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16 views11 pages2030-Notes for Linear Programming (2024)
The document discusses the formulation of various linear programming problems, including examples such as production optimization, diet formulation, transportation, media selection, investment portfolio, assignment, facility layout, knapsack, and project duration. It also provides a guide on how to use Excel Solver to solve these linear programs, detailing steps for inputting data and constraints. Each example includes specific formulations and constraints to maximize profits or minimize costs.
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0% found this document useful (0 votes)
16 views11 pages2030-Notes for Linear Programming (2024)
The document discusses the formulation of various linear programming problems, including examples such as production optimization, diet formulation, transportation, media selection, investment portfolio, assignment, facility layout, knapsack, and project duration. It also provides a guide on how to use Excel Solver to solve these linear programs, detailing steps for inputting data and constraints. Each example includes specific formulations and constraints to maximize profits or minimize costs.
Uploaded by
Wai Yan LoCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
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Linear Programming - Formulation and Excel Solution
In this note, we first discuss the formulations of some common problems in scheduling /management,
and then show how to use Excel to solve linear programs. Note that this set of problems does not.
claim to be comprehensive,
1. Formulation
Example 1 (Par, Inc.) Par, Inc. is a small manufacturer of golf equipment and supplies whose
management has decided to move into the market for medium- and high-priced golf bags. Par’s
distributor is enthusiastic about the new product line and has agreed to buy all the golf bags Par
produces over the next three months.
After investigation, management determined that each golf bag produced will require the follow
ing operations: cutting and dyeing the material, sewing, finishing (inserting umbrella holder, club
separators, etc.), and inspection and packaging.
The production times required per golf bag, the total numbers of hours available in each depart-
ment, and the profits per bag, are summarized in Table 1
rin Tine ion) Toa aa)
c — Di
‘Standard Bag | Deluxe Bag —
‘Cating and Dyeing “T70 T 30
‘ ‘Sewing ¥E, 36 600
ee Finishing T 2 708
Tispaition and Packaging [1/10 Tt 135
Profit Per Bag oa 3
‘Table 1 Par, Ine
Par, Ine wants to determine the number of standard bags and the number of deluxe bags to produce
in order to maximize the total profit.
Formulation:
POX [OM + IXpy
St
ankigers
defines Caof td the of sandal (voy, dolere) bag 2 —
Example 2 (The Diet Problem) Bluegrass Farms, Inc. is experimenting with a special diet. for
its race horses. The feed components available for the diet are a standard horse feed product, a
vitamin enriched oat product, and a new vitamin and mineral feed additive, Table 2 shows the
nutrition values and costs for the three components,
— re cree J)
Standard | Enriched Oats | Additive]
cr
Tarediet A 0
Unit of Ingredient ib, [Ingredient B-[ 10 Ts 30,
Tngrodient C| a a6. 207
Cami. 3025 Bo] $3.00]
‘Table 2. Bluegrass Farm, Inc
Suppose that the horse trainer sets the minimum daily diet requirement at 3 units of ingredient A,
6 units of ingredient B, and 4 units of ingredient C. Also suppose that for weight control, the
trainer does not want the total daily feed to exceed 6 pounds. What is the optimal daily mix of
the three components?
Formulation:
ee end ook,
A addihine
pe OU Xs tObLE F 3.00%,
Ge ORK, + 0X sg Zz
OX thse 430% 2
Cee eee a
Us + Vet mM €
Us, Xe, Xp FO 3
Example 3 (The Transportation Problem) Foster Generators, Inc. is a firm that has produc-
tion operations in the relatively small towns of Wellsboro, Pennsylvania, Bedford, Indiana, and
Jackson, Tennessee. Suppose that for the next three-month planning period, the plant production
capacities for one particular type of generators are as follows:
Bedford 7000
Jackson 3000
Table 3 Capacity
Suppose further that the firm
istributes the product through three regional distribution centers
located in New York, Chicago, and Atlanta, and that the three-month forecasted demands are as
follows:
Toa)
‘The selling price per unit of inventory is $10 (resp., $9, $8) at New York (resp., Chicago, Atlanta).
The cost for each unit (in $) shipped on each route is as follows
ep
New York | Chieago [Atlanta
Walbors|__28 | 6.00 [5.75
From] Bedford [3.50] 325 [250
eckson [675 —[~450_| 275
Table 5 —Tronsportation Cost/Unit
Determine how much to ship from each plant to each warehouse, to maximize the total profit at
the three distribution centers.
Formulation: Deb tay 4 .
@.: fom Woe,
O
frm J wA.
Gent: Profet. = 10(%w + Kent yy) +41 )
ra Mire a Capac Ua] ant Awe + Xun $8200
Xunt ut %py $020 bupse ug the shffny it from Plt + Ded
Genter @,
fer 22,8), B= NCA
mor 10 %wn + Fant an) F 9 (Net Hee + Ase +8 ast eat Ha)
_ es Nao + S,S%en THIS Yay PO Xerc $I Vac ES Kye +S Yon
+25%0q t2ISHA )
sth Kuoy +%we + Twn € SPO
an tee +%8a >> Decly Mewespifer
Ay oo Sunday Mevespaper
dps Redio -
gran bs %or $42 Fey + bo on + bo Xsu F 2O%—
Gb. [$00 Kop F320 Kez F Goo%m F fore Key tl oo dy S30 vos
7
%or + Xer 2/0
100? oy 2,00 Key Hd, OX pn F2, OKs F 22oXe S $B cee |
|
|b 9% Xor + 3900 Xey £18,000
MoT £ ae /s
Xap < B ie
Yom S Se 26
Kon < & 4
Xe S$ BB 30
Yor, Let, Kon, Xv, Xp SO and ate Ant ex 6
Example 5. (Portfolio Section) Welte Mutual Funds, Ine. has just obtained $100,000 cash and
is now looking for investment opportunities. The investments and rates of return are shown as
follows:
(investment TProjesied Rate of Rata]
“Atlantic OF Tam
Pacific OW 10.5%
Midwest Steal Ca
Huber Steel Ta
‘Government Bonds | 4%
Management of Welte has imposed the following investment guidelines:
(i) Neither oil nor steel industry should receive more than 50% of the total new investment;
(ii) Government bonds should be at least 25% of the steel industry investments; and
(iii) ‘The investment in Pacific Oi, the high return but high risk investment, cannot be more than
60% of the total oil industry investment,
‘What portfolio recommendations ~ investments and amounts ~ should be made for the available
$100,000?
Formulation:
Defina Kno tha ammunt of “imvutmonk on ftlantic Ou,
Pusan Pacefie Ou,
Bass Mdvusk Hoel,
us Huber ol,
Kos Comerumint Borde,
yrag D3 Apo +03 fe bo TOM Nuc FASE: Lag FHS Kaw
Se Sao t Xpo + Kas Hut Kup, $/°0 00
Lao Mpe € bv7,x [00, 000
ms +%ns €S% x /09, 000
Law —>S9o(hast%s) 20
yo — 6h (XnotXpo) Go + Check the box “Solver add-in” + Ok.
‘* Step 2: Input the linear program.
© For the decision variables, reserve their cells, and input arbitrary initial values for them.
© For the objective function, Reserve cells for the coefficients of variables and also the value
of this linear program. This value should be the “formula” (function) of decision variables.
© For each constraint, reserve cells for all the coefficients, the (inequality sign (ie., “>"*—"
or *
