Questions from Management Science


Q: When we (the authors) originally developed the bus route assignment

When we (the authors) originally developed the bus route assignment model, we included an arc capacity constraint: Flow # 1. After giving this further thought, we deleted this constraint as being redu...

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Q: Modify the original RedBrand problem so that all flows must be from

Modify the original RedBrand problem so that all flows must be from plants to warehouses and from warehouses to customers. Disallow all other arcs. How much does this restriction cost RedBrand, relati...

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Q: The optimal solution to the original Grand Prix problem indicates that with

The optimal solution to the original Grand Prix problem indicates that with a unit shipping cost of $132, the route from plant 3 to region 2 is evidently too expensive—no autos are shipped along this...

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Q: In the original RedBrand problem, suppose the plants cannot ship to

In the original RedBrand problem, suppose the plants cannot ship to each other and the customers cannot ship to each other. Modify the model appropriately and reoptimize. How much does the total cost...

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Q: In the original RedBrand problem, the costs for shipping from plants

In the original RedBrand problem, the costs for shipping from plants or warehouses to customer 2 were purposely made high so that it would be optimal to ship to customer 1 and then let customer 1 ship...

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Q: In the original RedBrand problem, we assume a constant arc capacity

In the original RedBrand problem, we assume a constant arc capacity, the same for all allowable arcs. Modify the model so that each arc has its own arc capacity. You can make up the required arc capac...

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Q: Continuing the previous problem, make the problem even more general by

Continuing the previous problem, make the problem even more general by allowing upper bounds (arc capacities) and lower bounds for the flows on the allowable arcs. Some of the upper bounds can be very...

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Q: Repeat parts a–d of the problem 24 for a six

Repeat parts a–d of the problem 24 for a six-month European put option with exercise price $40. Again, assume a current stock price of $35, a risk-free rate of 5%, and an annual volatility of 40%. Da...

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Q: Expand the RedBrand two-product spreadsheet model so that there are

Expand the RedBrand two-product spreadsheet model so that there are now three products competing for the arc capacity. You can make up the required input data.

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Q: In the RedBrand two-product problem, we assumed that the

In the RedBrand two-product problem, we assumed that the unit shipping costs are the same for both products. Modify the spreadsheet model so that each product has its own unit shipping costs. You can...

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