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# Tangonan, Visitacion D.

Quantitative Management
3.1-11 The Omega Manufacturing Company has discontinued the production of a certain
unprofitable product line. This act created considerable excess production capacity. Management
is considering devoting this excess capacity to one or more of three products; call them product 1,
2, and 3. The available capacity on the machines that might limit output is summarized in the
following table:

## Machine type Available time (machine hours per week)

Milling machine 500
Lathe 350
Grinder 150

The number of machine hours required for each unit of the respective product is

## Machine type Product 1 Product 2 Product 3

Milling machine 9 3 5
Lathe 5 4 0
Grinder 3 0 2

The sales department indicates that the sales potential for products 1 and 2 exceeds the maximum
production rate and that the sales potential for product 3 is 20 units per week. The unit profit would
be \$50, \$20 and \$25, respectively, on products 1, 2, and 3. The objective is to determine how much
of each product Omega should produce to maximize profit.

## a. Formulate a linear programming model for this program.

b. Use a computer to solve this model by the simplex method.

Solution:

## a. linear programming model

Objective function:

Z  50 x1  20 x2  25x3 , Maximize

Where:
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x1  product 1
x 2  product 2
x3  product 3

Constraints:

9 x1  3x 2  5 x3  500
5 x1  4 x 2  350
3x1  2 x3  150
x3  20
x1 , x 2 , x3  0

b. simplex model

3.4-10 Web Mercantile sells many household products through an online catalog. The company
needs substantial warehouse space for storing its goods. Plans now are being made for leasing
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warehouse storage space over the next 5 months. Just how much space will be required in each of
these months is known. However, since these space requirements are quite different, it may be
most economical to lease only the amount needed each month on a month-by-month basis. On the
other hand, the additional cost for leasing space for additional months is much less than for the
first month, so it may be less expensive to lease the maximum amount needed for the entire 5
months. Another option is the intermediate approach of changing the total amount of space leased
(by adding a new lease and/or having an old lease expire) at least once but not every month. The
space requirement and the leasing costs for the various leasing periods are as follows:

Month Required Space (Sq. Ft.) Leasing Period (Month) Cost per Sq. Ft. Leased
1 30,000 1 \$65
2 20,000 2 \$100
3 40,000 3 \$135
4 10,000 4 \$160
5 50,000 5 \$190

The objective is to minimize the total leasing cost for meeting the space requirements. (a)
Formulate a linear programming model for this problem. C (b) Solve this model by the simplex
method.

Solution:

## a. linear programming model

i. Defining the value of decision variable of the problem

Let x1,j; be the amount of space leased j and for i is the number of month

## ii. Define the objective function

Minimize:
C  650(x 11  x 21  x 31  x 41  x 51 )  1000(x 12  x 22  x 32  x 42 )  1350(x 13  x 23  x 33 ) 
1600(x 14  x 24 )  1900x 5

iii. State the constraints to which the objective function should be optimized
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Quantitative Management
Constraints: x 11  x 21  x 31  x 41  x 51  30,000

## x12  x13  x14  x15  x21  x22  x23  x24  20,000

x13  x14  x15  x22  x23  x24  x31  x32  x33  40,000

## x15  x24  x33  x41  x42  x51  10,000

b. Simplex model

Based on the graph above, to obtain the minimized total cost of 76,500,000 for meeting the space
requirement having an optimal solution of x1-5 = 30, 000; x3-1 = 10,000 and x5-1 = 2, 000.

3.4-11. Larry Edison is the director of the Computer Center for the Buckly College. He now
needs to schedule the staffing of the center. It is open from 8 am until midnight. Larry has
monitored the usage of the center at various times of the day, and determined that the following
number of computer consultants are required:

## Time of the Day Minimum Number of Consultants Required

to be on Duty
8 am – Noon 4
Noon – 4 pm 8
4 pm – 8 pm 10
8 pm - Midnight 6
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Quantitative Management
Two types of computer consultants can be hired: full-time and part-time. The full-time
consultants work for 8 hours a day in any time of the following shifts: morning (8am – 4pm),
afternoon (noon- 8pm) and evening (4pm – midnight). Full-time consultants are paid \$40 per
hour.

