I have solved this problem using different approach but you can solve this problem using m

taught in the KT session.

A B C D
Stage 4 Stage 3 Stage 2 Stage 3
5 5 5 5 0
4 4 4
3 3 3
2 2 2
1 1 1

Stage 1 Stage 2
s1 d1 r1 s0 f0 f1 s2 d2
1 0 0 0 0 0 1 0
1 14 0 0 14 2 0
2 0 0 0 0 0 1
1 14 0 0 14 3 0
2 22 0 0 22 1
3 0 0 0 0 0 2
1 14 0 0 14 4 0
2 22 0 0 22 1
3 30 0 0 30 2
4 0 0 0 0 0 3
1 14 0 0 14 5 0
2 2 0 0 2 1
3 30 0 0 30 2
4 36 0 0 36 3
5 0 0 0 0 0 4
1 14 0 0 14
2 22 0 0 22
3 30 0 0 30
4 36 0 0 36
5 38 0 0 38

Optimal Solutions

A B C D
3 0 1 1
2 1 1 1
2 0 2 1
1 1 2 1

Marginal Increase Matrix

0 1 2 3 4
A
B
C
D

I don’t have the problem with me, but as told in session, you can draw marginal increase matrix and then find the
adding a new plane. Similarly if you start with 0th plane, find the maximum revenues that can be generated by
an solve this problem using method used to solve other problems. Part B and C were
aught in the KT session.

Stage 3
r2 s1 f1 f2 s3 d3 r3 s2
0 1 14 14 1 0 0 1
0 2 22 22 2 0 0 2
8 1 14 22 1 12 1
0 3 30 30 3 0 0 3
8 2 22 30 1 12 2
14 1 14 28 2 20 1
0 4 36 36 4 0 0 4
8 3 30 38 1 12 3
14 2 22 36 2 20 2
19 1 14 33 3 26 1
0 5 38 38 5 0 0 5
8 4 36 44 1 12 4
14 3 30 44 2 20 3
19 2 22 41 3 26 2
23 1 14 37 4 32 1
 ease matrix and then find the maximum revenue for
nues that can be generated by adding each plane.
 Stage 4
f2 f3 s4 d4 r4 s3 f3 f4
14 14 5 0 0 5 50 50
22 22 1 10 4 42 52
14 26 2 17 3 34 51
30 30 3 24 2 26 50
22 34 4 29 1 14 43
14 34
38 38
30 42
22 42
14 40
44 44
38 50
30 50
22 48
14 46
 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6
A B C D E F G

Stage 6 Stage 5

s6 s5 5 4 3 2 1
5 0 5 240 160 0 320 800
4 0 4 1600 480 240 400 800
3 0 3 3040 1600 560 640 960
2 320 2 4640 3120 2240 1120 1280
1 800 1 6080 6160 4000 3000 2400
Stage 4 Stage 3

s4 5 4 3 2 1 s3 5 4
5 240 400 560 1120 2400 5 480 880
4 1600 720 800 1200 2400 4 1840 1200
3 3040 1840 1120 1440 2560 3 3280 2320
2 4640 3360 2800 1920 2880 2 4880 3840
1 6080 4960 4560 3800 4000 1 6320 5440
 Stage 2

3 2 1 s2 5 4 3 2 1
1120 1920 3800 5 720 1360 1680 2720 4600
1360 2000 3800 4 2080 1680 1920 2800 4600
1680 2240 3960 3 3520 2800 2240 3040 4760
3360 2720 4280 2 5120 4320 3920 3520 5080
5120 4600 5400 1 6560 5920 5680 5400 6200
Stage 1

s2 5 4 3 2 1
0 7440 7840 7760 8320 9400
 Stage 1 Stage 2 Stage 3 Stage 4
Product A Product B Product C Product D
1 1 1 5

Stage 4 Stage 3
s4 r4 s3 5 4 3 2 1
6 15 14 12 14 14
5 -- 12 10 10 12
4 -- -- 8 8 8
5 14 3 -- -- -- 6 6
4 11 2 -- -- -- -- 4
3 7
2 5
1 3
Stage 2 Stage 1
s2 6 5 4 3 2 s1 7
7 17 15 13 14 15 8 18
6 -- 14 11 11 12
5 -- -- 10 9 9
4 -- -- 8 7
3 -- -- 6

