Linear programming - EN 2022
Linear programming - EN 2022
Linear programming
Two recent graduates at UEH decided to open a ceramic tile kiln after seeing, learning
and being inspired by business trip. The foundation of DuoCera Brick was born, with the
first kiln being opened in Dong Nai, a location deemed with easy access to clay sources,
various vehicles at many sizes and equipments to facilitate production. Although the
steps to create the finished product are simple and easy to understand, they require
thoughtfulness and care in production – including cutting, firing, and glazing.
The two of you decided to manufacture two products of glazed tiles commonly used in
bathrooms and laundry rooms – small and colorful tiles called Mosaic. There are 2 types
of Mosaic: large type - 1 color and small type - multicolor. Both types of bricks are
produced once in batches of 100 bricks. Each large batch of bricks needs 18 minutes to
make and cut the mold, while the small bricks only need 15 minutes for 1 batch. DuoCera
has 60 hours/week available for cutting. After separating the brick from the mold, the
next step is firing the brick. Each large batch of bricks requires 0.27 hours and the small
batch needs 0.58 hours - 105 hours per week. After the brick is fired, the brick will be
covered with enamel to preserve the surface. Each batch of large bricks requires 0.16
hours to glaze while the small ones only need 0.20 hours - the company will work 40
hours per week for the glaze process.
In terms of raw materials, each batch of large bricks requires 32.8 kg of clay and 20 kg
for a small batch of bricks - each week there are 6 tons of clay to be processed.
Each batch of large bricks is sold for VND 4,700,000, and each batch of small bricks is
sold for VND 5,900,000. DuoCera needs to know how many bricks to produce to fit the
plan.
1. Set up an algebraic model - which clearly states the Solution, Problem Objective, and
Constraints.
2. Solve with SOLVER
4. Conclusion
5. Sensitivity analysis – what is the Shadow Price of this problem?
6. DuoCera sees small bricks selling well and doing well so they are trying to produce
only small bricks. So under what conditions should DuoCera produce ONLY SMALL
Brick?
7. Because of some technical issues, the brick kiln had to be cut down by 3 hours/week –
that is, only 37 hours a week instead of 40 hours like the original. So has DuoCera's
production plan changed?
2. Decision making
DuoCera plans to launch a small batch of Mosaic bricks with beautiful colors on the
market for VND 5,900,000. The production of this type of brick is being done in Dong
Nai with a fixed cost to open a brick kiln of about 300,000,000 VND. In addition, this
batch of bricks can be processed at the joint factory in Vinh Long with a fixed cost of
only 120,000,000 VND/month. According to the growth report of the ceramic tile
industry in 2022, the Strong growth rate for the ceramic tile industry is about 62% - ie
DuoCera is expected to be able to sell with 1 year sales of about 6000 bricks, while if the
ceramic tile industry going slow, DuoCera at average can only sell about 3000 lots of
bricks and called it Moderate growth. The production cost of bricks is calculated as
below:
Strong market growth Moderate market growth
Đồng Nai 2.500.000 3.000.000
Vĩnh Long 2.300.000 2.300.000
1. In the initial case, which brick kiln should DuoCera use, and why?
2. DuoCera decided to ask for the advice of an external reality survey company to
analyze customer product needs. The table below is the survey results. After the survey,
businesses find 2 observations: customers will have a more favorable view of the product
- that is, the number of customers will tend to buy more - and customers will have a
skeptical view - ie. the number of customers will tend to buy less:
Favorable Skeptical
Strong market growth 60% 40%
Moderate market growth 20% 80%
Should DuoCera take a survey if it's free? And if there is a fee, from how much does it
cost DuoCera won't accept surveys?
3. Network Distribution
1. DuoCera needs to transport goods to Ninh Thuan via the following routes,
determine the appropriate route:
Starting point Hố Nai, Đồng Nai
Sông Mây (A)
Bàu Hàm (B)
Dầu Giây (C)
Long Khánh (D)
Tân Nghĩa (E)
Tân Hải (F)
Phú Thủy (G)
Suối Đá (H)
Phan Rí Của (I)
Cà Ná (J)
Destination Phan Rang, Ninh Thuận
A
D G
20 40
20 60
70 10
Start 35
29 C 60
F I J Dest.
30
40 30 30
B 30
E H
REQUIREMENTS
The essay includes the following sections:
1. Introduction
• Title Page: Including the outer cover and the inner cover: showing the title of the essay, the
name of the subject, the class, the major, the course, the name of the student, and the lecturer in
charge.
• Endorsement: This essay is developed by students alone, not copied from any other
organizations and individuals.
• Teacher comment
• Executive Summary (may or may not be available)
• Table of Contents/Tables/Figure
2. Main content The main part of the essay includes:
3-part exercise
2.1. Linear Programming (4 points)
2.2. Decision Making problem (3 points)
2.3. Network Distribution (3 points)
3. References (according to APA standards) if available to support explanations.
4. Appendix
Note: - Students use Times New Roman font, font 12, Spacing 1.5; Alignment: Justify (align
both sides).
- Worksheets are submitted on LMS including files: Word for essays, Excel files for calculations.
Students do not submit via email to the teacher.
- Algebraic model section, analysis steps, solution screenshots, situation explanations and results
are presented in Word files. At the same time, the Excel solution input files are also submitted
together.
- The file names are set according to the following syntax: [TL0TT_KHQT_class name] Full
name_MSSV
- The solution on the Excel file is to put the answers on the sheets in the same file, do not create
multiple Excel files.
- Solution on QM for Windows in POM file format, if you answer many questions in the same
lesson, name the files according to the syntax: [TLOTT_KHQT_class name] Full
name_MSSV_question title. For example: [TL0TT_KHQT_IB1] Full name_MSSV_
- Late submission will not be accepted.