Part-time consultants can be hired to work of any of the 4 shifts listed in the above table.
Part-time consultants are paid \$30 per hour.

An additional requirement is that during every time period, there must be at least 2-full-
time consultants on duty for every for every part-time consultant on duty.

Larry would like to determine how many full-time and how many part-time workers
should work each shift to meet the above requirements at minimum possible cost.

## A. Linear Programming model

Let ft-1 = number of full-time consultants working the morning shift (8 a.m.-4 p.m.)

ft-2 = number of full-time consultants working the afternoon shift (Noon-8 p.m.)

## pt1 = number of part-time consultants working the first shift (8 a.m.-noon)

pt2 = number of part-time consultants working the second shift (Noon-4 p.m.)

pt3= number of part-time consultants working the third shift (4 p.m.-8 p.m.)

Minimize

## C  (40 * 8) * ( ft1  ft2  ft3 )  (30 * 4) * ( pt1  pt2  pt3  pt4 )

Constraints

ft1 + pt1 ≥ 4
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Quantitative Management
ft1 + ft2 + pt2 ≥ 8

f3 + pt4 ≥ 6

ft1 ≥ 2pt1

ft3 ≥ 2pt4

## ft1, ft2, ft3, pt1, pt2, pt3, pt4≥0

B. Simplex Model

Total
Cost Variable Quantity constraints Constant
4106.67 Full-time 1 (8am-4pm) 2.66667 4 ≥ 4

## Full-time 2(noon - 8pm) 2.66667 8 ≥ 8

Full-time 3(4pm-
midnight) 4 10 ≥ 10

## part-time 3(4pm-8pm) 3.33333 5.33333333 ≥ 5.33333

part-time 4(8pm-
midnight) 2 6.66666667 ≥ 6.66667

4 ≥ 4

Full-time 1 ≥ 0

Full-time 2 ≥ 0

Full-time 3 ≥ 0
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Quantitative Management

part-time 1 ≥ 0

part-time 2 ≥ 0

part-time 3 ≥ 0

part-time 4 ≥ 0

The optimal solution has fractional components. If the number of consultants have to be
integer, then the problem is an integer programming problem and the solution is (3,3,4,1,2,3,2)
with cost of \$4,160.

3.4-12. The Medequip Company produces precision medical diagnostic equipment at two
factories. Three medical centers have placed orders for this month’s production output. The table
below shows what the cost would be for shipping each unit from each factory to each of these
customers. Also shown are the number of units that will be produced at each factory and the
number of units ordered by each customer.

A decision now needs to be made about the shipping plan for how many units to ship from each
factory to each customer. (a) Formulate a linear programming model for this problem. C (b) Solve
this model by the simplex method.

From Factory 1, ship 200 units to Customer 2 and 200 units to Customer 3. From Factory 2, ship
300 units to Customer 1 and 200 units to Customer 3

Solution:

## (a) linear programming model

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Let xij denote the number of units that are shipped from ith factory to the jth consumer. Where i
varies from 1 to 2 and j varies from 1 to 3.

x11+x12+x13=400

x21+x22+x23=500

x11+ x21=300

x12+ x22=200

x13+ x23=400

## (b.) Using simplex method

3.4-13. Al Ferris has \$60,000 that he wishes to invest now in order to use the accumulation for
purchasing a retirement annuity in 5 years. After consulting with his financial adviser, he has been
offered four types of fixed-income investments, which we will label as investments A, B, C, D.
Investments A and B are available at the beginning of each of the next 5 years (call them years
1 to 5). Each dollar invested in A at the beginning of a year returns \$1.40 (a profit of \$0.40) 2 years
later (in time for immediate reinvestment). Each dollar invested in B at the beginning of a year
returns \$1.70 three years later.
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Quantitative Management
Investments C and D will each be available at one time in the future. Each dollar invested
in C at the beginning of year 2 returns \$1.90 at the end of year 5. Each dollar invested in C at
the beginning of year 5 returns \$1.30 at the end of year 5.
Al wishes to know which investment plan maximizes the amount of money that can be
accumulated by the beginning of year 6.
(a) All the functional constraints for this problem can be expressed as equality constraints. To
do this, let At, Bt, Ct and Dt be the amount invested in investment A, B, C, and D,
respectively, at the beginning of year t for each t where the investment is available and will
mature by the end of year 5. Also let Rt be the number of available dollars not invested at
the beginning of year t plus Rt must equal the number of dollars available for investment
at that time. Write such an equation in terms of the relevant variables above for the
beginning of each of the 5 years to obtain the five functional constraints for this problem.
(b) Formulate a complete linear programming model for this problem.
(c) Solve this model by the simplex model.

