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Assignment-II Group

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AMANUEL MENGISTU
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7 views

Assignment-II Group

Uploaded by

AMANUEL MENGISTU
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MEKDELA AMABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS


DEPARTMENT OF MANAGEMENT
Operations Research (MGMT-3132):
Group assignment-I (will be weighted for 25%)
Submission Date: On final Exam Date.
Instructions:
 Attempt all the questions given.
 Show all the necessary steps with narrative explanations when required.
 Members should not exceed 6 in a group.
 Neatness has great value and good hand writing will yield the most advantage.
 Copying from others will result a high penalty!
Answer the following questions (5 points each)
[1] Omedad Furniture plc. is a firm that has production operation in Addis Ababa, Hawassa and
Mekele. Production capacities for these plants over the next 3 months planning period for
one particular type of furniture product are as follows.
Origin Plant Three-month production capacity
(Units)
1 Addis Ababa 5000
2 Hawassa 6000
3 Mekele 2500
13,500
Total
Suppose that the firm distributes its Furniture products through four regional distribution centers
located in Aksum, Dessie, Bahir-Dar, and Gonder and that the 3-month forecast of demand for
the distribution centers is as follows.
Destinatio Distribution centers 3-month Demand forecast (Units)
n
1 Aksum 6000
2 Dessie 4000
3 Bahir-Dar 2000
4 Gonder 1500
13,500
Total
Management would like to determine how much of its production should be shipped from each
plant to each distribution center with identical production costs at the three plants; the only
variable costs involved are transportation costs. unit transportation cost from each plant to each
destination is given below.
Destination
Origin Aksum Dessie Bahir-Dar Gonder
Addis Ababa 3 2 7 6
Hawassa 7 5 2 3
Mekele 2 5 4 5
A. Construct the transportation table and Formulate this problem as linear programming
model (2 pts)
B. Based on the given data help the management of this company to find the initial feasible
solution by using NWCM, LCM, VAM? (3 pts)
C. Find the optimal allocation of units and determine the minimum transportation cost. (3
pts)
[2] Mekdela Amba University has called contractors for a bidding competition and Four building
companies have presented their projects to a competition to build buildings A, B, C and D.
Each contractor must be assigned the construction of a building. The following tableau shows
the time each contractor needs to build each of the buildings. The objective is to assign the
construction of a building to each contractor so that the total building time is minimized.
Contractors

A) formulate the problem as a linear programming Model (2 pts)


B) Find the optimal assignment so that the total time required to complete all the buildings will
be minimized. (3 pts)
[3] Bank of Abyssinia is considering three options for managing its data processing operation:
continuing with its own staff, hiring an outside vendor to do the managing (referred to as
outsourcing), or using a combination of its own staff and an outside vendor. The cost of the
operation depends on future demand or customers. The annual cost of each option (in
thousands of Birr) depends on demand as follows:

1. If the decision maker knows nothing about the probabilities of the three states of nature, what
is the recommended decision using the: (5 pts)
A. Optimistic
B. Conservative
C. Criteria of realism if the coefficient of optimism is 0.4.
D. Equally likely criteria
E. minimax regret approaches
2. If the demand probabilities are 0.2, 0.5, and 0.3 from high to low respectively, which decision
alternative will minimize the expected cost of the data processing operation using: (2 pts)
A. Expected monetary value
B. Expected opportunity loss
C. Expected value of perfect information

[4] A management department head at Mekdela Amba university has six instructors to be
assigned to six different courses. All instructors are skilled and capable of teaching all courses,
but each instructor is not equally efficient on each course. The table below shows the time (in
hours) it takes an instructor to complete a course with in six weeks teaching period. The
department head wants to know the appropriate assignment of course to instructors so that the
time it takes to taught the different courses will be minimized.
Average number of hours required to complete course
Courses
Instructors Operation Strategic Material Financial System Introduction
research management management management analysis to
(OR) (SM) (MM) (FM) (SA) management
(IM)
Amanuel (AM) 13 22 19 21 16 20
Solomon (SH) 18 17 24 18 22 27
Denekew (DG) 20 22 23 24 17 31
Yeshiwas (YA) 14 19 13 30 23 22
Misrak (MN) 21 14 17 25 15 23
Addisu (AD) 17 23 18 20 16 24
A) formulate the problem as a linear programming Model (2 pts)
B) Find the optimal assignment so that the total time required to teach all the courses will be
minimized and determine the minimum time (hours) on the optimal assignment (3 pts) Use
the Hungarian method.

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