Question1:

Development of Version 2.0 of a particular accounting software product is being considered by Jose Noguera’s te
activities necessary for the completion of this project are listed in the following table:

a) Draw the project network and find the CPM (15 marks)
b) What is the total cost for completing this project on normal time (10 marks)
c) If you wish to reduce the time required to complete this project by 4 weeks, which activities should be crashe
total cost?(25 marks)

Normal Data Crash Data

Activity Predecessor Time (Week) Cost ($) Time (Week) Cost ($)
A ---- 4 2,000.00 3 2,600.00
B ---- 2 2,200.00 1 2,800.00
C ---- 3 500.00 3 500.00
D A 8 2,300.00 4 2,600.00
E B 6 900.00 3 1,200.00
F C 3 3,000.00 2 4,200.00
G D,E 4 1,400.00 2 2,000.00

a)

c)
Path Activity's Time Total time (Week) n=0 n=1
idered by Jose Noguera’s technology firm in Baton Rouge. The

activities should be crashed, and how much will this increase the

b)
Elligible Crash Time Crash Cost/Week Total Project Cost

n=2 n=3 n=4

 Inputs - Costs, Capacities, Demands (for TelecomOptic)
Demand City Fixed
Production and Transportation Cost per 1000 Units
Supply City Atlanta Boston Chicago Denver Omaha Portland Cost ($)
Baltimore 1,675 400 685 1,630 1,160 2,800 7,650
Cheyenne 1,460 1,940 970 100 495 1,200 3,500
Salt Lake 1,925 2,400 1,425 500 950 800 5,000
Memphis 380 1,355 543 1,045 665 2,321 4,100
Wichita 922 1,646 700 508 311 1,797 2,200
Demand 10 8 14 6 7 11

Decision Variables
Demand City - Production Allocation (1000 Units) Plants
Supply City Atlanta Boston Chicago Denver Omaha Portland (1=open)
Baltimore 1 1 1 1 1 1 1
Cheyenne 1 1 1 1 1 1 1
Salt Lake 1 1 1 1 1 1 1
Memphis 1 1 1 1 1 1 1
Wichita 1 1 1 1 1 1 1

Constraints
Supply City Excess Capacity
Baltimore 12 Total Available Capacity 122
Cheyenne 18
Salt Lake 21
Memphis 16
Wichita 25
Atlanta Boston Chicago Denver Omaha Portland
Unmet Demand

Objective Function
Cost = $ 57,158
 Question 2)
The table presents the production and transportation cost
(variable cost), fixed cost and capacity of five different supply
Capacity cities. A supply chain manager wants to decide on the location
18 and capacity allocation for each facility to minimize the cost
24 based on the following constraints
27 1) No plant can supply more than its capacity.
22 2) Demand at each regional market must be satisfied
3) All decision variables are nonnegative
31
Find the following quetions:
a) Define the constraint 2 according to the following formula
(15 marks)
b) Minimize the cost by running the solver (with Simplex
LP solving method) and save it (25 marks)
c) What is minimum cost after running the solver (10 marks)

Note) Make sure objective, decision variables, and the

constraint are defined before running the Solver. If you recive an
error after running the solver check options (front table)
Input Data (Demand) Input Data (Costs etc.)

Month Routers Item Q3-a-data Q3-b-data

January 1,800 Materials cost/unit
February 1,600 Inventory holding cost/unit/month 3.0
March 2,600 Marginal cost of stockout/unit/month
April 2,500 Hiring and training cost/worker
May 800 Layoff cost/worker
June 1,800 Labor hours required/unit 0.3000 0.2000
July 1,200 Regular time cost/hour 10.0
August 1,400 Over time cost/hour 15.0
September 2,500 Marginal subcontracting cost/unit
October 2,800
November 1,000 Initial Workforce size 6300
December 1,000 Maximum overtime per worker per month 20
Starting inventory ('000s) 100 50
Ending inventory ('000s) 100 50
 Question 3
A company plan to fulfil the forcasted demand for next 12 months with defined conditions.

Q3-a) Without any changes open the Q3-a sheet, run the solver, save it and explain the aggregate planning stra

Q3-b) Change the Labor hours required/unit from 0.3 to 0.2 in Q3-Data sheet, open Q3-b sheet, run solver, sav
explain the aggregate planning strategy

Change 0.3 to 0.2 for Q3-b Running Solver

nditions.

lain the aggregate planning strategy.

open Q3-b sheet, run solver, save it and

 Aggregate Plan Decision Variables (demand, inventory, production
Ht Lt Wt Ot Router Switch Router

Period # Hired # Laid off # Workforce Overtime Inventory Inventory Stockout

0 0 0 6,300 0 100 50 0
1 0 0 6,300 0.0 0.0 898.0 0
2 0 0 6,300 0.0 0.0 2146.0 0
3 0 0 6,300 50333.3 0.0 696.0 0
4 0 0 6,300 126000.0 0.0 0.0 0
5 0 0 6,300 0.0 0.0 0.0 0
6 0 0 6,300 0.0 0.0 0.0 0
7 0 0 6,300 0.0 0.0 1200.0 0
8 0 0 6,300 0.0 0.0 3048.0 0
9 0 0 6,300 0.0 0.0 1596.0 0
10 0 0 6,300 126000.0 0.0 0.0 0
11 0 0 6,300 0.0 0.0 0.0 0
12 0 0 6,300 0.0 100.0 50.0 0

