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Minimizing The Total Cost of Labor

The document discusses using linear programming (LP) to help operations managers make effective allocation of resources. It provides examples of problems where LP has been successfully applied, such as scheduling school buses, allocating police patrol units, and developing production schedules. It then presents a specific LP model to determine the optimal media mix to maximize exposure from television, radio, and newspaper advertisements given budget constraints. The objective is to maximize total exposure (Z) subject to budget and capacity constraints.

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Jaime Smith
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80 views4 pages

Minimizing The Total Cost of Labor

The document discusses using linear programming (LP) to help operations managers make effective allocation of resources. It provides examples of problems where LP has been successfully applied, such as scheduling school buses, allocating police patrol units, and developing production schedules. It then presents a specific LP model to determine the optimal media mix to maximize exposure from television, radio, and newspaper advertisements given budget constraints. The objective is to maximize total exposure (Z) subject to budget and capacity constraints.

Uploaded by

Jaime Smith
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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INTRODUCTION:

Many operations management decisions involve trying to make the most effective use of an organizations resources. Resources typically include machinery (such as planes, in the case of an airline), labor (such as pilots), money, time, and raw materials (such as jet fuel). These resources may be used to produce products (such as machines, furniture, food, or clothing) or services (such as airline schedules, advertising policies, or investment decisions). Linear programming (LP) is a widely used mathematical technique designed to help operations managers plan and make the decisions necessary to allocate resources. A few examples of problems in which LP has been successfully applied in operations management are 1. Scheduling school buses to minimize the total distance travelled when carrying students. 2. Allocating police patrol units to high crime areas to minimize response time to 911 calls. 3. Scheduling tellers at banks so that needs are met during each hour of the day while minimizing the total cost of labor. 4. Selecting the product mix in a factory to make best use of machine- and labor-hours available while maximizing the firms profit. 5. Picking blends of raw materials in feed mills to produce finished feed combinations at minimum cost. 6. Determining the distribution system that will minimize total shipping cost from several warehouses to various market locations. 7. Developing a production schedule that will satisfy future demands for a firms product and at the same time minimize total production and inventory costs. 8. Allocating space for a tenant mix in a new shopping mall so as to maximize revenues to the leasing company.

Maximize Z = 20,000x1 + 12,000x2 + 9,000x3 subject to: 15,000x1 + 6,000x 2+ 4,000x3 100,000 x1 4 x2 10 x3 7 x1 + x2 + x3 15 x1, x2, x3 0 where x1 = Exposure from Television Commercial (people) x2 = Exposure from Radio Commercial (people) x3 = Exposure from Newspaper Ad (people)

Determine the new media mix and show the sensitivity of the result.

CODING
MODEL: MAX = 5000*A+8500*B+2400*C+2800*D; 800*A+925*B+290*C+380*D<=8000; A<=12; B<=5; C<=25; D<=20;

C+D>=5; 290*C+380*D<=1800; @GIN(A); @GIN(B); @GIN(C); @GIN(D); END MODEL

RESULT:
Global optimal solution found. Objective value: Objective bound: Infeasibilities: Extended solver steps: Total solver iterations: Model Class: Total variables: Nonlinear variables: Integer variables: 4 0 4 66900.00 66900.00 0.000000 1 13 PILP

Total constraints: Nonlinear constraints: Total nonzeros: Nonlinear nonzeros:

8 0 16 0 Variable Value 2.000000 5.000000 6.000000 0.000000 Slack or Surplus 66900.00 35.00000 10.00000 0.000000 19.00000 20.00000 1.000000 60.00000 -

Reduced Cost A 5000.000 B 8500.000 C 2400.000 D 2800.000 Row Dual Price 1 1.000000 2 0.000000 3 0.000000 4 0.000000 5 0.000000 6 0.000000 7 0.000000 8 0.000000

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