1

Distribution and Network models

6.1 Transportation Problem
Arnoff Enterprises Manufactures kitchen appliances in Jefferson City and Omaha. The products
are then shipped to retail outlets in Des Moines, Kansas City, And St. Louis. The relevant
information (shipping costs, demand, and plant capacity) is shown in the table below. Formulate
the LP model to minimize shipping cost.

Retail Outlets
Plant Location Des Moines Kansas City St. Louis Capacity
Jefferson City $14 $9 $7 30
Omaha $8 $10 $5 20
Demand 25 15 10

MIN 14JD+9JK+7JS+8OD+10OK+5OS
S.T.
1) 1JD+1JK+1JS<30
2) 1OD+1OK+1OS<20
3) 1JD+1OD=25
4) 1JK+1OK=15
5) 1JS+1OS=10

Objective Function Value = 435.000

Variable Value Reduced Costs

JD 5.000 0.000
JK 15.000 0.000
JS 10.000 0.000
OD 20.000 0.000
OK 0.000 7.000
OS 0.000 4.000

Constraint Slack/Surplus Dual Prices

-------------- --------------- ------------------
1 0.000 0.000
2 0.000 6.000
3 0.000 -14.000
4 0.000 -9.000
5 0.000 -7.000
 2

OBJECTIVE COEFFICIENT RANGES

Variable Lower Limit Current Value Upper Limit

------------ --------------- --------------- ---------------
JD 10.000 14.000 No Upper Limit
JK No Lower Limit 9.000 16.000
JS No Lower Limit 7.000 11.000
OD No Lower Limit 8.000 12.000
OK 3.000 10.000 No Upper Limit
OS 1.000 5.000 No Upper Limit

RIGHT HAND SIDE RANGES

Constraint Lower Limit Current Value Upper Limit

------------ --------------- --------------- ---------------
1 20.000 30.000 No Upper Limit
2 10.000 20.000 25.000
3 20.000 25.000 35.000
4 0.000 15.000 25.000
5 0.000 10.000 No Upper Limit
 3

6.2 Assignment Problem

Scott and Associates Inc., is an accounting firm that has three new clients. Project leaders will be
assigned to the three clients. Based on the different backgrounds and experiences of the three
leaders, the various leader-client assignments differ in terms of projected completion times. The
possible assignments and the estimated completion times in days are presented in the table
below. Formulate the LP problem to determine which project leader will be assigned to which
client in order to minimize total number of day required.

Client
Project Leader I II III
Jackson 10 16 32
Ellis 14 22 40
Smith 22 24 34

MIN 10J1+16J2+32J3+14E1+22E2+40E3+22S1+24S2+34S3
S.T.
1) 1J1+1J2+1J3<1
2) 1E1+1E2+1E3<1
3) 1S1+1S2+1S3<1
4) 1J1+1E1+1S1=1
5) 1J2+1E2+1S2=1
6) 1J3+1E3+1S3=1

Objective Function Value = 64.000

Variable Value Reduced Costs

-------------- --------------- ------------------
J1 0.000 2.000
J2 1.000 0.000
J3 0.000 6.000
E1 1.000 0.000
E2 0.000 0.000
E3 0.000 8.000
S1 0.000 6.000
S2 0.000 0.000
S3 1.000 0.000
 4

6.3 Transshipment Problem

The distribution system for the Herman Company consists of three plants, two warehouses, and
four customers. Plant capacities and shipping costs per unit (in $) from each plant to each
warehouse are as follows.

Warehouse
Plant 1 2 Capacity
1 $4 7 450
2 8 5 600
3 5 6 380

Customer demand and shipping costs per unit from each warehouse to each customer are as
follows.

Customer
Warehouse 1 2 3 4
1 6 4 8 4
2 3 6 7 7

Demand 300 300 300 400

Formulate the LP model to minimize shipping costs.

