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The Hartman Company is determining optimal production quantities of two products over a planning period given labor availability and profitability information. A linear programming model was developed to determine the optimal quantities as 77.89 units of Product 1 and 63.15 units of Product 2, for a total profit of $3284.21. Overtime was then included in the model by defining additional decision variables. The optimal solution with overtime was 87.21 units of Product 1, 65.11 units of Product 2, and overtime use of 10 hours in Department A and 3.18 hours in Department B, for a total profit of $3341.34.

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Hinal Patel
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1K views

Analytics

The Hartman Company is determining optimal production quantities of two products over a planning period given labor availability and profitability information. A linear programming model was developed to determine the optimal quantities as 77.89 units of Product 1 and 63.15 units of Product 2, for a total profit of $3284.21. Overtime was then included in the model by defining additional decision variables. The optimal solution with overtime was 87.21 units of Product 1, 65.11 units of Product 2, and overtime use of 10 hours in Department A and 3.18 hours in Department B, for a total profit of $3341.34.

Uploaded by

Hinal Patel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Ques 1) The management of Hartman Company is trying to determine the amount of each of two products to produce over

planning period. The following information concerns labor availability, labor utilization, and product profitability.     Product
  Department 1 2 Labor-Hours Available       A 1.00 0.35 100         B 0.30 0.20 36         C 0.20 0.50 50         Profit Contribution/U
 
a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal produ
quantities of products 1 and 2.  
b) In computing the profit contribution per unit, management doesn’t deduct labor costs because they are considered fixed
upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departme
recommend scheduling for overtime?      
c) Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour
$18 in department A, $22.50 in department B, and $12 in department C. Formulate a linear programming model that can be
determine the optimal production quantities if overtime is made available. What are the optimal production quantities, and
revised total contribution to profit? How much overtime do you recommend using in each department? What is the increase
contribution to profit if overtime is used?      

LHS Coefficients
Constraints X1 X2 RHS
#1 1 0.35 100
#2 0.3 0.2 36
#3 0.2 0.5 50
Obj Function 30 15

Decision Variable 77.8947368421 63.15789

Max. Total Profit 3284.21052632

Constraints Amount Used RHS


#1 100 <= 100
#2 36 <= 36
#3 47.1578947368 <= 50
oducts to produce over the coming
profitability.     Product (hours/unit)      
    Profit Contribution/Unit $30 $15      

rmine the optimal production

hey are considered fixed for the


ments. Which departments would you

tively. The cost per hour of overtime is


ming model that can be used to
duction quantities, and what is the
nt? What is the increase in the total

Optimal Solution:
Number of units of Product 1 = 77.89
Number of units of Product 2 = 63.15
Total Profit = $3284.21
Since, 10,6 and 8 hours of overtime may be scheduled in Departments A, B & C respectively, therefore we will define addition
Let, OA = Overtime scheduled in Department A
OB = Overtime scheduled in Department B
OC = Overtime scheduled in Department C
The objective function will also change accordingly (accounting for the overtime costs), as follows:

Max. 30X1 + 15X2 - 18OA - 22.5OB - 12OC


s.t.
X1 + 0.35X2 ≥ 100
0.3X1 + 0.2X2 ≥ 36
0.2X1 + 0.5X2 ≥ 50
OA ≤ 10
OB ≤ 6
OC ≤ 8
X11 , X12 , X21 , X22 , OA , OB , OC ≥ 0

Constraints X1 X2 OA OB OC
#1 1 0.35 -1 0 0
#2 0.3 0.2 0 -1 0
#3 0.2 0.5 0 0 -1
#4 0 0 1 0 0
#5 0 0 0 1 0
#6 0 0 0 0 1
Obj.Func.Coeff 30 15 -18 -22.5 -12

Decision Variables
X1 X2 OA OB OC
87.2093023255814 65.116279069768 10 3.186047 0

Maximum Profit 3341.3372093023

Constraints Amount Used RHS


#1 100 <= 100
#2 36 <= 36
#3 50 <= 50 Optimal Production Quantities:
#4 10 <= 10 X1 = 87.21 units
#5 3.1860465116279 <= 6 X2 = 65.11 units
#6 0 <= 8 Total Profit = $3341.34
Overtime Hours of
i) Department A = 10 hours
ii) Department B = 3.18 hours
iii) Department C = 0 hours
C respectively, therefore we will define additional decision variables:

me costs), as follows:

RHS Values
100
36
50
10
6
8

Optimal Production Quantities:


X1 = 87.21 units
X2 = 65.11 units
Total Profit = $3341.34
Overtime Hours of
i) Department A = 10 hours
ii) Department B = 3.18 hours
iii) Department C = 0 hours

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