Engineering Optimization Technique Optimizatation

1. Presented by: Asadullah Khan
Syed Hassan Haider Zaidi
Haider Ali Bhatti
Mehran Gull

2. Inflation Rate
Engineering Optimization Techniques 2

3. Devaluation of rupee PKR
Engineering Optimization Techniques 3

4. Minimize the impact of inflation on a household from multiple source of income
Problem Statement:
Inflation- an increase in the price of goods and services. The currency depreciates in inflation
due to this the value of assets declines until we earn a return that keeps pace with or
exceeds the rate of price increases. A family or an ordinary person should have a second
source of income to combat this increase of inflation otherwise, the depreciation of the
currency and no return on assets will not benefit in the long term.
Engineering Optimization Techniques 4

5.  Possible mathematical methods
There are two possible methods to solve this particular problem
1. Dynamic programming
2. Multivariable Optimality Conditions for unconstrained optimization
Engineering Optimization Techniques 5

6. Stage 1 Stage 2 Stage 3 Stage 4
Problem Dependency
Multiple Source
of Income
Decision
Making/
Conclusion
Engineering Optimization Techniques 6

7.  The sources of inflation in Hungary
https://www.researchgate.net/publication/366237472
 How Brazil Beat Hyperinflation
http://www.gustavofranco.com.br/uploads/files/how%20Brazil%20beat%20hyper.pdf
 The Dynamic Theories of Inflation
http://pjia.com.pk/index.php/pjia/article/view/488/356
 Impact of Financial Literacy and Investment Experience on Risk Tolerance and
Investment Decisions: Empirical Evidence from Pakistan
https://dergipark.org.tr/en/pub/ijefi/issue/32008/353643
 How Much Does Inflation Vary by Income? Depends on How It's Measured
https://dlib.bc.edu/islandora/object/bc-ir:109556/datastream/PDF/view
 Impact of Inflation and Unemployment on Economic Growth of Pakistan
https://ejbmr.org/index.php/ejbmr/article/view/993
 An Analysis of the Relationship between Inflation and Gold Prices: Evidence from
Pakistan https://ideas.repec.org/a/lje/journl/v18y2013i2p1-35.html
Engineering Optimization Techniques 7

8. Engineering Optimization Techniques 8

9. Engineering Optimization Techniques 9

10. Problem Statement
The sales manager for a pharmaceutical company has six traveling salespeople of a
medical ramp team to assign 3 cities namely; Lahore, Karachi and Multan. He has
decided that each city should be assigned at least one salesperson and that each
individual salesperson should be restricted to one of the cities, but now he wants to
determine how many salespeople of a team should be assigned to the respective cities
in order to maximize sales.

11. Sales person
Cities
Lahore Karachi Multan
1 35 21 28
2 48 42 41
3 70 56 63
4 89 70 75

12. Objective
Maximize the sale in the three cities
𝑖=1
3
𝑃𝑖(𝑥𝑖)
Constraints
We have constraints of the sales person in medical ramp team. Total members were 6
in the team if each member was restricted to each city then for each city we were
available with extra three sales persons.
So then each city can have minimum one team or maximum 4 teams.

13. Constrained
𝑖=1
3
(1 ≤ 𝑥𝑖 ≤ 4)
Formulation by backward recursive
𝑓𝑛(𝑆𝑛, 𝑥𝑛) = 𝑃𝑛(𝑥𝑛) + 𝑓𝑛+1(𝑆𝑛 − 𝑥𝑛)
𝑆𝑛 = number of sales persons still available for allocation to remaining countries
𝑥𝑛 = available teams

14. n=3
𝑆3 𝑃3(𝑥3) 𝑥3 (𝐷𝑒𝑐𝑖𝑠𝑖𝑜𝑛)
1 28 1
2 41 2
3 63 3
4 75 4

15. 𝑥2
𝑠2
1 2 3
𝑃2(𝑥2)
𝑥2Decision
1 21 21 1
2 49 42 49 1
3 62 70 56 70 2
4 84 83 84 84 1 or 3

16. . X1= 1 medical ramp sales officer for city n=1
 X2= 2 medical ramp sales officers for city n=2
 X3= 3 medical ramp sales officers for city n=3
𝑥1
𝑠1
1 2 3
𝑃1(𝑥1) 𝑥1Decisio
n
4 105 97 91 105 1