Review for Final Exam

Part 1: LP Formulation (Chap 8)

 Study Guides

 Review all applications of LP mentioned in

chapter 8.
 Understand the usefulness of LP models in
each real situations.
 Understanding the descriptions of all cases and
the development of equivalent LP models.
 Variables definitions.

 Constraints.

 Objective Functions (Maximization and

Minimization).
© 2009 Prentice-Hall, Inc. 7–2
 Example
A ship has 3 cargo holds, Forward, After and Centre. The capacity limits are
as follows:
Amount Volume
Forward 2,000 tones 100,000 m
After 1,500 tones 30,000 m
Centre 3,000 tones 135,000 m
The following cargoes are offered; the ship owner may accept all or any part of
each commodity:
Commodity Amount Volume per Profit per ton
(in tones) ton (in m3) (in 1000 US$)
A 6,000 60.00 60
B 4,000 50.00 80
C 2,000 25.00 50
In order to preserve the trim of the ship, the weight in each hold must be
proportional to the capacity in tones.
The objective is to maximize the profit.
Formulate the mathematical model for this problem © 2009 Prentice-Hall, Inc. 7 – 3
 Solution
Variables:
xij : the amount (in tones) of commodity i (A, B, C) in hold j (Forward, After
or Centre)
Objective functions:
3 3 3
Maximize 60∑ x1 j + 80∑ x2 j + 50∑ x1 j
j =1 j =1 j =1

Constraints of maximum amount of commodities:

3

∑x
j =1
1j ≤ 6000 (amount of commodity A)

∑x
j =1
2j ≤ 4000 (amount of commodity B)

∑x
j =1
3j ≤ 2000 (amount of commodity C)

© 2009 Prentice-Hall, Inc. 7–4

 Solution (cont)
Constraints of capacity of each hold:
3

∑x
i =1
i1 ≤ 2000 (Capacity of Forward Hold)

∑x
i =1
i2 ≤ 1500 (Capacity of After Hold)
3

∑x
i =1
i3 ≤ 3000 (Capacity of Centre Hold)

Constraints of volume of each hold:

60 x11 + 50 x 21 + 25 x31 ≤ 100,000 (Volume of Forward Hold)

60 x12 + 50 x22 + 25 x32 ≤ 30,000 (Volume of After Hold)

60 x13 + 50 x23 + 25 x33 ≤ 135,000 (Volume of Centre Hold)

© 2009 Prentice-Hall, Inc. 7–5

 Solution (cont)

Constraints of preserving the trim of the ship:

3

∑x i1
2000 4 3 3
i =1
3
= = ⇒ 3∑ xi1 − 4∑ xi 2 = 0 (Proportion of Forward and After)
1500 3
∑x
i =1
i2
i =1 i =1

∑x i2
1500 1 3 3
i =1
3
= = ⇒ 2∑ xi 2 − ∑ xi 3 = 0 (Proportion of After and Centre)
3000 2
∑x
i =1
i3
i =1 i =1

Constraints of variables:

xij ≥ 0
© 2009 Prentice-Hall, Inc. 7–6
Review for Final Exam
Part 2: Simplex Method (Chap 9)

© 2008 Prentice-Hall, Inc.

 Study Guides
 Understand the Standard form of LP problem.

 Distinguish the basic and non-basic solutions or variables.

 Understand the definitions and uses of dummy variables: slack,
surplus and artificial variables.
 Understand the method to transform a minimization model to a
maximization model.
 Master all simplex tables: generate the initial table, develop the
following tables, the condition of getting optimal solution.
 Understand the special cases of Simplex method: definitions, the
signals to recognize.
 Understand the sensitivity analysis of Simplex method: Changes
of objective function coefficients and RHS’s

© 2009 Prentice-Hall, Inc. 7–8

 Example

Solve the following LP problem:

Minimize Z = 4 X 1 + X 2
Subject to :
3X1 + X 2 = 3
4 X1 + 3X 2 ≥ 6
X1 + 2 X 2 ≤ 4
X1, X 2 ≥ 0

