Operations

Research
Lecture 3:
Linear Programming:
Mathematical Models
Part II

Instructor: Dr. Safaa Amin

 Inspection Model
• A company has two grades of inspectors, I and II to undertake
quality control inspection. At least 1,500 pieces must be inspected
in an 8-hours day. Grade I inspector can check 20 pieces in an hour
with an accuracy of 96%. Grade II inspector checks 14 pieces an
hour with an accuracy of 92%. Wages of grade I inspector are $5 per
hour while those of grade II inspector are $4 per hour. Any error
made by an inspector costs $3 to the company. If there are, in all, 10
grade I inspectors and 15 grade II inspectors in the company, find
the optimal assignment of inspectors that minimize the daily
inspection cost (Formulate only the mathematical problem).
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Example 1: Inspection Model
cont…
• Let x the number of grade I that may be assigned the job of
quality control inspection
• Let y the number of grade II that may be assigned the job of
quality control inspection

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 Inspection Model cont.
Grade II Grade I

• The objective is to minimize the Check 14

pieces /h
Check 20
pieces /h
daily cost of inspection 92% 96% Accuracy
• Two costs: wages paid by 0.08 0.04 Error 3 costs
4 5 Wages
inspectors and the cost of inspector 15 inspectors 10 available
error
• The cost of grade I inspector

• The cost of grade II inspector

The objective function

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The Mathematical Model

Mininze: Z= 8 (7.4x+7.36y)
Subject to
•

•
• With all variable non-negative and integer
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 Example 2: Trim Loss Problem

Rolls of paper having a fixed length and width 20 feet are being
manufactured by a paper company. These rolls have to be cut
with different knife setting to satisfy the following demand:
Obtain the linear programming formulation of the problem to
determine the cutting pattern, so that the demand is satisfied and
wastage of paper is minimized (Formulate only the linear
problem model)

width 9 7 5
Min Number 200 120 450
of rolls: 6
 Trim Loss Model
The different knife setting are:
20 feet

K1 2 Loss=2
9 9
K2 9 4 Loss=4
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K3 5 5 Loss=0
5 5
K4 9 5 5 1 Loss=4
K5 7 3 Loss=3
5 5
K6 7 7 5 1 Loss=1 7
Trim loss Model cont…
K1 2 Loss=2
9 9
K6 K5 K4 K3 K2 K1
1 2 2 4 0 0 Width 5
2 1 0 0 1 0 Width 7
0 0 1 0 1 2 Width 9
1 3 1 0 4 2 Loss

Let the number of rolls cutted by knife setting 1 K1

Let the number of rolls cutted by knife setting i Ki, i=1,2…6
Minimize: +0
Subject to: Width 5 Requirement

𝑥 2+ 𝑥 5 +2 𝑥6 ≥ 120 Width 7 Requirement

2 𝑥1 + 𝑥 3 + 𝑥 4 ≥ 200 Width 9 Requirement

With all Variable Non-negative and integer

 Example 3: Man Power Model
A Company, engaged in producing tinned food, has 300 trained employees on the rolls, each
of whom can produce one can of food in a week, due to developing taste of the public for
this kind of food, the company plans to add to the existing labour force by employing 150
persons, in a phased manner, over the next 5 weeks. The newcomers would have to undergo
a two-weeks training program before being put to work. The training is to be given by
employees from among the existing ones and it is known that one employee can train three
trainees. Assume the training is off-the-job. However, the trainees would be remunerated at
the rate of $300 per week, the same rate as for the trainers. The company has booked the
following orders to supply during the next 5 weeks.
Assume that the production in any week would not be more than the number of cans booked
in the order so that every delivery of the food will be fresh.
•Formulate only the L.P. model to develop a training schedule that minimizes the labour
cost over the five weeks period.
week 1 2 3 4 5
No. of cans 280 298 305 360 400 9
 𝑥 𝑥 𝑥 𝑥5
𝑥1 2 3 4
Employee starting at week 1 would
get salary for all the five weeks
w1 w2 w3 w4 w5
• Let the Number of employee Starting at weeki
• Minimize: Z=300[5 + 4 3
• Subject to: +
• Week1: There are 300 trained
• Week2: 298 employees available. Out of
will be required to train
• Week3: trainee
• Week4:
• Week5: 400
• With all variables non-negative and integer
 Example 4: Product Mix Model
•A firm manufactures two items. It purchases castings which are
then machined, bored and polished. Castings for item A and B
costs $2 and $3 respectively and are sold at $5 and $6 respectively.
Running costs of the three machines are $20, $14 and $17 per hour
respectively. Capacities of the machines are
Formulate only the L.P. model to determine the product mix that
maximizes the profit.
Part A Part B Cost/hour

