OPIM101 Decision Analysis Homework Assignments

Students are to form groups of 2-3 students for these homework assignments.
Each group must submit 1 report for each homework assignment. Reports must be in MS Word format.
(You should cut & paste all your tables, decision trees etc. into the MS Word as one document)
Please submit the reports into the respective drop boxes provided in eLearn before the respective stipulated
deadlines.
Each assignment will have a total of 100 marks and late submissions will receive zero marks.
Note: Unless otherwise stated, all the chapters indicated below are from the main textbook by
Anderson/Sweeney/Williams/Martin, 13th Edition.
Homework 1 Linear Programming
1)

Chapter 10 Problem No. 9

(10 marks)

2)

Chapter 3 Problem No. 3

(20 marks)

3)

Chapter 3 Problem No. 11

(10 marks)

Note: Additional part d) for this question. If CS reduces to 4.5 and CM increases to 4, will the optimal solution
change?
4)

Chapter 3 Case Problem 1. Product Mix

(30 marks)

5)

Chapter 4 Case Problem 4. Workforce Scheduling

(30 marks)

Deadline: 5pm on Friday, 18 September 2015

Homework 2 Network Models and Integer LP

1)

Chapter 6 Problem No. 7. Solve this problem using LP.

(15 marks)

2)

Chapter 6 Problem No. 33. Solve this problem using LP.

(15 marks)

3)

Chapter 7 Problem No. 11

(20 marks)

4)

Chapter 7 Case Problem 1. Textbook Publishing

(30 marks)

5)

(Ragsdale 7th Ed, Ch6, P27) The Mega-Bucks Corporation is planning its production schedule for the next
four weeks and is forecasting the following demand for compound X - a key raw material used in its
production process:
Forecasted Demand of Compound X
Week
Demand

400 lbs.

150 lbs.

200 lbs.

350 lbs.

The company currently has no compound X on hand. The supplier of this product delivers only in batch
sizes that are multiples of 100 pounds (0, 100, 200, 300, and so on). The price of this material is $125 per
100 pounds. Deliveries can be arranged weekly, but there is a delivery charge of $50. Mega-Bucks

estimate that it costs $15 for each 100 pounds of compound X held in inventory from one week to the
next. Assuming Mega-Bucks does not want more than 50 pounds of compound X in inventory at the end
of week 4, how much should it order each week so that the demand for this product will be met in the
least costly manner?
a) Formulate an ILP model for this problem.
b) Create a spreadsheet model for this problem, and solve it using Solver.
c) What is the optimal solution?
(20 marks)
Deadline: 5pm on Friday, 23 October 2015

Homework 3 Project Management and Decision Analysis

1)

Chapter 9 Problem No.7

(15 marks)

2)

Chapter 9 Problem No. 20

(20 marks)

3)

Chapter 13 Problem No. 9.

(15 marks)

4)

(Ragsdale 7th Ed, Ch14, P6) A car dealer is offering the following three two-year leasing options:
Plan

Fixed Monthly Payment

Additional Cost Per Mile

$200

$0.095 per mile

II

$300

$0.061 for the first 6,000 miles

$0.050 per mile thereafter

III

$170

Free for the first 6,000 miles

$0.140 per mile thereafter

Assume a customer expects to drive between 15,000 to 35,000 miles during the next two years
according to the following probability distribution:
P(driving 15,000 miles) = 0.1, P(driving 20,000 miles) = 0.2, P(driving 25,000 miles) = 0.2,
P(driving 30,000 miles) = 0.3, P(driving 35,000 miles) = 0.2
a)
b)
c)
d)
e)

5)

Construct a payoff matrix for this problem.

What decision should be made according to the optimistic decision rule?
What decision should be made according to the conservative decision rule?
What decision should be made according to the minimax regret decision rule?
What decision should be made based on the Expected Value?
(20 marks)

Chapter 13 Problem No. 24

Deadline: 5pm on Wed, 11 November 2015

(30 marks)