© 2009 Prentice-Hall, Inc. 7–9

 Solution
Transform to Maximization model:
Maximize W = ( − Z ) = −4 X 1 − X 2
Subject to :
3X1 + X 2 = 3
4 X1 + 3X 2 ≥ 6
X1 + 2 X 2 ≤ 4
X1, X 2 ≥ 0
Transform to Standard form or Simplex form:
Maximize W = ( − Z ) = −4 X 1 − X 2 + 0 s1 + 0 s2 − MA1 − MA2
Subject to :
3 X 1 + X 2 + A1 = 3
4 X 1 + 3 X 2 − s1 + A2 = 6
X 1 + 2 X 2 + s2 = 4
X 1 , X 2 , s1 , s2 , A1 , A2 ≥ 0
© 2009 Prentice-Hall, Inc. 7 – 10
 Solution (cont)
Table 1 (Initial) -4 -1 0 0 -M -M
Cj Basic Vars. X1 X2 s1 s2 A1 A2 Qty.
-M A1 3 1 0 0 1 0 3
-M A2 4 3 -1 0 0 1 6
0 s2 1 2 0 1 0 0 4
Wj -7M -4M M 0 -M -M -9M
Cj - W j 7M-4 4M-1 -M 0 0 0
Table 2 -4 -1 0 0 -M -M
Cj Basic Vars. X1 X2 s1 s2 A1 A2 Qty.
-4 X1 1 1/3 0 0 1/3 0 1
-M A2 0 5/3 -1 0 -4/3 1 2
0 s2 0 5/3 0 1 -1/3 0 3
Wj -4 -4/3-5/3M M 0 -4/3+4/3M -M -2M-4
Cj - W j 0 5/3M+1/3 -M 0 -4/3M+4/3 0
© 2009 Prentice-Hall, Inc. 7 – 11
 Solution (cont)
Table 3 -4 -1 0 0 -M -M
Cj Basic Vars. X1 X2 s1 s2 A1 A2 Qty.
-4 X1 1 0 1/5 0 3/5 -1/5 3/5
-1 X2 0 1 -3/5 0 -4/5 3/5 6/5
0 s2 0 0 1 1 1 -1 1
Wj -4 -1 -1/5 0 -8/5 1/5 -18/5
Cj - W j 0 0 1/5 0 -M+8/5 -M-1/5

Table 4 (Final) -4 -1 0 0 -M -M
Cj Basic Vars. X1 X2 s1 s2 A1 A2 Qty.
-4 X1 1 0 0 -1/5 2/5 0 2/5
-1 X2 0 1 0 3/5 -1/5 0 9/5
0 s1 0 0 1 1 1 -1 1
Wj -4 -1 0 1/5 -7/5 0 -17/5
Cj - W j 0 0 0 -1/5 -M+7/5 -M
© 2009 Prentice-Hall, Inc. 7 – 12
 Solution

Conclusion:
The optimal value is Z = (-W) = 17/5
The solution: X1 = 2/5 and X2 = 9/5.
Surplus s1 = 1.

© 2009 Prentice-Hall, Inc. 7 – 13

 Sensitivity Analysis

Table 4 (Final) -4+Δ -1 0 0 -M -M

Cj Basic Vars. X1 X2 s1 s2 A1 A2 Qty.
-4+Δ X1 1 0 0 -1/5 2/5 0 2/5
-1 X2 0 1 0 3/5 -1/5 0 9/5
0 s1 0 0 1 1 1 -1 1
Wj -4+Δ -1 0 1/5-Δ/5 -7/5 0 -17/5
Cj - W j 0 0 0 Δ/5-1/5 -M+7/5 -M

The optimality will be unchanged if and only if:

With s2: ∆/5-1/5 ≤ 0  ∆ ≤ 1.
Thus, -Cj(X1)+4 = ∆ ≤ 1  Cj(X1) ≥ 3

Note: -Cj is used instead of Cj above because we have change the

coefficients from the origin model (minimization) to maximization model
© 2009 Prentice-Hall, Inc. 7 – 14
 Sensitivity Analysis (cont)

Table 4 (Final) -4 -1+Δ 0 0 -M -M

Cj Basic Vars. X1 X2 s1 s2 A1 A2 Qty.
-4 X1 1 0 0 -1/5 2/5 0 2/5
-1+Δ X2 0 1 0 3/5 -1/5 0 9/5
0 s1 0 0 1 1 1 -1 1
Wj -4 -1+Δ 0 1/5+3Δ/5 -7/5 0 -17/5
Cj - W j 0 0 0 -3Δ/5-1/5 -M+7/5 -M

The optimality will be unchanged if and only if:

With s2: -3∆/5-1/5 ≤ 0  ∆ ≥ -1/3.
Thus, -Cj(X2)+1 = ∆ ≥ -1/3  Cj(X2) ≤ 4/3

Note: -Cj is used instead of Cj above because we have change the

coefficients from the origin model (minimization) to maximization model
© 2009 Prentice-Hall, Inc. 7 – 15
 Sensitivity Analysis (cont)
For 1st constraint (=): Qty. A1 Ratio So, the RHS of 1st constraint can
2/5 2/5 1 be reduced 1 and added 9 without
9/5 - 1/5 -9 changing the current solution.
1 1 1 Range of 1st RHS: (2,12)

