CHAPTER 7

Flair Furniture

Step 1: Formulate a LP
Denote x,y are number of tables and chair produced
Max 70x + 50y
s.t. 4x + 3y ≤ 240
2x + y ≤ 100
x, y ≥ 0

Step 2: Graph this LP and define the feasible region

(plot equalities first, then pick a checking point to define the inequalities’ areas; Feasible Region is the
collection of points that satisfy all constraints)

The Feasible Region is OABC

Step 3: Apply techniques to solve this LP (Isoprofit/Isocost line + Corner point)

Corner points method
Corner points O, A, B ,C
O (0;0) => Profit = 70*0 +50*0 =0
A( 0;80) => Profit = 70*0 +50*80 = 4,000
B(30;40) => Profit = 70*30 +50*40 =4,100
C(50;0) => Profit = 3,500
Conclude: Profit at B is the highest so that B is the optimal solution.
Isoprofit line method
I pick a smart profit of 3,500 and draw the Isoprofit line at 3,500
You can get higher (than 3500) so that you move the isoprofit line further to the right side to get higher
profit but do not leave the feasible region. So the last point isoprofit line touch the FR (before leaving it) is
point B (30;40)
Conclude:B is the optimal solution.

Step 4: Make conclusion

The optimal point is point B(30;40), you may produce 30 tables and 40 chairs to get max profit at 4,100

HOLIDAY MEAL TURKEY RANCH

Let x = number of pounds of brand 1 feed purchased
y = number of pounds of brand 2 feed purchased

Min 2x + 3y
s.t.
5x+ 10y ≥ 90
4x+ 3y ≥ 48
0.5x ≥ 1.5
x,y ≥ 0
The feasible region is a yellow area

Min 2x + 4y
s.t.
5x+ 10y ≥ 90
4x+ 3y ≥ 48
0.5x ≥ 1.5
x,y ≥ 0

Corner point
A(3;12) => Cost= 2*3+3*12 = 54
B(8.4;4.8) => Cost= 2*8.4+3*4.8 = 36
C(18;0) => Cost= 2*18+3*0 = 36
Min cost is at B, C => B,C are the optimal solution
=> Holiday buys 8.4 pounds Brand 1 and 4.8 pounds of Brand 2

Isocost line
Draw an Isocost line at 6: 2x + 3y =6,
Move the isocost line at 6 to the right and stop at the very first point where it touches the FR (point B)
=> B(8.4; 4.8) is the optimal point
You can purchase 8.4 pounds of brand 1 and 4.8 pounds of Brand 2 with the lowest cost of 31.2
ASSIGNMENT

Q9. Ms. Havana- the owner of an accessories Q11. Ms. Havana- the owner of an accessories
store located in Cuba decided to limit her monthly store located in Cuba decided to limit her monthly
investment spending at most $100,000 on laptop investment spending at most $100,000 on laptop
cooling stands and docking stations, on average. cooling stands and docking stations, on average.
Ms. Havana got the offer from wholesalers at Ms. Havana got the offer from wholesalers at
$1000 and $1500 for each laptop stand and $1000 and $1500 for each laptop stand and
docking station, respectively. The contribution per docking station, respectively. The contribution per
laptop stand is $400 and of per docking station is laptop stand is $400 and of per docking station is
$700. Based on historical records, Ms. Havana $700. Based on historical records, Ms. Havana
estimates that at least 15 cooling stands but no estimates that at least 15 cooling stands but no
more than 80 are sold each month on average. more than 80 are sold each month on average.
She also states that the demand of cooling stand She also states that the demand of cooling stand
is at most double the demand of docking station. doubles the one of docking station. How many
How many cooling stands and docking stations cooling stands and docking stations should be
should be sold to maximize the quarterly profit? sold to maximize the quarterly profit?

Denote x,y are number of cooling stands and Denote x,y are number of cooling stands and
docking stations sold per month docking stations sold per month
Max 400x + 700y Max 400x+700y
S.t. 1000x+1500y <= 100,000 S.t. 1000x +1500y <= 100,000
15<=x<=80 15<=x<=80
x<=2y x=2y
x,y >=0 x,y>=0

The feasible region is EHI

The feasible region is HI

3 corner points E, H, I 2 corner points H, I

E(15; 56.67) H(15;7.5)
H(15;7.5) I (57.14; 28.57)
I (57.14; 28.57) => optimal point is I
=> optimal point is E
*** When we have 1 equality in the set of constraints, Feasible Region might become Feasible line
When we have 2 equalities in the set of constraints, Feasible Region might become Feasible Point

ASGMT #1 IN CLASS:

You are given a formulation as follow, solve it

MAX (or MIN) 15x + 12y

s.t. 2x+3y>=50
3x-4y<=40
5x+y>=25
x,y >=0

** Corner point method is always preferred, except special cases (unboundedness feasible region, OF
parallel with one of these constraints)
=> In these case, double check by 2 methods (or do Isoprofit/Isocost line)

Corner point
E(1.9;15.3), F (0;25), B(18.8;4.1)
Substitute into max function 15x + 12y
=> B is the optimal solution (wrong, compared to Isoprofit line method)

Substitute into min function 15x + 12y

=> E is the optimal solution
Isoprofit line
Pick a smart number of 180 and plot profit 15x + 12y=180 => this is the isoprofit line at 180
I move the isoprofit line further to the right to get the max profit and since the max profit is going to infinity
=> We cannot define the optimal solution
For max problem => use Isoproft line
For min problem => both are consistent

ASGMT #2 IN CLASS:
MAX (or MIN) 10x + 2y
S.t. 2x+3y<=50
3x-4y<=40
5x+y>=25
x,y >=0

Corner point
Feasible Region is ABCD
A(1.9;15.4) => Profit =50
B(5;0) => Profit =50
C(13.33;0) => Profit =133
D(18.8;4.1) => Profit =196.2

=> D is optimal solution (MAX 10x + 2y) (consistent with Isoprofit line)
=> A and B are optimal solution (MIN 10x + 2y) (inconsistent with Isocost line)

Isoprofit/Isocost line
Plot isoprofit or isocost line at 20: 10x+2y=20
Move it to right to get max profit => D is the optimal solution (consistent with corner point)
Move it to the right and stop at the first point it touch FR to get min cost=> points in AB are optimal
solution (inconsistent corner point) => use conclusion from Isocost line
=> For min case: use Isocost line
For max case: both are consistent

Obj: Max 5x+10y

s.t x+2y <=6

2x+y <=8

x >=7
Alpha, Inc., produces two types of photo-developing fluids. The first, a black-and-white picture chemical,
costs Alpha $2,500 per ton to produce. The second, a color photo chemical, costs $3,000 per ton. Based
on an analysis of current inventory levels and outstanding orders, Alpha’s production manager has
specified that at least 30 tons of the black-and-white chemical and at least 20 tons of the color chemical
must be produced during the next month. In addition, the manager notes that an existing inventory of a
highly perishable raw material needed in both chemicals must be used within 30 days. To avoid wasting
the expensive raw material, Alpha must produce a total of at least 60 tons of the photo chemicals in the
next month.
1) Set up the objective function and constraints.
2) Determine the feasible region.
3) What should be the solution for Alpha, Inc.?

Denote x, y: tons of a black-and-white picture chemical and a color photo chemical

Min 2,500x +3000y

s.t x>=30
y>=20
x+y>=60
x,y>=0

Denote x,y,z are units of portable charger of Mini, Extra, Ultra

Max 18x+28y+32z
s.t. x>=14
z<=76
2y=z
2,300 <= 35x+41y+47z <=6,100
18x <= 28y
z,y>=0