MIN
4X14+7X15+8X24+5X25+5X34+6X35+6X46+4X47+8X48+4X49+3X56+6X57+7X58+7X59
S.T.
1) 1X14+1X15<450
2) 1X24+1X25<600
3) 1X34+1X35<380
4) 1X14+1X24+1X34-1X46-1X47-1X48-1X49=0
5) 1X15+1X25+1X35-1X56-1X57-1X58-1X59=0
6) 1X46+1X56=300
7) 1X47+1X57=300
8) 1X48+1X58=300
9) 1X49+1X59=400
 5

Objective Function Value = 11850.000

Variable Value Reduced Costs

X14 450.000 0.000
X15 0.000 3.000
X24 0.000 3.000
X25 600.000 0.000
X34 250.000 0.000
X35 0.000 1.000
X46 0.000 3.000
X47 300.000 0.000
X48 0.000 1.000
X49 400.000 0.000
X56 300.000 0.000
X57 0.000 2.000
X58 300.000 0.000
X59 0.000 3.000

Constraint Slack/Surplus Dual Prices

1 0.000 1.000
2 0.000 0.000
3 130.000 0.000
4 0.000 -5.000
5 0.000 -5.000
6 0.000 -8.000
7 0.000 -9.000
8 0.000 -12.000
9 0.000 -9.000
 6

OBJECTIVE COEFFICIENT RANGES

Variable Lower Limit Current Value Upper Limit

X14 No Lower Limit 4.000 5.000
X15 4.000 7.000 No Upper Limit
X24 5.000 8.000 No Upper Limit
X25 3.000 5.000 6.000
X34 4.000 5.000 7.000
X35 5.000 6.000 No Upper Limit
X46 3.000 6.000 No Upper Limit
X47 No Lower Limit 4.000 6.000
X48 7.000 8.000 No Upper Limit
X49 No Lower Limit 4.000 7.000
X56 No Lower Limit 3.000 6.000
X57 4.000 6.000 No Upper Limit
X58 No Lower Limit 7.000 8.000
X59 4.000 7.000 No Upper Limit

RIGHT HAND SIDE RANGES

Constraint Lower Limit Current Value Upper Limit

------------ --------------- --------------- ---------------
1 320.000 450.000 700.000
2 600.000 600.000 No Upper Limit

3 250.000 380.000 No Upper Limit

4 -250.000 0.000 130.000
5 -600.000 0.000 0.000
6 0.000 300.000 300.000
7 50.000 300.000 430.000
8 0.000 300.000 300.000
9 150.000 400.000 530.000
 7

6. Metropolis Public School System of Malawi has 18 school bus routes, of which six will expire
at the end of current school year. They must sign a three year contract for each of the six bus
routes by March of 2006. Bids have been made by five regional bus companies. The values in
the table below represent the price each bus company would charge to service a particular bus
route for three years (in millions of Kwachas). As can be seen in the table below, most of the bus
companies have made bids for only certain routes. In addition, due to limited resources each
company has indicated the maximum number of routes that they can actually accept. Thus,
although Ajax Bus Service has made bids for four routes, they have indicated they have only
enough resources to accept three of the bids. Formulate the LP model to minimize the cost of
securing contracts for each of the six bus routes.

Bus Routes Maximum

Bus Company 1 2 3 4 5 6 Accepted

Ajax Bus Service $23 -- 25 30 -- 11 3

Beagle Hound 25 -- 27 -- 21 -- 2

Magic Bus -- 28 -- 32 -- -- 1

Partridge Bus 18 22 -- -- -- 10 2

Yellow Bus -- -- --- 34 20 -- 1

Objective function ___________________________________________________________

ST:
 8

5 The LP model below minimizes the shipping cost of products produced in Augusta and
Tupper Lake and shipped to warehouses in Albany and Portsmouth and then shipped to outlets in
Boston, New York, and Philadelphia. 2 points each.

5 a. What would be the total shipping cost if the capacity of the plant in Tupper Lake was equal
to 120?
_________

5b. What is the cut off value for determining when less products would be shipped from
Augusta to Albany?
________

5c. How many products will be shipped to the warehouse in Portsmouth? ________

5d. What is the cut off value for determining when it would be beneficial to ship more products
from Tupper Lake to Portsmouth?
_________

5e. Would the binding constraints change if the capacity at Tupper Lake increased to 130?
Provide numerical support for your answer.

