IN396–OPERATIONS RESEARCH 2

COMMON SEPARATE OF EXERCISES

CYCLE 2020–02

SECTIONS: All

Coordinador: Ing. Eduardo López Sandoval.

 Table of Contents

Unit 1: Decision Analysis

Unit 2: Markov Chains

Unit 3: Queueing Theory ................................................................................................ 10

Unidad 4: Programación Dinámica ...................................................................................................... 13

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 Unit 1: Decision Analysis
Decision criteria under uncertainty and under risk
Exercise 1.1:

An investor aims to achieve the maximum rate of return. Assuming they only have three possible investments: speculative stocks,
high-grade stocks or bonds. Assume also that only three possible states of nature can occur: war, peace, and depression.
Finally, suppose that the investor has calculated their rates of return (%) shown in the following table:

Event
Action War Peace Depression
Speculative values 20 1 -6
High-grade actions 9 8 0
Bonds 4 5 3

a) What is the optimal action using the various non-probabilistic choice criteria studied in class?
b) It is known that the probability of a war occurring in the future is 0.1; that of peace occurring is 0.7, and that of a depression occurring is 0.2. What is the action?
optimal, if the investor is risk neutral?

Exercise 1.2:

A company must decide the quantity of polos to order from the supplier for the upcoming summer season. The demand for polos for the upcoming
The summer season can be 100 thousand, 200 thousand, 300 thousand, or 400 thousand polos. The cost of the order is $10/unit if the order is up to 200 thousand.
units; but if more than 200 thousand units are ordered, the cost decreases to $9.5/unit. The company sells the shirts at $12/unit; but if they remain
Unsold polos at the end of the season are sold off at an Outlet at half price. The following is requested:

a) Identify the decision alternatives and the states of nature. Construct the corresponding Results Matrix and indicate where
units is expressed.
b) If the company prefers to avoid risks, what is the optimal decision it should make?
c) If the company is willing to take risks, what is the optimal decision it should make?
If the company prefers to minimize the opportunity cost, what is the optimal decision it should make?
e) La probabilidad que la demanda sea 100 mil, 200 mil, 300 mil o 400 mil polos es 0.1, 0.2, 0.3 y 0.4 respectivamente, ¿Cuál es la decisión
optimal that the company should take, knowing that it is risk neutral?

Decision tree and application of Utility Theory

Exercise 1.3:

The company Fertilizantes Nitro creates a new fertilizer. If it sells the product and is successful, its profits will be $50,000; if it fails, it will lose $35.
In the past, similar products have been successful in 60% of cases. The effectiveness of the fertilizer can be tested at a cost of $5,000.
If the result of the test is favorable, there is an 80% chance that the product will succeed. If the result of the test is unfavorable,
There will only be a 30% chance of success. Furthermore, there is a 60% chance that the outcome will be favorable. The following is requested:

a) The states of nature and decision alternatives.

b) Build the decision tree, solve it and determine:
• The optimal value of the objective function. Interpret this value.
• The optimal decision that should be made if the company is neutral with respect to risk.
• The expected value of the sample information. Interpret this value.
c) Nitro fertilizers are risk-averse and their utility (function ) √ is = + ; ó Incorporate
this utility function in the decision tree, solve it and determine:
• The expected optimal utility and the optimal decision that Fertilizantes Nitro should make.
• Determine the equivalent certainty for the company and interpret that value.
• Another company offers Fertilizantes Nitro a payment of $7,000 to buy the rights to the new fertilizer, does Fertilizantes Nitro
Should I accept the offer? Justify.
• Determine the risk premium for Nitro Fertilizers and interpret its value.

Exercise 1.4:

The television network NBS makes an average of $400,000 when a show is successful and loses an average of $100,000 when it is not.
all the shows that network has reviewed, it turns out that 25% were successes and 75% were failures. A market research company
You can, at a cost of $40,000, have an audience witness a preview of the proposed show and give their opinion on whether it will be successful.
success or failure. If it is really going to be a success, there is a 90% chance that the market research company predicts it will be a
éxito. Si en realidad va a ser fracaso, hay 80% de probabilidades que la predicción sea fracaso. Se pide:
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a) The respective decision tree.
b) Determine the strategy that the channel should take if the decision-maker is risk-neutral.
c) Find the expected value of the sample information (the maximum price that can be paid for a market study).
d) If the optimal decision is chosen, what is the probability of making a profit and what is the maximum that could be earned?
e) Scenario: Assume that now the decision-maker adopts a risk-seeking attitude, which is expressed by the function
of usefulness( ) =( + ) ; ó What strategy should the channel take? How much does it amount to?
its equivalent of certainty? Interpret that value.

Exercise 1.5:

Jones, who is a farmer, must determine whether to plant corn or wheat. If he plants corn and the weather is hot, he earns $8000, or if the weather is cold,
earn $5000. If you plant wheat and the weather is warm, you earn $7000, and if the weather is cold, you earn $6500. In the past, 60% of the years have been
hot and 40% cold. Before planting, Jones can pay $600 for a weather forecast. If the year is actually hot, there is an 80% chance of
probability that the meteorologist predicts a hot year. If the year is actually cold, there is a 90% probability that the meteorologist predicts a
cold year. How can Jones maximize his expected profits? What attitude towards risk does Jones show?

Exercise 1.6:

A company dedicated to mining exploitation must decide whether to drill or not in a certain lot. Management is unaware if the site is a class A lot,
B or C. The possible net gains are given in the following table:

Action
State Drill Do not puncture
Class A $-100000 $0
Class B $30,000 $0
Class C $200000 $0

At a cost of $15,000, the company can conduct seismic surveys that will help determine the geological structure of the land. The surveys
they will determine whether the ground below has no structure, which is unfavorable, or has a medium structure, which is moderately convenient or
it has total structure, which is convenient. Experts have provided the following table that partially shows the probabilities of
any class A, B or C given the seismic result.

Seismic result
Probability of
State Sin Structure
Medium structure state
structure total
Class A 0.73 0.43 0.50
Class B 0.22 0.34 0.30
Class C 0.05 0.23 0.20
Probability of
0.41 0.35 0.24
seismic result

To complete the previous table, experts state that the probability of the seismic test result being total structure is 0.1
if the lot is class A, 0.3 if the lot is class B and 0.5 if the lot is class C.

a) Draw the decision tree.

b) What is the optimal decision strategy?
c) What is the maximum amount of money that can be paid for the seismic surveys?

