Assignment 1

APL limited has a factory in Thana where they produce 5 different types of products. The
demand for the products in the month of December is estimated as,

Products P1 P2 P3 P4 P5
Demand 100 120 140 170 210

Each of the products requires certain components, which are purchased from 4 different
vendors. Rest is produced and fitted/assembled in the factory. The following table shows
the components required for each of the products.

Compon C1 C2 C3 C4 C5 C6 C7 C8
ents
P1 4 10 8 5 - - 6 12
P2 8 20 12 7 4 4 8 7
P3 6 8 10 - 8 6 10 -
P4 8 10 4 10 8 8 - 14
P5 6 8 14 10 - 5 5 -

The prices charged in thousands of rupees, by different vendors, are different due to the
different SKUs they offer. This is shown in the following table:

C1 C2 C3 C4 C5 C6 C7 C8
Vendo Siz Pric Siz Pric Siz Pric Siz Pric Siz Pric Siz Pric Siz Pric Siz Pric
rs e e e e e e e e e e e e e e e e
V1 10 1 10 2.5 15 2.9 20 5.2 10 3.5 15 4.2 20 4 10 6
0 0 0 0 5 0 0 5 0 0
V2 25 2.2 15 3.5 10 2 25 6.5 20 6.5 20 2.8 50 9.5 25 14.
0 0 0 0 0 0 0 0 0 5
V3 15 1.4 20 4.8 20 3.8 10 2.7 15 5 10 3 40 7.7 40 23
0 0 0 0 0 5 0 0 0 5 0
V4 20 1.9 40 9.5 50 9.5 40 10 40 12 50 12 25 4.8 50 21
0 0 0 0 0 0 0 0 0

The cost of carrying the inventory in rupees per month per unit is given below:

C1 C2 C3 C4 C5 C6 C7 C8
0.25 0.15 0.35 0.30 0.20 0.40 0.20 0.55

The following table shows the minimum order level in rupees, as stipulated by each
vendor.

V3 V1 V2 V4
2 Lakhs 4 Lakhs 3.5 Lakhs 2.5 Lakhs

Work out the model and use LINDO/Solver to obtain the optimum solution. Write a
comprehensive report and submit.

Solution:
The solution in provided in the excel sheet
 Compone
nts C1 C2 C3 C4 C5 C6 C7 C8
P1 4 10 8 5 0 0 6 12
P2 8 20 12 7 4 4 8 7
P3 6 8 10 0 8 6 10 0
P4 8 10 4 10 8 8 0 14
P5 6 8 14 10 0 5 5 0

C1 C2 C3 C4 C5 C6 C7 C8
Vendo Siz Pric Siz Pric Siz Pric Siz Pric Siz Pric Siz Pric Siz Pric Siz Pric
rs e e e e e e e e e e e e e e e e
10 10 15 20 5.2 10 15 4.2 20 10
V1 0 1 0 2.5 0 2.9 0 5 0 3.5 0 5 0 4 0 6
25 15 10 25 20 20 50 25 14.
V2 0 2.2 0 3.5 0 2 0 6.5 0 6.5 0 2.8 0 9.5 0 5
15 20 20 10 2.7 15 10 40 7.7 40
V3 0 1.4 0 4.8 0 3.8 0 5 0 5 0 3 0 5 0 23
20 40 50 40 40 50 25 50
V4 0 1.9 0 9.5 0 9.5 0 10 0 12 0 12 0 4.8 0 21

C1 C2 C3 C4 C5 C6 C7 C8
4820 7900 7260 5140 2960 3730 4010 4420
V1 106.2
49 197.5 142.1 136.5 105 5 84 270
V2 44 185.5 146 136.5 97.5 53.2 85.5 261
V3 46.2 192 140.6 143 100 114 85.25 276
V4 47.5 190 142.5 130 96 96 81.6 189

excess
V1
INV 80 0 90 60 40 20 190 80
V2 180 50 40 110 40 70 490 80
V3 130 100 140 60 40 70 390 380
V4 180 100 240 60 240 270 240 80
C1 C2 C3 C4 C5 C6 C7 C8

