Variable Cost and Following Table

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EM 505 - Decision Models, Fall 2012 Homework 3 - December 10-11, 2012 1. The diagram below depicts a system of aqueducts that originate at three rivers (nodes R1, R2 and R3) and terminate at a major city (node T) where the other nodes are junction points in the system. Using units of thousands of acre feet, the tables below show the maximum amount of water that can be pumped through each aqueduct per day and the following diagram shows the network of the system. From/To A R1 75 R2 40 R3 B 65 50 80 C 60 70 From/To D A 60 B 70 C E 45 55 70 F 45 90 From/To T D 120 E 190 F 130 The city water manager wants to determine a flow plan that will maximize the flow of water of the city. Formulate this problem as a max flow problem by identifying a…show more content…
Each of these products can be produced in either of two plants. For administrative reasons, management has imposed a second restriction in this regard. Just one of the two plants should be chosen to be sole producer of the new products. The production cost per unit of each product would be essentially the same in the two plants. However, because of differences in their production facilities, the number of the hours of production time needed per unit of each product might differ between the two plants. These data are given in the table below, including marketing estimate of the number of units of each product that could be sold per week. The objective is to choose the products, the plant and the production rates so as to maximize the profit. Production Time Used for each unit Product 1 Product 2 3h 4h 4h 6h 5 7 7 5 Product 3 2h 2h 3 9 Production Time Available per week 30h 40h Thousands of dollars Units per week Plant 1 Plant 2 Unit Profit Sales Potential 7. The Fly-Right Airplane Company builds small jet airplanes to sell to corporations for the use of their executives, for the custom designed airplanes a substantial start-up cost is incurred to initiate the production. They have recently received purchase requests from 3 customers with short deadlines. However, because the company’s production facility has been

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