Exam 14: Integer, nonlinear, and Advanced Optimization Methods

Use the case below to answer the following question(s). Rolling Inc.produces cars at two plants: Baltimore,Maryland,and Orlando,Florida.They ship them to major distribution centers in Minnesota,Dallas,Los Angeles,and Memphis.The Accounting,Production,and Marketing departments have provided the information in the table below,which shows the unit cost of shipping between any plant and distribution center to minimize the total transportation cost,not exceed available capacity,and meet customer demand. Suppose demand forecasts exceed the existing capacity and the company is considering adding a new plant from among two choices: Ohio or Kansas.Both plants would have a capacity of 3,000 units but only one can be built.The table below shows the revised data. Use double-subscripted variables to simplify the formulation.Define X_ij = amount shipped from plant i to distribution center j,where i = 1 represents Baltimore,and j = 1 represents Minnesota. Define a binary variable for the decision of which plant to build: Y₁ = 1 if the Ohio plant is built,and Y₂ = 1 if the Kansas plant is built. -Using Solver,determine the amount to be shipped from the plant in Baltimore to the distribution center in Memphis.

Use the case below to answer the following question(s). The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history: Each market segment has its own price/demand elasticity.Estimates are: This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $),the projected number of suites of a given type sold (we will allow continuous values for this problem)can be found using the formula: (Historical average number of suites sold)+ (Elasticity)(New price - Current price)(Historical average number of suites sold)/(Current price) The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149. Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite. -Determine the projected revenue for selling the projected number of platinum suites.

Optimization control in OptQuest allows you to specify the total number of optimization variables for which the system is allowed to search for the best values.

Use the case below to answer the following question(s). Rolling Inc.produces cars at two plants: Baltimore,Maryland,and Orlando,Florida.They ship them to major distribution centers in Minnesota,Dallas,Los Angeles,and Memphis.The Accounting,Production,and Marketing departments have provided the information in the table below,which shows the unit cost of shipping between any plant and distribution center to minimize the total transportation cost,not exceed available capacity,and meet customer demand. Suppose demand forecasts exceed the existing capacity and the company is considering adding a new plant from among two choices: Ohio or Kansas.Both plants would have a capacity of 3,000 units but only one can be built.The table below shows the revised data. Use double-subscripted variables to simplify the formulation.Define X_ij = amount shipped from plant i to distribution center j,where i = 1 represents Baltimore,and j = 1 represents Minnesota. Define a binary variable for the decision of which plant to build: Y₁ = 1 if the Ohio plant is built,and Y₂ = 1 if the Kansas plant is built. -Using Solver,determine the optimal cost involved in shipping cars from Baltimore to Minnesota.

Nonlinear optimization models are considerably easier to solve than linear or integer models.

Use the case below to answer the following question(s). Rolling Inc.produces cars at two plants: Baltimore,Maryland,and Orlando,Florida.They ship them to major distribution centers in Minnesota,Dallas,Los Angeles,and Memphis.The Accounting,Production,and Marketing departments have provided the information in the table below,which shows the unit cost of shipping between any plant and distribution center to minimize the total transportation cost,not exceed available capacity,and meet customer demand. Suppose demand forecasts exceed the existing capacity and the company is considering adding a new plant from among two choices: Ohio or Kansas.Both plants would have a capacity of 3,000 units but only one can be built.The table below shows the revised data. Use double-subscripted variables to simplify the formulation.Define X_ij = amount shipped from plant i to distribution center j,where i = 1 represents Baltimore,and j = 1 represents Minnesota. Define a binary variable for the decision of which plant to build: Y₁ = 1 if the Ohio plant is built,and Y₂ = 1 if the Kansas plant is built. -The demand constraint for Dallas is ________.

Use the data shown below to answer the following question(s). Malone Inc.has identified five potential new processes; however,the firm is constrained by its available budget and human resources.Each process is expected to generate a return (given by the net present value)but requires a fixed amount of cash and personnel.Because the resources are limited,all processes cannot be selected.Processes cannot be partially completed; thus,either the process must be undertaken completely or not at all.The data are given in the table below.If a process is selected,it generates the full value of the expected return and requires the full amount of cash and personnel shown in the table.Define X_i = 1 if process i is selected,and 0 otherwise. -Using Solver,determine the total cash used for the optimal solution.

Use the case below to answer the following question(s). The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history: Each market segment has its own price/demand elasticity.Estimates are: This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $),the projected number of suites of a given type sold (we will allow continuous values for this problem)can be found using the formula: (Historical average number of suites sold)+ (Elasticity)(New price - Current price)(Historical average number of suites sold)/(Current price) The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149. Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite. -Which of the following is the expression that can be used to determine the projected number of standard suites sold?