Machining 25/hr 40/hr 20

capacity
Boring capacity 28/hr 35/hr 14
Polishing capacity 35/hr 25/hr 17
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 Let and the number of units of A and B to be
Product Mix Model manufactured per hour
Part A Part B Cost/hour
20
Machining
capacity
25/hr 40/hr
Maximize: Z=1.2
Boring 28/hr 35/hr 14
capacity Constraints are on the capacities of the
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Polishing 35/hr 25/hr machines. For one hour running of each
capacity
machine
)$(Part B )$(Part A
0.5=20/40 0.8= 20/25 Machining cost
0.4=14/35 0.5=14/28 Boring cost
0.7=17/25 17/35 Polishing cost
3 2 Casting cost
4.6 3.8 Total cost
6 5 Selling Price
1.4 1.2 Profit 𝑥1 𝑎𝑛𝑑 𝑥 2 ≥ 0 12
 Example 5: Investment Model
•A bank is in the process of formulating its loan policy involving a maximum
of $600 million. Table below gives the relevant types of loans. Bad debts are
not recoverable and produce no interest revenue. To meet competition from
other banks, the following policy guidelines have been set: at least 40% of the
funds must be allocated to the agricultural and commercial loans. Funds
allocated to the houses must be at least 50% of all loans given to personal,
car. The overall bad debts on all loans may not exceed 0.06. Formulate the
Linear Program Model to determine the optimal loan allocation.
Type of Loan Interest rate Bad debt
(%) (probability)
Persnal 17 0.10
Car 14 0.07
Housing 11 0.05
Agriculture 10 0.08 13

Commercial 13 0.06
 Investment Model
• Decision Variables:
• Let
• Let
• Let
• Let
• Let

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 Type of Loan Interest Bad debt Good
rate (%) (probabilit standing
y) Loan
Persnal 17 0.10 0.90
Car 14 0.07 0.93
Housing 11 0.05 0.95
Agriculture 10 0.08 0.92
Commercial 13 0.06 0.94

• Objective is to Maximize the net return

• =(0.90)
• Lost Bad debt=

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 Example 6: Investment Model
• Subject to: +
•
•
•
• With all variables nonnegative

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 Example 5: Machining Model
•A factory manufactures a product each unit of which consists of 5
units of part A and 4 units of part B. the two parts A and B require
different raw materials of which 120 units and 240 units respectively
are available. These parts can be manufactured by three different
methods. Raw material requirements per production run and the
number of units for each part produced are given below.

Determine the number of production runs for each method so as to

maximize the total number of complete units of the final product.
Input per run (units) Output per run
(units)
Method Raw material I Raw material II Part A Part B
1 7 5 6 4
2 4 7 5 8
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3 2 9 7 3
 Input per run (units) Output per run
(units)
Example 5 Method
1
Raw material I
7
Raw material II
5
Part A
6
Part B
4
2 4 7 5 8
3 2 9 7 3

•Let the number of runs of Method1

•Let the number of runs of Method2
•Let the number of runs of Method3
•The Number of Part A unit to be produced 6 +5
•The Number of Part B unit to be produced 4 +8
•The Number of complete units to be produced
Y=Min(, )
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 Input per run (units) Output per run
(units)
Method Raw material I Raw material II Part A Part B
1 7 5 6 4
2 4 7 5 8
3 2 9 7 3

• Maximize Z=Y
• Subject to: 6 +5 5Y
• 4 +8 4Y
• 7 +4
• 5 +7
• With all variables Non-negative and integer

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