Formul
Formul
Spring 2005
Solved Exercises on LP Modeling
1. [Problem 3 on page 64 in the 3rd edition of the textbook] Leary chemical manufactures three chemicals: A, B, and C. These
chemicals are produced via two production processes: 1 and 2. Running process 1 for an hour costs $4 and yields 3 units of A,
1 of B and 1 of C. Running process 2 for an hour costs $1 and produces 1 unit of A and one unit of B. To meet customer
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demands, at least 10 units of A, 5 of B and 3 units of C must be produced daily. Graphically determine a daily production plan
that minimizes the cost of meeting Leary Chemical’s daily demands.
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Answer:
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Three types of chemicals are produced: A, B, and C. There are two types of processes (machines) available for production.
A
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A
Process1 B Process 2
B
C
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A B C
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1 4 3 1 1
2 1 1 1 0
Daily Demand 10 5 3
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B. Constraints:
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Non-negativity constraints:
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C. Objective function:
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Z = Cost of meeting daily demands for chemicals = Cost of operating process 1 and 2
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Minimize Z = 4 X1 + X 2
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( I ) ( I I I )
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X 2
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Feasible Region
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( I I ) 10
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5
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B Z
A
X 1
3 5
Point X1 X2 Z
A 5 0 (4) (5) + 0 = 20
B 3 2 (4) (3) + 2 = 14 Minimum
Point B is the optimal point. Processes 1 and 2 should be used 3 hours and 2 hours, respectively.
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2. [Problem 6 on page 64 in the 3rd edition of the textbook] Farmer Jane owns 45 acres of land. She is going to plant each with
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wheat or corn. Each acre planted with wheat yields $200 profit; each with corn yields $300 profit. The labor and fertilizer used
for each acre are given in the table below. One hundred workers and 120 tons of fertilizer are available. Use linear
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Crop
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Wheat Corn
Labor 3 worke rs 2 workers
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B. Constraints:
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1) Total acres of land used must equal to the land she owns.
C + W = 45
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3) Non-negativity
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W ,C ≥ 0
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C. Objective function:
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3. [Problem 3 on page 73 in the 3rd edition of the textbook] Peg and Al Fundy have a limited food budget, so Peg is trying to feed
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the family as cheaply as possible. However, she still wants to make sure her fa mily members meet their daily nutritional
requirements. Peg can buy two foods. Food 1 sells for $7 per pound and, each pound contains 3 units of vitamin A and 1 units
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of vitamin C. Food 2 sells for $1 per pound, and each pound contains 1 unit of each vitamin. Each day, the family needs at
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(b) Al has put his foot down and demanded that Peg fulfill the family’s daily nutritional requirement exactly by obtaining
precisely 12 units of vitamin A and 6 units of vitamin C. The optimal solution to new problem will involve ingesting less
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Answer:
(a) A. Decision Variables: X 1 = pounds of food 1 purchased
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B. Constraints:
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1) Vitamin A requirement
3 X1 + X 2 ≥ 12
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2) Vitamin C requirement
X1 + X 2 ≥ 6
3) Non-negativity
X 1, X 2 ≥ 0
C. Objective function:
Minimize Z = 7 X1 + X 2
(I)
X2
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(II) 12 C
Point ( X1, X2 ) Z
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A (6,0) 42
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Feasible Region
B (3,3) 24
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C (0,12) 12
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Z
B
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A
X1
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4 6
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Minimum is 12, so Peg should purchase 12 units of food 2 each day. From second constraint, X1 + X 2 = 0 + 12 > 6 .
Thus, vitamin C requirement is over satisfied by 12-6 = 6 units.
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Z = 7 X1 + X 2
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Minimize
3 X 1 + X 2 = 12
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s.t.
X1 + X 2 = 6
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X1 , X 2 ≥ 0
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X1 = 3 X 2 = 3 . Then Z * = 24
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* *
From the graph, it is obvious that the optimal solution is at point B. That is, and
which is greater than 12 (i.e. it will be more expensive).