MIN
7Aug_Alb+5Aug_Port+3TL_Alb+4Tl_Port+8Alb_Bos+5Alb_NYC+7Alb_Phil+5Port_
Bos+6Port_NYC+10Port_Phi

S.T.
1) 1Aug_Alb+1Aug_Port<300
2) 1TL_Alb+1Tl_Port<100
3) 1Aug_Alb+1TL_Alb-1Alb_Bos-1Alb_NYC-1Alb_Phil=0
4) 1Aug_Port+1Tl_Port-1Port_Bos-1Port_NYC-1Port_Phi=0
5) 1Alb_Bos+1Port_Bos>150
6) 1Alb_NYC+1Port_NYC>100
7) 1Alb_Phil+1Port_Phi>150
 9

Objective Function Value = 4300.000

Variable Value Reduced Costs

-------------- --------------- ------------------
Aug_Alb 50.000 0.000
Aug_Port 250.000 0.000
TL_Alb 100.000 0.000
Tl_Port 0.000 3.000
Alb_Bos 0.000 5.000
Alb_NYC 0.000 1.000
Alb_Phil 150.000 0.000
Port_Bos 150.000 0.000
Port_NYC 100.000 0.000
Port_Phi 0.000 1.000

Constraint Slack/Surplus Dual Prices

-------------- --------------- ------------------
1 0.000 0.000
2 0.000 4.000
3 0.000 -7.000
4 0.000 -5.000
5 0.000 -10.000
6 0.000 -11.000
7 0.000 -14.000

OBJECTIVE COEFFICIENT RANGES

Variable Lower Limit Current Value Upper Limit
------------ --------------- --------------- ---------------
Aug_Alb 6.000 7.000 8.000
Aug_Port 4.000 5.000 6.000
TL_Alb No Lower Limit 3.000 6.000
Tl_Port 1.000 4.000 No Upper Limit
Alb_Bos 3.000 8.000 No Upper Limit
Alb_NYC 4.000 5.000 No Upper Limit
Alb_Phil -7.000 7.000 8.000
Port_Bos -5.000 5.000 10.000
Port_NYC -5.000 6.000 7.000
Port_Phi 9.000 10.000 No Upper Limit

RIGHT HAND SIDE RANGES

Constraint Lower Limit Current Value Upper Limit
------------ --------------- --------------- ---------------
1 300.000 300.000 No Upper Limit
2 100.000 100.000 150.000
3 -50.000 0.000 0.000
4 -250.000 0.000 0.000
5 0.000 150.000 150.000
6 0.000 100.000 100.000
7 100.000 150.000 150.000
 10

5. Red Tomato Soup Cannery (RTSC) ships crates of tomato soup from plants in Aldrich and
Bona to Eudora, Fair Play, and Greenfield. Relevant information on weekly capacities and
demands as well as shipping costs is shown in the table below. As can be seen in the table below
weekly demand exceeds the capacity of the two plants. Therefore, RTSC is planning on re-
opening one of two closed plants. The closed plants are in Cedar Springs and Dunnegan. The
weekly cost of re-opening the plant in Cedar Springs is $400 per week, while the cost of re-
opening the plant in Dunnegan is $600 per week. Formulate the mixed integer LP problem to
minimize shipping and re-opening costs and meet the weekly demand.

Table 1: Shipping cost

Destinations
Plants Eudora Fair Play Greenfield Capacity
Aldrich $2 3 $8 120
Bona 3 5 5 100
Closed Plants
Cedar Springs 5 6 5 80
Dunnegan 7 4 3 140

Demand 80 70 150

Objective Function
 11

10. The Dirty Soxs, a fast-pitch softball team, has three pitchers – J. Nuxhall, V. McDaniel, and
H. Wilhelm. The Dirty Soxs are scheduled to play in a round robin tournament this weekend
with four other teams, the Larks, the Pilots, the Skinflints, and the Zebras. Based on past games
with the four opponents, Smokey Burgess, the manager of the Dirty Soxs, has computed the
average number of runs each pitcher allows the opposition per game for each of the four
opponents (i.e., Earned Run Average or ERA). For instance, Smokey Burgess has determined
that J. Nuxhall’s ERA against the Larks is 3.40 (or J. Nuxhall allows an average of 3.4 runs per
game when pitching against the Larks). Smoky Burgess developed the following LP printout to
determine which pitcher should be used in each game in order to minimize the total number of
runs the opposition scores in the four games.

10a. Who should pitch against the Pilots? ______________

10b. How many total runs would you expect the opposition to score in the four games (four
games combined)?
_______

10c. Would the pitching schedule change if H. Wilhelm allowed an average of 3.1 runs per
game (ERA = 3.1) while pitching against the Pilots? Provide support for your answer.