Solution:

a) Functional constraints
𝐴1 + 𝐵1 + 𝑅1 = 60,000
𝐴2 + 𝐵2 + 𝐶2 + 𝑅2 = 𝑅1
𝐴3 + 𝐵3 + 𝑅3 = 𝑅2 + 1.40𝐴1
𝐴4 + 𝑅4 = 𝑅3 + 1.40𝐴2 + 1.70𝐵1
𝐷5 + 𝑅5 = 𝑅4 + 1.40𝐴3 + 1.70𝐵2
b) linear programming model

## Maximize: 𝑃 = 1.40𝐴4 + 1.70𝐵3 + 1.90𝐶2 + 1.30𝐷5 + 𝑅5 )

Constraints:

𝐴1 + 𝐵1 + 𝑅1 = 60,000
𝐴2 + 𝐵2 + 𝐶2 − 𝑅1 + 𝑅2 = 0
−1.40𝐴1 + 𝐴3 + 𝐵3 − 𝑅2 + 𝑅3 = 0
−1.40𝐴2 + 𝐴4 −1.70𝐵1 −𝑅3 + 𝑅4 = 0
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−1.40𝐴3 −1.70𝐵2 + 𝐷5 −𝑅4 + 𝑅5 = 0
𝐴𝑡 , 𝐵𝑡 , 𝐶𝑡 , 𝐷𝑡 , 𝑅𝑡 ≥ 0

c) By QM solver

3.4-14 The Metalco Company desires to blend a new alloy of 40 percent tin, 35 percent
zinc, and 25 percent lead from several available alloys having the following properties:

Alloy
Property 1 2 3 4 5
Percentage of tin 60 25 45 20 50
Percentage of
zinc 10 15 45 50 40
Percentage of
Lead 30 60 10 30 10
Cost (\$/lb) 77 70 88 84 94

The objective is to determine the proportions of these alloys that should be blended to
produce the new alloy at a minimum cost. (a) Formulate a linear programming model for
this problem. C (b) Solve this model by the simplex method.

Solution:

## (a) linear programming model

Minimize: 40 x  35 y  25 z  m

Subject to/Constraints: 60 x  10 y  30 z  77

25 x  15 y  60 z  70
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45 x  45 y  10 z  88

20 x  50 y  30 z  84

50 x  40 y  10 z  94

## (b) simplex model

By the use of QM software application, we obtain the minimum cost for the new alloy, 1%,
0.98% and 0.51% of tin, zinc and lead should be blended to obtain minimum cost of \$86.75.

3.4-15. A cargo plane has three compartments for storing cargo: front, center, and back. These
compartments have capacity limits on both weight and space, as summarized below:

Weight Space
Compartment Capacity Capacity
(Tons) (Cubic Feet)
Front 12 7,000
Center 18 9,000
Back 10 5,000

Furthermore, the weight of the cargo in the respective compartments must be the same
proportion of that compartment’s weight capacity to maintain the balance of the airplane.

The following four cargoes have been offered for shipment on an upcoming flight as space
available:
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Weight Volume Profit
Cargo
(Tons) (Cubic Feet/Ton) (\$/Ton)
1 20 500 320
2 16 700 400
3 25 600 360
4 13 400 290

Any portion of these cargoes can be accepted. The objective is to determine how much (if
any) of each cargo should be accepted and how to distribute each among the compartments to
maximize the total profit for the flight.

