ESM 503 Fall 2010

Assignment # 2

Dr. Ali Diabat

Assignment # 2 Due: October 7th , 2010

1. Ol Oil produces three products: heating oil, gasoline, and jet fuel. The average e octane levels must be at least 4.5 for heating oil, 8.5 for gas, and 7.0 for jet fuel. To produce these products Ol purchases two types of crude: crude 1 (at $12 per barrel) e and crude 2 (at $10 per barrel). Each day, at most 10,000 barrels of each type of oil can be purchased. Before crude can be used to produce products for sale, it must be distilled. Each day, at most 15,000 barrels of oil can be distilled. It costs 10 cents to distill a barrel of oil. The result of distillation is as follows: (1) Each barrel of crude 1 yields 0.6 barrel of naptha, 0.3 barrel of distilled 1, and 0.1 barrel of distilled 2. (2) Each barrel of crude 2 yields 0.4 barrel of naptha, 0.2 barrel of distilled 1, and 0.4 barrel of distilled 2. Distilled naptha can be used only to produce gasoline or jet fuel. Distilled oil can be used to produce heating oil or it can be sent through the catalytic cracker (at a cost of 15 cents per barrel). Each day, at most 5,000 barrels of distilled oil can be sent through the cracker. Each barrel of distilled 1 sent through the cracker yields 0.8 barrel of cracked 1 and 0.2 barrel of cracked 2. Each barrel of distilled 2 sent through the cracker yields 0.7 barrel of cracked 1 and 0.3 barrel of cracked 2. Cracked oil can be used to produce gasoline and jet fuel but not to produce heating oil. The octane level of each type of oil is as follows: naptha, 8; distilled 1, 4; distilled 2, 5; cracked 1, 9; cracked 2, 6. All heating oil produced can be sold at $14 per barrel; all gasoline produced, $18 per barrel; and all jet fuel produced, $16 per barrel. Marketing considerations dictate that at least 3,000 barrels of each product must be produced daily. Formulate an LP to maximize Ols daily prot. e 2. Silicon Valley Corporation (Silvco) manufactures transistors. An important aspect of the manufacture of transistors is the melting of the element germanium (a major component of a transistor) in a furnace. Unfortunately, the melting process yields germanium of highly variable quality. Two methods can be used to melt germanium; method 1 costs $50 per transistor, and method 2 costs $70 per transistor. The qualities of germanium obtained by methods 1 and 2 are shown in the table below. Grade of Melted Germanium Defective 1 2 3 4 Percent Yielded by Melting Method 1 Method 2 30 20 30 20 20 25 15 20 5 15

Silvco can rere melted germanium in an attempt to improve its quality. It costs $25 to rere the melted germanium for one transistor. The results of the rering process are shown in the table below.

ESM 503 Fall 2010 Rered Grade of Germanium Defective 1 2 3 4

Assignment # 2

Dr. Ali Diabat

ii

Percent Yielded by Rering Defective Grade 1 Grade 2 Grade 3 30 0 0 0 25 30 0 0 15 30 40 0 20 20 30 50 10 20 30 50

Silvco has sucient furnace capacity to melt or rere germanium for at most 20,000 transistors per month. Silvcos monthly demands are for 1,000 grade 4 transistors, 2,000 grade 3 transistors, 3,000 grade 2 transistors, and 3,000 grade 1 transistors. Note that grade 1 is poor, and grade 4 is excellent. The quality of the germanium dictates the quality of the manufactured transistor. Use linear programming to minimize the cost of producing the needed transistors. 3. An engineer is working on a design problem with n parameters to be chosen, and each has 3 possible values. A highly valid IP model is available, and he is thinking of choosing the best design simply by using the model to evaluate the eect of every combination of design parameter values. (a) Explain why this approach will require running the IP model on 3n combinations of decision-variable values. (b) For n = 10, 15, 20, and 30, compute the time a computer would require to check all the combinations, assuming that it runs 24 hours per day, 365 days per year, and that it requires 1 second to apply the model for any particular choice of design parameters. (c) Comment on the practical limits of this try all combinations analysis strategy in the light of your results from part (b). 4. astinghouse sells air conditioners. The annual demand for air conditioners in each region of the country is as follows: East: 100,000; South, 150,000; Midwest, 110,000; West, 90,000. Eastinghouse is considering building the air conditioners in four different cities: New York, Atlanta, Chicago, and Los Angeles. The cost of producing an air conditioner in a city and shipping it to a region of the country is given in the table below. Price By Region ($) South Midwest West 225 230 290 206 221 270 221 208 262 270 262 215

City New York Atlanta Chicago Los Angeles

East 206 225 230 290

Any factory can produce as many as 150,000 air conditioners per year. The annual xed cost of operating a factory in each city is given in the table below. City New York Atlanta Chicago Los Angeles Annual Fixed Cost ($ Million) 6 5.5 5.8 6.2

ESM 503 Fall 2010

Assignment # 2

Dr. Ali Diabat

iii

At least 50,000 units of the Midwest demand for air conditioners must come from New York, or at least 50,000 units of the Midwest demand must come from Atlanta. Formulate an IP whose solution will tell Eastinghouse how to minimize the annual cost of meeting demand for air conditioners. 5. At a machine tool plant, ve jobs must be completed each day. The time it takes to do each job depends on the machine used to do the job. If a machine is used at all, there is a setup time required. The relevant times (in minutes) are given in the table below. The companys goal is to minimize the sum of the setup and machine operation times needed to complete all jobs. Formulate and solve (with Microsoft Excel Solver) an IP whose solution will do this. Job 3 93 45 X 55 X Machine Setup Time (Minutes) 30 40 50 60 20

Machine 1 2 3 4 5

1 42 X 58 58 X

2 70 85 X X 60

4 X X 37 X 54

5 X X X 38 X