For 2nd constraint (≥): Qty. s1 Ratio So, the RHS of 2nd constraint can
Be careful with 2/5 0 be added 1 without changing the
surplus variable!!! 9/5 0 current solution.
It is opposite to 1 1 1 Range of 2nd RHS: (-∞,7)
slack.
For 3rd constraint (≤): Qty. s2 Ratio So, the RHS of 3rd constraint can
2/5 - 1/5 -2 be reduced 1 and added 2 without
9/5 3/5 3 changing the current solution.
1 1 1 Range of 3rd RHS: (3,6)
© 2009 Prentice-Hall, Inc. 7 – 16
 Review for Final Exam
Part 3: Analytic Hierarchy Process - AHP
(Module 1)

© 2008 Prentice-Hall, Inc.

 Study Guides
 Definitions and Applications of Multifactor Evaluation
Process (MFEP) and Analytic Hierarchy Process (AHP).
 Master the method to make decision from MFEP
approach.
 Master the AHP method:
 Construct the Hierarchy tree.

 Construct the Comparison matrix.

 Method to transform comparison matrix to priority vector.

 Determine the Consistent Ratio (CR).

 Give out the conclusion.

© 2009 Prentice-Hall, Inc. 7 – 18

 Example
A company intends to build a new factory. They are considering 3 potential
positions: Dong Nai, Binh Duong and Long An. The management board consider 3
factors labor availability (La.A), government support policies (Go.S) and material
availability (Ma.A) as the main criteria. The comparison matrices were developed as
following tables:
Factors La.A Go.S Ma.A La.A DN BD LA
La.A 1 2 6 DN 1 3 2
Go.S ½ 1 3 BD 1/3 1 ½
Ma.A 1/6 1/3 1 LA 1/2 2 1

Go.S DN BD LA Ma.A DN BD LA
DN 1 1/4 ½ DN 1 1 1/3
BD 4 1 2 BD 1 1 1/3
LA 2 1/2 1 LA 3 3 1

a. Determine the priority vector and CR of factor evaluation.

b. Determine the priority vectors for each factor.
c. Give the final conclusion. © 2009 Prentice-Hall, Inc. 7 – 19
 Solution
Factors La.A Go.S Ma.A Factors La.A Go.S Ma.A
La.A 1 2 6 La.A 6/10 6/10 6/10
Go.S ½ 1 3 Normalize Go.S 3/10 3/10 3/10
Ma.A 1/6 1/3 1 Ma.A 1/10 1/10 1/10
Col. Sum 10/6 10/3 10 Col. Sum 1 1 1
e
verag
Factors Priority (x) Row
. A
A x Ax
La.A 0.6 1 2 6 0.60 1.80
Go.S 0.3 0.5 1 3 0.30 = 0.90
Ma.A 0.1
0.167 0.333 1 0.10 0.30

Consistency 1.8/0.6 3.0 3.0 + 3.0 + 3.0

Vector = 0.9/0.3 = 3.0 λ= = 3.0
3
0.3/0.1 3.0
λ − n 3.0 − 3 CI 0
CI = = =0 CR = = = 0.0 < 0.1
n −1 3 −1 RI 0.58 © 2009 Prentice-Hall, Inc. 7 – 20
 Solution
La.A DN BD LA La.A DN BD LA La.A Priority
DN 1 3 2 DN 6/11 ½ 4/7 (x)
BD 1/3 1 ½ BD 2/11 1/6 1/7 DN 0.539
LA 1/2 2 1 LA 3/11 1/3 2/7 BD 0.164
Col.Sum 11/6 6 7/2 Col.Sum 1 1 1 LA 0.297

Go.S DN BD LA Go.S DN BD LA Go.S Priority

DN 1 1/4 ½ DN 1/7 1/7 1/7 (x)
BD 4 1 2 BD 4/7 4/7 4/7 DN 0.143
LA 2 1/2 1 LA 2/7 2/7 2/7 BD 0.571
Col.Sum 7 7/4 7/2 Col.Sum 1 1 1 LA 0.286

Ma.A DN BD LA Ma.A DN BD LA Ma.A Priority

DN 1 1 1/3 DN 1/5 1/5 1/5 (x)
BD 1 1 1/3 BD 1/5 1/5 1/5 DN 0.2
LA 3 3 1 LA 3/5 3/5 3/5 BD 0.2
Col.Sum 5 5 5/3 Col.Sum 1 1 1 © 2009 Prentice-Hall,
LA Inc. 7 –0.6
21
 Solution

Locations La.A (0.6) Go.S (0.3) Ma.A (0.1) Total

DN 0.539 0.143 0.2 0.386 largest
BD 0.164 0.571 0.2 0.290
LA 0.297 0.286 0.6 0.324

Thus, Dong Nai is the best location to build the new factory.