10d. Would the solution change if J. Nuxhall was able to pitch more games (pitch against more
teams in the tournament)? Provide support for your answer

10e. If V. McDaniel develops a sore arm and is not able to pitch in any of the games, how many
total runs would you expect the opposition to score in the four games?
__________

MIN 3.4NL+3.8NP+3.2NS+4.1NZ+3.6ML+3.4MP+3.5MS+4MZ+2.8WL+3WP+2.9WS+3.5WZ

S.T.

1) 1NL+1NP+1NS+1NZ<2
2) 1ML+1MP+1MS+1MZ<1
3) 1WL+1WP+1WS+1WZ<2
4) 1NL+1ML+1WL=1
5) 1NP+1MP+1WP=1
6) 1NS+1MS+1WS=1
7) 1NZ+1MZ+1WZ=1

Objective Function Value = 12.900

 12

Variable Value Reduced Costs

-------------- --------------- ------------------
NL 0.000 0.000
NP 0.000 0.200
NS 1.000 0.000
NZ 0.000 0.000
ML 0.000 0.400
MP 1.000 0.000
MS 0.000 0.500
MZ 0.000 0.100
WL 1.000 0.000
WP 0.000 0.000
WS 0.000 0.300
WZ 1.000 0.000

Constraint Slack/Surplus Dual Prices

-------------- --------------- ------------------
1 1.000 0.000
2 0.000 0.200
3 0.000 0.600
4 0.000 -3.400
5 0.000 -3.600
6 0.000 -3.200
7 0.000 -4.100

OBJECTIVE COEFFICIENT RANGES

Variable Lower Limit Current Value Upper Limit
------------ --------------- --------------- ---------------
NL 3.200 3.400 3.400
NP 3.600 3.800 No Upper Limit
NS No Lower Limit 3.200 3.500
NZ 4.100 4.100 No Upper Limit
ML 3.200 3.600 No Upper Limit
MP No Lower Limit 3.400 3.500
MS 3.000 3.500 No Upper Limit
MZ 3.900 4.000 No Upper Limit
WL 2.800 2.800 3.000
WP 2.900 3.000 3.200
WS 2.600 2.900 No Upper Limit
WZ No Lower Limit 3.500 3.500

RIGHT HAND SIDE RANGES

Constraint Lower Limit Current Value Upper Limit
------------ --------------- --------------- ---------------
1 1.000 2.000 No Upper Limit
2 0.000 1.000 1.000
3 1.000 2.000 2.000
4 1.000 1.000 2.000
5 1.000 1.000 2.000
6 0.000 1.000 2.000
7 1.000 1.000 2.000
 13

5. The Management Scientist output on the next two pages is for a transshipment problem in
which items are first shipped from plants (D and A) to warehouses (K and L) and then to the
final retail outlets (G, M, H, and N). (Each question is worth two points).

5a. According to the model formulation, what is the cost of shipping per unit from
warehouse K to outlet G?
____________________

5b What would be the new objective function value if the demand at retail outlet M was 360?

_____________

5c. Less items would be shipped from warehouse L to outlet G if the shipping cost was at what
value?
_____________

5d. What would be the total transportation cost if the capacity of Plant A was 730? _______

5e. If the shipping cost from D to K was $7, from D to L was $3.50, and from K to G was $2.40,
would the current solution remain optimal? Demonstrate.
 14

MIN 6DK+4DL+5AK+8AL+2KG+6KM+3KH+6KN+4LG+4LM+6LH+5LN

S.T.

1) 1DK+1DL<800
2) 1AK+1AL<750
3) -1DK-1AK+1KG+1KM+1KH+1KN=0
4) -1DL-1AL+1LG+1LM+1LH+1LN=0
5) 1KG+1LG=400
6) 1KM+1LM=350
7) 1KH+1LH=350
8) 1KN+1LN=400

Objective Function Value = 12000.000

Variable Value Reduced Costs

-------------- --------------- ------------------
DK 0.000 0.000
DL 750.000 0.000
AK 750.000 0.000
AL 0.000 5.000
KG 400.000 0.000
KM 0.000 4.000
KH 350.000 0.000
KN 0.000 3.000
LG 0.000 0.000
LM 350.000 0.000
LH 0.000 1.000
LN 400.000 0.000

Constraint Slack/Surplus Dual Prices

-------------- --------------- ------------------
1 50.000 0.000
2 0.000 1.000
3 0.000 6.000
4 0.000 4.000
5 0.000 -8.000
6 0.000 -8.000
7 0.000 -9.000
8 0.000 -9.000
 15

