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# Lec 6 - IEOR 151 Lecture Notes Monday 9/20 Team 6...

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Unformatted text preview: IEOR 151 Lecture Notes Monday 9/20 Team 6 Sarah Higgins, Majid Khan, Antoni Muhawi, Bryan Shieh Class Logistics  ­ Homework #2 posted online – to be turned in next week  ­ If office hours are inconvenient for any students, contact professor directly  ­ We start going over cases in two weeks from today o Each team has 15 minutes to present o Teams should teach the case and not just read it o Class participation is encouraged during cases o Teams should send professor PPT slides a few days before their presentation  ­ Not all labs will be connected or related to the lectures, so students should think of the lab series as its own lecture series Ocean World Theme Park Design Example  ­ Summary: 6 attractions, want to design layout to minimize total weighted flow of traffic, specific flows are displayed in total flow matrix  ­ Total flow matrix:  ­  ­ A B C D E A / B 15 / C 30 12 / E 15 10 8 30 / F 6 8 8 6 10 Objective function takes into account only attractions that are not on the same block. So those attraction’s distances are weighted by 2, while all attractions within a single block of each other are not taken into account (or weighted by 0). Objective function example: A B C D D 0 40 20 / E F AC: 30 x 2 = 60 AF: 6 x 2 = 12 DC: 20 x 2 = 40 DF: 6 x 2 = 12 . 124 o We look at the components and try to make the largest value better. In this case we see that AC = 60 and so we put C on top of A to make it closer and reduce that large value. C A D B E F  ­ New objective function: CF: 8 x 2 = 16 CE: 8 x 2 = 16 CD: 20 x 2 = 40 AF: 6 x 2 = 12 DF: 6 x 2 = 12 . 96  ­ Here we note that route CD is very costly, so we switch A and C. A C B D E F  ­ New objective function: AF: 12 CF: 16 DA: 0 DF: 12 AE: 30 . 70  ­ What is the optimal solution? o Professor proposes : with a value of 52 A F D E C B o Credit will be given if you turn in your optimal solution Locating Your Service Provider  ­ Model using an objective function: max profit, or max utilization, or max traffic flow, ... etc.  ­ Locating a hospital: with 3 cities having possible clients – A, B, C o Demand relations are: B < A ~ C where A and C have approximately the same demand amount but A is more elder population and C is more kids and families o The cities layout is A  ­ ­ ­ ­ ­ B  ­ ­ ­ ­ ­ C ; described as equal distances from each other  ­ Before we pick a location for our hospital, what information is needed? o Rent/prices in certain areas o Demand from certain areas (however demand forecasting is always the most challenging thing to do in these models AND it is always wrong!)  ­ Another example: day care in Berkeley o How to figure out a demand forecast?  ­  ­ Steps in the estimation of demand: o Define the target market o Select a unit of area o estimate the demand for the units using tools Example for dare care: o Break up the region in sub ­regions, numbered 1 ­7. This is done since a larger region is harder to estimate o Estimated Demand = Σ Yi*Fi*Ai for i = 1... N Ai = average # of kids in area i measured by kids < 5 years old per family Fi = # of families in area i Yi = percentage of AFDC (Aid to Families with Dependent Children) – this is a published figure ...
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