1 2
2 3
3 5
4 8
5 11
 6 5 4 3
16 14 15 17
 Stage 1 Stage 2 Stage 3
Team 1 Team 2 Team 3

Stage 3
s3 r3
0 0.8
1 0.5
2 0.3

Stage 2
s2 2 1 0
2 0.18 0.2 0.16
1 0.3 0.32
0 0.48

Stage 1
s3 2 1 0
2 0.064 0.06 0.072

Stage 1 Stage 2 Stage 3

1 0 1
 In this I have assumed that there can be any number of logs of any sizes. While in question paper, sir m
specification, viz., 2', 4', 6' and 8'. In that case, solve the problem as I told

Diameter 22" 23" 24" 25" 26" 27" 28"

Length 0 2 4 6 8 10 12

Stage 3 29" - 32" Stage 2 25" - 28"

s3 s2 32" 31" 30" 29" 28" 27"

32" 0 28" 1070 920 970 970
31" 200 27" -- 1270 1240 1250 1240
30" 520 26" -- 1590 1520 1520 1440
29" 800 25" -- 1870 1790 1720

Stage 1
4" or 8'

Assuming that 1 log of each sizes have to be cut. This will most probably be given in the exam and
Network map was shown in the class.

Stage 4 Stage 3 Stage 2

s4 s3 8 6 4 2 s2
8 950 14 1670 1720 -- -- 18
6 650 12 1400 1370 1350 -- 16
4 400 10 1120 1100 1050 1100 14
2 150 8 -- 820 800 800 12
6 -- -- 550 550

Stage 1
21" - 24" 25" - 28" 29" - 32" 8'
2 150 170 200 8'
4 400 450 520 8'
6 650 720 800 8'
8 950 1070 1200
While in question paper, sir might give an assumption of having 1 log of each
, solve the problem as I told in the KT session.

29" 30" 31" 32"

14 16 18 20

Stage 1 21" - 24"

26" s1 28" 27" 26" 25" 24" 23"

24" 2020 1920 1990 2020
23" -- 2220 2240 2270 2170
22" 2540 2520 2420 2420
1760

Stage 2 Stage 3
4" or 8' 2" or 4'

y be given in the exam and hence I recommend to solve using this way.
shown in the class.

Stage 1
14 12 10 8 6 s1 18 16 14
2240 2120 2170 -- -- 20 2440 2440 2420
1920 1850 1820 1890 --
-- 1570 1550 1540 1620
-- -- 1270 1270 1270

Stage 2 Stage 3 Stage 4

2' 4' 6'
4' 2' 6'
6' 4' 2'
6' 2' 4'
 12
2470
 This problem couldn't be solved by Dynamic Programming as the profit depends on previous year cash flows. This
can be solved using decision tree as shown below.

Stage 1 Stage 2 Stage 3 Stage 4

Year 1 Year 2 Year 3 Year 4

Stage 1 Stage 2

s1 s2 3 Profit 2 Profit 1
3 -30 -36 5 -46 -55.2 -- --
2 0 0 4 -11 -13.2 -10 -12 --
1 20 22 3 24 26.4 25 27.5 12
2 -- 45 49.5 32
1 -- -- 47
previous year cash flows. This does not exhibits the Markovian Property. Though this
sion tree as shown below.

Stage 3

Profit s3 5 Profit 4 Profit 3 Profit 2

5 4.8 5.28 13 14.3 17.5 19.25 --
4 -- -- 48 52.8 52.5 57.75 39.5
13.2 3 -- -- -- -- 77.5 85.25 64.5
35.2 2 -- -- -- -- -- -- 84.5
51.7 1 -- -- -- -- -- -- --
 Stage 4

Profit 1 Profit s4 5 Profit 4 Profit 3

-- -- -- 5 59.25 65.175 62.75 69.025 55.25
43.45 -- -- 4 -- -- 97.75 107.525 90.25
70.95 31.7 34.87 3 -- -- -- -- 135.25
92.95 51.7 56.87 2 -- -- -- -- --
-- 71.7 78.87 1 -- -- -- -- --
Profit 2 Profit 1 Profit
60.775 -- -- -- --
99.275 62.95 69.245 -- --
148.775 142.95 157.245 128.87 141.757
-- 127.95 140.745 78.87 86.757
-- -- -- 103.87 114.257