Use the scenario below to answer the following question(s). A company makes standard 115-inch-wide rolls of thin sheet metal,and slits them into smaller rolls to meet customer orders for widths of 13,16,and 25 inches.The demands for these widths vary from week to week.From a 115-inch roll,there are many different ways to slit 13-,16-,and 25-inch pieces. A cutting pattern is a configuration of the number of smaller rolls of each type that are cut from the raw stock.Of course,one would want to use as much of the roll as possible to avoid costly scrap.For example,one could cut seven 16-inch rolls,leaving a 3-inch piece of scrap.Finding good cutting patterns for a large set of end products is in itself a challenging problem.Suppose that the company has proposed the following cutting patterns: Demands this week are 1,000 13-inch rolls,1,430 16-inch rolls,and 1,260 25-inch rolls.The problem is to develop a model that will determine how many 115-inch rolls to cut into each of the six patterns in order to meet demand and scrap. Define X_i to be the number of 115-inch rolls to cut using cutting pattern i,for i = 1,…,6. Note that X_i needs to be a whole number because each roll that is cut generates a different number of end items. -What is the number of 13-inch rolls produced?

Use the data shown below to answer the following question(s). Malone Inc.has identified five potential new processes; however,the firm is constrained by its available budget and human resources.Each process is expected to generate a return (given by the net present value)but requires a fixed amount of cash and personnel.Because the resources are limited,all processes cannot be selected.Processes cannot be partially completed; thus,either the process must be undertaken completely or not at all.The data are given in the table below.If a process is selected,it generates the full value of the expected return and requires the full amount of cash and personnel shown in the table.Define X_i = 1 if process i is selected,and 0 otherwise. -Determine the expression that explains the personnel limitation.

Use the scenario below to answer the following question(s). A company makes standard 115-inch-wide rolls of thin sheet metal,and slits them into smaller rolls to meet customer orders for widths of 13,16,and 25 inches.The demands for these widths vary from week to week.From a 115-inch roll,there are many different ways to slit 13-,16-,and 25-inch pieces. A cutting pattern is a configuration of the number of smaller rolls of each type that are cut from the raw stock.Of course,one would want to use as much of the roll as possible to avoid costly scrap.For example,one could cut seven 16-inch rolls,leaving a 3-inch piece of scrap.Finding good cutting patterns for a large set of end products is in itself a challenging problem.Suppose that the company has proposed the following cutting patterns: Demands this week are 1,000 13-inch rolls,1,430 16-inch rolls,and 1,260 25-inch rolls.The problem is to develop a model that will determine how many 115-inch rolls to cut into each of the six patterns in order to meet demand and scrap. Define X_i to be the number of 115-inch rolls to cut using cutting pattern i,for i = 1,…,6. Note that X_i needs to be a whole number because each roll that is cut generates a different number of end items. -If we are to use Solver to generate the optimal solution,identify the number of 115-inch rolls produced using the cutting pattern 3.

Use the case below to answer the following question(s). The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history: Each market segment has its own price/demand elasticity.Estimates are: This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $),the projected number of suites of a given type sold (we will allow continuous values for this problem)can be found using the formula: (Historical average number of suites sold)+ (Elasticity)(New price - Current price)(Historical average number of suites sold)/(Current price) The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149. Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite. -The projected number of gold suites sold is ________.

A mixed integer linear optimization model differs from a nonlinear optimization model in that the mixed integer linear optimization model ________.

Use the case below to answer the following question(s). Rolling Inc.produces cars at two plants: Baltimore,Maryland,and Orlando,Florida.They ship them to major distribution centers in Minnesota,Dallas,Los Angeles,and Memphis.The Accounting,Production,and Marketing departments have provided the information in the table below,which shows the unit cost of shipping between any plant and distribution center to minimize the total transportation cost,not exceed available capacity,and meet customer demand. Suppose demand forecasts exceed the existing capacity and the company is considering adding a new plant from among two choices: Ohio or Kansas.Both plants would have a capacity of 3,000 units but only one can be built.The table below shows the revised data. Use double-subscripted variables to simplify the formulation.Define X_ij = amount shipped from plant i to distribution center j,where i = 1 represents Baltimore,and j = 1 represents Minnesota. Define a binary variable for the decision of which plant to build: Y₁ = 1 if the Ohio plant is built,and Y₂ = 1 if the Kansas plant is built. -If we are to use Solver to determine where the new plant has to be built,what is the amount shipped from Ohio to Los Angeles?

