Linear Programming:

Modeling Examples

Chapter 4

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-1

Chapter Topics

◼ A Product Mix Example

◼ A Diet Example
◼ An Investment Example
◼ A Marketing Example
◼ A Blend Example
◼ A Multiperiod Scheduling Example

4-2
A Product Mix Example

4-3
A Product Mix Example
Problem Definition (1 of 8)
Four-product T-shirt/sweatshirt manufacturing company.
■ Must complete production within 72 hours
■ Truck capacity = 1,200 standard sized boxes.
■ Standard size box holds12 T-shirts.
■ One-dozen sweatshirts box is three times size of standard box.
■ $25,000 available for a production run.
■ 500 dozen blank T-shirts and sweatshirts in stock.
■ How many dozens (boxes) of each type of shirt to produce?

4-4
A Product Mix Example (2 of 8)

4-5
A Product Mix Example
Data (3 of 8)

Processing Cost Profit

Time (hr) ($) ($)
Per dozen per dozen per dozen
Sweatshirt - F 0.10 $36 $90
Sweatshirt – B/F 0.25 48 125
T-shirt - F 0.08 25 45
T-shirt - B/F 0.21 35 65

4-6
A Product Mix Example
Model Construction (4 of 8)
Decision Variables:
x1 = Number of dozens of sweatshirts, front printing
x2 = Number of dozens of sweatshirts, back and front printing
x3 = Number of dozens of T-shirts, front printing
x4 = Number of dozens of T-shirts, back and front printing
Objective Function:
Maximize Z = $90x1 + $125x2 + $45x3 + $65x4
Model Constraints:
0.10x1 + 0.25x2+ 0.08x3 + 0.21x4  72 hr
3x1 + 3x2 + x3 + x4  1,200 boxes
$36x1 + $48x2 + $25x3 + $35x4  $25,000
x1 + x2  500 dozen sweatshirts
x3 + x4  500 dozen T-shirts
x 1 , x2 , x 3 , x4  0

4-7
A Product Mix Example
Computer Solution with Excel (5 of 8)

Exhibit 4.1

4-8
A Product Mix Example
Solution with Excel Solver Window (6 of 8)

Exhibit 4.2
4-9
A Diet Example

4-10
A Diet Example
Data and Problem Definition (1 of 5)
Breakfast Food Fat Cholesterol Iron Calcium Protein Fiber Cost
Cal (g) (mg) (mg) (mg) (g) (g) ($)
1. Bran cereal (cup) 90 0 0 6 20 3 5 0.18
2. Dry cereal (cup) 110 2 0 4 48 4 2 0.22
3. Oatmeal (cup) 100 2 0 2 12 5 3 0.10
4. Oat bran (cup) 90 2 0 3 8 6 4 0.12
5. Egg 75 5 270 1 30 7 0 0.10
6. Bacon (slice) 35 3 8 0 0 2 0 0.09
7. Orange 65 0 0 1 52 1 1 0.40
8. Milk-2% (cup) 100 4 12 0 250 9 0 0.16
9. Orange juice (cup) 120 0 0 0 3 1 0 0.50
10. Wheat toast (slice) 65 1 0 1 26 3 3 0.07

Breakfast to include at least 420 calories, 5 milligrams of iron,

400 milligrams of calcium, 20 grams of protein, 12 grams of
fiber, and must have no more than 20 grams of fat and 30
milligrams of cholesterol.
4-11
A Diet Example
Model Construction – Decision Variables (2 of 5)

x1 = Number of cups of bran cereal

x2 = Number of cups of dry cereal
x3 = Number of cups of oatmeal
x4 = Number of cups of oat bran
x5 = Number of eggs
x6 = Number of slices of bacon
x7 = Number of oranges
x8 = Number of cups of milk
x9 = Number of cups of orange juice
x10 = Number of slices of wheat toast

4-12
A Diet Example
Model Summary (3 of 5)

Minimize
Z = 0.18x1 + 0.22x2 + 0.10x3 + 0.12x4 + 0.10x5 + 0.09x6 + 0.40x7 + 0.16x8 + 0.50x9 + 0.07x10

subject to:
90x1 + 110x2 + 100x3 + 90x4 + 75x5 + 35x6 + 65x7 + 100x8 + 120x9 + 65x10  420 calories
2x2 + 2x3 + 2x4 + 5x5 + 3x6 + 4x8 + x10  20 g fat
270x5 + 8x6 + 12x8  30 mg cholesterol
6x1 + 4x2 + 2x3 + 3x4+ x5 + x7 + x10  5 mg iron
20x1 + 48x2 + 12x3 + 8x4+ 30x5 + 52x7 + 250x8 + 3x9 + 26x10  400 mg calcium
3x1 + 4x2 + 5x3 + 6x4 + 7x5 + 2x6 + x7 + 9x8+ x9 + 3x10  20 g protein
5x1 + 2x2 + 3x3 + 4x4+ x7 + 3x10  12
xi  0, for all j

4-13
A Diet Example
Computer Solution with Excel (4 of 5)

Exhibit 4.5
4-14
A Diet Example
Solution with Excel Solver Window (5 of 5)

Exhibit 4.6
4-15
An Investment Example

Formulate a linear programming model for the problem

4-16
An Investment Example
Model Summary (1 of 4)
x1 = amount ($) invested in municipal bonds
x2 = amount ($) invested in certificates of deposit
x3 = amount ($) invested in treasury bills
x4 = amount ($) invested in growth stock fund

