Operations Management (33:623:386) 
Spring 2010, Professor Eckstein
Assignment 6

Due: Thursday, March 11

For each problem below, hand in an algebra formulation, and also solve using Excel and Solver, handing in the standard printouts.
  

Q1. (30 points)   Problem 3 on pages 117-118 of the course pack (choosing courses at Basketweavers University).
  

Q2. (35 points)   Problem 15 on pages 121-122 of the course pack (Simon's Mall).  Note that the profits shown in table 5.14 are per store: thus, if you have two shoe stores, each store would make a profit of $90,000, for a total of $180,000.  (Hints:  the general setup for this problem is quite similar to the "MILKEM" problem we covered in class shortly before the midterm.  Because of the way the data is presented, some past students have found the three-argument form of SUMPRODUCT useful for this this problem; this version takes three cell-range arguments with the same shape, multiplies together all triplets of cells in corresponding positions, and adds up the results).
 

Q3. (30 points)    Your firm supplies commercial contractors with specialized building materials.  You want to establish some depots to supply eight of your most frequent customers.  You have identified six suitable sites where you might want to place such depots.  The monthly rental and operating costs of these depots, and their distances to the eight customers, are as follows:

Miles to Miles to Miles to Miles to Miles to Miles to Miles to Miles to Monthly
Cust 1 Cust 2 Cust 3 Cust 4 Cust 5 Cust 6 Cust 7 Cust 8 Cost
Depot 1 48 79 2 86 2 65 91 13  $  10,000
Depot 2 18 6 93 42 16 24 31 49  $  15,000
Depot 3 88 36 90 68 96 94 30 38  $  14,500
Depot 4 47 90 57 33 19 48 64 75  $    8,000
Depot 5 21 40 58 61 38 93 45 79  $    9,500
Depot 6 53 60 14 24 78 22 43 76  $  11,000

For each customer, you would like to have at least one depot situated within 45 miles, and at least two depots situated within 75 miles.  Where should you place your depots to minimize your monthly costs? (Hints: the numerical mileages above do not go directly into the constraints, but they do determine how various variables appear in the constraints.  To save typing, a link to a spreadsheet containing the problem data may be found on the eckstein.rutgers.edu/om/om-spring-2010.html website).