4.
7 Optimization Problems
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Optimization Problems
In solving such practical problems the greatest
challenge is often to convert the word problem
into a mathematical optimization problem by
setting up the function that is to be maximized
or minimized.
Let’s recall the problem-solving principles.
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Optimization Problems
Steps In Solving Optimization Problems
1. Understand the Problem The first step is to
read the problem carefully until it is clearly
understood. Ask yourself: What is the unknown?
What are the given quantities? What are the
given conditions?
2. Draw a Diagram In most problems it is useful
to draw a diagram and identify the given and
required quantities on the diagram.
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Optimization Problems
3. Introduce Notation Assign a symbol to the
quantity that is to be maximized or minimized
(let’s call it Q for now).
Also select symbols (a, b, c, . . . , x, y) for other
unknown quantities and label the diagram with
these symbols. It may help to use initials as
suggestive symbols—for example, A for area, h
for height, t for time.
4. Express Q in terms of some of the other
symbols from Step 3.
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Optimization Problems
5. If Q has been expressed as a function of more
than one variable in Step 4, use the given
information to find relationships (in the form of
equations) among these variables. Then use
these equations to eliminate all but one of the
variables in the expression for Q. Thus Q will be
expressed as a function of one variable x, say,
Q = f(x). Write the domain of this function in the
given context.
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Optimization Problems
6. Use the previous methods to find the absolute
maximum or minimum value of f. In particular, if
the domain of f is a closed interval, then the
Closed Interval Method can be used.
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Example 1
1. A farmer has 2400 ft of fencing and
wants to fence off a rectangular field that
borders a straight river. He needs no fence
along the river. What are the dimensions of
the field that has the largest area?
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Example 1 – Solution
In order to get a feeling for what is happening in
this problem, let’s experiment with some special
cases. Figure 1 (not to scale) shows three
possible ways of laying out the 2400 ft of fencing.
Figure 1 8
Example 1 – Solution cont’d
We see that when we try shallow, wide fields or
deep, narrow fields, we get relatively small areas.
It seems plausible that there is some intermediate
configuration that produces the largest area.
Figure 2 illustrates the general case. We wish to
maximize the area A of the rectangle.
Figure 2
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Example 1 – Solution cont’d
Let x and y be the depth and width of the
rectangle (in feet). Then we express A in terms of
x and y:
A = xy
We want to express A as a function of just one
variable, so we eliminate y by expressing it in
terms of x. To do this we use the given
information that the total length of the fencing is
2400 ft.
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Example 1 – Solution cont’d
Thus
2x + y = 2400
From this equation we have y = 2400 – 2x,
which gives
A = xy = x(2400 – 2x) = 2400x – 2x2
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Example 1 – Solution cont’d
Note that the largest x can be is 1200 (this uses
all the fence for the depth and none for the width)
and x can’t be negative, so the function that we
wish to maximize is
A (x) = 2400x – 2x2 0 x 1200
The derivative is A (x) = 2400 – 4x, so to find the
critical numbers we solve the equation
2400 – 4x = 0 which gives x = 600.
The maximum value of A must occur either at this
critical number or at an endpoint of the interval. 12
Example 1 – Solution cont’d
Since A(0) = 0, A(600) = 720,000, and A(1200) =
0, the Closed Interval Method gives the maximum
value as A(600) = 720,000.
[Alternatively, we could have observed that A
(x) = –4 < 0 for all x, so A is always concave
downward and the local maximum at x = 600
must be an absolute maximum.]
The corresponding y-value is y = 2400 – 2(600) =
1200; so the rectangular field should be 600 ft
deep and 1200 ft wide.
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inExample 1 – Solution cont’d
2. A closed box with a square base is to
have a volume of 2000 in3. The material for
the top and bottom of the box is to cost Php
3 per square inch and the material for the
sides is to cost Php1.50 per square inch.
Find the dimensions of the box so that the
total cost of the material is least.
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Example 1 – Solution cont’d
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Example 1 – Solution cont’d
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Example 1 – Solution cont’d
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Optimization Problems
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Applications to Business and
Economics
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Applications to Business and Economics
We know that if C(x), the cost function, is the cost of
producing x units of a certain product, then the marginal
cost is the rate of change of C with respect to x.
In other words, the marginal cost function is the derivative,
C(x), of the cost function.
Now let’s consider marketing. Let p(x) be the price per unit
that the company can charge if it sells x units.
Then p is called the demand function (or price function)
and we would expect it to be a decreasing function of x.
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Applications to Business and Economics
If x units are sold and the price per unit is p(x), then the
total revenue is
R(x) = quantity price = xp(x)
and R is called the revenue function.
The derivative R of the revenue function is called the
marginal revenue function and is the rate of change of
revenue with respect to the number of units sold.
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Applications to Business and Economics
If x units are sold, then the total profit is
P(x) = R(x) – C(x)
and P is called the profit function.
The marginal profit function is P, the derivative of the
profit function.
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Example 6
A store has been selling 200 flat-screen TVs a week at
$350 each. A market survey indicates that for each $10
rebate offered to buyers, the number of TVs sold will
increase by 20 a week. Find the demand function and the
revenue function. How large a rebate should the store offer
to maximize its revenue?
Solution:
If x is the number of TVs sold per week, then the weekly
increase in sales is x – 200.
For each increase of 20 units sold, the price is decreased
by $10.
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Example 6 – Solution cont’d
So for each additional unit sold, the decrease in price will
be and the demand function is
p(x) = 350 – (x – 200) = 450 – x
The revenue function is
R(x) = xp(x) = 450x – x2
Since R(x) = 450 – x, we see that R(x) = 0 when x = 450.
This value of x gives an absolute maximum by the First
Derivative Test (or simply by observing that the graph of R
is a parabola that opens downward).
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Example 6 – Solution cont’d
The corresponding price is
p(450) = 450 – (450) = 225
and the rebate is 350 – 225 = 125.
Therefore, to maximize revenue, the store should offer a
rebate of $125.
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