Problem Set 1
Problem Set 1
Direction: Analyse and formulate a linear programming model to each problem and solve the LP
problem using graphical solution. Avoid erasures in your graphs and final answer. Always box your
final answer. Each problem is 25pts (5 pts – LP Model, 10pts - Graph, and 10pts for optimal solution)
1. A store sells two types of toys, A and B. The store owner pays $8 and $14 for each one unit of toy
A and B respectively. One unit of toys A yields a profit of $2 while a unit of toys B yields a profit of $3.
The store owner estimates that no more than 2000 toys will be sold every month and he does not plan
to invest more than $20,000 in inventory of these toys. How many units of each type of toys should be
stocked in order to maximize his monthly total profit?
2. Dorian Auto manufactures luxury cars and trucks. The company believes that its most likely
customers are high-income women and men. To reach these groups, Dorian Auto has embarked on
an ambitious TV advertising campaign and has decided to purchase 1-minute commercial spots on
two types of programs: comedy shows and football games. Each comedy commercial is seen by 7
million high-income women and 2 million high income men. Each football commercial is seen by 2
million high-income women and 12 million high-income men. A 1-minute comedy ad costs $50,000,
and a 1-minute football ad costs $100,000. Dorian would like the commercials to be seen by at least
28 million high-income women and 24 million high-income men. Use linear programming to determine
how Dorian Auto can meet its advertising requirements at minimum cost.
1.
2.