Exercise 1.7:

The company Clean&Neat is considering the introduction of a new cleaning product in the national market. Management estimates that the
The probability of a resounding success is 0.5, and the probabilities of moderate success and total failure are 0.25 and 0.25 respectively. An option
What they are considering is the product test in the city of Chimbote at a cost of $4 million before making the decision to introduce it.
in the national market. Experience has shown that cleaning products that have been completely successful have been approved in the city.
from Chimbote 90% of the time, while products that achieve moderate success are approved in the city of Chimbote only the
60% of the time. Finally, in Chimbote, only 30% of the products that fail are approved. If the product achieves total success,
The profit for the company will be $30 million if it achieves moderate success, it will only earn $10 million, and if it fails, it will lose $10 million.

a) Draw the decision tree.

b) ¿Cuál es la ganancia máxima esperada? ¿Cuál es la estrategia óptima de la empresa?
c) What is the maximum that the product test should cost?

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Exercise 1.8:

A company has decided to acquire the rights to a single foreign franchise to establish a fast food business in Peru. The
The alternatives proposed to the company are two: Acquire the franchise 'Burger Queen' or acquire the franchise 'Mac Dowell's'; whose initial investment
(in thousands of $) are 400 and 550, respectively. The company wants to evaluate the returns and costs involved over 5 years of
operation of the business, at the end of which the rights of the franchise will be sold for 80% of the initial investment (value of
rescue). It is also estimated that in the next 5 years sales could be good or regular. The annual billing (in thousands of
What each franchise would leave depends on whether sales are good or regular:

Ventas buenas Ventas regulares

Burger Queen 50 25
Mac Dowell's 50 35

Considering that the horizon is 5 years of business operation, the following is requested:

a) Identify the decision alternatives and the states of nature. Then, present the corresponding results matrix, indicating
in what units is it expressed.
b) Determine the optimal decision, under the criteria: MAXIMIN, MAXIMAX, MINIMAX. Interpret your results.

Scenario: Likewise, it is estimated that the probability of sales being good is 0.6 and that sales being regular is 0.4. However,
Before making the final decision, the company could order a study analyzing the franchise sector in Peru at a cost of $1.
thousand. The possible outcomes are: Favorable or Unfavorable. If sales are good, there is a 0.8 probability that the study result is
favorable; but if sales are regular, there will only be a 0.1 probability that the study's outcome will be favorable.

a) Present the corresponding decision tree, showing all the values and corresponding probabilities. WORK WITH
CLARITY AND ORDER. If you need to calculate probabilities, calculate them rounding to 4 decimal places and present them in an orderly manner.
procedure and calculations.
b) After solving the tree, present the following in writing:
• Expected optimal value.
• Optimal decision.
• The maximum amount the company would pay to have the study done.
• If the optimal decision is implemented, what is the probability of having good sales?
• If the optimal decision is implemented, how much could the company earn at most?
• The company's attitude towards risk.
c) Suppose that the utility function of the ( ) company
√ is = ; ó :
• Determine its equivalent certainty and interpret that value.
• Si se le presenta a la empresa la oportunidad de dejar de adquirir los derechos de la franquicia, a cambio de una inversión que le
Ensure a profit of $100 thousand, what decision should I make? Justify.

Exercise 1.9:

An investor who owns land on a beach must decide whether to build a large hotel or a medium hotel. The annual profit he would earn
(in thousands of US$) depends on the level of success it has according to the following table:

Level of success
Investment High Moderate Low
Large hotel 5000 1000 -1000
medium hotel 3000 1200 -200

The investor estimates that the probability of a high level of success is 0.3 and that the level of success being moderate is 0.5. However, the
an investor could hire the services of a prestigious consulting firm for US$ 100,000 to conduct a thorough study of the
future prospects of tourism in the geographical area where the future hotel will be located. The possible outcomes of the study are: high prospects
low prospects. Since the information provided by the consulting firm is not perfect, it is known that:

• If the success is high, the probability that the outcome is high prospects is 0.85
• If the success is moderate, the probability that the outcome has high prospects is 0.40
• If success is low, the probability that the result is high prospects is 0.20

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a) Present the corresponding decision tree, showing all the values and probabilities involved. Work clearly and
Order. If you need to calculate probabilities, calculate them rounding to 4 decimal places and present your procedure in an orderly manner.
calculations.
b) After solving the tree, present the following in writing:
a. Expected optimal value.
b. Optimal decision.
c. The maximum that the investor would pay to hire the consulting firm.
c) Now suppose that the investor has the following utility ( ) function: = ( + ), it is expressed in thousands of dollars.
Incorporate that utility function into the decision tree, solve it, and determine:
• The expected optimal utility and the optimal decision that an investor should make. What is the investor's attitude towards risk?
• Determine the equivalent of certainty for the company and interpret that value.
• The investor is presented with the opportunity to invest in a business that guarantees a return of $1500 thousand, instead of
Build a hotel on the beach. What would you recommend? Justify.
• Determine the risk premium for the investor and interpret its value.

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 Unit 2: Markov Chains
MARKOV CHAINS
Exercise 2.1

The marketing department of an industrial company that produces product A conducted a market study in several supermarkets.
from the city to gather information about the market for their product A and that of the competition B. This type of study is done once every
year. Supermarkets were randomly selected. The questions to the 400 interviewed customers were: What product do you consume
And if for next year I would continue consuming the same product or would consume the other product. The results obtained were the following:
Currently, 225 customers consume product A and the rest consume product B. Of the customers who currently consume product A,
135 would continue consuming it next year and the rest would shift their consumption to product B. On the other hand, of the customers who currently
35 consumers of product B would switch their consumption to product A next year, while the others would continue consuming product B. It is requested
the following:

a) Represent the evolution of the type of product consumed by customers as a stochastic process, identifying the variable.
random, its states and its transition matrix (one step)
b) What assumption should be taken into account for this stochastic process to be considered as a Markov chain?
c) Make the corresponding state transition diagram. Which state or states are: absorbing? Transient? Recurrent?
d) Is the chain ergodic? Provide justification.

Exercise 2.2

Consider the following transition matrix of a certain stochastic process: What states are transient? What states are recurrent?

0 0 1 0 0 0 a) Make the corresponding transition diagram. Starting from the

0 0 0 0 0 1 transition diagram
0 0 0 0 1 0 b) What are transient states?
=
0.25 0.25 0 0.5 0 0 c) Which states are recurrent?
1 0 0 0 0 0 d) Identify all sets of closed states.
[ 0 0.3 0 0 0 0.7 ] e) Is the chain ergodic? Justify.

Exercise 2.3

Consider the following transition matrices of two stochastic processes:

0.7 0 0 0.3 a) Which one or ones are ergodic? Justify.

