Introduction to Management Science

9th Edition
by Bernard W. Taylor III
Chapter 4
Linear Programming: Modeling
Examples
2007 Pearson Education
Chapter 4 - Linear Programming: Modeling Examples

Chapter Topics

A Product Mix Example

A Diet Example

An Investment Example

A Marketing Example

A Transportation Example

A Blend Example

A Multi-Period Scheduling Example

A Data Envelopment Analysis Example

Chapter 4 - Linear Programming:

Modeling Examples

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?
Chapter 4 - Linear Programming:
Modeling Examples

A Product Mix Example (2 of 8)

Chapter 4 - Linear Programming:

Modeling Examples

A Product Mix Example

Data (3 of 8)

Chapter 4 - Linear Programming:

Modeling Examples

A Product Mix Example

Model Construction (4 of 8)
Decision Variables:
x1 = sweatshirts, front printing
x2 = sweatshirts, back and front printing
x3 = T-shirts, front printing
x4 = 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
Chapter 4 - Linear Programming:
6
Modeling Examples
x + x 500 dozen T-shirts

A Product Mix Example

Computer Solution with Excel (5 of 8)

Chapter 4 - Linear Programming:

Exhibit 4.1
Modeling Examples

A Product Mix Example

Solution with Excel Solver Window (6 of 8)

Exhibit 4.2
Chapter 4 - Linear Programming:
Modeling Examples

A Product Mix Example

Solution with QM for Windows (7 of 8)

Exhibit 4.3
Chapter 4 - Linear Programming:
Modeling Examples

A Product Mix Example

Solution with QM for Windows (8 of 8)

Exhibit 4.4
Chapter 4 - Linear Programming:
Modeling Examples

10

A Diet Example
Data and Problem Definition (1 of 5)

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 Chapter
cholesterol.
4 - Linear Programming:
Modeling Examples

11

A Diet Example
Model Construction Decision Variables (2 of 5)
x1 = cups of bran cereal
x2 = cups of dry cereal
x3 = cups of oatmeal
x4 = cups of oat bran
x5 = eggs
x6 = slices of bacon
x7 = oranges
x8 = cups of milk
x9 = cups of orange juice
Chapter 4 - Linear Programming:
Modeling Examples

x10 = slices of wheat toast

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
2x2 + 2x3 + 2x4 + 5x5 + 3x6 + 4x8 + x10 20
270x5 + 8x6 + 12x8 30
6x1 + 4x2 + 2x3 + 3x4+ x5 + x7 + x10 5
20x1 + 48x2 + 12x3 + 8x4+ 30x5 + 52x7 + 250x8
+ 3x9 + 26x10 400
3x1 + 4x2 + 5x3 + 6x4 + 7x5 + 2x6 + x7+ 9x8+ x9 + 3x10 20
5x1 + 2x2 + 3x3 + Chapter
4x4+ x4 7- Linear
+ 3xProgramming:
10 12
Modeling Examples

13

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

Chapter 4 - Linear
ExhibitProgramming:
4.5
Modeling Examples

14

A Diet Example
Solution with Excel Solver Window (5 of 5)

Exhibit 4.6
Chapter 4 - Linear Programming:
Modeling Examples

15

An Investment Example
Model Summary (1 of 4)
Maximize Z = $0.085x1 + 0.05x2 + 0.065 x3+ 0.130x4
subject to:
x1 14,000
x2 - x1 - x3- x4 0
x2 + x3 21,000
-1.2x1 + x2 + x3 - 1.2 x4 0
x1 + x2 + x3 + x4 = 70,000
x1, x2, x3, x4 0
where
x1 = amount invested in municipal bonds ($)
x2 = amount invested in certificates of deposit ($)
x3 = amount invested in treasury bills ($)
x4 = amount invested in growth stock fund($)
Chapter 4 - Linear Programming:
Modeling Examples

16

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

Chapter 4 - Linear Programming:

Exhibit 4.7
Modeling Examples

17

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

Exhibit 4.8
Chapter 4 - Linear Programming:
Modeling Examples

18

An Investment Example
Sensitivity Report (4 of 4)

Chapter 4 -Exhibit
Linear Programming:
4.9
Modeling Examples

19

A Marketing Example
Data and Problem Definition (1 of 6)

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
Chapter 4 - Linear Programming:
Modeling Examples