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4. [Problem 5 on page 76 in the 3rd edition of the textbook] Each day, workers at the Gotham City Police Depart ment work two
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6-hour shift chosen from 12 a.m. to 6 a.m., 6 a.m. to 12 p.m., 12 p.m. to 6 p.m., and 6 p.m. to 12 a.m. The number of workers
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are needed during each shift are shown at table below. Workers whose two shifts are consecutive are paid $12 per hour;
workers whose shifts are not consecutive are paid $18 per hour. Formulate an LP that can be used to minimize the cost of
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meeting the daily work-force demands of the Gotham City Police Department.
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12 A.M. to 6 A.M 15
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6 A.M. to 12 P.M. 5
12 P.M. to 6 P.M. 12
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6 P.M. to 12 A.M. 6
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Answer:
Let us give numbers to the shifts as below:
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Shifts
1 2 3 4
X 3 + X 4 + Y2 = 6
5) Non-negativity
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Xi ≥ 0 for i = 1,2,3, 4
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Y j ≥ 0 for j = 1,2
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C. Objective function:
Minimize Z = 12 ( X 1 + X 2 + X 3 + X 4 ) + 18 (Y1 + Y2 )
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5. [Problem 5 on page 91 in the 3rd edition of the textbook] Chandler Oil Company has 5,000 barrels of oil 1 and 10,000 barrels
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of oil 2. The company sells two products: gasoline and heating oil. Both products are produced by combining oil 1 and oil 2.
The quality level of each oil is as follows: oil 1, 10; oil 2, 5. Gasoline must have an average quality level of at least 8 and
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heating oil, at least 6. Demand for each product must be created by advertising. Each dollar spent advertising gasoline creates
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5 barrels of demand and each spent on heating oil creates 10 barrels of demand. Gasoline is sold for $25 per barrel, heating oil
for $20. Formulate an LP to help Chandler maximize profit. Assume that no oil of either type can be purchased.
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Answer:
Let us draw the input-output diagram for the production process, and tabulate the given data.
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Outputs
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Inputs
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Gasoline
Oil1 Production
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Oil2 Process
Heatingoil
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Minimum Demand
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1 5,000 10 Gasoline 8 5 25
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A. Decision Variables: X i , j = barrels of oil i used to make product j ( i =1 is oil 1, i = 2 is oil 2, j =1 is gasoline,
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j =2 is heating oil)
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B. Constraints:
1) The barrels of each oil used to make products must not exceed its on hand inventory level.
X1,1 + X1,2 ≤ 5,000 (for oil type 1)
X 2,1 + X 2 , 2 ≤ 10,000 (for oil type 2)
2) The minimum average quality level of each product must be satisfied.
10 X 1,1 + 5 X 2,1 Total Quality of oil used for gasoline
≥8 è ≥ 8 è 2 X 1 ,1 − 3 X 2 ,1 ≥ 0
X 1,1 + X 2,1 Total amount of gasoline produced
10 X 1, 2 + 5 X 2, 2
≥ 6 è 4 X 1, 2 − X 2 , 2 ≥ 0
X 1 ,2 + X 2 , 2
3) Production of each product must be equal to the demand created by advertising.
X 1 ,1 + X 2 ,1 = 5a1
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(for gasoline)
X 1 ,2 + X 2 , 2 = 10a2 (for heating oil)
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4) Non-negativity
X i, j ≥ 0 i = 1,2 ; j = 1,2
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for
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C. Objective function:
Z = Total sales revenue from gasoline + Total s ales revenue from eating oil – Total advertising cost
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Maximize Z = 25 ( X 1,1 + X 2 ,1 ) + 20 ( X 1, 2 + X 2 , 2 ) − a1 − a 2
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6. [Problem 11 on page 92 in the 3rd edition of the textbook] Eli Daisy produces the drug Rozac from four chemicals. Today they
must produce 1,000 lb of drug. The three active ingredients in Rozac are A , B, and C. By weight, at least 8% of Rozac must
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consist of A, at least 4% of B, and at least 2% of C. The cost per pound of each chemical and the amount of each ingredient in
1 lb of each chemical are given in table below. It is necessary that at least 100 lb of chemical 2 be used. Formulate an LP
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whose solution would determine the cheapest way of producing today’s batch of Rozac.
