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Question 1

Part A: Assume that a company in Hong Kong supplies hot-mix bituminous mixtures for road construction. The company owns two mixture plants. One is located in Tuen Mun and another one is located in Sheung Shui. The capacity of the Tuen Mun plant is 700 tons per day, while the capacity of the Sheung Shui plant is 800 tons per day.

The plants will serve three construction projects. They are located in Tsing Yi, Hong Kong Island, and Ngau Tau Kow, respectively. The project in Tsing Yi demands 300 tons of mixtures per day. The project in Hong Kong Island demands 400 tons per day. The project in Ngau Tau Kok demands 450 tons per day. Because the distance from each plant to each construction site is different, the transportation cost, which is listed below, is also different:

Tuen Mun  Tsing Yi: $80/ton

Tuen Mun  Hong Kong Island: $150/ton

Tuen Mun  Ngau Tau Kow: $140/ton

Sheung Shui   Tsing Yi: $120/ton

Sheung Shui   Hong Kong Island: $130/ton

Sheung Shui   Ngau Tau Kow: $60/ton

You are request to formulate the problem using a linear programming model. The goal is to minimize the total transportation costs.

You are asked to write the linear programming formula in a standard form. You DO NOT have to solve the problem (In other words, no penalty or reward will be given if you actually solve the problem).

Part B : Solve the following problem by using the simplex method.

Max 100×1 + 120×2 + 85×3

s.t. 3×1 + 1×2 + 6×3    120

5×1 + 8×2 + 2×3    160

x1 , x2 , x3    0

Question 2

Explain the main objectives and key processes of construction project management.

If you are a project manager, in which process(es) will you have the largest influence on the total project time and cost, and why?

You may use figures to assist your explanation.

A maximum of a two-page essay is allowed to answer this question.

Question 3

A large construction company decides to expand its construction market from Hong Kong to a Southeast Asian country. The government in the Southeast Asian country wants to build a 150 kilometers of major highway to facilitate transportation and boost its economy. However, the government does not have enough fund to finance this project. In this situation, what type (s) of contract (based on organisational choice or delivery system) would you recommend for the government?

If this large construction company is selected to be the contractor of this project (based on the contract you recommend). What are the major risks that the company will face? What recommendations can you give this company to reduce such risks?

A maximum of a two-page essay is allowed to answer this question.



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