BMGT-434 Introduction to Optimization
Exam 1 Solution Key
Section 0101, Prof. Chen
Problem 1: (25) Formulate the following problem as a linear programming problem. Clearly
state decision variables, objective function, and constraints. Do not solve the res
BMGT-434 Introduction to Optimization
Handout 11 - Shortest Route Algorithm: Hershey Example
Shortest Route Solution Algorithm:
(Finds a shortest route from the origin to each other node in the network)
Step 1: Mark the origin node as a permanent node, an
BMGT-434 Introduction to Optimization
Handout 12 - Minimum Spanning Tree Algorithm: Earth Energy Example
Minimum Spanning Tree Solution Algorithm:
Step 1: Select any starting node as the first node in the spanning tree.
Step 2: Select a node not currently
BMGT-434 Introduction to Optimization
Handout 13 - Maximum Flow Algorithm: Philadelphia Highway Example
Maximum Flow Solution Algorithm:
Step 1: Arbitrarily select any path in the network from origin to destination with a positive flow
capacity. Let the f
BMGT-434 Introduction to Optimization
Handout 5 - IP Formulation Examples: Bluebird, Nancy Smith, N&B
Example 1: Bluebird Airplane Purchasing Problem
Bluebird Airline is considering a major purchase of new Boeing model 757 and 767 jets. The
decision must
Terminology related to solutions of LP models
(1) Solution any specification of values for the decision variables
(2) Feasible solution a solution that satisfies all the model constraints
(3) Infeasible solution a solution that violates at least one co
BMGT 434, Solutions to Assignment 4
3-16) We formulate the following LP:
6
The slope of this line is 7 . Increasing the
cost of operating mill 1 to $7500 would
75
change the slope to 70 , which is outside
the range [1,0]. The optimal solution will
move to
BMGT-434 Introduction to Optimization
Handout 5- LP Formulation Examples: Beaver Creek Pottery, Farmer Bill
Example 1: Beaver Creek Pottery (BCP) Product Mix Problem
BCP Company produces clay bowls and mugs with authentic native American designs and
color
BMGT-434 Introduction to Optimization
Handout 2 - LP Formulation Examples: Leisure Furniture, Jims Operator Scheduling
Example 1: Leisure Furniture Production Planning Problem
Leisure Furniture, Inc. (LFI) makes four types of outdoor furniture: chairs, ta
BMGT-434 Introduction to Optimization
Practice Exam 1 - LP (Chapters 1-4)
Section 0101, Prof. Chen
Problem 1: (30) The Island Publishing Company publishes two types of magazines on a
monthly basis, a restaurant and entertainment guide and a real estate gu
BMGT-434 Introduction to Optimization
Section 0101, Prof. Chen
Practice Exam 2 IP, Transportation/Assignment/Transshipment, Three Network Problems
Problem 1: (25) Formulate the following problem into an integer programming problem.
Clearly write down deci
BMGT-434 Introduction to Optimization
Section 0101, Prof. Chen
Exam 2 IP, Transportation/Assignment/Transshipment, Three Network Problems
11/19/08
Problem 1: (25) Formulate the following problem into an integer programming problem.
Clearly write down deci
BMGT-434 Introduction to Optimization
Practice Exam 2 - IP, Transportation/Assignment/Transshipment
Section 0101, Prof. Chen
Problem 1: (25) Formulate the following problem into an integer programming problem.
Clearly write down decision variables, object
Answers
Problem 1:
(1.1) Decision variables:
x1 = number of copies of restaurant and entertainment guide
x2 = number of copies of real estate guide
LP formulation:
Maximize Z = 0.4x] + 0.8x2 (total revenue)
S.t.
0.1x] + 0.3x; S 1,500 (printing budget) 0 )
BMGT-434 Introduction to Optimization
Handout 17 - NLP Formulation Examples
Example 1: The NB Brewery produces beer. The annual fixed cost is $150,000, and variable
cost per barrel is $12. The market demand D for NBs beer is a function of the price p per