IE 426: Operations Research 1

Problem Set No. 1: Graphical and computer solution

Submission due: Saturday 15 July 2016 at the start of each class. Clearly and logically show all solutions
of all the problems. Ensure that you have read and thoroughly understood the guidelines on the website
before you start answering the problem set.

Solve for
Develop
Brief description the
No. Problem the LP Use QM Hint
of the problem optimal
model
solution
Maximize profit = 22.67X1 +
Modem
1 7-43 Yes Yes Yes 29.01X2
Corporation
Optimal Z = $629,000
Let A1 = gallons of crude A used
in Regular; A2 = crude A in
Premium; A3 = crude A in
Super; B1 = crude B in Regular;
2 7-45 Raptor Fuels Yes No No B2 = crude B in Premium; B3 =
crude B in Super;
Two of the constraints:
0.40A1 + 0.52B1 0.41(A1 + B1)
A3 + B3 10,000
Two of the constraints:
XAB + XAC + XAE = 700 (number
of students in sector A);
High school XAC + XBC + XCC + XDC + XEC
3 8-10 Yes Yes Yes
busing 900 (school C capacity);
Partial answers: XAB = 400; XBB
= 500; XEE = 400; Optimal Z =
5,400 student miles
Let: x1=medical patients;
x2=surgical patients;
Two of the constraints:
8X1 + 5X2 32,850 (patient-
Hospital
4 8-18 Yes Yes Yes days available = 365 days * 90
expansion
new beds); X1 + 2X2 7,000 (x-
rays)
Partial answers: x1=2,791;
Z=9,551,659 annually
Let: Xi = proportion of
investment invested in stock i
Portfolio for i = 1, 2, , 5
5 8-22 Yes Yes Yes
selection Minimize beta = 1.2X1 + 0.85X2 +
0.55X3 + 1.40X4 + 1.25X5
Two of the constraints:
 Solve for
Develop
Brief description the
No. Problem the LP Use QM Hint
of the problem optimal
model
solution
X1 + X2 + X3 + X4 + X5 = 1 (total of
the proportions must add to 1);
X1 0.35 (no more than 35% in
any single stock);
Partial answers:
X1=0; x3=0.35; x5=0.19375;
Z=1.015; Return=0.11

6. The Southfork Feed Company makes a feed mix from four ingredientsoats, corn, soybeans, and
a vitamin supplement. The company has 300 pounds of oats, 400 pounds of corn, 200 pounds of
soybeans, and 100 pounds of vitamin supplement available for the mix. The company has the
following requirements for the mix:
At least 30% of the mix must be soybeans.
At least 20% of the mix must be the vitamin supplement.
The ratio of corn to oats cannot exceed 2 to 1.
The amount of oats cannot exceed the amount of soybeans.
The mix must be at least 500 pounds.
A pound of oats costs $0.50; a pound of corn, $1.20; a pound of soybeans, $0.60; and a pound of
vitamin supplement, $2.00. The feed company wants to know the number of pounds of each
ingredient to put in the mix in order to minimize cost. Formulate the LP model for this problem
and solve with QM. Show results.

Hint:
Let x1 = no. of lb of oats; x2 = no. of lb of corn; x3 = no. of lb of soybeans; x4 = no. of lb of vitamin
supplement; Objective function: minimize Z = .50x1 + 1.20x2 + .60x3 +2.00x4; Some of the
constraints: x1 300; x3/(x1 + x2 + x3 + x4) .30; x1 x3; x1 + x2 + x3 + x4 500; Partial answers: x2 =
0; x4 = 100; Z = $420