0.4 0 0.6
0.2 0.2 0.4 0.2
1 = [ 0.3 0.3 0.4 ] 2=[ ]
0.6 0.1 0.1 0.2
0 0.5 0.5
0.2 0 0 0.8

Exercise 2.4

Consider the exercise 2.1:

a) If a customer consumes product A now, what is the probability that the customer will consume product A two years later?
b) Currently, 225 out of the 400 surveyed customers consume product A and the rest consume product B. What percentage of customers
Will they consume product A and product B two years later?
c) What is the probability that a customer who currently consumes product A will consume product B next year and then consume
the product A in the following year?
d) In the long term, what percentage of customers will consume product A and product B?

Exercise 2.5

Each American family is classified as living in an urban, rural, or suburban area. During a given year, 15% of all
urban families move to a suburban area, and 5% move to a rural area; additionally, 6% of all suburban families are
they move to an urban place, and 4% move to a rural place; finally, 4% of all rural families move to an urban place, and the
6% move to a suburban area.

a) If a family lives now in an urban area, what is the probability that they will live in an urban area two years later? In a place
rural? In a suburban place?
b) Suppose that currently 40% of families live in an urban place, 25% live in a rural place, and 35% in a suburban place. What about two
años después qué porcentaje de las familias americanas vivirán en un lugar urbano, en un lugar rural y en un lugar suburbano
respectively?
c) In the long term, what percentage of families will live in each type of place?
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d) If a family lives in an urban area, in how many years is it expected to return to living in an urban area?
e) If a family lives in a rural area, how many years is it expected that they will return to live in a rural area?

Exercise 2.6

You are part of the group responsible for developing the strategic plan of a company that produces a mass product. The market for this
The product is made up of 20 million consumers and is served by two companies, yours (1) and the competition (2). It is considered
that the current selling price of the product will remain at $5 per unit for several years and that each consumer purchases one product
per year. Currently, your company supplies 30% of the market. According to a market study, the transition matrix that governs the
consumer behavior of the product is as follows:
1 2
1 0.4 0.6
2 0.3 0.7

The marketing manager of your company suggests the possibility of running an intensive promotional campaign for the product to capture a
a larger share of the market. To this effect, it proposes two alternatives: A and B, which would cost $6 million and $12 million, respectively.
Below are the transition matrices for each alternative:

Alternative A Alternative B
1 2 1 2
1 0.4 0.6 1 0.5 0.5
2 0.4 0.6 2 0.4 0.6

a) Which marketing campaign would yield the best results for your company in the long term?

Exercise 2.7

A home goods store can place orders for refrigerators at the beginning of each month for immediate delivery, to cater to the
demand. The warehouse orders 2 refrigerators from the supplier only if at the beginning of the month the inventory of refrigerators is 0. The store's policy is
that the maximum level of existence should not exceed 2 refrigerators in any individual month. The monthly demand for refrigerators is
given by the following probability distribution function:

Demand x 0 1 2 or more
p(x) 0.2 0.5 0.3

a) Describe this process as a Markov process, determine the states of the system and the transition matrix.
b) If at the beginning of the first month there was 1 refrigerator in inventory, what is the probability that there is 1 refrigerator in inventory?
dos meses después que el sistema se puso en marcha?
c) In the long term, what is the probability of each of the different inventory levels?
If at the beginning of the first month the warehouse is empty, how many months is it expected to take to return to the same level of inventory?

Exercise 2.8

A home goods store can place orders for refrigerators at the start of each week for immediate delivery, to meet
the demand. The store asks the supplier for 3 refrigerators only if at the beginning of the week the inventory of refrigerators is 0. The policy of the
The store is that the maximum level of inventory should not exceed 3 refrigerators in any individual week. The weekly demand for
Refrigerators are distributed as a Poisson with an average of 1 refrigerator.

a) Describe this process as a Markov process, determine the states of the system and the transition matrix.
b) If at the beginning of the first week there were 3 refrigerators in inventory, what is the probability that there are 3 refrigerators in
inventory three weeks after the system was put into operation?
c) In the long term, what is the probability of each of the different levels of inventory?
If at the beginning of the first week there are 3 refrigerators in the warehouse, how many weeks is it expected to take to reach the same level again?
of inventory?

Exercise 2.9

Consider a department store that classifies a customer's account balance as paid (status 0), 1 to 30 days overdue (status 1),
31 to 60 days overdue (status 2) or uncollectible (status 3). Accounts are reviewed each month and the status of each customer is determined. In general,
credits are not extended and debtors are expected to pay their accounts as soon as possible. Sometimes, customers do not pay on time.
deadline. If this happens when the balance is within 30 days of being overdue, the store considers that this customer remains in the status
1. If this occurs when the balance is between 31 and 60 days overdue, the store considers that the customer moves to status 2. Customers who
accounts that are more than 60 days overdue are classified as uncollectible (status 3), in which case sends the accounts to an agency of
collection. After examining the data from previous years in the month-to-month progression of individual clients from state to state, the store
has developed the following transition matrix:
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 0: Saldo pagado 1 to 30 days late 31 to 60 days overdue Uncollectible
Balance paid 1 0 0 0
1 to 30 days late 0.7 0.2 0.1 0
31 to 60 days overdue 0.5 0.1 0.2 0.2
Uncollectible 0 0 0 1

Management is interested in knowing:

a) The probability that an account overdue by up to 30 days and that an account overdue by up to 60 days becomes uncollectible.
b) Now suppose that the store has $2000 in accounts 1 to 30 days overdue and $5000 in accounts 31 to 60 days overdue. What amount
Is it expected to become uncollectible?

Exercise 2.10

An investor bought shares of a certain company. The shares cost him $38 each, and he has instructed his broker to sell them.
actions as soon as their price reaches $40 or more or as soon as the price is $37 or less. From the observation of behavior
from the stock market in recent weeks, he estimates that the probability of the stock price rising by one dollar is 50%, and the
The probability that the price drops one dollar is 20% for each day.

a) Find the transition matrix for the described process.

b) What is the probability of selling the shares on the third day.

Exercise 2.11

A forest consists of two types of trees: those that are 0 to 1.50 meters tall, and those that are taller. Every year, 40% of the
trees that are less than 1.50 meters tall, 10% are sold for 20 dollars each, 30% remain between 0 and 1.5 meters and 20%
They grow more than 1.50 meters. Each year, 50% of the trees taller than 1.50 meters are sold for 50 dollars each, 20% are sold
at 30 dollars each, and 30% remain in the forest.

a) Determine the states of the system and the transition matrix

b) What is the probability of a tree dying from 0 to 1.50 meters before being sold?

