INOPER2 REVIEWER FOR QUIZ

[#2]
I. The Pericos Catering Service must have the following number of clean tablecloths
available at the beginning of each of the next 5 days:

Day 1 2 3 4 5
Requirements 12 15 10 18 8
After being used, a tablecloth can be cleaned by one of the three methods: fast service,
normal service, or slow service. Fast service costs P20 per tablecloth, and a napkin cleaned
via fast service is available for use the day after it is last used. Normal service costs P14 per
tablecloth, and thesis tablecloths can be reused 2 days after they are last used. Slow service
costs P10 per tablecloth, and thesis tablecloths can be reused 3 days after they are last used.
New tablecloths can be purchased for a cost of P40 per table cloth. The owner of the catering
service is anticipating requirements after day 5, thus the owner wishes to have 6 available
clean tablecloths at the end of day 5. An additional P2 per tablecloth is incurred for keeping
these 6 tablecloths.

a) Set up the necessary table or matric needed to solve the problem.

b) Find the optimal solution that minimizes the cost of meeting the demand for tablecloths
during the next 5 days. Present answer using the table presented in a.

c) Answer the following using the optimal solution in b.

c.1) How much is the incremental cost if 1 available tablecloth on day 1 will be washed
using the slow service for possible used on day 4?
c.2) If 5 new tablecloths will be purchased and to be used on day 3, how much is the total
cost for the catering company?
c.3) If some available tablecloths on day 2 will be washed using slow service for possible
use in the future after day 5, determine the leaving variable and the number of tablecloths
to be allocated.

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 INOPER2 REVIEWER FOR QUIZ
c.1) Incremental Cost: c.2) Total Cost:
[#2]
c.3) Leaving Variable: c.3) Number of tablecloths

II. The manufacturing plant of National Brand Corporation has agreed to supply its best
2 customers with their number 1 product. Customer A will be supplied for 3 months
and customer B will be supplied for 2 months. Currently, the company has a
beginning inventory of 50 cases and aiming to have 100 cases of inventory at the end
of 3rd month. Table 1 shows the monthly requirements of the 2 customers.

Table 1: Monthly Requirements

Customers Monthly Requirements (in cases)

1 2 3
A 250 400 275
B - 300 550
Any cases left unsold in a month would cost the company P1.00 per case to carry it the
following month and unmet demand in a month may be satisfied in future months but results
to a penalty cost of P2.00 per case per month.

a) The plant may directly ship these goods to the customers but the transportation costs are
expensive. Thus, they decided to set up a depot that will be nearer to these two customers.
The depot has a capacity of 100 cases per month. The cost of transporting a case from the
plant to the depot is P6.00. The table below shows the transportation costs per route. The
monthly capacity of the company is constant at 350 cases. The plant cannot delay
deliveries to the depot but they can do it in advance. On the other hand, the depot can
delay deliveries to the customers and they can also do it in advance.

From/To Customer A Customer B

Plant 22 18
Depot 12 14
The transportation costs to the customers will increase by P1.00 per case per month. Set
up the transportation table for this problem considering the demand for Customer B only.

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 INOPER2 REVIEWER FOR QUIZ
b) Assume that company has a regular capacity of 500 cases per month. However, the [#2]
company has options to do overtime and subcontract another company. Table 2 shows the
monthly additional capacity because of overtime and subcontracting.

Table 2: Additional Capacity

Additional Sources Monthly Additional Capacity (in cases)

Overtime 50 75 -
Subcontract - 200 100
A case of the product cost P5.00 to produce during regular production but expected to
increase by P1.00 per month. Overtime cost per case is P2.00 higher than the regular production
cost and subcontracting cost per case is P3.00 higher than the regular production cost. The
product is being sold to Customer A for P25.00 per case and to Customer B for P22.00 per case.
The beginning inventory is currently stored in the provincial warehouse of the company and
must be transferred to the manufacturing plant. The transfer cost would cost P6.00 per case and
will only reach the plant at the end of the 1st month. Using the least cost method, find an initial
solution for the problem.