20

A Marketing Example
Model Summary (2 of 6)
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
where
x1 = Exposure from Television Commercial (people)
x2 = Exposure from Radio Commercial (people)
x3 = Exposure from Newspaper Ad (people)
Chapter 4 - Linear Programming:
Modeling Examples

21

A Marketing Example
Solution with Excel (3 of 6)

Chapter 4 -Exhibit
Linear Programming:
4.10
Modeling Examples

22

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

Exhibit 4.11
Chapter 4 - Linear Programming:
Modeling Examples

23

A Marketing Example
Integer Solution with Excel (5 of 6)

Exhibit 4.12

Chapter 4 - Linear Programming:

Exhibit
4.13
Modeling
Examples

24

A Marketing Example
Integer Solution with Excel (6 of 6)

Chapter 4 Exhibit
- Linear 4.14
Programming:
Modeling Examples

25

A Transportation Example
Problem Definition and Data (1 of 3)
Warehouse supply of
Retail store demand
Television Sets:
for television sets:
1 - Cincinnati

300

A - New York

150

2 - Atlanta

200

B - Dallas

250

3 - Pittsburgh

200

C - Detroit

200

Total

700

Total

600

Chapter 4 - Linear Programming:

Modeling Examples

26

A Transportation Example
Model Summary (2 of 4)
Minimize Z = $16x1A + 18x1B + 11x1C + 14x2A + 12x2B + 13x2C +
13x3A + 15x3B + 17x3C
subject to:
x1A + x1B+ x1C 300
x2A+ x2B + x2C 200
x3A+ x3B + x3C 200
x1A + x2A + x3A = 150
x1B + x2B + x3B = 250
x1C + x2C + x3C = 200
All xij 0
Chapter 4 - Linear Programming:
Modeling Examples

27

A Transportation Example
Solution with Excel (3 of 4)

Chapter 4 Exhibit
- Linear 4.15
Programming:
Modeling Examples

28

A Transportation Example
Solution with Solver Window (4 of 4)

Exhibit 4.16
Chapter 4 - Linear Programming:
Modeling Examples

29

A Blend Example
Problem Definition and Data (1 of 6)

Chapter 4 - Linear Programming:

Modeling Examples

30

A Blend Example
Problem Statement and Variables (2 of 6)

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 = 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).

Chapter 4 - Linear Programming:

Modeling Examples

31

A Blend Example
Model Summary (3 of 6)
Maximize Z = 11x1s + 13x2s + 9x3s + 8x1p + 10x2p + 6x3p + 6x1e
+ 8x2e + 4x3e
subject to:
x1s + x1p + x1e 4,500
x2s + x2p + x2e 2,700
x3s + x3p + x3e 3,500
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
x1p+ x2p + x3p 3,000
Chapter 4 - Linear Programming:
32
Modeling Examples

A Blend Example
Solution with Excel (4 of 6)

Chapter 4 Exhibit
- Linear 4.17
Programming:
Modeling Examples

33

A Blend Example
Solution with Solver Window (5 of 6)

Chapter 4Exhibit
- Linear4.18
Programming:
Modeling Examples

34

A Blend Example
Sensitivity Report (6 of 6)

Chapter 4 - Linear Programming:

Exhibit 4.19
Modeling
Examples

35

A Multi-Period Scheduling Example

Problem Definition and Data (1 of 5)
Production Capacity: 160 computers per week
50 more computers with overtime
Assembly Costs: $190 per computer regular time; $260 per
computer overtime
Inventory Holding Cost: $10/computer per week
Order schedule:

Week
1
2
3
4
5
6

Computer Orders
105
170
230
180
150
250

Chapter 4 - Linear Programming:

Modeling Examples

36

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)

Chapter 4 - Linear Programming:

Modeling Examples

37

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:
rj 160 (j = 1, 2, 3, 4, 5, 6)
oj 150 (j = 1, 2, 3, 4, 5, 6)
r1 + o1 - i1 = 105
r2 + o2 + i1 - i2 = 170
r3 + o3 + i2 - i3 = 230
r4 + o4 + i3 - i4 = 180
r5 + o5 + i4 - i5 = 150
r6 + o6 + i5 = 250
Chapter 4 - Linear Programming:
rj, oj, ij 0
Modeling Examples

38

A Multi-Period Scheduling Example

Solution with Excel (4 of 5)

Chapter 4 Exhibit
- Linear 4.20
Programming:
Modeling Examples

39

A Multi-Period Scheduling Example

Solution with Solver Window (5 of 5)

