ASSIGNMENT
Part 1: a) Define the decision variables,
b) Objective function,and
c) Constraints.
You don’t need to solve the following problems ( #23, #27, #40, and #44)
Problem #23 (P 120)
Problem #27 (P122)
Problem #40 (P 128): Try problem #39 (P 128), similar toproblem 40, and the #39 answer key posted on the blackboard.
Problem #44 (P 130)
a) Define the decision variables.
b) Define the objective function.
c) Define the constraints.
Part 2:
Fidelity Savings & Loans (FSL) operates several banking facilities throughout North Dakota.
The FSL wants to determine its branch efficiency using DEA. FSL collected the following data. Output (R.O.A, New Loans, and Satisfaction) and input (Labor Hours and Operating Costs).
Compute the DEA efficiency for branch 3.
| Branch | ROA | New Loans | Satisfaction | Labor Hours | Op. Costs |
| 1 | 5.32 | 770 | 92 | 3.73 | 6.34 |
| 2 | 3.39 | 780 | 94 | 3.49 | 4.43 |
| 3 | 4.95 | 790 | 93 | 5.98 | 6.31 |
| 4 | 6.01 | 730 | 82 | 6.49 | 7.28 |
a) Define the decision variables.
b) Define the objective function.
c) Define the constraints.
Part 3:
Determine the optimal solution using Solver or Analytic solver.
Pi = number of units to produce in month i ( i= 1,2,3,4)
Ii = inventory held at the end of month i
MIN49 X1 + 45 X2 + 46 X3 + 47 X4 + 1.5 (120 + 2I1+ 2I2 + 2I3 + I4)/2
STI1 = 120 + P1 – 420
I2 = I1+ P2 – 580
I3 = I2+ P3 – 310
I4 = I3+ P4 – 540
400 P1 500
400 P2 520
400 P3 450
400 P4 550
I1,I2,I3,I4 50