Exercise 2.12

Consider a potential customer who has never been called about purchasing a product. After a call, there is a 60% chance of...
probabilidades de que el cliente exprese un bajo grado de interés en el producto, un 30% de probabilidad de un alto grado de interés, y un 10%
The probability is that the client will be removed from the company's list of potential clients. Consider a client who currently
expresses a low level of interest in the product. After another call, there is a 30% chance that the customer will buy the product.
a 20% probability that the person will be removed from the list, a 30% probability that the client still has a low degree of
Interest, and a 20% probability that the customer expresses a high degree of interest. Consider a customer who currently expresses a high
degree of interest in the product. After another call, there is a 50% chance that the customer will buy the product, a 40% of
The probability is that the client still has a high degree of interest, and a 10% chance that the client will have a low degree of interest.

a) What is the probability that a customer who has never been called will buy the product?
b) What is the probability that a customer with a low degree of interest will be removed from the list of potential customers?
c) On average, how many times will a new potential customer be called before purchasing the product or being removed from the list?

Exercise 2.13

The weekly demand for a certain item for a store is uncertain; but it can be estimated probabilistically. From historical records, it...
it has been possible to determine that its probability distribution function is as follows:

Weekly demand (units) 0 1 2 3 4 or more

Probability 0.2 0.3 0.1 0.3 0.1

At the beginning of each week, the inventory level in the warehouse is reviewed, and if an inventory of 0 or 1 unit is found, a request is made to the
Supplier 3 units; which arrive immediately at the store. The maximum inventory level that the store can have is 4 units.
At the beginning of each week. The demand that is not met is considered a lost sale.

Note: Present your development with 4 decimal places.

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a) Present the states and the transition matrix of the previously described stochastic process.
b) In the long term, what is the expected level of weekly inventory?
c) If today the inventory is 2 units, what is the probability that the inventory will be 2 units, 3 weeks later?

Unit 3: Queueing Theory

Exercise 3.1

A company provides a service to its public through a customer service window. The people who arrive at the company
they do it at a rate of one every 4 minutes on average and it is assumed that the distribution of times between arrivals is approximately
exponential. The service is provided by a person who can attend to a customer every 3 minutes on average and the time between services
it is also approximately exponential.

a) The company's management aims to have a maximum of 2 people in line on average, that the time a customer
waiting in line should not exceed 8 minutes on average and the system utilization should be greater than 80%. With the current system, does it
Do they meet the company's goals?
b) With the current system, what should the service speed be for the average wait time in line to be 5 minutes?
average?

Exercise 3.2

A well-known bank is planning to implement automatic teller machines for cars in order to provide better service to its customers. The objective of
bank is that the average wait time for its customers is no more than 5 minutes and that the average number of cars in line is not
greater than 2 because otherwise it could affect the traffic of the street adjacent to the bank. It is known that the arrival of customers at the ATM
The bank would follow a Poisson process with a customer arrival rate of one every 3 minutes. The following three will be taken into consideration.
proposals.

Proposal #1.- Place an ATM that has a service distribution approximately Poisson with an attention of 25 customers per hour.
average.

Proposal #2.- Place an ATM that does not have a known service distribution, but on which tests have been conducted and results have been obtained.
the following results about the times between appointments (hours between two appointments).

0.036 0.035 0.035 0.036 0.038

0.037 0.037 0.036 0.035 0.038
0.037 0.035 0.037 0.035 0.034
0.035 0.036 0.035 0.036 0.034

Proposal #3.- Place two identical servers to proposal #1

a) Determine which proposal(s) meet the objectives set by the bank.

b) If the unit costs are as follows: Unit cost server = 5.85 dollars per hour, Waiting cost = 4 dollars per hour and that the
The system will operate 24 hours a day. Determine what is the best alternative economically.

Exercise 3.3

An agency is receiving many complaints from its clients. They insistently mention that lines often form.
immense, to such an extent that the eight chairs available at the agency, for clients to wait their turn, are not enough and that to make
a simple transaction a customer loses a lot of time. You have been tasked with analyzing the situation. The system in question has the
the following characteristics: Customer arrivals follow approximately a Poisson process and it has been determined that in
On average, a customer arrives at the establishment every 3 minutes. As for the server, it is known that it is not exponential and that the time between services...
It is on average 2.55 minutes with a standard deviation of 0.072 minutes.

One of the alternative solutions you may have considered is to establish a system with two exponential servers. Each one
These servers can serve an average of 15 clients per hour.

You need to determine whether the current situation or the alternative solution is the most economical for the agency. To do this, you have the following
Information: For the initial system, the hourly payment for the server is $7, while for the proposed system, the hourly cost of each server
It is $15. In addition, it is known that the cost of waiting is calculated at $5/hour and that the system must operate 24 hours.

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Exercise 3.4

At a toll station on a highway, there is only one employee. This employee only charges the toll for cars going south.
north (the cars going in the opposite direction are not taken into account because they pass directly without having to pay). An analyst observed the
toll station during several working days and reached the following conclusions:

• 10% of the time during the workday, the employee was idle because no cars were passing by.
• The arrival rate of cars at the toll from south to north follows a Poisson distribution, with an average rate of 54 cars.
for now.
• The time it takes for the employee to attend to a car is an exponentially distributed random variable.

a) Calculate the average time (in minutes) that a car stays in the toll station, that is, in the entire system.
b) Calculate the expected number of cars at the toll station.
c) The Supervisor comes up with the following proposals that would allow for reducing the average time a car stays and the amount
expected cars at the toll station:
Proposal 1: That the toll collection be done by a machine whose attention time (in minutes) is exactly 1 minute per car.
Proposal 2: There should be 3 employees collecting the toll. The line remains a single one (there is no space for 3 lines to form).
Each employee attends to an average of 25 cars per hour with a Poisson distribution.
Which of the two proposals is the best?
d) The supervisor has the following additional information:

Current situation Proposal 1 Proposal 2

Server cost ($/hour) 3 2 2
Cost of waiting for a car ($/hour) 2 3 1
Workday 12 hours 12 hours 12 hours

Which of all the options is the most economical?

Exercise 3.5

The manager of a sportswear store, which serves 12 hours daily, calculates that for every hour a customer waits in line for
paying costs the business S/ 100 in lost sales. Currently, there is one cashier serving, and the line that forms is a single one. The cashier is given
pays S/ 30 per hour. Clients arrive at a rate of 30 per hour with a Poisson distribution, and the service rate (in clients/hour) also follows
a Poisson distribution. It is also known that, on average, 2.25 customers queue to be attended by the cashier.

The manager is evaluating two alternatives to speed up service at the checkout: Adding one more cashier or two more cashiers. In both alternatives, the
the queue that forms remains a single one. The service rate of each additional cashier would be the same as the current cashier, and they would also be paid...
just like the current cashier.

