Part 1: a) Define the decision variables,
b) Objective function,and
c) Constraints.
You don’t need to solve the following problems
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 .
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
