ASSIGNMENT QUESTIONS
Q1. Write the math program for the following bids in the lane procurement auction. Clearly define the variables, constraint and objective function
LANES SUPPLIER I SUPPLIER II NUMBER OF TRUCKLOAD
X -> Y 570 525 10
Y -> Z 621 610 10
X -> Z 475 500 10
Include the additional constraints:
1) A minimum of 20% of volume for both the suppliers
2) The following capacity constraints:
LANES SUPPLIER I SUPPLIER II
X -> Y 2 100
Y -> Z 100 4
X -> Z 100 2
3) Each supplier should get at least 25% of the business (dollar value)
Solve the three models including the three constraints. Write the math program along with the constraints. Attach the Excel output and the answers (best value for variables and total cost).
Q2. Which of the following lanes can be combined in a combinatorial auction? Why?
X -> Y
Y -> Z
X -> Z
Q3. Who should win the bids for the following lanes in a combinatorial auction? Why? Which will be the winning bids?
LANES
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X -> Y 1 1 1
Y -> Z 1 1
Y -> X 1 1
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BID SUPPLIER I 280 276 350 412 508
BID SUPPLIER II 255 301 327 401 525
1. Find the approximate minimum cost flow for the following network using the math program discussed in class.
The distribution cost per ton for the arcs are as follows
1-4 = $ 280 1-5 = $ 325 4-6 = $ 75 4-7 = $ 220
2-4 = $ 175 2-5 = $ 175 5-6 = $ 150 5-7 = $ 100
3-4 = $ 250 3-5 = $ 225
The capacity of the warehouses are 400 units.
The minimum cost flow from suppliers to customers must use the warehouses. Hence ignore all the direct arcs from suppliers to customers. The supplier capacity and customer demands are listed in the figure. Write the math program along with the constraints. Attach the Excel output and the answers (best value for variables and total cost).