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B. Constraints:
1) Minimum ingredient A requirement for the drug (in weight)
A ≥ (0 .08 )(1,000 )
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B ≥ (0 .04 )(1,000 )
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X 2 ≥ 100
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5) Chemical content
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6) Non-negativity
A, B, C ≥ 0
X i ≥ 0 for i = 1,2,3, 4
C. Objective function:
Answer:
Let us draw the input-output diagram for the production process, and tabulate the given data.
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trucks in trucks in
100 trucks inventory inventory
Month 1 Month 2
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cars in
200 cars cars in
inventory
inventory
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CUSTOMER CUSTOMER
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Inventory on hand
Vehicle Month 1 Month 2 (ton/vehicle)
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B. Constraints:
1) Maximum amount of steel that can be purchased in each month is limited
S1 ≤ 1,500
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S 2 ≤ 1,500
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2) Steel used to produce vehicles in each month must be less than the amount of steel purchased in each month
2T1 + C1 ≤ S1
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2T2 + C 2 ≤ S 2
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3) Maximum number of vehicles produced in each month must be less than 1,000
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T1 + C 1 ≤ 1,000
T2 + C 2 ≤ 1,000
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20C 2 + 10T2
≥ 16 è 4C 2 − 6T2 ≥ 0
C 2 + T2
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C. Objective function:
Z = Total Cost = Cost of steel + Inventory holding costs
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8. [Problem 44 on page 119 in the 3rd edition of the textbook] A paper recycling plant process box board, tissue, paper,
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newsprint, and book paper in to pulp that can be used to produce three grades of recycled paper (grades 1, 2, and 3). The prices
per ton and pulp contents of the four inputs are shown in below table. Two methods, de-inking and asphalt dispersion, can be
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used to produce the four inputs into pulp. It costs $20 to de-ink a ton of any input. The process of de-inking removes 10% of
the input’s pulp, leaving 90% of the original pulp. It costs $15 to apply asphalt dispersion to a ton of material. The asphalt
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dispersion removes 20% of the input’s pulp. At most 3,000 tons of input can be run through the asphalt dispersion process or
de-inking process. Grade 1 paper can only be produced with newsprint or book paper pulp; grade 2 paper, only with book
paper, tissue paper, or box board pulp; and grade 3 paper, only with newsprint, tissue paper, or box board pulp. To meet its
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current demands, company needs 500 tons of pulp for grade 1 paper, 500 tons of pulp for grade 2 paper, and 600 tons of pulp
for grade 3 paper. Formulate an LP to minimize the cost of meeting the demands for pulp.
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Answer:
Let us tabulate the given data.
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Newsprint $8 30%
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Grade 2 X X X 500
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Grade 3 X X X 600
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A. Decision Variables: I i = tons of input (raw material) i purchased ( i = 1, box board; i = 2, tissue paper; i = 3,
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2) Total amount of each pulp type must equal to its corresponding amount of purchase
(0.15)( 0.90) D1 + ( 0.15)(0.80) A1 = P1
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(Amount of box board pulp obtained by de- inking + amount of box board obtained by asphalt
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3) Maximum amount of input that can be processed by each method of pulp production is limited.
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C. Objective function:
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Z = 5I 1 + 6I 2 + 8I 3 + 10 I 4 + 20 D1 + 20 D 2 + 20 D 3 + 20 D4 + 15 A1 + 15 A2 + 15 A3 + 15 A4
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Minimize
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9. [Problem 3 on page 110 in the 3rd edition of the textbook] The IRS has determined that during each of the next twelve months
they will need the number of super computers given in table below. To meet these requirements the IRS rents supercomputers
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for a period of one, two, or three months. It costs $100 to rent a supercomputer for one month, $180 for two months, and $250
for three mo nths. At the beginning of month 1 the IRS has no supercomputers. Determine the rental plan that meets the next
twelve months’ requirements at minimum cost. Note: you may assume that fractional rentals are okay. Thus if your solution
says rent 140.6 computers for one month you can round this up or down without having much effect on total cost.