0 0 0 0 1 0 0 0.35185 200 V1
2
0 0 0.91228 1 0 0 1 0.17167 400 V2
1 4
0 0 0 0 0 1 0 0.85507 350 V3
2
1 1 0.08771 0 0 0 0 0 250 V4
9

1 1 1 1 1 1 1 1.37859
9
0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.13786

The total cost of the process is 1648.886

Assignment 2

CIPLA LTD. an Indian giant in Pharmaceuticals has manufacturing plants at

Mumbai Central and Vikroli in Mumbai, Patalganga in Raigad District of
Maharashtra, Goa, Bangalore, Kurkumbh, Baddi in Himachal Pradesh.

The following table shows the Haematinic Preparations (Capsules, Syrup

and Chewable Tablets) produced by the factories at different locations and
the requirements by different major wholesale stockiest in different
locations, in tones. The table also consists of the transportation cost to
different locations in terms of Rupees per tone.

Del Mumb Kolcut Chen Indor Ahme Bangal Chan Pro

hi ai ta nai e da uru di d.
bad garh
Vikroli 10 25 200 175 85 75 90 125 100
0
Patal- 12 45 250 150 65 65 80 165 200
Ganga 5
Goa 17 110 210 140 110 135 60 145 250
5
Banga- 20 140 240 100 140 165 20 180 300
lore 0
Kur- 90 150 140 175 35 70 140 150 300
kumbh
Baddi 12 140 150 170 130 130 210 80 200
0
Requirem 10 180 90 110 120 175 225 185
ent 0

a) Work out the model; use LINDO/Solver to get the optimum Solution.

Ahme Chan Dum

Del Mumb Kolcut Chenn Indor Bangalu Pro
da di my
hi ai ta ai e
bad
ru
garh
d.
 10
0 100 0 0 0 0 0 0 0 100 0
20
0 30 0 0 0 170 0 0 0 200 0
25
0 50 0 0 0 0 35 0 165 250 0
30
0 0 0 110 0 0 190 0 0 300 0
30
100 0 75 0 120 5 0 0 0 300 0
20
0 0 15 0 0 0 0 185 0 200 0
100 180 90 110 120 175 225 185 165 0
100 180 90 110 120 175 225 185 165

The solver answer is 78400

b) Now the wholesaler in Mumbai would like to have 120 tones more, if
available while the stockiest from Indore does not mind purchasing
anything and everything over and above his prescribed requirement.
Modify the model as written in (a) and use LINDO to get the optimum
solution.

Ahme Chan Dum

Mumb Kolcut Chenn Bangalu
Delhi Indore da di my Prod.
ai ta ai ru
bad garh
0 100 0 0 0 0 0 0 0 100 100
0 30 0 0 0 170 0 0 0 200 200
0 170 0 0 0 0 35 0 45 250 250
0 0 0 110 0 0 190 0 0 300 300
100 0 75 0 120 5 0 0 0 300 300
0 0 15 0 0 0 0 185 0 200 200
100 300 90 110 120 175 225 185 45 0

The solver answer is 91600

 Assignment 3

1. The Lockbox Problem: Consider a national firm that receives checks from all over the
United States. Due to the vagaries of the U.S. Postal Service, as well as the banking
system, there is a variable delay from when the check is postmarked (and hence the
customer has met her obligation) and when the check clears (and when the firm can
use the money). For instance, a check mailed in Pittsburgh sent to a Pittsburgh address
might clear in just two days. A similar check sent to Los Angeles might take eight
days to clear. It is in the firm's interest to have the check clear as quickly as possible
since then the firm can use the money. In order to speed up this clearing, firms open
offices (called lockboxes) in different cities to handle the checks.
For example, suppose we receive payments from four regions (West, Midwest, East,
and South). The average daily value from each region is as follows: $70,000 from the
West, $50,000 from the Midwest, $60,000 from the East, and $40,000 from the South.
We are considering opening lockboxes in L.A., Chicago, New York, and/or Atlanta.
Operating a lockbox costs $50,000 per year. Assume rate of investment as 20%. The
average days from mailing to clearing is given in the table. Which lockboxes should
we open?
Clearing Times:
From L.A. Chicago New York Atlanta
West 2 6 8 8
Midwest 6 2 5 5
East 8 5 2 5
South 8 5 5 2
 Initial Cost
L. Chicag
From A. o New York Atlanta
7000
West 2 6 8 8 0
Midwe 5000
st 6 2 5 5 0
6000
East 8 5 2 5 0
4000
South 8 5 5 2 0