Note: Present your development with 4 decimal places.

a) Determine the service rate of the cashier.

b) If the manager makes decisions based on costs, is it advisable to continue working with only one cashier? If not, which of the two?
alternatives is the most convenient. Present your procedure and calculations in an orderly manner, otherwise no points will be awarded.

Exercise 3.6

The wheat harvest season in the American Midwest is short, and most farmers deliver their trucks with loads.
from the cereal to a gigantic central silo (barn) within a span of two weeks. Because of this, it is known that trucks full of wheat are waiting
to download and return to the fields a block away from the warehouse. The central silo is cooperatively owned, which would benefit
each of the farmers to increase the efficiency of the unloading and storage process as much as possible. The cost of deterioration
from the grain caused by delays in unloading, the cost of truck rental, and the driver's idle time while waiting for their turn
they are important concerns for the members of the cooperative.

Although farmers have trouble quantifying the damage to the crop, it is easy to assign a cost of $18 per hour for the concept of
wait and unload for each truck and driver. The silo remains open and operates 16 hours a day, seven days a week, during the
harvest season, and has a unloading capacity of 35 trucks per hour according to an exponential distribution. The trucks
trucks arriving throughout the day (during the hours the silo is open) at an approximate rate of 30 trucks per hour, with a pattern of
Poisson. To help the cooperative address the problem of time loss while trucks are waiting in line or while
download in the silo, find:

a) the average number of trucks in the unloading system.

b) the average time per truck in the system.
c) the utilization rate of the silo area.

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d) the total daily cost for farmers for having the trucks stopped during the unloading process.
e) As mentioned, the cooperative uses the silo only two weeks a year. Farmers estimate that expanding the silo would reduce it by 50%
the download costs during the next year. It would cost $9,000 to do it during the season when there are no operations. Would it be worth it for
the cooperative to expand the storage area?

Exercise 3.7

The Ashley department store, located in Kansas City, maintains a successful catalog sales division, where an employee takes
phone orders. If he is busy on the line, incoming calls for that division are automatically answered with a
machine and callers are asked to stay on hold. As soon as an employee is available, the customer who has waited for
more time is transferred and attended to first. Calls come in at an approximate rate of 12 per hour. The employee can take a
order on average 4 minutes. Calls tend to follow a Poisson distribution, and service times are usually exponential.
The employee receives a salary of $10 per hour, but due to the loss of goodwill from customers and to sales in general, the
Ashley store loses approximately $50 per hour of customer wait time for the employee to take the order.

a) What is the average time the customer must wait for catalogs before their call is transferred to the employee who takes the
orders?
b) What is the average number of people calling and waiting to place an order?
c) Ashley evaluates hiring a second employee to take calls. The store would pay that person the same $10 per hour.
Should I hire another employee? Explain.

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 Unit 4: Dynamic Programming
Problems of the satchel
Exercise 4.1:

A truck with a capacity of 10 tons is available to transport 4 types of packages. It is desired to determine the packages to be transported in a way
that the total value being transferred is maximized:

Bundle 1 2 3 4
Weight (tons) 3 6 7 5
Valor (Miles de $) 7 16 19 15
The following is requested:

a) The objective function of the problem.

b) The objective of the problem.
c) The statement of the problem.
d) Define the state variables and the meaning of the decision.
e) Applying Dynamic Programming, present the network of feasible states and solve manually, previously defining the meaning of
the optimal value function. Present the optimal solution(s) and the optimal value of the objective function.
f) Generalize the equations that provided a solution to the problem.

Exercise 4.2:

Regarding the previous exercise, consider that the packages, in addition to having a weight, have an associated volume. The volume of package type 1, 2, 3
4 is 8, 7, 5 and 7 m3respectively and that the available space in the truck is 13 m3Solve the problem again. (Keep in mind
that, for a package to be loaded onto the truck, it must fit both in weight and volume.

Exercise 4.3:

ProSalud is a private organization whose objective is to improve the health level of the rural population in the Lima region. The next project
ProSalud consists of raising the quality of service at 10 medical clinics located in the rural area of the province of Huarochirí. To achieve this, we
they have estimated the additional requirements for doctors and nurses for each of the medical posts, as they appear in the following
table.
Penalty cost
Additional requirements
Medical post Unitary
Doctors Nurses Doctors Nurses
1 2 4 4 2
2 2 6 5 3
3 3 6 5 2
4 2 5 4 2
5 4 10 6 3
6 3 6 7 3
7 4 7 5 2
8 5 10 3 2
9 3 8 8 3
10 3 6 5 2

ProSalud has managed to recruit 20 doctors and 50 nurses who are willing to work in rural areas, in such a way that it is impossible
satisfy the demand at all posts. The assignment of this personnel to each post cannot be done partially: they are assigned
the required amounts of both doctors and nurses or nothing. Moreover, it has quantified the damage caused by not assigning personnel
to each medical post defining a penalty cost. This cost is calculated using the penalty cost for each doctor who does not
it is assigned and each nurse that is not assigned, as shown in the previous table. ProHealth wants to find a way to assign the 20
doctors and 50 nurses in order to minimize the total penalty cost. Formulate the corresponding Dynamic Programming model,
Resolve it using P4 and present the administrative report of the optimal solution.

Exercise 4.4:

A logistics operator must decide which truck to use to transport the 6 loads that must be delivered to a customer. He has two trucks with the following
características: El camión A dispone de 16 toneladas de capacidad y el camión B dispone de 18 toneladas de capacidad.

The loads are packages packed in special packaging so that they cannot be split into multiple parts. The following table shows for
each load contains information about the weight and the utility obtained if the load is transported in truck A or in truck B.

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 Load 1 2 3 4 5 6
Weight (tons) 5 3 4 5 6 8
Utility if carried in A ($/ton) 900 700 800 1000 1400 950
Utility if carried in B ($/ton) 800 900 700 1100 1300 1100

It is also known that the cost per ton of unused capacity for truck A and truck B is $5000 and $10000 respectively. Formulate
the corresponding dynamic programming model and solve it using P4.

