EASTERN MEDITERRANEAN UNIVERSITY

Department of Industrial Engineering

1. A corporation is considering four possible investment opportunities. The following table present
information about the investment (in $) profits:
Project Present Value of Capital Required Year-wise by Project
Expected Returns Year1 Year2 Year3
1 5500 700 550 400
2 6000 850 550 350
3 2800 300 150 100
4 3500 350 200 170
Capital available for investment 1200 700 400

In addition, one or both of the projects 1 and 2 can consider but project 4 can consider if project 3
accepted. Formulate an integer programming model to determine which project should be accepted and
which should be rejected to maximize the present value from accepted project.
2. Four products A, B and C produce by five machines. The technological order and time scheduling for
each of machines are pointed in the following figure. The product B must delivered at t o’clock and
product C must delivered two hours after B. Formulated the problem in a manner that products are
complete in minimum time respect to above restrictions.

a1 a3 a4 a5
A: 1 3 4 5

b2 b3 b4
B: 2 3 4

c1 c2 c5
C: 1 2 5

3. A company has developed three possible new products but from these three possible new products at
most two should be chosen to be produced. Each of these products can produced in either two plants of
the company but just one of the two plants should be chosen to be the sole producer of the new
products. The production cost per unit of each product would be essentially the same in the two plants.
However, because of difference in their production facilities, the number of hours of production time
needed per unit of each product might differ between the two plants. These data are given in the
following table along with other relevant information. The objective is to choose the products, the plant
and the production rates of the chosen products so as to maximize total profit.
 Production time used for each unit produced (in hour) Production time
Product1 Product2 Product3 available per week
Plant1 3 4 2 60
Plant2 5 6 2 70
Unit profit 4 8 3 (thousands of
dollars)
Sale potential 20 54 62 (unit per week)

4. A company has three production facilities S1, S2 and S3 with production capacity of 16,19 and 18 units
(in 100s) per week of a product, respectively. These units are to be shipped to four warehouses D1, D2,
D3, and D4 with requirement of 15, 6, 16 and 14 units (in 100s) per week, respectively. The
transportation costs (in $) per unit between factories to warehouses are given in the table below:
Replace the Y=The summation of the all digits in your student number X=the summation of three
last digits of your student number in the following transportation problem.

D1 D2 D3 D4
S1 19 30 60 Y
S2 72 20 40 15
S3 X 18 60 20

A. Formulate this transportation problem as an LP model to minimize the total transportation cost.
B. Draw the graph of the problem.
C. Fine a feasible solution using Northwest and minimum-cost methods.
D. Find an initial feasible solution by Vogel approximation method.
5. Compare the starting solutions obtained by the northwest-corner, least-cost and Vogel method for the
following model.
D1 D2 D3 Supply
S1 6 3 1 7
S2 2 3 5 3
S3 2 8 9 9
Deman 5 4 11
d

6. A carwash employs workers on daily price-rate basis for their weekly work. There are five worker and
their charges and speed are different (Table 1). According to an earlier understanding only one job is
given to one worker and the worker is paid for a full hour even if he works for a fraction of an hour.
There are five rent a car firm which each worker should wash the cars of one these firms. The number
of received car from each of the mentioned firms is in Table 2.
Table1 Table2
Worker Rate per No of cars Firms No of
day $ washed/day received
cars
A 50 12 1 50
B 60 14 2 85
 C 30 8 3 70
D 40 10 4 124
E 40 11 5 84

7. A large oil company operating a number of drilling platforms in the North Sea is forming a high speed
rescue unit cope with emergency situations which may occur. The rescue unit comprises 6 personal
who, for reasons of flexibility, undergo the same comprehensive training program. The six personnel
are assessed as to their suitability for various specialist tasks and the marks they received in the training
program are given in the following table:

Trainee Number
Specialist Task I II III IV V VI
Unit Leader 21 5 21 15 13 28
Helicopter Pilot 30 11 16 8 16 4
First Aid 28 2 11 16 25 25
Drilling Technology 19 16 14 15 18 8
Firefighting 26 21 22 28 29 24
Communications 3 21 21 11 26 26

8. Show that the number of the feasible solution for an assignment problem is equal to n!, where n is the
number of jobs and persons.

9. Consider the following transportation problem. Is it a balance transportation problem? Writ the problem
in tableau format. Find a feasible solution by Vogel Approximation Method. Compute the value of the
objective function.

10 1 D1=40

S1=55 5 1
1
3
2 D2=20
7
S2=25 2
5 3
6 D3=10
3 7
3 2
S3=40 4
11 4 D4=30
5 5