Exhibit
4.21Programming:
Chapter
4 - Linear
Modeling Examples

40

A Data Envelopment Analysis (DEA) Example

Problem Definition (1 of 5)
DEA compares a number of service units of the same type
based on their inputs (resources) and outputs. The result
indicates if a particular unit is less productive, or efficient,
than other units.
Elementary school comparison:
Input 1 = teacher to student ratio
Output 1 = average reading SOL score
Input 2 = supplementary $/student
Output 2 = average math SOL score
Input 3 = parent education level
Output 3 = average history SOL score
Chapter 4 - Linear Programming:
Modeling Examples

41

A Data Envelopment Analysis (DEA) Example

Problem Data Summary (2 of 5)

Chapter 4 - Linear Programming:

Modeling Examples

42

A Data Envelopment Analysis (DEA) Example

Decision Variables and Model Summary (3 of 5)
Decision Variables:
xi = a price per unit of each output where i = 1, 2, 3
yi = a price per unit of each input where i = 1, 2, 3
Model Summary:
Maximize Z = 81x1 + 73x2 + 69x3
subject to:
.06 y1 + 460y2 + 13.1y3 = 1
86x1 + 75x2 + 71x3 .06y1 + 260y2 + 11.3y3
82x1 + 72x2 + 67x3 .05y1 + 320y2 + 10.5y3
81x1 + 79x2 + 80x3 .08y1 + 340y2 + 12.0y3
81x1 + 73x2 + 69x3 .06y1 + 460y2 + 13.1y3
xi, yi 0 Chapter 4 - Linear Programming:
Modeling Examples

43

A Data Envelopment Analysis (DEA) Example

Solution with Excel (4 of 5)

ChapterExhibit
4 - Linear
Programming:
4.22
Modeling Examples

44

A Data Envelopment Analysis (DEA) Example

Solution with Solver Window (5 of 5)

4.23
Chapter Exhibit
4 - Linear
Programming:
Modeling Examples

45

Example Problem Solution

Problem Statement and Data (1 of 5)

Canned cat food, Meow Chow; dog food, Bow Chow.

Ingredients/week: 600 lb horse meat; 800 lb fish; 1000 lb
cereal.
Recipe requirement: Meow Chow at least half fish; Bow
Chow at least half horse meat.
2,250 sixteen-ounce cans available each week.
Profit /can: Meow Chow $0.80; Bow Chow $0.96.
How many cans of Bow Chow and Meow Chow should be
produced each week in order to maximize profit?

Chapter 4 - Linear Programming:

Modeling Examples

46

Example Problem Solution

Model Formulation (2 of 5)
Step 1: Define the Decision Variables
xij = ounces of ingredient i in pet food j per week, where i = h
(horse meat), f (fish) and c (cereal), and j = m (Meow chow)
and b (Bow Chow).
Step 2: Formulate the Objective Function
Maximize Z = $0.05(xhm + xfm + xcm) + 0.06(xhb + xfb + xcb)

Chapter 4 - Linear Programming:

Modeling Examples

47

Example Problem Solution

Model Formulation (3 of 5)
Step 3: Formulate the Model Constraints
Amount of each ingredient available each week:
xhm + xhb 9,600 ounces of horse meat
xfm + xfb 12,800 ounces of fish
xcm + xcb 16,000 ounces of cereal additive
Recipe requirements:
Meow Chow
xfm/(xhm + xfm + xcm) 1/2 or - xhm + xfm- xcm 0
Bow Chow
xhb/(xhb + xfb + xcb) 1/2 or xhb- xfb - xcb 0
Can Content Constraint
xhm + xfm + xcm + xhb + xfb+ xcb 36,000 ounces
Chapter 4 - Linear Programming:
Modeling Examples

48

Example Problem Solution

Model Summary (4 of 5)
Step 4: Model Summary
Maximize Z = $0.05xhm + $0.05xfm + $0.05xcm + $0.06xhb
+ 0.06xfb + 0.06xcb
subject to:
xhm + xhb 9,600 ounces of horse meat
xfm + xfb 12,800 ounces of fish
xcm + xcb 16,000 ounces of cereal additive
- xhm + xfm- xcm 0
xhb- xfb - xcb 0
xhm + xfm + xcm + xhb + xfb+ xcb 36,000 ounces
xij 0

Chapter 4 - Linear Programming:

Modeling Examples

49

Example Problem Solution

Solution with QM for Windows (5 of 5)

Chapter 4
- Linear
Programming:
Exhibit
4.24
Modeling Examples

50