Problems with the loading of packages

Exercise 4.5:

The nutritionist of a beef cattle production company must design the diet that the animals should consume. The diet must provide a
maximum of 1500 calories and must contain the highest possible level of proteins. It should only consider four different foods A, B, C, and D
whose contents of calories and proteins per unit of food are the following:

Type of food A B C D
Calories per food unit 300 500 600 400
Proteins per food unit 400 700 900 300

On the other hand, no more than two units of each type of food should be included due to their high fat content, and in the case of food B, it should be...
include at least one unit due to its high phosphorus content.

a) Presente los enunciados de los siguientes elementos: objetivo, función objetivo y el problema.
b) Identifique las variables de estado, el significado de la decisión y el conjunto de decisiones posibles.
c) Generate the network of states.
d) Choose a state, different from the initial one, and describe the subproblem associated with that state.
e) Present the meaning of the optimal value function and solve the problem using dynamic programming.
f) Generalize the equations used to solve the problem.

Exercise 4.6:

The goal is to determine the quantity of each item that a merchant should buy in order to sell it, thus obtaining a profit.
The purchase operation has a fixed cost per type of item if you decide to take at least one unit of that item. The merchant has a
capital of $90 to make the purchases. The data is:

Minimum to buy Maximum to buy Variable cost Fixed cost Selling Price
Article
(units) (units) ($ / unit) ($) ($/ unit)
1 0 3 5 3 7
2 2 6 9 3 12
3 0 5 10 4 15
4 1 9 11 4 17
5 1 7 9 5 16
6 0 8 11 4 17

Formulate the corresponding dynamic programming model and solve it using P4.

Exercise 4.7:

You, as the plant manager, are responsible for scheduling the hours that the 5 production lines must operate to produce a
high demand product. The Planning Department informs you that the production requirement for the next day is at least
100,000 units of that product. Each line can operate up to 8 hours a day. A fixed cost has been determined for each line, which is applied
in case it works the line, and a variable cost expressed in dollars per hour of work. The following table shows this information and also the
production rate of each line expressed in units per hour.

Line
1 2 3 4 5
Production rate (units/hour) 10000 8000 9000 7000 6000
Costo fijo ($) 4000 3000 3500 2500 2000
Variable cost ($/hour) 1200 1000 1100 1000 900

a) Formulate the Dynamic Programming model that allows you to determine the optimal scheduling of production lines. Solve it.
using P4 and presented an administrative report of the optimal solution obtained.

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b)Scenario: Management now informs you that each line can operate at most and at least the number of hours indicated in
the following table. On the other hand, the number of hours to be scheduled increases by an amount that also depends on the line and that
show in the same table. For example, in line 3, one hour of work or 4 hours should be scheduled, since its increment is 3.

Line
1 2 3 4 5
Minimum hours 2 1 1 1 2
Maximum hours 6 6 6 5 6
Increase in hours 2 1 3 1 2

Present the changes that should be formulated in the dynamic programming model of the original scenario.

Exercise 4.8:

The current monthly production capacity of a company is 120 units. This company must decide when to expand or not.
expand its production capacity by acquiring a new machine. The company can make at most a single expansion of
capacity throughout the 6-month planning period. The expansion will allow for an increase in the monthly production capacity
80 units. If it is decided to purchase the machine in a given month, that machine will be available for use from the same month.
in which it is acquired from now on.

It is not possible to store surplus production from one month to another; that is why for the fulfillment of orders each month, if the capacity
production does not reach to cover the entire order, it will not be able to fulfill it in its entirety and a penalty for non-compliance will be incurred; of the
the opposite occurs exactly to meet the entire order but a penalty cost is incurred for unused capacity.

The orders for the next 6 months and the penalties are detailed below:

Month 1 2 3 4 5 6
Order (units) 100 150 200 180 200 100
Penalty for non-compliance ($ / unit of unfulfilled order) 200 180 190 200 180 200
Penalty for unused capacity ($ / unit of unused capacity) 80 90 75 85 90 90
For example, if in month 1 the production capacity is not expanded, the penalty for that month would be: 80(120-100) = $1600.

Knowing that the company wants to minimize the total penalty (in $); formulate the corresponding dynamic programming model, solve it.
using P4 and submit an administrative report of the optimal solution.

Assignment Problems
Exercise 4.9:

A consultant must determine how many days to dedicate to each of their 3 clients in order to maximize their total income. The consultant
has 6 days and their fees (in $) depend on the client and the number of days they would dedicate to them:

Honorarios (en $)

Number of days that would be dedicated

Client 0 1 2 3 4 5
1 0 100 250 400 525 600
2 0 125 250 375 500 625
3 0 150 300 400 550 650

Formulate the corresponding dynamic programming model and solve it using P4.

Exercise 4.10:

Suppose that a master craftsman must plan the production of three different ceramic products in his workshop. The three products require
from the same raw material of which only 20 units are available. The craftsman has 14 apprentices who are in charge of the different tasks.
from production. The labor and raw material requirements for each product are shown in the following table. Assume also that
At least one unit of each type of product must be produced. Each product generates a total profit that depends on the quantity produced.
as shown in the following table.

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 Unit requirement Utility (In $)
Producto subject
apprentices 1 unit 2 units 3 units 4 units 5 units
first
1 3 4 3 4.5 6.5 9 11
2 3 5 3 5 7 9 13
3 4 4 2.5 4 6 8 11

The craftsman wants to find the production plan that maximizes total profit. Formulate the corresponding dynamic programming model and
solve it using P4.

Exercise 4.11:

The Production Manager of a manufacturing company wants to make the production plan for the next 5 weeks. The production of each
The week is restricted to a maximum of 3 units. The following table shows the production cost, in thousands of soles, according to the units.
that they decide to produce.
Costo de producción (Miles de $)
Units to be produced Week 01 Week 02 Week 03 Week 04 Week 05
0 5 4 2 2 3
1 9 7 5 5 4
2 16 14 11 8 8
3 21 20 15 14 13

At the end of 5 weeks, a production of 12 units must be achieved. Formulate the dynamic programming model that allows the company
minimize its total cost, solve using P4 and present an administrative report of the optimal solution.

Inventory problems
Exercise 4.12:

The demand for a certain item for the next 4 months is 900, 800, 1000, 1200 units respectively. The unit costs of
production is 3, 4, 2 and 5 ($) respectively, with a normal production capacity of 900 units. This capacity can be extended
up to 200 units, for which the production costs are 3.5, 5, 2.5, and 7 ($) respectively.

At the beginning of the month, the warehouse is empty. The monthly storage capacity is 300 units and the monthly storage cost
It is $1/unit. Determine the optimal production program that meets the monthly demand and minimizes production costs and
Inventory. By the end of month 4, the inventory must be at least 100 units.

Note: Consider the production and inventory levels in hundreds of units.

Exercise 4.13:

Starting from exercise 3.9, assume that it is possible to satisfy demand or part of it with a delay, that is, in some later period but
assuming a penalty of $1.20 for each unmet unit of demand and for each period of delay. At the end of the last period,
must ensure that all demands have already been met. Solve the new problem.