Month 1 2 3 4 5 6 7 8 9 10 11 12
Requirement 800 1,000 600 500 1,200 400 800 600 400 500 800 600
Answer:
A. Decision Variables: X m , p = the # of supercomputers rented at the beginning of month m for p number of periods
B. Constraints:
X 1 ,1 + X 1, 2 + X 1, 3 ≥ 800
( X 1, 2 + X 1,3 ) + ( X 2 ,1 + X 2 , 2 + X 2 , 3 ) ≥ 1,000
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X 1 ,3 + ( X 2 , 2 + X 2, 3 ) + ( X 3,1 + X 3 , 2 + X 3 ,3 ) ≥ 600
X 2, 3 + ( X 3, 2 + X 3,3 ) + ( X 4,1 + X 4, 2 + X 4,3 ) ≥ 500
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X 3 ,3 + ( X 4 , 2 + X 4, 3 ) + ( X 5 ,1 + X 5 , 2 + X 5 ,3 ) ≥ 1,200
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X 4 , 3 + ( X 5 , 2 + X 5 , 3 ) + ( X 6,1 + X 6 , 2 + X 6 , 3 ) ≥ 400
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X 5 , 3 + ( X 6 , 2 + X 6 , 3 ) + ( X 7 ,1 + X 7 ,2 + X 7 , 3 ) ≥ 800
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X 7 , 3 + ( X 8 , 2 + X 8 ,3 ) + ( X 9 ,1 + X 9 ,2 + X 9 ,3 ) ≥ 400
X 8 ,3 + ( X 9 ,2 + X 9 ,3 ) + ( X 10 ,1 + X 10 , 2 + X 10 ,3 ) ≥ 500
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C. Objective function:
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Minimize
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Z = 100( X 1,1 + X 2,1 + X 3,1 + X 4,1 + X 5,1 + X 6 ,1 + X 7 ,1 + X 8,1 + X 9,1 + X 10,1 + X 11,1 + X 12 ,1 ) +
180( X 1,2 + X 2,2 + X 3,2 + X 4 ,2 + X 5,2 + X 6 ,2 + X 7, 2 + X 8, 2 + X 9 ,2 + X 10 ,2 + X 11,2 ) +
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10. [Problem 48 on page 120 in the 3rd edition of the textbook] Bank 24 is open 24 hours per day. Tellers work two consecutive 6-
hour shifts and are paid $10 per hour. The possible shifts are as follows: midnight – 6 a.m., 6 a.m. – noon, noon – 6 p.m., 6
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p.m. – midnight. During each shift, the following numbers of customers enter the bank: midnight – 6 a.m.,100; 6 a.m. – noon,
200; noon – 6 p.m., 300; 6 p.m. – midnight, 200. Each teller can serve up to 50 customers per shift. To model customer a cost
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for customer impatience, we assume that any customer who is present at the end of a shift “costs” the bank $5. We assume that
by midnight of each day, all customers must be served, so each day’s midnight – 6a.m. shift begins with zero customers in the
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bank. Formulate an LP that can be used to minimize the sum of the bank’s labor and customer impatience costs.
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Answer:
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# of customers
entering the bank
Shift ( i )
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1 midnight – 6 A.M.
2 6 A.M. – noon
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shift (i+1)
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# of customers
served in shift ( i )
Y1 Y2 Y3
1 2 3 4
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B. Constraints:
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50 X 1 + 50 X 4 + Y1 = 100
50 X 1 + 50 X 2 + Y2 = 200 + Y1
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50 X 2 + 50 X 3 + Y3 = 300 + Y2
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50 X 3 + 50 X 4 = 100 + Y3
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C. Objective function:
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11. Linear programming models are used by many Wall Street firms to select a desirable bond portfolio. The following is a
simplified version of such model. Solodrex is considering investing in four bonds: $1,000,000 is available for investment. The
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expected annual return, the worst-case annual return on each bond, and the duration of each bond are given in the following
table.
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2 8% 8% 4
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3 12% 10% 7
4 14% 9% 9
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The duration of a bond is measure of the bond’s sensitivity to interest rates. Solodex wants to maximize the expected return
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2. The average duration of the portfolio must be at most 6. For example a portfolio that invested $ 600,000 in bond 1
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and $400,000 in bond 4 would have an average duration of [(600,000) (3) + (400,000) (9)] / 1,000,000 = 5.4.
3. Because of the diversification requirements, at most 40% of the total amount invested can be invested in a single
bond.