## (a) Formulate a complete linear programming model for this problem.

(b) Solve this model by the simplex method to find one of its multiple optimal solutions.

Solution:

## j = F (front), C(center), B(back)

Maximize: 𝑃 = 320(𝑋1𝐹 + 𝑋1𝐶 + 𝑋1𝐵 ) + 400(𝑋2𝐹 + 𝑋2𝐶 + 𝑋2𝐵 ) + 360(𝑋3𝐹 + 𝑋3𝐶 + 𝑋3𝐵 )
+ 290(𝑋4𝐹 + 𝑋4𝐶 + 𝑋4𝐵 )

Constraints:

## 𝑋2𝐹 + 𝑋2𝐶 + 𝑋2𝐵 ≤ 16

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𝑋3𝐹 + 𝑋3𝐶 + 𝑋3𝐵 ≤ 25

## 500𝑋1𝐵 + 700𝑋2𝐵 + 600𝑋3𝐵 + 400𝑋4𝐵 ≤ 5000

1 1
(𝑋1𝐹 + 𝑋2𝐹 + 𝑋3𝐹 + 𝑋4𝐹 ) − (𝑋 + 𝑋2𝐶 + 𝑋3𝐶 + 𝑋4𝐶 ) = 0
12 18 1𝐶

1 1
(𝑋1𝐹 + 𝑋2𝐹 + 𝑋3𝐹 + 𝑋4𝐹 ) − (𝑋 + 𝑋2𝐵 + 𝑋3𝐵 + 𝑋4𝐵 ) = 0
12 10 1𝐵

𝑋1𝐹 , 𝑋2𝐹 , 𝑋3𝐹 , 𝑋4𝐹 , 𝑋1𝐶 , 𝑋2𝐶 , 𝑋3𝐶 , 𝑋4𝐶 , 𝑋1𝐵 , 𝑋2𝐵 , 𝑋3𝐵 , 𝑋4𝐵 ≥ 0

## b.) Simplex Model

3.4-16 Oxbridge University maintains a powerful mainframe computer for research use by its
faculty, Ph.D. students, and research associates. During all working hours, an operator must be
available to operate and maintain the computer, as well as to perform some programming services.
Beryl Ingram, the director of the computer facility, oversees the operation.

It is now the beginning of the fall semester, and Beryl is confronted with the problem of
assigning different working hours to her operators. Because all the operators are currently enrolled
in the university, they are available to work only a limited number of hours each day, as shown in
the following table.
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Wage Maximum Hours of Availability
Operators
Rate Monday Tuesday Wednesday Thursday Friday
K.C. \$25/hour 6 0 6 0 6
D.H. \$26/hour 0 6 0 6 0
H.B. \$24/hour 4 8 4 0 4
S.C. \$23/hour 5 5 5 0 5
K.S. \$28/hour 3 0 3 8 0
N.K. \$30/hour 0 0 0 6 2

There are six operators (four undergraduate students and two graduate students). They all
have different wage rates because of differences in their experience with computers and in their
programming ability. The above table shows their wage rates, along with the maximum number of
hours that each can work each day.

Each operator is guaranteed a certain minimum number of hours per week that will
maintain an adequate knowledge of the operation. This level is set arbitrarily at 8 hours per week
for the undergraduate students (K. C., D. H., H. B., and S. C.) and 7 hours per week for the graduate
students (K. S. and N. K.).

The computer facility is to be open for operation from 8 A.M. to 10 P.M. Monday through
Friday with exactly one operator on duty during these hours. On Saturdays and Sundays, the
computer is to be operated by other staff.

Because of a tight budget, Beryl has to minimize cost. She wishes to determine the number
of hours she should assign to each operator on each day.

