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Laboratory 2: Group 3

The document describes three optimization problems solved by a group for a class assignment. Problem 1 involves loading items onto a truck to maximize total benefit given item weights and benefits. The optimal solution loads 22 units of Item 2 and 2 units of Item 3 for a maximum benefit of 16,400. Problem 2 involves allocating 10,000 pesos across four stock investments to maximize net present value. The optimal allocation invests 1,000 pesos in each of Investments 1, 2, and 4 and 7,000 pesos in Investment 3 for a maximum present value of 64,400 pesos. Problem 3 uses a decision tree to analyze whether a company should test market or nationally launch a new automotive

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Andrea Delos Rios
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65 views32 pages

Laboratory 2: Group 3

The document describes three optimization problems solved by a group for a class assignment. Problem 1 involves loading items onto a truck to maximize total benefit given item weights and benefits. The optimal solution loads 22 units of Item 2 and 2 units of Item 3 for a maximum benefit of 16,400. Problem 2 involves allocating 10,000 pesos across four stock investments to maximize net present value. The optimal allocation invests 1,000 pesos in each of Investments 1, 2, and 4 and 7,000 pesos in Investment 3 for a maximum present value of 64,400 pesos. Problem 3 uses a decision tree to analyze whether a company should test market or nationally launch a new automotive

Uploaded by

Andrea Delos Rios
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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LABORATORY 2 Group 3

CRUZ, ALDRICH JOSEPH I. COURSE/YEAR/SECTION:


DE LEON, MHARK P. BSIE 3-A
DE LEON, PRAISELYN G.
DELOS RIOS, ANDREA S. DATE:
GARCIA, BERNARDENE B.
MARCH 13, 2022
MIRANDA, VINCE KEVIN DV.
RIVERA, AMANDA ROSE B.
PROBLEM 1
The dispatching department of a company has a 20-toner truck to be filled
with items in the following table. As per instruction of the recipient, the
importance of each item is given by the “benefit” column in the table. If
more than one unit of an item is permitted to be loaded, how should be the
truck be loaded to maximize the total benefit?

ITEM WEIGHT BENEFIT

1 1500 12

2 850 7

3 650 5
STEP 3: MOVE BACKWARD TO STAGE 4.
4 1200 9 IF THERE IS 20,000 KG REMAINING CAPACITY, WE HAVE:
5 990 8

STEP 4: MOVE BACKWARD TO STAGE 3.


IF THERE IS 20,000 KG REMAINING CAPACITY, WE HAVE:
STEP 5: MOVE BACKWARD TO STAGE 2.
IF THERE IS 20,000 KG REMAINING CAPACITY, WE HAVE:

STEP 6: MOVE BACKWARD TO STAGE 1:


IF THERE IS 20,000 KG REMAINING CAPACITY, WE HAVE:

ITEMS = 0 (ITEM 1), 22 (ITEM 2), 2 (ITEM 3), 0 (ITEM 4), 0 (ITEM 5) MAXIMUM TOTAL BENEFIT = 16,400
USING EXCEL SOLVER
ITEMS = 0 (ITEM 1), 22 (ITEM 2), 2 (ITEM 3), 0 (ITEM 4), 0 (ITEM 5)
MAXIMUM TOTAL BENEFIT
16,400
PROBLEM 2
As a student, you want to invest in the stock market with
you spare money of 10,000 pesos. You have chosen 4 blue
chips company to invest in. You found out the following
algorithm in the internet that calculates the present value of
your investment for each of the companies you have
chosen.
〖PV〗_Inv1=〖4x〗
_1+1000 (x_1>0)
〖PV〗_Inv2=〖5x〗
_2+600 (x_2>0)
〖PV〗_Inv3=〖7x〗
_3+700 (x_3>0)
〖PV〗_Inv4=〖3x〗_4+1100 (x_4>0)
〖PV〗_Inv1 (0)=〖PV
〗_Inv2 (0)=〖PV〗
_Inv3 (0)=〖PV

〗_Inv4 (0)
If the amount placed in an investment must be a multiple of
1,000 pesos, how should you allocate your 10,000 pesos in
order to maximize the net present value obtained from your
investments?

SOLUTION: SOLUTION:
STAGE 4: F4=31,100; X4=10 STAGE 3: (STATE=10) F3=67,800; X3=9

STAGE 3: (STATE=1,2,3,4,5,6,7,8,9)
SOLUTION:
STAGE 2: (STATE=10) F2=66,400; X2=1

STAGE 2: (STATE=1,2,3,4,5,6,7,8,9)
SOLUTION:
STAGE 1: (STATE=10) F1=64400; X1=1

INVESTMENT PLAN = PHP1000 (INV 1), PHP1000 (INV 2), PHP7000 (INV 3), PHP1000 (INV 4) MAXIMUM PRESENT VALUE = PHP 64,400
USING EXCEL SOLVER
INVESTMENT PLAN = PHP1000 (INV 1), PHP1000 (INV 2), PHP7000 (INV MAXIMUM PRESENT VALUE
3), PHP1000 (INV 4) PHP 64,400
PROBLEM 3
XYZ Corporation is attempting to decide if it should introduce a new service line of
automotive repair center. The company can test market the product in selected areas or
avoid the test market and introduce the service nationally. The cost of test marketing is
₱3,640,887. The probability of a positive test market is expected to be 0.6. If service is a
success, the company will make a profit of ₱38,836,136, while if the service fails, will have
a loss of ₱16,990,809. The company believes that the probability of success for the service
is 0.5 if the service is introduced without a test market. If the company does conduct a test
market and is positive, the probability of success increases to 0.8. Alternatively, if the test
fails, the probability of success decreases to 0.3 and the company will have to decide
whether or not to launch the service at all. Use decision tree to analyze the best course of
action for the company.
USING EXCEL SOLVER
DECISION: CONDUCT THE TEST MARKET AND LAUNCH THE
SERVICE, IF ONLY IF THE RESULT IS POSITIVE

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