Supply Chain Modeling & Optimization
OM 337, Spring 2016
Individual Homework 2 (IHW2) Solutions
Problem 1
(i) Notation:
Q = Quantity of paper ordered per replenishment
S = (Fixed) cost per order = (50 + 30) $ per order
c(Q) = Purchase cost per unit when o

IHW2, Problem 1: Purchasing paper
Data
Ordering cost
Receiving cost
Unit storage cost per unit per year
Holding cost rate
Monthly demand
All units discount schedule
No. of reams
0
300
450
No. of months per year
Model Inputs
Per Order cost S
Holding cost h

Supply Chain Modeling & Optimization
OM 337, Spring 2016
Individual Homework 4 (IHW4) Solutions
Problem 1
(a) Problem formulation
Decision variables:
x = No. of Type 1 trucks produced per day
y = No. of Type 2 trucks produced per day
Objective: Maximize d

1) Find the optimal March shipment schedule and its total transportation cost for each of the
following:
a. Cotton, the optimal cost is 15,400
b. Polyester, the optimal cost is 38,200
c. Silk, the optimal cost is 7,900
2) The company will be opening a sil

Supply Chain Modeling & Optimization
OM 337, Spring 2016
Individual Homework 3 (IHW3)
Due on February 10, 2016
Please submit your answer and supporting Excel spreadsheets via Canvas (following the
instructions provided in IHW2). Be sure to format and docu

46.
During each four-hour period, the Smalltown police force requires the following
number of on-duty police officers: eight from midnight to 4 A.M.; seven from4 A.M. to 8 A.M.; six
from 8 A.M. to noon; six from noon to 4 P.M.; five from 4 P.M. to 8 P.M.;

Huyen Tran HW6
56. Nash Auto has two plants, two warehouses, and three customers. The plants are in
Detroit and Atlanta, the warehouses are in Denver and New York, and the customers are
in Los Angeles, Chicago, and Philadelphia. Cars are produced at plant

Huyen Tran- HW7
27) How hard is it to expand a set-covering model to ac- commodate new cities? Answer
this by modifying the model in Figure 6.21. (See the file Locating Hubs 2.xlsx.) Add
several cities that must be served: Memphis, Dallas, Tucson, Philade

Data for small business enterprise
Demand
Order prep cost
Order proc. Charge
Holding Cost
Interest Rate
No. of months/year
No. of weeks/year
80
50
30
1.2
20%
12
52
Inputs
Unit Cost c
Demand rate D
Per-Order Costs S
Holding cost rate h
9.9
960
80
3.18
Deci

Supply Chain Modeling & Optimization
OM 337, Spring 2016
Individual Homework 3 (IHW3) Solutions
Problem 1
1(a)
(i) Two-way table of Profit (with an order quantity of 2,000 books) as a function of left-over price (along
rows) and actual demand (along colum

OM 337.2
Supply Chain Modeling & Optimization
Spring 2015
Session 03
Spreadsheet Models 2
Agenda
Recap: Illustration of modeling process: MegaPix
Camera Economic Order Quantity (EOQ) model
Framing the problem: given data (inputs), assumptions,
required

OM 337.2
Supply Chain Modeling & Optimization
Spring 2015
Session 02
Intro to Modeling
Spreadsheet Models 1
Agenda
Recap from last class
Models are important for effective supply chain
management. They can provide managerial insight,
support decisions,

Sam's Bookstore: Ordering decision with quantity discounts
Inputs
Unit cost - see table to right
Regular price p
Leftover price (salvage) s
$30
$10
Decision variable
Order quantity Q
2000
Uncertain quantity
Actual Demand d
2000
Profit model
Units sold at

Data for MegaPix Camera example
Demand
Camera purchase cost
Machey order prep cost
Vendor order proc. charge
Insurance cost
Interest rate
No. of months/year
No. of weeks/year
1200
100
22
103
4
9%
12
52
units/year
$/unit
$/order
$/order
$/unit/month
INPUTS

