Operations Research

Module 01: Model Formulation

Formulation of LP Model – Production Problem

Amjad Ali
FORMULATION OF LP MODEL
Mathematical Formulation of LP Model:

STEP 1:
Study the given situation, find the key decision to be maid.
Hence, Identify the decision variables of the problem.

STEP 2:
Formulate the objective function to be Optimized.

STEP 3:
Formulate the constraints of the problem.

STEP 4:
Add non-negativity restrictions.
EXAMPLE 3: PRODUCTION MODEL
A company has two machines X, and Y. Machine X is designed to manufacture 5-ounce bottles, and Machine Y
to manufacture 10-ounce bottles. However, each machine can be used to manufacture both types of bottles with
some loss of efficiency. The following data are available:

Machine 5-ounce bottles 10-ounce bottles

X 80 bottles/min 30 bottles/min
Y 40 bottles/min 50 bottles/min

 The machines can be run 8 hours per day, for 5 days a week.
 Profit on 5-ounce bottle is 20 paise, and on 10-ounce bottle is , 30 paise.
 Weekly production of the drink cannot exceed 500,000 ounces; and,
 The market can absorb 30,000 (5-ounce) bottles and 8,000 (10-ounce) bottles per week.

The company wishes to maximize its profit, subject to all the production and marketing constraints.
EXAMPLE 3: PRODUCTION MODEL

STEP 1: Identify the Decision Variables

To determine the number of 5-ounce bottles and 10-ounce bottles to be produced per week.

x1 = number of 5-ounce bottles to be produced per week

x2 = number of 5-ounce bottles to be produced per week
EXAMPLE 3: PRODUCTION MODEL
STEP 2: Objective Function

Profit on 1 5-ounce bottle ($) = .20

Profit on x1 5-ounce bottle ($) = .20 x1

Profit on 1 10-ounce bottle ($) = .30

Profit on x2 10-ounce bottle ($) = .30 x2

Total Profit on both types of bottles = .20 x1 + .30 x2

Let Z be the total profit. The total profit of the company is expressed as:

Z = .20 x1 + .30 x2
Objective Function:
The company wants to increase it’s profit as much as possible. The objective of the company
is expressed as:
Max Z = .20 x1 + .30 x2
EXAMPLE 3: PRODUCTION MODEL
STEP 3: Constraints Machine 5-ounce bottles 10-ounce bottles
Constraint 1: Time Constraint on Machine X X 80 bottles/min 30 bottles/min
Y 40 bottles/min 50 bottles/min
1 5-ounce bottle takes time (in min) = 1/80
x1 5-ounce bottle take time (in min) = 1/80 x1 x1 = no. of 5-ounce bottles x2 = no. of 10-ounce bottles

5-ounce Bottle:
Machine X takes 1 min. to manufacture 80 bottles

80 bottles take time (in min) = 1

1 bottle takes time (in min) = 1/80
EXAMPLE 3: PRODUCTION MODEL
STEP 3: Constraints Machine 5-ounce bottles 10-ounce bottles
Constraint 1: Time Constraint on Machine X X 80 bottles/min 30 bottles/min
Y 40 bottles/min 50 bottles/min
1 5-ounce bottle takes time (in min) = 1/80
x1 5-ounce bottle take time (in min) = 1/80 x1
10-ounce Bottle:
1 10-ounce bottle takes time (in min) = 1/30 Machine X takes 1 min. to manufacture 30 bottles

x2 10-ounce bottle take time (in min) = 1/30 x2 30 bottles take time (in min) = 1
1 bottle takes time (in min) = 1/30
EXAMPLE 3: PRODUCTION MODEL
STEP 3: Constraints Machine 5-ounce bottles 10-ounce bottles
Constraint 1: Time Constraint on Machine X X 80 bottles/min 30 bottles/min
Y 40 bottles/min 50 bottles/min
1 5-ounce bottle takes time (in min) = 1/80
x1 5-ounce bottle take time (in min) = 1/80 x1
Machine X can run for 8 hours per day and
5 days per week
1 10-ounce bottle takes time (in min) = 1/30
i.e.
x2 10-ounce bottle take time (in min) = 1/30 x2 = 8 * 60 * 5 = 2400 minutes