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Answer:
X i = the amount of money invested in bond i , for (i = 1,2,3,4)
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A. Decision Variables:
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B. Constraints:
1) 0.06 X 1 + 0.08 X 2 + 0.1X 3 + 0.09 X 4 ≥ (0.08)(1,000 ,000 )
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3X1 + 4 X 2 + 7X 3 + 9 X4
2) ≤6
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1,000 ,000
3) X 1 ≤ ( 0.40)(1,000,000)
X 2 ≤ (0.40)(1,000,000)
X 3 ≤ (0.40 )(1,000 ,000 )
X 4 ≤ (0.40)(1,000,000)
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4) X i ≥ 0 for i = 1,2 ,3, 4
C. Objective function:
12. An automobile company is planning its fall advertising campaign to unveil the new models for the coming year. The
marketing department has assembled the following data.
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Viewers/spot
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four nonprime time spots. They would like to buy a minimum of 6 radio advertising units, and at least 9 advertising units in
newspaper and magazines. They also want make sure that their message reaches at least 30 million youth viewers. It is
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required to devise an advertising campaign costing no more than $12 million that reaches as many viewers as possible, subject
to these constraints. Ignoring any integer requirements of the variables, formulate this as a Linear Programming model.
Answer:
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B. Constraints:
1) TV advertising cost must be less than 3 million
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X1 ≥ 5
X2 ≥ 4
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X3 ≥ 6
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X4 ≥ 9
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C. Objective function:
Each cow will require 1.5 acres of land, 100 person-hours of work during the winter months, and other 50 person-hours during
the summer. Each cow will produce a net annual cash income of $1,000 for the family. The corresponding figures for each hen
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are: no acreage, 0.6 person-hours during the winter, 0.3 more person-hours during the summer, and an annual net cash income
of $5. The chicken house can accommodate a maximu m of 3,000 hens, and the size of the barn limits the herd to a maximum
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32 cows.
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Estimated person-hours and income per acre planted in each of the three corps are as folows
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Summer person-hours 50 75 40
Net annual cash income ($) 600 900 450
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The family wishes to determine how much acreage should be planted in each of the corps and how many cows and hens
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should be kept to maximize its net cash income. Formulate the Linear Programming model for this problem.
Answer:
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C = # of cows purchased
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H = # of hens purchased
W = Excess person-hours in the winter
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B. Constraints:
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1) Total land allocated for crop production and cows limited by the available land of 125 acres
LS + Lc + Lo + 1.5C ≤ 125
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2) Total cost of purchasing cows and hens must be less than $40,000
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1,200 C + 9 H ≤ 40 ,000
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H ≤ 3,000
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4) Labor limitations
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C. Objective function:
Z = total of crop income, income from animals, and income from neighbor farm
Maximize Z = 600 L S + 900 Lc + 450 Lo + 1,000 C + 5H + 5W + 6S
14. An investor has money-making activities A and B available at the beginning of each of the next five years (call them years 1 to
5). Each dollar invested in A at the beginning of a year returns $1.40 (a profit of $0.40) two years later (in time for immediate
reinvestment). Each dollar invested in B at the beginning of a year returns $1.70 three years later. In addition, money-making
activities C and D will each be available at one time in the future. Each dollar invested in C at the beginning of year 2 returns
$1.90 at the end of year 5. Each dollar invested in D at the beginning of year 5 returns $1.30 at the end of year 5.
The investor begins with $60,000 and wishes to know which plan maximizes the amount of money that can be accumulated by
the beginning of year 6. Formulate an LP model for this problem.
Answer:
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B. Constraints:
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1) Equalities of years
A1 + B1 + R1 = 60,000 èYear 1
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A2 + B2 + R2 = R1 èYear 2
(Amount of money invested in year 2 +amount of money not invested in year 2 = amount of money left
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from year 1)
A3 + B3 + R3 = 1.4 A1 + R 2 èYear 3
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At ≥ 0 for t = 1, 2,3,4
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Bt ≥ 0 for t = 1,2 ,3
C2 ≥ 0
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D5 ≥ 0
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Rt ≥ 0 for t = 1, 2,3,4
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C. Objective function:
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