A
1
B
C
D
E
F
G
100000
125000
150000
100000
125000
150000
H
I
Quality Sweaters direct mail model
2
3
Input data
Fixed cost of printing F
Variable printing cost c
6 Catalog mailing cost m
7 Return envelope cost e
8 Average order size q
9 Contribution margi

OM 337.2
Supply Chain Modeling & Optimization
Spring 2016
Session 06
Linear Programs:
Formulation
Graphical Solution method
Sensitivity Analysis (What-if)
Using Excel Solver
Optimization Model Ingredients
Optimization problem: Determine values of dec

A
1
B
C
D
E
F
G
Sam's Bookstore: Ordering decision with quantity discounts
2
5
6
Inputs
Unit cost - see table to right
Regular price p
leftover price (salvage) s
7
8
Decision variable
3
4
9 Order quantity Q
10 Unit cost after qty discount c
11 Uncertain q

A
1
B
C
D
E
F
G
H
Sam's Bookstore: Ordering decision with quantity discounts
2
5
6
Inputs
Unit cost - see table to right
Regular price p
leftover price (salvage) s
7
8
Decision variable
3
4
9 Order quantity Q
10 Unit cost after qty discount c
2000
22.25
1

OM 337.2
Supply Chain Modeling & Optimization
Spring 2016
Session 05
Introduction to OPTIMIZATION with Constraints
Agenda
Intro to Optimization with Constraints
What is it, where is it used, why is it important?
Compare/contrast with examples discussed

OM 337.2, Spring 2016
Sytech Case
Group Homework 1 (GHW1)
Due on: Monday, Feb. 29 @ 8 a.m.
Read the attached Sytech Case carefully, and prepare a write-up (one per group of up to 4
students) to address the following questions. Submit your answers and spre

Data for Copy Shop
Fixed Costs F
Variable Equipment Cost c
Variable Printing Costs o
Days/year
months/year
Capacity
Inputs
Regular Price p
Decision Variable
Order Quantity
Daily Capacity
Uncertain Quantity
Actual Demand d
Profit Model
Units sold at regula

Andrew Vo AV23822
OM 337
February 3, 3016
IHW 2
Problem 1:
(i)
TC = (SD/Q) + [h*(Q/2)] + (cD)
TC = Total Annual Cost
S = Per-Order Cost
D = Demand rate
Q = Quantity Ordered
h = Holding cost rate
c = Cost per Unit
(ii)
Data for small business
enterprise
De

Supply Chain Modeling & Optimization
OM 337, Spring 2016
Individual Homework 4 (IHW4)
Due on February 17, 2016
For Problems 1 and 2, use the graphical method (not Excel solver) to address (and justify your
answers to) the questions. Calculate the needed v

OM 337, SC Modeling & Optimization
Spring 2016
Modeling Optimization Problems: Framework for Managerial Problem Definition
and Mathematical Formulation
Modeling optimization (and other) problems first requires framing a Managerial Problem Definition
and t

A
1
2
3
4
5
6
7
8
9
B
C
D
E
F
INPUTS
Full-time pay $/day
Part-time pay $/day
Number of machines
Checks/machine/hour
Min full-time workers
I
J
K
13
500
3
Hour
11
Checks received
10 am 11 am
5000
11 am Noon
4000
10 am 6 pm
11 am 7 pm
Noon 1 pm
3000
1 pm 2 p

Supply Chain Modeling & Optimization
OM 337, Spring 2016
Individual Homework 6 (IHW6)
Due on March 9 by 8 a.m.
Problem 1:
Every day, Swift Bank receives checks each hour from 10 a.m. to 7 p.m. The following table shows the
number of checks received each h

AudioTech
INPUTS
Initial cash
Initial employees
Monthly machine capacity
Monthly worker capacity
Unit holding cost
Cost of buying a machine
Raw material cost per unit
Monthly worker wage
Hiring cost per worker
Firing cost per worker
Ad cost to increase de

Sytech International
*
Sytech International is a leading manufacturer of computers and peripheral equipment.
Established in 1951, Sytech entered the market with an innovative operating system for its large
mainframe computers. Recognizing that user-friend