Problem 7-24

Objective Function

- To minimize cost x + y

Let X = No. of stock Louisiana Gas and Power

Let Y = No. of stock Trimex Insulation

Factor X Y GOAL
Short term GP 0.36 0.24 $720
Intermediate GP 1.67 1.50 $5,000
Dividend rate 4% 8% $ 200

Subject to

0.36x + 0.24y ≥ 720

1.67x + 1.50y ≥ 5,000

0.04 + 0.08 ≥ 200

x,y ≥ 0

Short term: 0.36x + 0.24y ≥ 720

X Y
0 3,000
2,000 0

Points (short term)

(0, 3,000)

(2,000, 0)

0.36 (0) + 0.24y =720 .36x + .24(0) = 720

0.24y = 720 = 3,000 .36x = 720 = 2,000

0.24 0.24 .36 .36

Intermediate: 1.67x + 1.50y = 5,000

X Y 1.50x = 5,000 = 3,333

0 3,333
1.50 1.50
2,994 0

Points: 1.67 = 5,000 = 2,994

(0,3,333) 1.67 1.67

(2,994,0)

Dividend

.04x + .0842 ≥ 200

X Y .08y = 200 = 2,500

0 2,500
.08 .08
5,000 0

Points .04y = 200 = 5,000

(0,2,500) .04 .04

(5,000,0)

OPTIMAL SOLUTION:

1.67x + 1.50y ≥ 5,000 0.04 (1,359) + .08y ≥ 200

[0.04x + 0.08y ≥ 200] x (-18.75) 0.08y= 200 - 54.36

1.67x + 1.50y ≥ 5,000 .08y =145.64

+ (-0.75x - 1.50y ≥ -3,750) .08 .08

0.92x ≥ 1,250 y= 1,820.5

.92 .92

X= 1,359

MINIMIZE COST:

1,359 + 1,820.5

= 3,179.5
GRAPH:

6000

5500

5000

4500

4000

3500
(0, 3,3333)

3000
(0,2000) 1.67x+1.5
0y ≥ 5000

2500

2000

1500
(1,359, Feasible (4000,2000)

1820.5) Region

1000
.36x + .24y
≥ 720

500
(5000) (6000)
(2914)
(2,000)

0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 X
Corner Points Method

At pt. A (0, 3,333)

OF = 0 + 3,333 = $ 3,333

At pt. B (1,359, 1,820.5)

OF = 1,359 + 1,820.5 = $ 3,179.5 - LOWEST

At pt. C (5,000, 0)

OF = 5,000 + 0 = $5,000

Optimal Solution:

X= 1,359

Y= 1,820.5

Minimize Cost = $3,179.5

IsoProfit/IsoCost

x+y If y=0
At pt. (4,000 , 2,000) 6,000 = x+y
4,000 + 2,000 = 6,000 X= 6,000
Problem 7-26

Let X = Total acres of land that is required of pruned oil

Let Y = Number of barrels of regular olive oil.

GIVEN:

Growing Processes X¹ Y² Resources

Total no. of labor hours required of pruned oil 5 labor hours
Total no. of labor hrs. required of regular olive oil 2 labor hours
Total land in acres required of regular olive oil 2 acres of land
Selling Price of Pruned Oil $20
Selling Price of Regular Olive Oil $30
Labor Hours Available 250 labor hours
Total land in acres for growing 150 acres of land
Pruned olives should be produced = 40 barrels

Objective Function: To maximize profit, Z = 20x + 30y

Subject to:

Constraints

Pruned Olive Oil = x + 2y ≤ 150

Regular Olive Oil = 5x + 2y ≤ 250

Uncertainty in Demand = x ≤ 40

a.) Maximum Profit

5x + 2y ≤ 250 x + 2y ≤ 150

X Y X Y
0 125 0 150
50 0 75 0
 GRAPH:
5x+2y=250
125

120

100 Isoprofit Profit =

Line $20X + $30y

80 A E X= 40

60 (25, 62.5)

40 Feasible (40,25) x+2x = 150

Region D

20 B C

0 20 40 60 80 100 120 140 150

Corner Points:

A = 0,0

B = 0,75

C = 40,0

D = 40,25

E = 25, 62.5
Solution:

-1

(x+2y = 150) 5x+2y ≤ 250

Transpose: 5(25) + 2y ≤ 250

-x-2y = -150 2y = 125

5x+2y = 250 2 2

4y = 100 x= 62.5

4 4

x= 25

Therefore, there are 25 pruned olive oil and 62.5 regular olive oil.

Z= 20x + 30y

= 20(25) + 30 (62.5)

500 + 1,875

Maximum Profit = 2,375

b.) The best combination of barrels is the pruned got 25 to produced and regular olives got 62.5 to
produced.

c.) There will be 25 acre of land will be used for pruned olive oil and 125 acre of land will be used of
regular olive oil that should devote to each growing process.

1(25) + 2(62.5) = 150

25 + 125 ≤ 150

MP = 150
Problem 7-27

FORMULATION 1:

OF: Z= 10x¹ + 10x²

ST: (1) 2x¹ + 4x² ≤ 16

(2) 2x¹ ≤ 10

2x¹ = 10

X¹ = 5

(3) X¹ = 6

(4) 4x² ≤ 8

4x² = 8 = x² = 2

2x¹ + 4x² = 16

X¹ X²
0 4
8 0
GRAPH:

X¹=6

12 2x¹=10

10

4 2x¹ + 4x² =16 4x²=8

0 2 4 6 8 10 12 14 16
FORMULATION 2:

Max: z= x¹ + 2x²

S.t

x¹ ≤ 1

2x² ≤ 2

2x² = 2 = x² = 1

x¹ + 2x² ≤ 2

X¹ X²
0 1
2 0

GRAPH:
x¹ =1

12

10

2x²=2
2 x¹+2x² = 2

0 2 4 6 8 10 12 14 16
FORMULATION 3:

Max: 3x¹ + 2x²

S.t

x¹ + x² ≥ 5

X¹ X²
0 5
5 0

x¹ ≥ 2

2x² ≥ 8

2x² =8 = x² = 4

2
GRAPH:

x¹ = 2

12

10

2x² = 8
4 x¹+y² = 5

0 2 4 6 8 10 12 14 16
FORMULATION 4:

Max: z= 3x + 3x²

S.t

4x¹ + 6x² ≤ 48

X¹ X²
0 8
12 0

4x¹ + 2x² ≤ 12

X¹ X²
0 6
3 0

3x² ≥ 3

3x² = 3 = x² = 1

2x¹ ≥ 2

2x¹ = 2 = x¹ = 1

2
GRAPH:

12

10

6 4x¹+6x² = 48

4 4x¹+2x² = 12

2 3x² = 3

0 2 4 6 8 10 12 14 16

Q:

a. Formula 2 contains more than 1 optimal sol.

b. Formula 3 contains unbounded sol.

c. Formula 1 has no feasible solution

d. Formula 4 is correct.