OBJECTIVE COEFFICIENT RANGES

Variable Lower Limit Current Value Upper Limit

------------ --------------- --------------- ---------------
DK 6.000 6.000 No Upper Limit
DL 3.000 4.000 4.000
AK No Lower Limit 5.000 6.000
AL 3.000 8.000 No Upper Limit
KG 2.000 2.000 3.000
KM 2.000 6.000 No Upper Limit
KH No Lower Limit 3.000 4.000
KN 3.000 6.000 No Upper Limit
LG 3.000 4.000 5.000
LM No Lower Limit 4.000 8.000
LH 5.000 6.000 No Upper Limit
LN No Lower Limit 5.000 8.000

RIGHT HAND SIDE RANGES

Constraint Lower Limit Current Value Upper Limit

------------ --------------- --------------- ---------------
1 750.000 800.000 No Upper Limit
2 700.000 750.000 770.000
3 -50.000 0.000 0.000
4 -50.000 0.000 750.000
5 400.000 400.000 450.000
6 0.000 350.000 400.000
7 350.000 350.000 400.000
8 0.000 400.000 450.000
 16

Chapter 6 Part II
6.4 Shortest Route

Gorman Construction Company has several constructions located throughout a three-county

area. With multiple daily trips carrying personnel, equipment, and supplies from Gorman’s
office to the construction sites, the costs associated with transportation activities are substantial.
The travel alternatives between Gorman’s office and each of the construction sites is shown in
the network below. Formulate the LP model to minimize distance traveled.

2 25 6
40 12 11

6 4 23
1
36 8
5
3 15

MIN
40X12+36X13+6X23+6X32+12X24+12X42+25X26+15X35+15X53+8X45+8X54+11X46+23X56

S.T.

1) 1X12+1X13=1
2) -1X12+1X23-1X32+1X24-1X42+1X26=0
3) -1X13-1X23+1X32+1X35-1X53=0
4) -1X24+1X42+1X45-1X54+1X46=0
5) -1X35+1X53-1X45+1X54+1X56=0
6) 1X26+1X46+1X56=1
 17

OPTIMAL SOLUTION

Objective Function Value = 63.000

Variable Value
-------------- ---------------
X12 1.000
X13 0.000
X23 0.000
X32 0.000
X24 1.000
X42 0.000
X26 0.000
X35 0.000
X53 0.000
X45 0.000
X54 0.000
X46 1.000
X56 0.000

Constraint Slack/Surplus
-------------- ---------------
1 0.000
2 0.000
3 0.000
4 0.000
5 0.000
6 0.000
 18

6.5 Maximal Flow Problem

The network below represents traffic traveling through Cincinnati from north to south. The arcs represent
highways and the values represent the maximum number of cars (in thousands) per hour that can travel on
each particular route. Formulate the LP model to maximize the number of cars that can flow through the
network per hour.

3
2 5

5 2 2 3 8

6 1 1
1 3 7

3 7 7

5
4 6
5

MAX 1F

S.T.
1) 1X12<5
2) 1X13<6
3) 1X14<5
4) 1X23<2
5) 1X25<3
6) 1X32<2
7) 1X35<3
8) 1X34<3
9) 1X36<7
10) 1X46<5
11) 1X56<1
12) 1X57<8
13) 1X65<1
14) 1X67<7
15) 1X12+1X13+1X14-1F=0
16) 1X12-1X23-1X25+1X32=0
17) 1X13+1X23-1X32-1X35-1X34-1X36=0
18) 1X14+1X34-1X46=0
19) 1X25+1X35-1X56-1X57+1X65=0
20) 1X36+1X46+1X56-1X65-1X67=0
21) 1X57+1X67-1F=0
 19

Objective Function Value = 14.000

Variable Value Reduced Costs

-------------- --------------- ------------------
X12 5.000 0.000
X13 6.000 0.000
X14 3.000 0.000
X23 2.000 0.000
X25 3.000 0.000
X32 0.000 0.000
X35 3.000 0.000
X34 0.000 0.000
X36 5.000 0.000
X46 3.000 0.000
X56 0.000 1.000
X57 7.000 0.000
X65 1.000 0.000
X67 7.000 0.000
F 14.000 0.000
 20

6.6 Production & Inventory Application

Contois Carpets is a small manufacturer of carpeting for home and office installations.
Production capacity, demand, production cost per square yard, and inventory holding cost per
square yard for the next four quarters (see table below). Contois wants to determine how many
yards of carpeting to manufacture each quarter to minimize the total production and inventory
cost for the four quarter period.