Solution:

## a. Linear Programming Model

i. Decision Variable
Let xij be the number of hours operator i is assigned to work on day j for
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i = KC, DH, HB, SC, KS, NK
j = M, Tu, W, Th, F
ii. Objective Function
Minimize;
𝑍 = (𝑥𝐾𝐶,𝑀 + 𝑥𝐾𝐶,𝑊 + 𝑥𝐾𝐶,𝐹 ) + 26(𝑥𝐷𝐻,𝑇𝑢 + 𝑥𝐷𝐻,𝑇𝑢 + 𝑥𝐷𝐻,𝑇ℎ ) + 24(𝑥𝐻𝐵,𝑀 + 𝑥𝐻𝐵,𝑇𝑢 +
𝑥𝐻𝐵,𝑊 + 𝑥𝐻𝐵,𝐹 ) + 23(𝑥𝑆𝐶,𝑀 + 𝑥𝑆𝐶,𝑇𝑢 + 𝑥𝑆𝐶,𝑊 + 𝑥𝑆𝐶,𝐹 ) + 28(𝑥𝐾𝑆,𝑀 + 𝑥𝐾𝑆,𝑊 + 𝑥𝐾𝑆,𝑇ℎ ) +
30(𝑥𝑁𝐾,𝑇ℎ + 𝑥𝑁𝐾,𝐹 )
iii. Constraints
𝑥𝐾𝐶,𝑀 ≤ 6, 𝑥𝐾𝐶,𝑊 ≤ 6, 𝑥𝐾𝐶,𝐹 ≤ 6
𝑥𝐷𝐻,𝑇𝑢 ≤ 6, 𝑥𝐷𝐻,𝑇ℎ ≤ 6
𝑥𝐻𝐵,𝑀 ≤ 4, 𝑥𝐻𝐵,𝑇𝑢 ≤ 8, 𝑥𝐻𝐵,𝑊 ≤ 4, 𝑥𝐻𝐵,𝐹 ≤ 4
𝑥𝑆𝐶,𝑀 ≤ 5, 𝑥𝑆𝐶,𝑇𝑢 ≤ 5, 𝑥𝑆𝐶,𝑊 ≤ 5, 𝑥𝑆𝐶,𝐹 ≤ 5
𝑥𝐾𝑆,𝑀 ≤ 3, 𝑥𝐾𝑆,𝑊 ≤ 3, 𝑥𝐾𝑆,𝑇ℎ ≤ 8
𝑥𝑁𝐾,𝑇ℎ ≤ 6, 𝑥𝑁𝐾,𝐹 ≤ 2

## 𝑥𝐾𝐶,𝑀 + 𝑥𝐾𝐶,𝑊 + 𝑥𝐾𝐶,𝐹 ≥ 8

𝑥𝐷𝐻,𝑇𝑢 + 𝑥𝐷𝐻,𝑇ℎ ≥ 8
𝑥𝐻𝐵,𝑀 + 𝑥𝐻𝐵,𝑇𝑢 +𝑥𝐻𝐵,𝑊 + 𝑥𝐻𝐵,𝐹 ≥ 8
𝑥𝑆𝐶,𝑀 + 𝑥𝑆𝐶,𝑇𝑢 + 𝑥𝑆𝐶,𝑊 + 𝑥𝑆𝐶,𝐹 ≥ 8
𝑥𝐾𝑆,𝑀 + 𝑥𝐾𝑆,𝑊 + 𝑥𝐾𝑆,𝑇ℎ ≥ 7

## 𝑥𝐾𝐶,𝑀 + 𝑥𝐻𝐵,𝑀 + 𝑥𝑆𝐶,𝑀 + 𝑥𝐾𝑆,𝑀 = 14

𝑥𝐷𝐻,𝑇𝑢 + 𝑥𝐻𝐵,𝑇𝑢 + 𝑥𝑆𝐶,𝑇𝑢 = 14
𝑥𝐾𝐶,𝑊 + 𝑥𝐻𝐵,𝑊 + 𝑥𝑆𝐶,𝑊 + 𝑥𝐾𝑆,𝑊 = 14
𝑥𝐷𝐻,𝑇ℎ + 𝑥𝐻𝐵,𝑇ℎ + 𝑥𝑁𝐾,𝑇ℎ = 14
𝑥𝐾𝐶,𝐹 + 𝑥𝐻𝐵,𝐹 + 𝑥𝑆𝐶,𝐹 + 𝑥𝑁𝐾,𝐹 = 14
xij ≥ 0 for all i, j
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b. Using Simplex Method

3.14-17. Joyce and Marvin run a day care for preschoolers. They are trying to decide what to feed
the children for lunches. They would like to keep their costs down, but also need to meet the
nutritional requirements of the children. They have already decided to go with peanut butter and
jelly sandwiches, and some combination of graham crackers, milk, and orange juice. The
nutritional content of each food choice and its cost are given in the table below.

