preserve the natural
beauty of the camp (and to minimize the construction time and cost), the directors want to
determine which paths should be constructed. Use this network to determine which paths should
be built.
Answer:

AEM 805: Operations Research

Fall 2015: Midterm Exam
The paths to be constructed to minimize construction time and cost are: A to C, B to G, C to F, D
to E, E to F, and F to G.
Note that I represent A=1, B=2, C=3, D=4, E=5, F=6, G=7 in the QM