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4 - Optimization_Problems Part I_Template

The document presents various examples of linear programming problems faced by different companies, including Glickman Electronics, Sitka Manufacturing, Smith's clothing, Par Inc., Tri-State Manufacturing, and a Denver advertising agency. Each example outlines the production constraints, profit contributions, and decision variables necessary to maximize profits or minimize costs. The document emphasizes the importance of resource allocation and optimization in manufacturing and advertising scenarios.

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Elisa Cascales
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© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
2 views

4 - Optimization_Problems Part I_Template

The document presents various examples of linear programming problems faced by different companies, including Glickman Electronics, Sitka Manufacturing, Smith's clothing, Par Inc., Tri-State Manufacturing, and a Denver advertising agency. Each example outlines the production constraints, profit contributions, and decision variables necessary to maximize profits or minimize costs. The document emphasizes the importance of resource allocation and optimization in manufacturing and advertising scenarios.

Uploaded by

Elisa Cascales
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Example 1

The Glickman Electronics Company in Washington, DC, produces two products: (1) the Glickman x-pod and (2) the Glickman
BlueBerry. The production process for each product is similar in that both require a certain number of hours of electronic wor
a certain number of labor-hours in the assembly department. Each x-pod takes 4 hours of electronic work and 2 hours in the
assembly shop. Each BlueBerry requires 3 hours in electronics and 1 hour in assembly. During the current production period,
hours of electronic time are available, and 100 hours of assembly department time are available. Each x-pod sold yields a pro
$7; each BlueBerry produced may be sold for a $5 profit.
Glickman’s problem is to determine the best possible combination of x-pods and BlueBerrys to manufacture to reach the max
profit.

X1 30
X2 40

Profit 410

Constraints:
Elect. Time used 240 Elect. Time available 240
Assemb. Time used 100 Assemb. Time available 100
man x-pod and (2) the Glickman
umber of hours of electronic work and
ctronic work and 2 hours in the
the current production period, 240
ble. Each x-pod sold yields a profit of

o manufacture to reach the maximum


Example 2
Sitka Manufacturing is planning to build at least one new plant, and three cities are being considered: Baytown, Texas; Lake C
Mobile, Alabama. Once the plant or plants have been constructed, the company wishes to have sufficient capacity to produce
each year.
The costs associated with the possible locations are given in the following table.
What plants should Sitka build? How many units per year should each one produce?

Site Annual Fixed Cost Variable cost Annual capacity X1


Baytown $ 340,000.00 $ 32.00 21000 X2
Lake Charles $ 270,000.00 $ 33.00 20000 X3
Mobile $ 290,000.00 $ 30.00 19000
Y1
Y2
X1 0 Y1 0 Y3
X2 19000 Y2 1
X3 19000 Y3 1

Cost per year


$ 1,757,000.00

Constraints:

X1+X2+X3 38000 >= 38000


Y * Capacity
X1 0 <= 0
X2 19000 <= 20000
X3 19000 <= 19000
sidered: Baytown, Texas; Lake Charles, Louisiana; and
ve sufficient capacity to produce at least 38,000 units

Units produced in baytown


Units produced in Lake charles
Units produced in Mobile

If build baytown plant


If build Lake Charles plant
If build Mobile plant
Smith’s, a Niagara, New York, clothing manufacturer that produces men’s shirts and pijamas, has two primary resources a
the cutting department). Over the next month, owner Barbara Smith can schedule up to 280 hours of work on sewing ma
1.00 hour of sewing time and 1.50 hours of cutting time. Producing each pair of pajamas requires .75 hours of sewing tim
To express the LP constraints for this problem mathematically, we let:
X1 = number of shirts produced
X2 = number of pijamas produced
Smith’s accounting department analyzes cost and sales figures and states that each shirt produced will yield a $4 contribu
Obtain X1 and X2 to maximize the profit.

Process Time (h)


Max work h Shirt Pijama
Sewing machines 280 1 0.75
Cutting machines 450 1.5 2

Decision Variables:
X1 = number of shirts produced 280
X2 = number of pijamas produced 0

Objective function:
Profit
Profit = 4*X1+3*X2= 1120

Constraints:
Sewing machines hours X1*1+X2*0.75<=280 X1*1+X2*0.75= 280
Cutting machines hours X1*1.5+X2*2<=450 X1*1.5+X2*2= 420
amas, has two primary resources available: sewing-machine time (in the sewing department) and cutting-machine time (in
to 280 hours of work on sewing machines and up to 450 hours of work on cutting machines. Each shirt produced requires
as requires .75 hours of sewing time and 2 hours of cutting time.

rt produced will yield a $4 contribution to profit and that each pair of pijamas will yield a $3 contribution to profit.

