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Requirements for Project.
A company produces three types of switches S1, S2, and S3 and supplies them to a retailer. It
is contractually obligated to meet the demands of the retailer for each type of switch. Because of
limited capacity the company may not have sufficient machining, assembly, and finishing time
available to satisfy the entire demand in each period through in-house production alone.
Contractual obligation requires the company to make up the shortfall in production by procuring
it from an external supplier at higher costs. The company aims to meet the retailers demands at
minimum cost.
LP Formulation:
Task 1:
Formulate a linear programming (LP) model that may be solved to identify the optimal
production and procurement plan for the company in each time period.
Specifically, you must define the decision variables, objective function, and constraints in your
LP model using the following parameters:
In each time period, for each product i(1, 2,3) :

Di

CiP is the cost (in dollars) for producing each unit of product i .

is the demand (number of units required) for product i .

Ci

is the cost (in dollars) for procuring each unit of product i from the external

supplier.
t im is the machining time (in minutes) required to produce each unit of product i .
a

ti

is the assembly time (in minutes) required to produce each unit of product i .

t if

is the finishing time (in minutes) required to produce each unit of product i .

Further, assume that:

300 hours of machining time is available for regular run.

240 hours of assembly time is available for regular run.

240 hours of finishing time is available for regular run.

LP Parameter Estimation:
You must now use available data to estimate the parameters of the LP formulated in Task 1.
m
a
f
P
Estimation of t i , t i , t i , and Ci :

The CSV file production.csv contains 15,000 records with 6 columns: SerialNo, ProductCode,
MachineTime, AssemblyTime, FinishTime, and Cost. SerialNo is a unique identifier assigned to
each unit produced by the company; ProductCode specifies the product type; MachineTime,
AssemblyTime, and FinishTime specify the time (in minutes) taken by each process (machining,
assembly, and finishing) to produce a unit; the last attribute, Cost, specifies the cost (in dollars)
of producing the unit in-house.
Task 2:
Use the data from the production.csv file to estimate the average machining time, assembly
time, finishing time, and cost per unit for each product type as estimates of the parameters
m

ti

, t i , t i , and Ci

of the LP model.

Specify your parameter estimates in the table below. Round all estimates to 1 decimal place.
2

Estimates for
Parameters
Machine Time (
t im )
Assembly
Time (
a
f
ti )
Finish
Time ( t i )
Production Cost (
CiP )

S1

Product type
S2
S3

Estimation of demand

Di

The CSV file demand.csv contains the retailers sales data for the three switches over the last
52 time periods. For example, the first row shows that 463 units of S1 were sold in time period 1,
and the last row shows that 629 units of S3 were sold in time period 52.
Task 3:
Use the data from the demand.csv file to predict the demands

Di

in time period 53 for

each product. Discuss the prediction method that you chose and justify your choice.
In your report, please present the estimates for time period 53 in the following format:
Product type
Demand (

S1
Di

S2

S3

) in

period 53

The cost of procuring each product from the external supplier is specified below:
Product type
Procurement Cost (
S
Ci )

S1
S2
$ 185 $230

S3
$300

Optimal LP Solution:
Task 4:
Solve the LP formulated in Task 1 using the procurement cost specified above and parameters
estimated in Tasks 2 and 3 to determine the optimal plan for period 53.
Report the minimum cost achievable, number of units of each product type to be produced inhouse, the number of units of each product type to be procured from the external supplier, and
the resources used during production in the following format:
Minimum cost
attainable:
Number of units produced
Produced in-house
Procured from external
supplier
Resources used
MACHINE TIME
ASSEMBLY TIME
FINISH TIME

S1

S2

S3

Minutes

Sensitivity Analysis:
Task 5.
Perform sensitivity analysis by changing one parameter at a time (leaving all other parameters
fixed at the values used in Task 4) and answer the following questions.
(a) By how much does the total production cost change as the demand for each product type
changes by 1 unit?
(b) At most how much should the company be willing to pay to
(i)

Increase the availability of machining time by one hour during regular run?

(ii)

Increase the availability of finishing time by one hour during regular run?

(iii)

Increase the availability of assembly time by one hour during regular run?
5

Quality Control
The CSV file quality.csv contains 5 columns containing data from quality control tests run on
1500 batches of items produced. The first column Quality specifies whether a batch is of good
quality or poor quality; the next four columns Test1, Test2, Test3, and Test4 contain numerical
values representing the measurements on four quality control tests.
Task 6:
Use the data from quality.csv to train and test a Classification Tree that predicts the Quality
of a batch based on values of the features Test1, Test2, Test3, and Test4.
Specify the rules that you obtained in Task 10 in the canonical form:
IF . THEN
Present the classification accuracy of this set of rules in the form:
Number of
batches
Predicted Poor
Quality
Predicted Good
Quality

Actually Poor
Quality

Actually Good
Quality

Optional: You may also try using other classifiers for this classification task and comment on the
results.