III. Cebu Pacific Air must staff the daily flights between Manila and Cebu as shown in
Table 3. Each of Cebu Pacifics crews lives in either Manila or Cebu. Each day a creq
must fly one Manila-Cebu and one Cebu-Manila flight with at least 2 hours of
downtime between flights. Cebu Pacific wants to schedule the crews to minimize the
total downtime. Find the flight assignment that minimizes total downtime. Assume
that at the end of the day, each crew must be in his home city.

Flight Leave Manila Arrive Cebu Flight Leave Cebu Arrive Manila
1 6 AM 8 AM 1 7 AM 10 AM
2 7 AM 9 AM 2 8 AM 11 AM
3 10 AM 12 NN 3 9 AM 12 NN
4 1 PM 3 PM 4 12 NN 3 PM
5 3 PM 5 PM 5 2 PM 5 PM
6 6 PM 8 PM 6 4 PM 7 PM
7 9 PM 11 PM 7 7 PM 10 PM
8 10 PM 12 MN 8 8 PM 11 PM

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 INOPER2 REVIEWER FOR QUIZ
Formulate the initial Matrix: [#2]

Flight Assignments:

Manila to Cebu Cebu to Manila Downtime

Flight 1
Flight 2
Flight 3
Flight 4
Flight 5
Flight 6
Flight 7
Flight 8
TOTAL
IV. A construction firm has collected data on dump trucks as shown in the table below
(dollar amounts)

Age in Years 0 to 1 1 to 2 2 to 3 3 to 4 4 to 5
Annual 7000 7500 8500 8700 9000
Maintenance
Cost
Annual Lost 500 800 900 1000 1200
Revenue for
Down Time
Year-End 16000 13000 11000 8000 5000
Trade-in Value
No dump truck is kept more than 5 years. Determine a replacement policy for a dump
truck currently 2 years old that will minimize the total operating cost over the next 9 years.
Assume the new trucks cost $21,000 and only new trucks are made at the end of each year.

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 INOPER2 REVIEWER FOR QUIZ
a) Perform the necessary algorithm to identify the optimal replacement policy. Show all cost
per node for all iterations following the indicated format below:
[#2]
Year 1 2 3 4 5 6 7 8 9
Cost (It.
1)
Cost (It.
2)
3
4
5
6
7
8
9
b) What is the optimal replacement policy? Identify all possible policies if necessary.

Total Operating Cost

V. Secretary General Toby Tiangco from the UNA party has offered Manny Pacquiao to
run for Senator. However, it is not easy for him to say yes since he knows that his
wife, Jinky Pacquiao will also be running for Senator. Toby Tiangco believes that
Manny would be a great candidate to improve the economic and political situations in
the country and his popularity will assure him of winning in the election. He is hoping
that he can convince Manny through the help of other people who have close ties with
him. The staff of Tiangco identified these key people that can convince Manny and
quantified the amount of convincing power they have over him or over other people
that can influence him.

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Convincing Power INOPER2 REVIEWER FOR QUIZ
Fr/ To Toby Freddie Jinky Chavit Mommy Nancy VP Bob Manny

Toby
Tiangco
-
Roach
80
Pacquiao Singson Dionisia
30 100 30
Binay
25
Binay Arum
300 40 50
[#2]
Pacquiao

Tiangco
Freddie - - - 120 100 - 150 - 400
Roach
Jinky 10 20 - 20 - 40 60 30 80
Pacquiao
Chavit - - - - 40 30 25 - -
Singson
Mommy - - 210 - - 90 240 - 50
Dionisia
Nancy - - - - - - - 35 25
Binay
VP Binay 20 60 - - 60 15 - 50 55
Bob Arum - 60 30 30 45 - 10 - 30
Manny - 30 - - - - - - -
Pacquiao
Toby Tiangco feels that 500 units of convincing power over Manny Pacquiao will ensure him
of running for Senator.

a) Will these stipulated units of convincing power be obtained over Manny? Support your
answer by showing the breakdown of convincing power he obtains from the personalities
identified in the table.