Total Time required to manufacture both types of bottles: 1/80 x1 + 1/30 x2

Total Running Time of Machine X per Week : 2400 minutes

1/80 x1 + 1/30 x2 ≤ 2400 - Machine X Constraint

EXAMPLE 3: PRODUCTION MODEL
STEP 3: Constraints Machine 5-ounce bottles 10-ounce bottles
Constraint 2: Time Constraint on Machine Y X 80 bottles/min 30 bottles/min
Y 40 bottles/min 50 bottles/min
1 5-ounce bottle takes time (in min) = 1/40
x1 5-ounce bottle take time (in min) = 1/40 x1 x1 = no. of 5-ounce bottles x2 = no. of 10-ounce bottles

5-ounce Bottle:
Machine Y takes 1 min. to manufacture 40 bottles

40 bottles take time (in min) = 1

1 bottle takes time (in min) = 1/40
EXAMPLE 3: PRODUCTION MODEL
STEP 3: Constraints Machine 5-ounce bottles 10-ounce bottles
Constraint 2: Time Constraint on Machine Y X 80 bottles/min 30 bottles/min
Y 40 bottles/min 50 bottles/min
1 5-ounce bottle takes time (in min) = 1/40
x1 5-ounce bottle take time (in min) = 1/40 x1
10-ounce Bottle:
1 10-ounce bottle takes time (in min) = 1/50 Machine Y takes 1 min. to manufacture 50 bottles

x2 10-ounce bottle take time (in min) = 1/50 x2 50 bottles take time (in min) = 1
1 bottle takes time (in min) = 1/50
EXAMPLE 3: PRODUCTION MODEL
STEP 3: Constraints Machine 5-ounce bottles 10-ounce bottles
Constraint 2: Time Constraint on Machine Y X 80 bottles/min 30 bottles/min
Y 40 bottles/min 50 bottles/min
1 5-ounce bottle takes time (in min) = 1/40
x1 5-ounce bottle take time (in min) = 1/40 x1
Machine Y can run for 8 hours per day and
5 days per week
1 10-ounce bottle takes time (in min) = 1/50
i.e.
x2 10-ounce bottle take time (in min) = 1/50 x2 = 8 * 60 * 5 = 2400 minutes

Total Time required to manufacture both types of bottles: 1/40 x1 + 1/50 x2

Total Running Time of Machine Y per Week : 2400 minutes

1/40 x1 + 1/50 x2 ≤ 2400 - Machine Y Constraint

EXAMPLE 3: PRODUCTION MODEL
STEP 3: Constraints
Constraint 3: Drink Capacity Constraint

Weekly production of the drink cannot exceed 500,000 ounces

x1 = number of 5-ounce bottle
1 5-ounce bottle may contain drink (in ounces) = 5 x2 = number of 10-ounce bottle
x1 5-ounce bottle may contain drink (in ounces) = 5 x1
1 10-ounce bottle may contain drink (in ounces) = 10
x2 10-ounce bottle may contain drink (in ounces) = 10 x2

Weekly Production of the Drink (in ounces) = 500,000

Total Drink can be filled in bottles (in ounces) = 5 x1 + 10 x2

5 x1 + 10 x2 ≤ 500,000 - Drink Capacity Constraint

EXAMPLE 3: PRODUCTION MODEL
STEP 3: Constraints
Constraint 4 and 5: Market Demands

Market can absorb 30,000 (5-ounce) bottles and 8,000 (10-ounce) bottles per week.

x1 = number of 5-ounce bottle

x1 ≥ 30,000 - Demand of 5-ounce Drink x2 = number of 10-ounce bottle

x2 ≥ 8,000 - Demand of 10-ounce Drink

EXAMPLE 3: PRODUCTION MODEL
STEP 4:

Implicit Constraints:

x1 ≥ 0

x2 ≥ 0
EXAMPLE 3: PRODUCTION MODEL
The Complete LP Model is:

Maximize Z = .20 x1 + .30 x2

Subject to
x1 /80 + x2 /30 ≤ 2400 - Time Constraint on Machine X
x1 /40 + x2 /50 ≤ 2400 - Time Constraint on Machine Y
5 x1 + 10 x2 ≤ 500,000 - Drink Capacity Constraint
x1 ≥ 30,000 - Demand Constraint (5-ouns Bottle)
x2 ≥ 8,000 - Demand Constraint (10-ouns Bottle)
x1, x2 ≥ 0