Costs
Period Hiring Lay off Regular time Overtime Inventory Stockout Subcontract
1 0 0 10,080,000 0 0 0 0
2 0 0 10,080,000 0 0 0 0
3 0 0 10,080,000 755,000 0 0 0
4 0 0 10,080,000 1,890,000 0 0 0
5 0 0 10,080,000 0 0 0 0
6 0 0 10,080,000 0 0 0 0
7 0 0 10,080,000 0 0 0 0
8 0 0 10,080,000 0 0 0 0
9 0 0 10,080,000 0 0 0 0
10 0 0 10,080,000 1,890,000 0 0 0
11 0 0 10,080,000 0 0 0 0
12 0 0 10,080,000 0 300,000 0 0

Total cost = $ 125,795,000

(demand, inventory, production in '000s)
Switch Router Router Switch Router Constraints
Switch
Subcontract Router
Stockout Subcontract Production Production Demand
Inventory
0
0 0 0 1700 2648 1,800 0
0 0 0 1600 2848 1,600 0
0 0 0 2600 1150 2,600 0
0 0 0 2500 1804 2,500 0
0 0 0 800 800 800 0
0 0 0 1800 1800 1,800 0
0 0 0 1200 2400 1,200 0
0 0 0 1400 3248 1,400 0
0 0 0 2500 1048 2,500 0
0 0 0 2800 1204 2,800 0
0 0 0 1000 1000 1,000 0
0 0 0 1100 1050 1,000 0

Question3-a)
Answer 3-a)Do not change the Q3 Data, run the solver, save it and explain the aggregate planning strategy (25 m
 Constraints
Switch
Overtime Production
Inventory

0 126000 -31600.0
0 126000 -41600.0
0 75666.666667 48333.3
0 0 23200.0
0 126000 608000.0
0 126000 108000.0
0 126000 168000.0
0 126000 -61600.0
0 126000 48400.0
0 0 53200.0
0 126000 508000.0
0 126000 468000.0

egate planning strategy (25 marks).

 Aggregate Plan Decision Variables (demand, inventory, production
Ht Lt Wt Ot Router Switch Router

Period # Hired # Laid off # Workforce Overtime Inventory Inventory Stockout

0 0 0 6,300 0 100 50 0
1 0 0 6,300 0.0 0.0 898.0 0
2 0 0 6,300 0.0 0.0 2146.0 0
3 0 0 6,300 50333.3 0.0 696.0 0
4 0 0 6,300 126000.0 0.0 0.0 0
5 0 0 6,300 0.0 0.0 0.0 0
6 0 0 6,300 0.0 0.0 0.0 0
7 0 0 6,300 0.0 0.0 1200.0 0
8 0 0 6,300 0.0 0.0 3048.0 0
9 0 0 6,300 0.0 0.0 1596.0 0
10 0 0 6,300 126000.0 0.0 0.0 0
11 0 0 6,300 0.0 0.0 0.0 0
12 0 0 6,300 0.0 100.0 50.0 0

Costs
Period Hiring Lay off Regular time Overtime Inventory Stockout Subcontract
1 0 0 10,080,000 0 0 0 0
2 0 0 10,080,000 0 0 0 0
3 0 0 10,080,000 755,000 0 0 0
4 0 0 10,080,000 1,890,000 0 0 0
5 0 0 10,080,000 0 0 0 0
6 0 0 10,080,000 0 0 0 0
7 0 0 10,080,000 0 0 0 0
8 0 0 10,080,000 0 0 0 0
9 0 0 10,080,000 0 0 0 0
10 0 0 10,080,000 1,890,000 0 0 0
11 0 0 10,080,000 0 0 0 0
12 0 0 10,080,000 0 300,000 0 0

Total cost = $ 125,795,000

(demand, inventory, production in '000s)
Switch Router Router Switch Router Constraints
Switch
Subcontract Router
Stockout Subcontract Production Production Demand
Inventory
0
0 0 0 1700 2648 1,800 0
0 0 0 1600 2848 1,600 0
0 0 0 2600 1150 2,600 0
0 0 0 2500 1804 2,500 0
0 0 0 800 800 800 0
0 0 0 1800 1800 1,800 0
0 0 0 1200 2400 1,200 0
0 0 0 1400 3248 1,400 0
0 0 0 2500 1048 2,500 0
0 0 0 2800 1204 2,800 0
0 0 0 1000 1000 1,000 0
0 0 0 1100 1050 1,000 0

Answer 3-b) Change the Labor hours required/unit from 0.3 to 0.2 in Q3-Data sheet, Open Q3-b sheet, run
solver, save it and and explain the aggregate planning strategy (25 marks)
 Constraints
Switch
Overtime Production
Inventory

0 126000 -31600.0
0 126000 -41600.0
0 75666.666667 48333.3
0 0 23200.0
0 126000 608000.0
0 126000 108000.0
0 126000 168000.0
0 126000 -61600.0
0 126000 48400.0
0 0 53200.0
0 126000 508000.0
0 126000 468000.0

t, Open Q3-b sheet, run