Maximize Z = $0.085x1 + 0.05x2 + 0.065 x3+ 0.130x4

subject to:
x1  $14,000
x2 - x1 - x3- x4  0
x2 + x3  $21,000
-1.2x1 + x2 + x3 - 1.2 x4  0
x1 + x2 + x3 + x4 = $70,000
x1, x2, x3, x4  0

4-17
An Investment Example
Computer Solution with Excel (2 of 4)

Exhibit 4.7

4-18
An Investment Example
Solution with Excel Solver Window (3 of 4)

Exhibit 4.8
4-19
An Investment Example
Sensitivity Report (4 of 4)

Exhibit 4.9
4-20
A Marketing Example

4-21
A Marketing Example
Data and Problem Definition (1 of 6)
Exposure
(people/ad or Cost
commercial)
Television Commercial 20,000 $15,000

Radio Commercial 2,000 6,000

Newspaper Ad 9,000 4,000

▪ Budget limit $100,000

▪ Television time for four commercials
▪ Radio time for 10 commercials
▪ Newspaper space for 7 ads
▪ Resources for no more than 15 commercials and/or ads

4-22
A Marketing Example
Model Summary (2 of 6)
x1 = number of television commercials
x2 = number of radio commercials
x3 = number of newspaper ads

Maximize Z = 20,000x1 + 12,000x2 + 9,000x3

subject to:
15,000x1 + 6,000x 2+ 4,000x3  100,000
x1  4
x2  10
x3  7
x1 + x2 + x3  15
x1, x2, x3  0

4-23
A Marketing Example
Solution with Excel (3 of 6)
Exhibit 4.10

4-24
A Marketing Example
Solution with Excel Solver Window (4 of 6)

Exhibit 4.11
4-25
A Blend Example

Maximum Barrels
Component Cost/barrel
Available/day
1 4,500 $12
2 2,700 10
3 3,500 14

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-26

A Blend Example

Grade Component Specifications Selling Price ($/bbl)

At least 50% of 1
Super $23
Not more than 30% of 2
At least 40% of 1
Premium
Not more than 25% of 3 20
At least 60% of 1
Extra 18
At least 10% of 2

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-27

A Blend Example
Problem Definition and Data

Maximum Barrels
Component Cost/barrel
Available/day
1 4,500 $12
2 2,700 10
3 3,500 14

Grade Component Specifications Selling Price ($/bbl)

At least 50% of 1
Super $23
Not more than 30% of 2
At least 40% of 1
Premium
Not more than 25% of 3 20
At least 60% of 1
Extra 18
At least 10% of 2

4-28
A Blend Example
Problem Statement and Variables

■ Determine the optimal mix of the three components in each grade

of motor oil that will maximize profit. Company wants to produce
at least 3,000 barrels of each grade of motor oil.

■ Decision variables: The quantity of each of the three components

used in each grade of gasoline (9 decision variables);
xij = Number of barrels of component i used in motor oil grade j per
day, where i = 1, 2, 3 and j = s (super), p (premium), and e (extra).

4-29
A Blend Example
Model Summary
Maximize Z = 11x1s + 13x2s + 9x3s + 8x1p + 10x2p + 6x3p + 6x1e
+ 8x2e + 4x3e
subject to:
x1s + x1p + x1e  4,500 bbl.
x2s + x2p + x2e  2,700 bbl.
x3s + x3p + x3e  3,500 bbl.
0.50x1s - 0.50x2s - 0.50x3s  0
0.70x2s - 0.30x1s - 0.30x3s  0
0.60x1p - 0.40x2p - 0.40x3p  0
0.75x3p - 0.25x1p - 0.25x2p  0
0.40x1e- 0.60x2e- - 0.60x3e  0
0.90x2e - 0.10x1e - 0.10x3e  0
x1s + x2s + x3s  3,000 bbl.
x1p+ x2p + x3p  3,000 bbl. all xij  0
x1e+ x2e + x3e  3,000 bbl.
4-30
A Blend Example
Solution with Excel

Exhibit 4.17
4-31
A Blend Example
Solution with Solver Window

Exhibit 4.18
4-32
A Blend Example
Sensitivity Report

Exhibit 4.19
4-33
A Multi-Period Scheduling Example
Problem Definition and Data (1 of 5)

4-34
A Multi-Period Scheduling Example
Decision Variables (2 of 5)

Decision Variables:
rj = regular production of computers in week j
(j = 1, 2, …, 6)
oj = overtime production of computers in week j
(j = 1, 2, …, 6)
ij = extra computers carried over as inventory in week j
(j = 1, 2, …, 5)

4-35
A Multi-Period Scheduling Example
Model Summary (3 of 5)
Model summary:
Minimize Z = $190 (r1 + r2 + r3 + r4 + r5 + r6) + $260 (o1 + o2
+ o3 + o4 + o5 + o6) + 10 (i1 + i2 + i3 + i4 + i5)
subject to:
r1  160 r1 + o1 - i1 = 105 week 1
r2  160 r2 + o2 + i1 - i2 = 170 week 2
r3  160 r3 + o3 + i2 - i3 = 230 week 3
r4  160 r4 + o4 + i3 - i4 = 180 week 4
r5  160 r5 + o5 + i4 - i5 = 150 week 5
r6  160 r6 + o6 + i5 = 250 week 6
o1  50 rj, oj, ij  0
o2  50
o3  50
o4  50
o5  50
o6  50
4-36
A Multi-Period Scheduling Example
Solution with Excel (4 of 5)

Exhibit 4.20
4-37
A Multi-Period Scheduling Example
Solution with Solver Window (5 of 5)

Exhibit 4.21
4-38