Production Production Inventory

Capacity Demand Cost Cost
Quarter (square yards) (square yards) ($/square yard) ($/square yard)
1 600 400 $2 $0.25
2 300 500 5 0.25
3 500 400 3 0.25
4 400 400 3

MIN 2X15+5X26+3X37+3X48+0.25X56+0.25X67+0.25X78
S.T.
1) 1X15<600
2) 1X26<300
3) 1X37<500
4) 1X48<400
5) 1X15-1X56=400
6) 1X26+1X56-1X67=500
7) 1X37+1X67-1X78=400
8) 1X48+1X78=400

Objective Function Value = 5150.000

Variable Value Reduced Costs

X15 600.000 0.000
X26 300.000 0.000
X37 400.000 0.000
X48 400.000 0.000
X56 200.000 0.000
X67 0.000 2.250
X78 0.000 0.000

Constraint Slack/Surplus Dual Prices

1 0.000 2.750
2 0.000 0.000
3 100.000 0.000
4 0.000 0.250
5 0.000 -4.750
6 0.000 -5.000
7 0.000 -3.000
8 0.000 -3.250
 21

OBJECTIVE COEFFICIENT RANGES

Variable Lower Limit Current Value Upper Limit

X15 No Lower Limit 2.000 4.750
X26 2.750 5.000 No Upper Limit
X37 2.750 3.000 5.250
X48 No Lower Limit 3.000 3.250
X56 No Lower Limit 0.250 3.000
X67 -2.000 0.250 No Upper Limit
X78 0.000 0.250 No Upper Limit

RIGHT HAND SIDE RANGES

Constraint Lower Limit Current Value Upper Limit

1 600.000 600.000 900.000
2 300.000 300.000 No Upper Limit
3 400.000 500.000 No Upper Limit
4 300.000 400.000 400.000
5 100.000 400.000 400.000
6 200.000 500.000 500.000
7 0.000 400.000 500.000
8 400.000 400.0
 22

5. Crow Tank Company must relocate heavy equipment located at Node 1 in the
network below to a new plant location (Node 7). Formulate the LP model to find the
shortest route from Node 1 to Node 7.

Objective function: _________________________________________________

ST:

1.
 23

5. The LP model below represents the production of carburetors for automobile engines over the
next four quarters. Items not sold in the quarter in which they are produced can be put into
storage and sold during the next quarter.

5a. According to the model formulation, what is the cost of storing each unit after the second
quarter so that it can be sold during the third quarter?
__________

5b. If 700 Carburetors could be produced during the first quarter, what would be the new
objective function value?
_________

5c. More Carburetors would be produced during the fourth quarter if the cost of production was
equal to what value?
________

5d If the demand during the third quarter was equal to 600, what would be the new objective
function value?
_________

5e. During which quarter will production not be at full capacity? ______

MIN 10X15+12X26+14X37+16X48+1X56+2X67+2X78

S.T.

1) 1X15<600
2) 1X26<500
3) 1X37<400
4) 1X48<700
5) 1X15-1X56=300
6) 1X26+1X56-1X67=350
7) 1X37+1X67-1X78=550
8) 1X48+1X78=900
 24

Objective Function Value = 29000.000

Variable Value Reduced Costs

-------------- --------------- ------------------
X15 600.000 0.000
X26 500.000 0.000
X37 400.000 0.000
X48 600.000 0.000
X56 300.000 0.000
X67 450.000 0.000
X78 300.000 0.000

Constraint Slack/Surplus Dual Prices

-------------- --------------- ------------------
1 0.000 1.000
2 0.000 0.000
3 0.000 0.000
4 100.000 0.000
5 0.000 -11.000
6 0.000 -12.000
7 0.000 -14.000
8 0.000 -16.000

OBJECTIVE COEFFICIENT RANGES

Variable Lower Limit Current Value Upper Limit

------------ --------------- --------------- ---------------
X15 9.00 10.000 11.000
X26 No Lower Limit 12.000 12.000
X37 No Lower Limit 14.000 14.000
X48 15.000 16.000 18.000
X56 No Lower Limit 1.000 2.000
X67 No Lower Limit 2.000 2.000
X78 No Lower Limit 2.000 2.000

RIGHT HAND SIDE RANGES

Constraint Lower Limit Current Value Upper Limit

------------ --------------- --------------- ---------------
1 500.000 600.000 1200.000
2 400.000 500.000 1100.000
3 300.000 400.000 1000.000
4 600.000 700.000 No Upper Limit
5 -300.000 300.000 400.000
6 -250.000 350.000 450.000
7 -50.000 550.000 650.000
8 300.000 900.000 1000.000
 25

4. The LP model below maximizes flow of oil through a network (in thousands of gallons per
hour).

4a. According to the model, what is the maximum flow of oil per hour from Node 2 to
Node 3?
______________

4b. What is the maximum flow per hour through the network ? ______________

4c. What is the optimal amount of oil that should be sent from node 2 to Node 3?