Use the scenario below to answer the following question(s). A company makes standard 115-inch-wide rolls of thin sheet metal,and slits them into smaller rolls to meet customer orders for widths of 13,16,and 25 inches.The demands for these widths vary from week to week.From a 115-inch roll,there are many different ways to slit 13-,16-,and 25-inch pieces. A cutting pattern is a configuration of the number of smaller rolls of each type that are cut from the raw stock.Of course,one would want to use as much of the roll as possible to avoid costly scrap.For example,one could cut seven 16-inch rolls,leaving a 3-inch piece of scrap.Finding good cutting patterns for a large set of end products is in itself a challenging problem.Suppose that the company has proposed the following cutting patterns: Demands this week are 1,000 13-inch rolls,1,430 16-inch rolls,and 1,260 25-inch rolls.The problem is to develop a model that will determine how many 115-inch rolls to cut into each of the six patterns in order to meet demand and scrap. Define X_i to be the number of 115-inch rolls to cut using cutting pattern i,for i = 1,…,6. Note that X_i needs to be a whole number because each roll that is cut generates a different number of end items. -If we are to use Solver to generate the optimal solution,determine the number of 115-inch rolls produced using the cutting pattern 1.

Use the case below to answer the following question(s). The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history: Each market segment has its own price/demand elasticity.Estimates are: This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $),the projected number of suites of a given type sold (we will allow continuous values for this problem)can be found using the formula: (Historical average number of suites sold)+ (Elasticity)(New price - Current price)(Historical average number of suites sold)/(Current price) The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149. Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite. -Determine the projected revenue for selling the projected number of gold suites.

Use the scenario shown below to answer the following question(s). An automobile rental is considering a major remodeling effort and needs to determine the best combination of rates and products to maximize revenues.Currently,the rental has 375 automobiles with the following history: Each segment has its own price/demand elasticity.Estimates are: The rental owners want to keep the price of a scooter rental between $35 and $45; a chopper rental between $45 and $60; and a car rental between $65 and $74.50. Define S = price of a scooter rental,Ch = price of a chopper rental,and Ca = price of a car rental. -What is the total projected revenue? (Hint: Use Solver)

Use the case below to answer the following question(s). Rolling Inc.produces cars at two plants: Baltimore,Maryland,and Orlando,Florida.They ship them to major distribution centers in Minnesota,Dallas,Los Angeles,and Memphis.The Accounting,Production,and Marketing departments have provided the information in the table below,which shows the unit cost of shipping between any plant and distribution center to minimize the total transportation cost,not exceed available capacity,and meet customer demand. Suppose demand forecasts exceed the existing capacity and the company is considering adding a new plant from among two choices: Ohio or Kansas.Both plants would have a capacity of 3,000 units but only one can be built.The table below shows the revised data. Use double-subscripted variables to simplify the formulation.Define X_ij = amount shipped from plant i to distribution center j,where i = 1 represents Baltimore,and j = 1 represents Minnesota. Define a binary variable for the decision of which plant to build: Y₁ = 1 if the Ohio plant is built,and Y₂ = 1 if the Kansas plant is built. -Using Solver,determine the amount to be shipped from the plant in Baltimore to the distribution center in Minnesota.

Use the case below to answer the following question(s). Rolling Inc.produces cars at two plants: Baltimore,Maryland,and Orlando,Florida.They ship them to major distribution centers in Minnesota,Dallas,Los Angeles,and Memphis.The Accounting,Production,and Marketing departments have provided the information in the table below,which shows the unit cost of shipping between any plant and distribution center to minimize the total transportation cost,not exceed available capacity,and meet customer demand. Suppose demand forecasts exceed the existing capacity and the company is considering adding a new plant from among two choices: Ohio or Kansas.Both plants would have a capacity of 3,000 units but only one can be built.The table below shows the revised data. Use double-subscripted variables to simplify the formulation.Define X_ij = amount shipped from plant i to distribution center j,where i = 1 represents Baltimore,and j = 1 represents Minnesota. Define a binary variable for the decision of which plant to build: Y₁ = 1 if the Ohio plant is built,and Y₂ = 1 if the Kansas plant is built. -Determine the objective function.

Use the case below to answer the following question(s). The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history: Each market segment has its own price/demand elasticity.Estimates are: This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $),the projected number of suites of a given type sold (we will allow continuous values for this problem)can be found using the formula: (Historical average number of suites sold)+ (Elasticity)(New price - Current price)(Historical average number of suites sold)/(Current price) The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149. Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite. -The constraint that models the stated price range of a platinum suite is ________.