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The document presents five distinct optimization problems involving budget allocation and resource management. Problem 1 focuses on maximizing exposure for a new detergent through strategic media spending within a budget. Problems 2 to 5 involve formulating linear programming models for optimizing nutrient mixes for animals, production schedules for electronics, liquid mixtures for profit maximization, and profit optimization from selling oranges and juice, respectively.

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2 views

tutorial 1

The document presents five distinct optimization problems involving budget allocation and resource management. Problem 1 focuses on maximizing exposure for a new detergent through strategic media spending within a budget. Problems 2 to 5 involve formulating linear programming models for optimizing nutrient mixes for animals, production schedules for electronics, liquid mixtures for profit maximization, and profit optimization from selling oranges and juice, respectively.

Uploaded by

nn
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Problem 1

The Denver advertising agency, promoting the new Breem dishwashing detergent wants to get
the best exposure possible for the product within the $100,000 advertising budget ceiling placed
on it. To do so, the agency needs to decide how much of the budget to spend on each of its two
most effective media: (1) television spots during the afternoon hours and (2) large ads in the
city’s Sunday newspaper. Each television spot costs $3,000; each Sunday newspaper ad costs
$1,250. The expected exposure based on industry ratings, is 35,000 viewers for each TV
commercial and 20,000 readers for each newspaper advertisement. The agency director knows
from experience that it is important to use both media in order to reach the broadest spectrum of
potential Breem customers. She decides that at least 5 but no more than 25 television spots should
be ordered, and that at least10 newspaper ads should be contracted. How many times should each
of the two media be used to obtain the maximum exposure while staying within the budget?

Problem 2
A farmer is seeking to determine the optimal mix of cereals that will give his animals the
adequate amount of nutrients (proteins, calories, and iron) and keep his budget low. The table
below details the quantity of each nutrient in each type of cereal and the cost of 1 kg of each of
the cereals.

Cereal Corn Wheat Barley Minimum


Nutrients required
Protein mg/kg 10 9 11 20 mg
Calories/kg 1000 800 850 4000 cal
Iron mg/kg 9 8 7 12 mg
Cost/kg 0.55 0.47 0.45
Formulate the problem as a linear model to help the farmer decide on the quantities
Problem 3
Failsafe Electronics Corporation primarily manufactures four highly technical products, which it
supplies to aerospace firms that hold NASA contracts. Each of the products must pass through
the following departments before they are shipped: wiring, drilling, assembly, and inspection.
The time requirements in each department (in hours) for each unit produced and its
corresponding profit value are summarized in this table:
Product Wiring Drilling Assembly Inspection Unit profit
XJ201 0.5 3 2 0.5 $9
XM897 1.5 1 4 1.0 $12
TR29 1.5 2 1 0.5 $15
BR788 1.0 3 2 0.5 $11
The production time available in each department each month and the minimum monthly
production requirement to fulfill contracts are as follows:
Department Capacity (hours) Product Minimum production
level
Wiring 1,500 XJ201 150
Drilling 2,350 XM897 100
Assembly 2,600 TR29 200
Inspection 1,200 BR788 400
Formulate this production-mix situation as a Linear Program
Problem4:
A company manufactures 4 mixtures: M1, M2, M3 and M4 using three liquids: A, B and C.
Table 1 below details the maximum volume of each liquid the company can purchase and the
purchase and selling prices of each liquid:
Table 1: Availability and prices of liquids
Liquid Availability (in liters) Purchase price ($/liter) Selling price ($/liter)
A 350 1.50 1.75
B 425 2.00 2.25
C 375 3.25 3.30

Table 2 describes the conditions the company must respect in the composition of mixtures M1,
M2, M3 and M4.
Table 2: proportion of each liquid in each mixture
Mixtures
Liquid M1 M2 M3 M4
A at least 30% at most 50% - 40%

B 25% at least 32% no more than 40% at least 10%


C at least 20% at most 36% at least 25% at least 30%
The market can absorb all the quantity produced by the company if the
current prices are held constant: 2.50$ per liter of M1, 3.25$per liter of M2, 3.85$ per liter of M3
and 2.65$ per liter of M4. The company can also resell the primary liquids without mixing them,
unit selling prices are detailed in the last column of table 1 above. What is the optimal production
plan that maximizes the total profit of the company given that the quantity of M2 to be produced
must be at least 40% of the total quantity produced?
Problem5:
A Company sells bags of oranges and cartons of orange juice. The company grades oranges on a scale of 1
(poor) to 10 (excellent). The company now has on hand 100,000 lb of grade 9 oranges and 120,000 lb of
grade 6 oranges. The average quality of oranges sold in bags must be at least 7, and the average quality of
the oranges used to produce orange juice must be at least 8. Each pound of oranges that is used for juice
yields a revenue of $1.50 and incurs a variable cost (consisting of labor costs, variable overhead costs,
inventory costs, and so on) of $1.05. Each pound of oranges sold in bags yields revenue of 50¢ and incurs
a variable cost of 20¢. Formulate an LP to help maximize the company’s profit.

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