{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

cee191-fa04-mt-Madanat-exam

cee191-fa04-mt-Madanat-exam - avoid fluctuation of the...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CE152: Civil and Environmental Engineering Systems Analysis Midterm Prof. Madanat and Sengupta Fall 04 Problem 1 (6 points) A standard problem in logistics is to determine the optimal size of shipments (i.e., the number of items) to ship from a warehouse to a retailer, assuming constant demand. The manager seeks the shipment size that provides the best tradeoff between the inventory (or holding) cost and the transport (or movement) cost. The inventory cost (in $) is given by: C i = AV where A is a variable cost per item in inventory, and V is the shipment size. The transport cost (in $) is given by: C t = B/V where B is a fixed cost. Solve for the optimal shipment size. Problem 2 (6 points) As production manager of a factory your task is to determine the monthly production quantity for the next T months. The inventory I t at the end of month t is: I t = I t - 1 + P t - 1 - d t - 1 , t = 1 , . . . , T where P t is the monthly production quantity and d t the monthly demand forecast. Your aim is to
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: avoid fluctuation of the production quantity from month to month. This avoids labor shortages or under-utilization. Thus the production plan should minimize the cost function: c inv T X t =1 I t + c prod T-1 X t =0 ± ± P t +1-P t ± ± Formulate the production planning problem as a linear program. Include all reasonable constraints in your formulation. Do not include unnecessary constraints. Your factory is unable to hold more than K units of inventory at the end of a given month. Make sure you state the meaning of any additional variables you introduce. 1 CE152 Midterm 2 Problem 3 (8 points) Derive an optimal solution to the following linear program: min X 1 ,X 2 ,Y 1 ,Y 2 2( X 1 + X 2 ) subject to Y 1 = X 1-2 X 1 + Y 2 = X 2 + 3 X 1 ≥ X 2 ≥ Y 1 ≥ Y 2 ≥ Graphical or analytical derivations are acceptable....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern