Chapter 2

Maximization Problems:
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 Inc.’s distributor
is enthusiastic about the new product line and has agreed to buy all the golf bags Par, Inc.,
produces over the next three months. After a thorough investigation of the steps involved in
manufacturing a golf bag, management determined that each golf bag produced will require
the following operations:
1. Cutting and dyeing the material
2. Sewing
3. Finishing (inserting umbrella holder, club separators, etc.)
4. Inspection and packaging
The director of manufacturing analyzed each of the operations and concluded that if the
7
company produces a medium-priced standard model, each bag will require hour in the
10
1
cutting and dyeing department, hour in the sewing department, 1 hour in the finishing
2
1
department, and hour in the inspection and packaging department. The more expensive
10
5 2
deluxe model will require 1 hour for cutting and dyeing, hour for sewing, hour for
6 3
1
finishing, and hour for inspection and packaging. This production information is
4

summarized in the following table.

Par Inc.’s production is constrained by a limited number of hours available in each

department. After studying departmental workload projections, the director of manufacturing
estimates that 630 hours for cutting and dyeing, 600 hours for sewing, 708 hours for
finishing, and 135 hours for inspection and packaging will be available for the production of
golf bags during the next three months.
The accounting department analyzed the production data, assigned all relevant variable costs,
and arrived at prices for both bags that will result in a profit contribution1 of $10 for every
standard bag and $9 for every deluxe bag produced. Let us now develop a mathematical
model of the Par, Inc., problem that can be used to determine the number of standard bags
and the number of deluxe bags to produce in order to maximize total profit contribution.
Solution:
Linear Programming Model:
Here,
S = Standard Bags
D = Deluxe Bags
Max = 10S + 9D
Subjected to,
7
S + 1D ≤ 630 ---------------------(I) [Cutting and Dyeing]
10
1 5
S+ D ≤ 600 --------------------(II) [Sewing]
2 6
2
1S + 3 D ≤ 708 --------------------(III) [Finishing]
1 1
S + 4 D ≤ 135 -------------------(IV) [Inspection and Packaging]
10

Let we consider inequalities as an equal for equation (I)

We get,
7
S + 1D = 630 ---------------------(V)
10

By putting S = 0 in equation (V) we get,

7
0 + 1D = 630
10

D = 630
So, S = 0 and D = 630 is satisfying the equation (V)
Again by putting D = 0 in equation (V) we get,
7
S + 1 * 0 = 630
10
7
S = 630
10

7S = 6300
S = 6300/7
S = 900
So, S = 900 and D = 0 is satisfying the equation (V)
Let we consider inequalities as an equal for equation (II)
We get,
1 5
S+ D = 600 --------------------(VI)
2 6

By putting S = 0 in equation (VI) we get,

1 5
*0+ D = 600
2 6
5
D = 600
6

5D = 3600
D = 3600/5
D = 720
So, S = 0 and D = 720 is satisfying the equation (VI)
Again by putting D = 0 in equation (VI) we get,
1 5
S+ * 0 = 600
2 6
1
S = 600
2

S = 1200
So, S = 1200 and D = 0 is satisfying the equation (VI)
Let we consider inequalities as an equal for equation (III)
We get,
2
1S + 3 D = 708 --------------------(VII)

By putting S = 0 in equation (VII) we get,

2
1 * 0 + 3 D = 708
2
D = 708
3

2D = 2124
D = 2124/2
D = 1062
So, S = 0 and D = 1062 is satisfying the equation (VII)
Again by putting D = 0 in equation (VII) we get,
2
1S + 3 * 0 = 708

S = 708
So, S = 708 and D = 0 is satisfying the equation (VII)
Let we consider inequalities as an equal for equation (IV)
We get,
1 1
S + 4 D = 135 -------------------(VIII)
10