Then we will find the least cost matrix which is the opportunity cost
due to loss in sale because of the delay in the transfer of cheque
from the source to the destination.
R(I,j)=20%*days*the region daily tansaction

Least cost matrix

Chica New Atlant
From L.A. go York a
280 1120
West 00 84000 112000 00 70000
Midwes 600 5000
t 00 20000 50000 0 50000
960 6000
East 00 60000 24000 0 60000
640 1600
South 00 40000 40000 0 40000

Then we will proceed with the assignment which will give the overall
least cost

Assignment
L. Chicag Atlant
From A. o New York a
West 1 0 0 0 1
Midwe
st 0 0 1 0 1
East 0 0 1 0 1
South 0 0 1 0 1
1 0 3 0
1 0 1 0

24200
0

Ans: We will open locker in Los. Angeles and New York.

 2. Consider the following location problem: A city is reviewing the location of its fire
stations. The city is made up of a number of neighborhoods, as illustrated in the next
Figure.

A fire station can be placed in any neighborhood. It is able to handle the fires for both its
neighborhood and any adjacent neighborhood (any neighborhood with a non-zero border with
its home neighborhood). Find minimum the number of fire stations to be used and their
regions.
Boundar Adjacent Firestation
y Boundary required
1 3 3 6
2 3 4 7
3 5 3 8
4 4 4 8
5 5 5 10
6 6 4 10
7 3 5 8
8 5 4 9
9 4 4 8
10 3 3 6
 11 2 2 4

3. Suppose you have 7 full wine bottles, 7 half-full and 7 empty. You would like to
distribute the 21 bottles among 3 individuals so that each will receive exactly 7.
Additionally each individual must receive the same quantity of wine.

1 0.5 0
X1 1 5 1 7 3.5
X2 3 1 3 7 3.5
X3 3 1 3 7 3.5
7 7 7

4. An eccentric Sheikh left a will to distribute a herd of camels among his three children:
Tarek receives at least one-half of the herd, Sharif gets at least one-third of the herd
and Maisa gets at least one ninth. The remainder goes to charity. The will does not
specify the size of the heard, to say that it is an odd number of camels and that the
named charity receives exactly one camel.

5. Serendipity:
(The word Serendipity was coined by the English writer Horace Walpole the fairy tale
The Three Princes of Serendip).
The three princes of Serendip
Went on a little trip
They could not carry too much weight
More than 300 pounds made them hesitate
They planned to the ounce. When they returned to Ceylon
They discovered that their supplies were just about gone
When, what to their joy, Prince William found
A pile of coconuts on the ground.
Each will bring 60 rupees said Prince Richard with a grin.
As he almost tipped over a lion skin.
Look Out! cried Prince Robert with glee.
As he spied some more lion skins under a tree.
These are worth even more 300 rupees each.
If we can just carry them all down to the beach
Each skin weighed fifteen pounds and each coconut five,
But they carried them all and made it alive.
The boat back to the island was very small
15 cubic feet baggage capacity-that was all.
Each lion skin took up one cubic foot.
While eight coconuts the same space they took.
With everything stowed they headed to sea
And on the way calculated what their new wealth might be.
Eureka! cried Prince Robert, Our worth is so great.
That theres no other way we could return in this state.
Any other skin or nut that we might have brought
Would now have us poorer. And now I know what-
Ill write my friend Horace in England, for surely
Only he can appreciate our serendipity.

Formulate the above problem as a linear programming problem and give the
solution.