© 2009 Prentice-Hall, Inc. 7 – 22

 Review for Final Exam
Part 4: Project Management (Chap 13)

© 2008 Prentice-Hall, Inc.

 Study Guides
 Introduction about the Project Management.
 Understand the Gantt Chart.
 Master the PERT/CPM procedure
 Drawing the network.
 Calculate the mean and std. deviation of activity’s
time (beta dist.)
 Determine ES, EF, LS, LF and slack time.
 Determine the critical path.
 Determine probabilities of project completion.
 Consider the PERT/Cost

© 2009 Prentice-Hall, Inc. 7 – 24

 Example
A company are planning a construction project. The following table shows the
activities time and immediate predecessors:

TIME ESTIMATES (WKS)

ACTIVITY a m b PREDECESSORS

1 6 8 10 -
3 6 9 -
3 1 3 5 -
4 2 4 12 1
5 2 3 4 2
6 3 4 5 3
7 2 2 2 3
8 3 7 11 1,5,6
9 2 4 6 1,5,6
10 1 4 7 4
11 1 10 13 7,8,9

© 2009 Prentice-Hall, Inc. 7 – 25

 Project Network Diagram

1 4
6,8,10 2,4,12

10
8
3,7,11 1,4,7
Start 2 Finish
3,6,9
5 11
2,3,4 9 1,10,13
2,4,6
3 6
1,3,5 3,4,5

7
2,2,2

this slide displays notation different from one in text book This is for
illustration purpose only. Keep following what you have learned
© 2009 Prentice-Hall, Inc. 7 – 26
 Activity Time Estimates

TIME ESTIMATES (WKS) MEAN TIME VARIANCE

ACTIVITY a m b t б2
1 6 8 10 8 0.44
2 3 6 9 6 1.00
3 1 3 5 3 0.44
4 2 4 12 5 2.78
5 2 3 4 3 0.11
6 3 4 5 4 0.11
7 2 2 2 2 0.00
8 3 7 11 7 1.78
9 2 4 6 4 0.44
10 1 4 7 4 1.00
11 1 10 13 9 4.00

© 2009 Prentice-Hall, Inc. 7 – 27

 Node Configuration

Activity number Earliest start

Earliest finish
1 0 3

3 0 3
Latest finish

Activity duration Latest start

this slide displays notation different from one in text book This is for
illustration purpose only. Keep following what you have learned
© 2009 Prentice-Hall, Inc. 7 – 28
 Earliest, Latest, and Slack
Critical Path
1 0 8 4 8 13
8 1 9 5 16 21
10 13 17

16 4 21 25
8 9
Start 2 0 6 Finish
7 9 16
6 0 6 9
5 6 11 16 25
3 6 9 9 9 13
9 16 25
4 12 16
3 0 3 6 3 7
3 2 5 4 5 9

7 3 5
2 14 16

this slide displays notation different from one in text book This is for
illustration purpose only. Keep following what you have learnedInc. 7 – 29
© 2009 Prentice-Hall,
Activity Early, Late Times, and Slack

ACTIVITY t б2 ES EF LS LF S
1 8 0.44 0 8 1 9 1
2 6 1.00 0 6 0 6 0
3 3 0.44 0 3 2 5 2
4 5 2.78 8 13 16 21 8
5 3 0.11 6 9 6 9 0
6 4 0.11 3 7 5 9 2
7 2 0.00 3 5 14 16 11
8 7 1.78 9 16 9 16 0
9 4 0.44 9 13 12 16 3
10 4 1.00 13 17 21 25 8
11 9 4.00 16 25 16 25 0

© 2009 Prentice-Hall, Inc. 7 – 30

 Probabilistic Network Analysis
P(x ≤ 30 weeks)
Total project variance

σ2 = б22 + б52 + б82 + б112

σ2 = 1.00 + 0.11 + 1.78 + 4.00
= 6.89 weeks µ = 25 x = 30 Time (weeks)

What is the probability that the project is completed within 30 weeks?

σ 2 = 6.89 weeks
x-µ 30 - 25
σ = 6.89 Z = = = 1.91
σ 2.62
σ = 2.62 weeks

From Normal Dist. Table, a Z score of 1.91 corresponds to a probability of

0.9719. Thus P(x ≤ 30) = 0.9719
© 2009 Prentice-Hall, Inc. 7 – 31
 GOOD LUCK!

Wish all of you will

get the optimal
results for this Final
Examination!

© 2009 Prentice-Hall, Inc. 7 – 32