Exercise 4.14

A company that manufactures a certain product must deliver a certain quantity to its customer every month for the next 6 months. These
quantities to be delivered are shown in the following table:

Me 1 2 3 4 5 6
Cantidad a entregar (unidades) 500 480 460 490 460 490

Al inicio del mes 1, se tiene 800 unidades de producto en el almacén y se requiere que al final del sexto mes el stock sea por lo menos 500
units. The monthly storage capacity is 1000 units and the monthly cost of finished goods inventory is $0.2/unit.

To produce one unit of product, 0.8 kg of input is required. At the beginning of month 1, the company has 2500 kg of input and will not...
make purchases of additional quantities of supplies. Each month it is possible to not produce, produce 500 units, or produce 1000 units. The
The production cost depends on the quantity produced by the company:

Month 1 2 3 4 5 6
Production cost if 500 units are produced ($/unit) 10.2 10.3 11 11.8 11.3 11.9
Cost of production if 1000 units are produced ($/unit) 9.5 9.6 10.2 11 10.7 11.3
For example: If in month 1, 1000 units are produced, the production cost for that month will be: $9500

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The production manager wants to know the optimal production and inventory plan using a structured dynamic programming model and its
solution using P4 software.

Exercise 4.15:

A company that manufactures a certain product must deliver a certain quantity to its customer in each of the following 10 months. Such
The quantities to be delivered, as well as the unit production cost, are shown in the following table:

Month 1 2 3 4 5 6 7 8 9 10
Quantity to deliver (units) 140 180 180 200 120 180 100 100 120 100
Production cost ($ / unit) 5.2 5 5.7 5.9 5.1 5.6 5.8 5.8 5.4 6

The monthly production capacity is 300 units. Monthly production is done in multiples of 60 units (production cannot be done
lot fractions), and it is also possible not to produce in any month. Likewise, the company can have monthly inventories or stock of
products, after fulfilling the quantity to be delivered. The inventory at the beginning of month 1 is 50 units. The maximum that can be held is
monthly stock is 150 units and the monthly storage cost is $0.5/unit. Finally, the maintenance management has
Requested queen 3 of the 10 months the company should not produce.

The production manager wants to know how much he should produce each month in order to minimize the total production and inventory costs.
through a structured model of dynamic programming and its solution using the P4 software.

Optimization of expected values

Exercise 4.16 (Income Management):

A certain tourist transport company has a 10-passenger bus through which it offers daily services to different segments of
market. For a certain day in two weeks, no seats have been reserved yet. Demands are expected from three segments of the
market of which there is already sales history. They are:

Tourist agencies
2. Business agreements
3. Clientes directos

The prices charged per seat vary across the three segments and are $15, $10, and $20 respectively. The demand for each segment
it is uncertain and can only be estimated probabilistically. Based on recorded history, the following probabilities are estimated.
occurrence for the demand quantities in the three segments.

Demand (seats) 0 1 2 3 4 5 6 7 8 9 10
Segment 1 0 0 0.2 0.2 0.15 0.15 0.1 0.1 0.1
0 0
Segment 2 0.1 0.15 0.15 0.2 0.2 0.2 0 0 0 0 0
Segment 3 0.1 0.3 0.3 0.2 0.1 0 0 0 0 0 0

It is required to determine how many seats to allocate for sale to each of the three segments in order to maximize total revenue.
expected to achieve with the 10-seater bus on the day analyzed.

Exercise 4.17 (Profit Management):

The supermarket chain SAFECO has purchased 6 gallons of milk from a local dairy at the price of $1 per gallon. Each gallon is sold
in the 3 stores of the chain at $2. All excess is returned to the barn at the end of the day; which pays SAFECO $0.50 per gallon. The demand
In each store it is uncertain. SAFECO wants to distribute the 6 gallons among the 3 stores in such a way as to maximize the total daily net profit.
expected.
Daily demand (Gallons)
Store 1 2 3
Store 1 0.6 0 0.4
Store 2 0.5 0.1 0.4
Store 3 0.4 0.3 0.3

Exercise 4.18:

A pilgrim must go from city 1 to city 5 passing through cities 2, 3, and 4 in that order. He must complete his journey in such a way that
tire as little as possible considering that you must complete your journey adhering to a budget of 120 soles and complying with
to reach city 5 in no more than 20 hours. In each segment of their journey, the pilgrim must choose whether to travel by walking or by another means of
transportation. The following table shows the cost and travel time data starting from each city to the next, as well as the
indicator of fatigue that the traveler will experience.
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 Costo (S/.) Time (hours) Fatigue (value)
From city Walk Another way Walk Another way Walk Another way
1 20 40 6 3 100 60
2 15 30 8 5 80 70
3 25 60 4 3 50 50
4 30 25 5 4 70 40

However, weather conditions will only affect the level of fatigue if walking is chosen. Weather conditions
they can improve, remain the same or get worse. The level of fatigue will increase by 5 points if the weather conditions worsen, or it will be
decreased by 6 points if the weather conditions improve; and if the weather conditions remain the same, the level of fatigue will not change.
The following table shows the probabilities that the weather conditions will improve, remain the same, or worsen in the different segments.
of the trip.

De ciudad Weather improves Weather remains the same Weather worsens

1 0.1 0.6 0.3
2 0.3 0.6 0.1
3 0.2 0.7 0.1
4 0.1 0.7 0.2

Formulate the dynamic programming model that allows the pilgrim to minimize the expected total fatigue value. Solve using
P4 and present an administrative report of the optimal solution.

Exercise 4.19:

A company that generates electricity must meet a minimum demand of 6000 kW-h of electrical energy. The company has 3 turbines.
that receive steam in order to generate electric energy. The information concerning this is shown below:

Turbine Energy generated (kW-h / ton of steam) Cost ($ / kW–h)

1 5 3
2 6 4
3 4 2

Each of the turbines can process: 0, 200, 400, 600, or 800 tons of steam.

It is estimated that the cost given in the previous table has a 40% chance of occurring and a 60% chance of increasing by 10%. Formulate
the dynamic programming model that allows the company to minimize the expected total cost. Solve using P4 and present a
administrative report of the optimal solution.