By putting S = 0 in equation (VIII) we get,

1 1
* 0 + 4 D = 135
10
1
D = 135
4

D = 540
So, S = 0 and D = 540 is satisfying the equation (VIII)
Again by putting D = 0 in equation (VIII) we get,
1 1
S + 4 * 0 = 135
10
1
S = 135
10

S = 1350
So, S = 1350 and D = 0 is satisfying the equation (VIII)
So, we get the points for each equation
(V) S = 0, D = 630 (VI) S = 0, D = 720
S = 900, D = 0 S = 1200, D=0

(VII) S = 0, D = 1062 (VIII) S = 0, D = 540

S = 708, D = 0 S = 1350, D=0
Graphical Solution Procedure:
Total Profit Contribution and Production Quantities:
Here, equation (V) and equation (VIII) has crossed the line for Optimal Point. And also (V)
and (VII) have crossed the line for Optimal Point. To find out the actual Optimal Point we
have to calculate all these equations.
7
S + 1D = 630 ---------------------(V)
10
1 1
S + 4 D = 135 -------------------(VIII)
10

From equation (V) we get,

7
S + 1D = 630
10
7
S = 630 – D
10
10(630−𝐷)
S= 7
10∗630 10𝐷
S= 7
– 7
10𝐷
S = 900 – -------------------(IX)
7

Putting the value of S in equation (VIII) we get,

1 1
S + 4 D = 135
10
1 10𝐷 1
(900 – ) + 4 D = 135
10 7
900 10𝐷 1
– + 4 D = 135
10 70
10𝐷 𝐷
90 – + = 135
70 4
𝐷 10𝐷
- = 135 – 90
4 70
35𝐷−20𝐷
= 45
140

15D = 6300
D = 6300/15
D = 420
Putting the value of D in equation (IX) we get,
10𝐷
S = 900 – 7
10∗420
S = 900 – 7

S = 900 – 600
S = 300
So Max = 10S + 9D
= (10 * 300) + (9 * 420)
= 6780
Again,
7
S + 1D = 630 ---------------------(V)
10
2
1S + 3 D = 708 --------------------(VII)

Here, equation (V) is common in both Optimal point, so, by putting the value of equation
(IX) in equation (VII) we get,
2
1S + 3 D = 708
10𝐷 2
900 – + 3 D = 708
7
10𝐷 2𝐷
900 – 708 = -
7 3
30𝐷−14𝐷
192 = 21
16𝐷
192 = 21
16𝐷
= 192
21
192∗21
D= 16

D = 252
Putting the value of D in equation (IX) we get,
10𝐷
S = 900 – 7
10∗252
S = 900 – 7

S = 900 – 360
S = 540

So Max = 10S + 9D
= (10 * 540) + (9 * 252)
= 7668
Here, the exact location of the optimal solution point is S = 540 and D = 252. Hence, optimal
production quantities for Per Inc. are 540 for Standard bags and 252 for Deluxe bags, with a
resulting profit contribution of $7668 and which is maximum.
Total Hours of Production Time Scheduled in each Department:
In addition to the optimal solution and its associated profit contribution, Par Inc.’s
management will probably want information about the production time requirements for each
production operation. We can determine this information by substituting the optimal solution
values (S = 540, D = 252) into the constraints of the linear program.

Hours Required for

Constraint
S = 540 and D = 252

Cutting and dying 7

(540) + 1(252) = 630
10

Sewing 1 5
(540) + (252) = 480
2 6

Finishing 2
1(540) + 3 (252) = 708

Inspection and packaging 1 1

(540) + 4 (252) = 117
10

Slack Time Variable:

Hours Required for Hours Unused

Constraint
S = 540 and D = 252 Available Hours

Cutting and dying 7 630 0

(540) + 1(252) = 630
10

Sewing 1 5 600 120

(540) + (252) = 480
2 6

Finishing 2 708 0
1(540) + 3 (252) = 708

Inspection and 1 1 135 18

(540) + 4 (252) = 117
10
packaging