____________

4d. How much oil will pass through node 3?____________

4e . Assume additional funds become available to improve one pipeline. If it was possible to
increase the capacity of some routes by 1(000) gallons, which routes would you consider
increasing the route’s capacity? (list all that apply)

MAX 1F
S.T.
1) 1X13<20
2) 1X15<10
3) 1X23<9
4) 1X32<4
5) 1X35<8
6) 1X53<8
7) 1X24<15
8) 1X34<10
9) 1X36<25
10) 1X46<14
11) 1X56<10
12) 1X12+1X13+1X15-1F=0
13) 1X12-1X23+1X32-1X24=0
14) 1X13+1X23-1X32-1X35+1X53-1X34-1X36=0
15) 1X24+1X34-1X46=0
16) 1X15+1X35-1X53-1X56=0
17) 1X36+1X46+1X56-1F=0
18) 1X12<18

Objective Function Value = 48.000

 26

Variable Value Reduced Costs

-------------- --------------- ------------------
X12 18.000 0.000
X13 20.000 0.000
X15 10.000 0.000
X23 4.000 0.000
X32 0.000 0.000
X35 0.000 0.000
X53 1.000 0.000
X24 14.000 0.000
X34 0.000 0.000
X36 25.000 0.000
X46 14.000 0.000
X56 9.000 0.000
F 48.000 0.000

Constraint Slack/Surplus Dual Prices

-------------- --------------- ------------------
1 0.000 1.000
2 0.000 1.000
3 5.000 0.000
4 4.000 0.000
5 8.000 0.000
6 7.000 0.000
7 1.000 0.000
8 10.000 0.000
9 0.000 0.000
10 0.000 0.000
11 1.000 0.000
12 0.000 0.000
13 0.000 -1.000
14 0.000 -1.000
15 0.000 -1.000
16 0.000 -1.000
17 0.000 -1.000
18 0.000 1.000
 27

1. Ozark Mountain Bike is planning the production schedule for the next four months. Relevant
information is presented in the table below. Formulate the LP model to minimize production and
inventory cost and meet the forecasted demand.

Production Forecasted Production Inventory

Month Capacity Demand Cost Cost
1. 90 60 $100 $2
2. 75 80 $110 $2
3. 60 70 $130 $3
4. 80 75 $130 N/A

Objective Function: _____________________________________________________

ST.
 28

Equipment Replacement Problem (variation on Shortest Route)

Assume Farmer Dale needs to rent a BEFCO for the four month planting season from Buck &
Knobby Equipment Rental A BEFCO can be rented based on a one-month, two-month, three-
month or four months plans. The costs vary depending on the length of the rental and the
particular month due to demand fluctuations. The table below summarizes the possibilities based
on last year’s rental costs.

One Month plans Two Months Plans

Month 1 Cost $1800 Months 1 & 2 Cost $3,000
Month 2 Cost $1500 Months 2 & 3 Cost $4,200
Month 3 Cost $2400 Months 3 & 4 Cost $4,800
Month 4 Cost $2800

Three Month Plans Four Month Plan

Months 1-3 Cost $6,000 Months 1-4 Cost $8,400
Months 2-4 Cost $6,300

Farmer Dale needs one BEFCO for all four months.

He could rent any combination.
For instance he could rent a one month plan each month (1800 + 1500 + 2400 + 2800).
Or he could rent a one month plan ($1800), two month plan ($4,200) and another one month plan
($2800)
Or he could rent a three month plan ($6000) and a month plan ($2800).
Any possibility can work
Do not solve.
Formulate the LP model to minimize rental costs and ensure that Farmer Dale has BEFCO rented
for each month. (Diagram as a shortest route problem to get from node 0(month 1) to node 4
(month 4)).

Objective function: _________________________________________________

ST