Food Item Calories from Total calories Vitamin C Protein (g) Cost
fat (mg)
Bread (1 10 70 0 3 5
slice)
Peanut butter 75 100 0 4 4
(1 tbsp)
Strawberry 0 50 3 0 7
jelly (1 tbsp)
Graham 20 60 0 1 8
cracker (1
cracker)
Milk (1 cup) 70 150 2 8 15
Juice (1 cup) 0 100 200 1 35
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The nutritional requirements are as follows. Each child should receive between 400 and 600
calories. No more than 30 percent of the total calories should come from fat. Each child should
consume at least 60 milligrams (mg) of vitamin C and 12 grams (g) of protein. Furthermore, for
practical reasons, each child needs exactly 2 slices of bread (to make the sandwich), at least twice
as much peanut butter as jelly, and at least 1 cup of liquid (milk and/or juice).

Joyce and Marvin would like to select the food choices for each child which minimize cost while
meeting the above requirements.

Solution:

## a. Linear Programming model

Let C = cost
X2 = tablespoons of peanut butter
X3 = tablespoons of strawberry jelly
X4 = graham crackers
X5 = cups of milk
X6 = cups of juice.

## Objective function (minimize):

C  5X1  4X2  7X3  8X4  15X5  35X6
Constraints:
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70X1  100X 2  50X 3  60X4  150X5  100X6  400
70X1  100X 2  50X 3  60X4  150X5  100X6  600
10X1  75X 2  20X4  70X5  0.370X1  100X 2  50X 3  60X4  150X5  100X6 
3X 3  2X5  120X6  60
3X1  4X 2  X4  8X5  X6  12
X1  2
X2  2X3
X5  X6  1
X1 , X 2 , X 3 , X4 , X5 , X6  0

## b. Using QM for Windows

3.5-4. You are given the following data for a linear programming problem where the objective is
to minimize the cost of conducting two nonnegative activities so as to achieve three benefits that
do not fall below their minimum levels.
Benefit contribution per Minimum
Benefit Unit of each Activity Acceptable
Activity 1 Activity 2 Level
1 5 3 60
2 2 2 30
3 7 9 126
Unit Cost \$60 \$50

## a. Formulate a linear programming model for this problem.

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b. Use the graphical method to solve this model.
c. Display the model on an Excel spreadsheet.
d. Use the spreadsheet to check the following solutions: (x1, x2) _ (7, 7), (7, 8), (8, 7), (8, 8), (8,
9), (9, 8). Which of these solutions are feasible? Which of these feasible solutions has the best
value of the objective function?
e. Use the Excel Solver to solve this model by the simplex method.

Solution:
a. Linear Programming model
Minimize: P=60X1+50X2
Subject to:
5 X1+3 X2=60 (1)
2 X1+2X2=30 (2)
7 X1+9 X2=126 (3)
Where,
X1=Activity 1
X2=Activity 2
(1) = Benefit 1 constraint
(2) = Benefit 2 constraint
(3) = Benefit 3 constraint

## b. Graphical Method using the QM for Windows®, Version 5.2

Tangonan, Visitacion D.
Quantitative Management

## C & E. Solving the Model using Excel Solver by Simplex Method

Tangonan, Visitacion D.
Quantitative Management
d. Using Excel Spreadsheet, base from the profit obtained using the following solutions from
the table below, (8,8), (8,9) and (9,8) are the only feasible solutions for the model. And (8,8)
has the best value of the objective function.

## (x1, x2) Feasibility Profit, \$

(7,7) not Feasible 770
(7,8) not Feasible 820
(8,7) not Feasible 830
(8,8) Feasible 880 (best)
(8,9) Feasible 930
(9,8) Feasible 940