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Answers: INOPER2 REVIEWER FOR QUIZ
I.
a) Z=1975
[#2]
Day 1 Day 2 Day 3 Day 4 Day 5 End Dummy
New 40 40 40 40 40 42 0 69
Day 1 M 20 14 10 10 12 0 12
Day 2 M M 20 14 10 12 0 15
Day 3 M M M 20 14 16 0 10
Day 4 M M M M 20 22 0 18
12 15 10 18 8 6 55 124
b) Z=1686

Day 1 Day 2 Day 3 Day 4 Day 5 End Dummy

New 12 40 6 40 40 40 40 42 0 69
Day 1 M 9 20 3 14 10 10 12 0 12
Day 2 M M 7 20 8 14 10 12 0 15
Day 3 M M M 10 20 14 16 0 10
Day 4 M M M M 8 20 6 22 0 18
12 15 10 18 8 6 55 124
c)

c.1) P2/unit c.2) P1720

c.3) Day 2-Day 3 c.3) 7 tablecloths
II.
a)

Customer B Depot Ending Dummy

Month 2 Month 3 Month 2 Month 3 Inventory
Beg. Inv. 19 21 15 16 3 0 50
Month 1 20 22 8 10 3 0 350
Depot 1 16 18 0 0 3 0 1200
Month 2 19 21 7 9 2 0 350
Depot 2 15 16 0 0 2 0 1200
Month 3 22 20 11 8 1 0 350
Depot 3 18 10 0 0 1 0 1200
300 550 1100 1100 100 1550 4700

b)

Customer A Customer B End Dummy

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 Month 1 Month 2 INOPER2
Month 3 Month 2 REVIEWER
Month 3 Inventory FOR QUIZ
Beg. Inv. -M 18 17 15 14 -9 0 50

Month 1-Reg 20 19 18 16
50
15 -8 0 500
[#2]
250 250
Month 1- OT 19 18 17 15 14 -9 0 50
50
Month 2- Reg 17 19 18 16 15 -8 0 500
150 275 75
Month 2-OT 16 18 17 15 14 -9 0 75
75
Month 2- 15 17 16 14 13 -10 0 200
Subcon 50 50 100 0
Month 3- Reg 14 16 18 13 15 -8 0 550
500
Month 3- 12 14 16 11 13 -10 0 100
Subcon 100
250 400 275 300 550 100 100
III.

Initial Matrix:

1 2 3 4 5 6 7 8
1 M M M 4 6 8 11 12
2 M M M 3 5 7 10 11
3 M M M M 2 4 7 8
4 3 2 M M M M 4 5
5 5 4 3 M M M 2 3
6 8 7 6 3 M M M M
7 11 10 9 6 4 2 M M
8 12 11 10 7 5 3 M M

Flight Assignments:

Manila to Cebu Cebu to Manila

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Flight 1 INOPER2
4/5/8 REVIEWER
4/6/12 FOR QUIZ
Flight 2 5/4/4/8 5/3/3/11
Flight 3
Flight 4
7/8/5
1/2/2
7/8/2
3/2/2
[#2]
Flight 5 8/7/7 3/2/2
Flight 6 2/1/1/3 7/8/8/6
Flight 7 3/6/3/6/1 9/2/9/2/11
Flight 8 6/3/6/1 3/10/3/12
TOTAL DOWNTIME 41
IV.
a)

Year 1 2 3 4 5 6 7 8 9
Cost (It. 19.4 32.1 45.3
1)
Cost (It. 31.9 43.2 54.6 67.3 80.5
2)
3 43.2 54.6 67.1 79.8 93
4 54.6 67 78.4 91.1 104.3
5 67 78.4 89.8 102.5 115.7
6 78.4 89.8 102.2 114.9
7 89.8 102.2 113.6
8 102.2 113.6
9 113.6
b) 0-1-3-6-9, Operating Cost = 113,600
V. Total = 490; not possible

TT-MP (50) TT-NB-MP (25)

TT-FR-MP (80) TT-CS-MD-JP-MP (40)

TT-VP-FR-MP (60) TT-VP-BA-JP-MP (10)

TT-BA-FR-MP (40) TT-VP-MP (55)

TT-VP-BA-FR-MP (20) TT-VP-NB-BA-MP (15)

TT-JP-MP (30) TT-VP-BA-MP (15)

TT-MD-MP (30) TT-VP-MD-MP (20)

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