Exercise 4.20:

A company must fulfill an order of 300 units of a certain product to an important client. To do this, it has 4 production lines.
production of different technology that independently produces the same type of product. the production rate per hour of the line
L1, L2, L3 and L4 are 30, 35, 20 and 25 units, respectively. Each line can work up to 4 hours. The production cost (in US$) depends on
from the line and the hours I worked, according to the following table:

Line 0 hours 1 hour 2 hours 3 hours 4 hours

L1 0 150 270 400 550
L2 0 160 300 450 600
L3 0 170 290 500 620
L4 0 180 330 500 700

However, production costs in any line could: decrease by 10% compared to its current value, remain at its current value or
increase by 10% compared to its current value, with the following probabilities of occurrence:

Line {"decrease":"Decreases by 10%","remains":"Stays the same"} Increase by 10% more

L1 0.1 0.4 0.5
L2 0.3 0.5 0.2
L3 0.2 0.3 0.5
L4 0.3 0.3 0.4

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The following is requested:

a) The state variables and their meaning.

b) The initial state.
c) The decision set
d) The meaning of the decision.
e) Transition function and constraints
f) Value associated with the decision ad(s).
g) The meaning of the optimal value function.
h) The boundary conditions.
i) Solve the model using P4. Present an administrative report of the optimal solution (If there is more than one solution, report only the
first of them

Exercise 4.21:

A company produces five types of products on the same production line. The production line has a total of 20 hours available. To
For each type of product, the minimum production is 0 batches up to a maximum. If the company decides to produce at least one batch of any type of
product, the line must be prepared before starting production of that type of product (which involves consuming a fixed preparation time)
and it also takes up production time. The technical-economic information of each product is summarized in the following table:

Type of Maximum to produce Fixed time of Production time Utility

product (lots) preparación (horas) (hours/batch) (Thousands of Soles / lot)
1 8 3.5 0.4 40
2 7 2 0.6 30
3 11 2.5 0.4 30
4 5 2.5 1 35
5 5 3.5 0.8 40

Similarly, for each type of product, it could be sold all of its production, sold only 80% of what was produced, or sold 60% of what was produced.
produced. The following table summarizes the probability of selling all production, selling only 80%, or selling only 60% for each type of
producto:

Type of Sell only 80% of it Sell only 60% of it

Sell everything produced
product produced produced
1 0.4 0.5 0.1
2 0.5 0.3 0.2
3 0.6 0.1 0.3
4 0.3 0.3 0.4
5 0.8 0.1 0.1

Knowing that the company's goal is to maximize its expected total utility, the following is requested:

a) The state variables and their meaning.

b) The initial state.
c) The decision set
d) The meaning of the decision.
e) La función de transición.
f) The restrictions
g) Value associated with the decision ad(s).
h) Solve the model using P4 and present an administrative report of the optimal solution and the optimal value (If there is more than one solution,
report only the first of them)

Exercise 4.22:

A company manufactures 4 types of products, which require the same type of input for their production. The production is carried out in batches.
(no fractions of batches can be produced) and a total of 1400 kg of input is available. The following table shows for each type of product, the
selling price and input requirement.

Product P1 P2 P3 P4
Selling price ($/lot) 300 310 320 330
Requirement (kg of input / batch) 100 120 130 140

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The demand for each type of product is uncertain and can only be estimated probabilistically. Based on recorded history, they are estimated
the following probabilities of occurrence for the quantities demanded for each type of product:

Demand (lots)
Product 0 1 2 3 4 5 6
P1 0.04 0.10 0.15 0.20 0.25 0.20 0.06
P2 0.05 0.25 0.20 0.15 0.10 0.11 0.14
P3 0.05 0.30 0.11 0.13 0.14 0.12 0.15
P4 0.07 0.14 0.16 0.18 0.20 0.10 0.15

For all types of products, it should be taken into account that if demand is not met, there is a non-compliance penalty of 350.
400, 450 and 500 $ / lot of unmet demand; for the product types P1, P2, P3, and P4 respectively (for example, if 4 lots are produced
For product P1 and the demand is 6 lots, the penalty for non-compliance would be $700.

The company must determine the optimal production plan for each type of product.

a) Presente las variables de estado y su significado.

b) The initial state.
c) The decision set and its meaning of the decision.
d) The transition function and the constraints.
e) Value associated with the ad(s) decision.
f) Solve the model using P4 and present an administrative report of the optimal solution and the optimal value (If there is more than one solution,
report only the first of them.

Exercise 4.23:

An investor has $40,000 to invest in three types of stocks. In each type of stock, the maximum he can invest is 10.
packages; but in the case of type 3 actions, it is necessary to invest in a minimum of 2 packages. However, the profitability depends on the
behavior of the country's economy: in the future, the country's economy could expand, remain the same, or enter a recession.
The following table shows for each type of shares: the investment per package and the profitability based on the future economy of the country:

Profitability (Percentage relative to the invested amount)

Type of Investment Economy enters into Economy remains Economy enters into
actions ($ / package) expansion same recession
1 2,000 10% 8% 2%
2 2,500 15% 10% 3%
3 3,000 12% 6% 3%

The probability that the economy enters expansion, remains the same, or enters recession is 0.2, 0.5, and 0.3 respectively. Knowing that the
the objective is to maximize the expected total profitability (in $), the following is requested:

a) Presente las variables de estado y su significado.

b) The initial state.
c) The decision set and its meaning of the decision.
d) The transition function and the constraints.
e) Value associated with the decision ad(s).
f) Solve the model using P4 and present an administrative report of the optimal solution and the optimal value (If there is more than one solution,
report only the first one.

Exercise 4.24:

A company manufactures 6 types of products; each type of product requires two raw materials A and B. The company has 30 tons of
raw material A and 40 tons of raw material B. The following table shows, for each type of product:

Type of product 1 2 3 4 5 6
Raw material A requirement (tons / batch) 3 2 2.5 4 3.5 4.5
Máximo a producir (lotes) 3 4 3 2 3 3
Selling price (Thousands of $ / lot) 50 60 55 65 50 55

It is possible that the company chooses not to produce any type of product, furthermore, fractions of a batch cannot be produced. The requirement of
materia prima B (toneladas / lote) para cada tipo de producto es 20% más que su correspondiente requerimiento de materia prima A. Si bien es
It's true that everything produced will be sold, the selling price of each type of product could remain the same, decrease by 5 thousand dollars.
lot or decrease by 10 thousand $ / lot according to the following probability distribution function:

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 Type of product Price remains stable Precio disminuye en 5 Mil $ / lote Precio disminuye en 10 Mil $ / lote
1 0.3 0.1 0.6
2 0.1 0.5 0.4
3 0.6 0.2 0.2
4 0.4 0.5 0.1
5 0.2 0.4 0.4
6 0.3 0.4 0.3

Finally, raw material A and the unused raw material B in production will be sold at a price of $2,000 / ton and $3,000 / ton,
respectively. It is requested:

a) Formulate the structured model of dynamic programming corresponding.

b) Solve using P4 and present an administrative report of the optimal solution.

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