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Activity 2 (Midterm)

The document discusses two examples of integer programming problems. The first example involves allocating a company's 10 salespeople between two new regions to maximize sales. The optimal solution is to allocate 3 salespeople to region 1 and 6 salespeople to region 2, maximizing sales to $615,000. The second example involves a tailor allocating his 150 yards of wool cloth and 200 hours of labor each month to making coats and slacks to maximize profit. The optimal solution is for the tailor to make 11 coats and 24 pairs of slacks, maximizing his profit to $1,510.

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Lady Margarette Legaspi
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937 views4 pages

Activity 2 (Midterm)

The document discusses two examples of integer programming problems. The first example involves allocating a company's 10 salespeople between two new regions to maximize sales. The optimal solution is to allocate 3 salespeople to region 1 and 6 salespeople to region 2, maximizing sales to $615,000. The second example involves a tailor allocating his 150 yards of wool cloth and 200 hours of labor each month to making coats and slacks to maximize profit. The optimal solution is for the tailor to make 11 coats and 24 pairs of slacks, maximizing his profit to $1,510.

Uploaded by

Lady Margarette Legaspi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Legaspi, Lady Margarette G.

BSA101
Sir Crisanto Pachejo
Management Science
Activity 2
October 25, 2021

MODUE 3: Integer Programming v.2


Management Science

1. A textbook publishing company has developed two new sales regions and is
planning to transfer some of its existing sales force into these two regions. The
company has 10 salespeople available for the transfer. Because of the different
geographic configurations and the location of schools in each region, the
average annual expenses for a salesperson differing the two regions; the average
is $10,000 per salesperson in region 1 and $7,000 per salesperson in region 2.
The total annual expense budget for the new regions is $72,000. It is estimated
that a salesperson in region 1 will generate an average of $85,000 in sales each
year, and a salesperson in region 2 will generate $60,000 annually in sales. The
company wants to know how many salespeople to transfer into each region to
maximize increased sales.

Step 1: Define the Deciding Variable

Step 2: Identify the Objective Function

Where:

Step 3: Define the constraints


RHS Equation
Maximize 85,000 60,000

Salespeople 1 1 10
Expense 10,000 7,000 72,000
Variable Type Integer Integer
Understanding the

Solution 3 6 $615,000
Self

After plotting the constraints, we got the points (0, 9), (3, 6), (7.2, 0). Since we are
using integer programming, all variables must be integers. Thus, we will be excluding
(7.2, 0) as it has decimal in it. This will leave us with points (0, 9) and (3, 6).
Substituting it to the objective function :

First Point: (0, 9)

Second Point: (3, 6)

We can see that having 3 salespersons in the first region and 6 salespersons on the
second region maximizes its profit at $615,000.
2. A tailor makes wool tweed sport coats and wool slacks. He is able to get a
shipment of 150 square yards of wool cloth from Scotland each month to make
coats and slacks, and he has 200 hours of his own labor to make them each
month. A coat requires 3 square yards of wool and 10 hours to make, and a pair
of slacks requires 5 square yards of wool and 4 hours to make. The tailor earns
$50 in profit from each coat he makes and $40 from each pair of slacks. He
wants to know how many coats and pairs of slacks to produce to maximize
profit.
Understanding the

Step 1: Define the Deciding Variables


Self

Step 2 Identify the Objective Function

Where:

Step 3: Define the Constraints

RHS Equation
Maximize 50 40
Wool cloth 3 5 150
Hours 10 4 200
Variable Type Integer Integer
Solution 11 24 $1,510
Upon plotting the constraints, we arrive at the points, (0, 30), (11, 24), (50, 0). This
points are upon the consideration of integer restriction. Substituting it in the objective
function :

First Point: (0, 30)

Second Point: (11, 24)

Third Point: (20, 0)

Therefore, in order to maximize the profit, the tailor needs to make 11 sport coats and
24 wool slacks. The profit is maximized at $1,510.

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