Total hours
280
420

<= 280
<= 450
tting-machine time (in
t produced requires

tion to profit.
Par, Inc., produces a standard golf bag and a deluxe golf bag on a weekly basis. Each golf bag requires time for cutting and

Hours required per bag


Product Cutting and dyeing Sewing and finishing
Standard bag 0.5 1
Deluxe bag 1 0.667

The profits per bag and weekly hours available for cutting and dyeing and for sewing and finishing are as follows:

Product Profit per unit


Standard bag $ 10.00
Deluxe bag $ 8.00

Activity Weekly hours available


Cutting and dyeing 300
Sewing and finishing 360

Par, Inc., will sell whatever quantities it produces of these two products.
a) Find the mix of standard and deluxe golf bags to produce per week that maximizes weekly profit from these activities.
b) What is the value of the profit?

Decision variables:
X1: Standard bags produced 240
X2: Deluxe bags produced 180

Objective function:
Profit = 10*X1+8*X2 = $ 3,840.00

Constraints: Work hours <= Max work hours


Cutting and dyeing 300 <= 300
Sewing and finishing 360 <= 360
quires time for cutting and dyeing and time for sewing and finishing, as shown in the following table.

ng are as follows:

ofit from these activities.


Tri-State Manufacturing has three factories (1, 2, and 3) and three warehouses (A, B, and C). The following table shows th
thousands), and the warehouse capacities (in thousands). Management would like to keep the warehouses filled to capac

From \ To Warehouse A Warehouse B Warehouse C


Factory 1 $ 6.00 $ 5.00 $ 3.00
Factory 2 $ 8.00 $ 10.00 $ 8.00
Factory 3 $ 11.00 $ 14.00 $ 18.00
Capacity 7 12 5

Write the objective function and the constraint equations. Let X1A = 1,000s of units shipped from factory 1 to warehouse
Solve the problem.

Decision variables:
XFW Warehouse A Warehouse B Warehouse C
Factory 1 0 1000 5000
Factory 2 0 8000 0
Factory 3 7000 3000 0

Objective function:

Min cost = $ 219,000.00

Constraints:
Assigned Production Production Capability
Factory 1 6000 6000
Factory 2 8000 8000
Factory 3 10000 10000

Assigned Production Capacity


Warehouse A 7000 7000
Warehouse B 12000 12000
Warehouse C 5000 5000
uses (A, B, and C). The following table shows the shipping costs between each factory and warehouse, the factory manufacturing capab
ould like to keep the warehouses filled to capacity in order to generate demand.

Production Capability
6
8
10

0s of units shipped from factory 1 to warehouse A, and so on.


ouse, the factory manufacturing capabilities (in
The Denver advertising agency promoting the new Breem dishwashing detergent wants to get the best exposure possible for
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
and 20,000 readers for each newspaper advertisement. The agency director, Deborah Kellogg, knows from experience that it
of potential Breem customers. She decides that at least 5 but no more than 25 television spots should be ordered, and that a
each of the two media be used to obtain maximum exposure while staying within the budget?

Decision variables:
X1: TV spots 5
X2: Newspaper ads 68

Objective function:
1535000

Constraints:
Cost <= Budget
X1*3000+X2*1250 100000 <= 100000
o get the best exposure possible for the product within the $100,000 advertising budget ceiling placed on it.
most effective media:

exposure, based on industry ratings, is 35,000 viewers for each TV commercial


ogg, knows from experience that it is important to use both media in order to reach the broadest spectrum
pots should be ordered, and that at least 10 newspaper ads should be contracted. How many times should
get?
Each coffee table produced by Kevin Watson Designers nets the firm a profit of $9. Each bookcase yields a $12 profit. Watson
given production period (of 1 week), 10 gallons of varnish and 12 lengths of high-quality redwood are available. Each coffee ta
length of redwood. Each bookcase takes 1 gallon of varnish and 2 lengths of wood.
Formulate Watson’s production-mix decision as a linear programming problem, and solve. How many tables and bookcases sh
profit be?

Coffe table 8
Bookcase 2

Profit= 96

Varnish 10 Max 10
Redwood 12 Max 12
bookcase yields a $12 profit. Watson’s firm is small and its resources limited. During any
redwood are available. Each coffee table requires approximately 1 gallon of varnish and 1

e. How many tables and bookcases should be produced each week? What will the maximum

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