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Mgtop 470-Business Modeling With Spreadsheets Washington State University Spring 2017 Problem Set 7 Due: April 20, 2017, in Class

The document provides 5 linear programming problems for an assignment. 1. Hiland's TV-Radio Store must determine how many TVs and radios to stock to maximize profit given constraints on floor space, capital tied up, and a requirement that at least 60% of items be radios. 2. Sunblessed Juice Company must determine how to allocate oranges of different grades between bags for sale and juice production to maximize profit while meeting quality constraints. 3. Superclean Oil Company must determine how to ship products between warehouses and retailers to meet demand at minimum cost given shipping costs between locations. 4. A police force must determine shift scheduling to minimize officers needed to meet daily shift requirements given that

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54 views

Mgtop 470-Business Modeling With Spreadsheets Washington State University Spring 2017 Problem Set 7 Due: April 20, 2017, in Class

The document provides 5 linear programming problems for an assignment. 1. Hiland's TV-Radio Store must determine how many TVs and radios to stock to maximize profit given constraints on floor space, capital tied up, and a requirement that at least 60% of items be radios. 2. Sunblessed Juice Company must determine how to allocate oranges of different grades between bags for sale and juice production to maximize profit while meeting quality constraints. 3. Superclean Oil Company must determine how to ship products between warehouses and retailers to meet demand at minimum cost given shipping costs between locations. 4. A police force must determine shift scheduling to minimize officers needed to meet daily shift requirements given that

Uploaded by

hehehehehloo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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MgtOp 470—Business Modeling with Spreadsheets

Washington State University


Spring 2017
Problem Set 7
Due: April 20, 2017, in class

10 points each. Write out or type your answers and turn in during class. Just provide the written
formulation of the LP. You do not need to solve the problems on a computer for this assignment.

1. Hiland’s TV-Radio Store must determine how many TVs and radios to keep in stock. A TV
requires 10 square feet of floor space, whereas a radio requires 4 square feet; 5000 total square
feet of floor space is available. A TV sale results in an $80 profit, and a radio earns a profit of
$20. The store stocks only TVs and radios. Marketing requirements dictate that at least 60% of
all appliances in stock be radios. Finally, a TV ties up $210 in capital, and a radio $52. Hiland
wants to have at most $60,000 worth of capital tied up at any time. Formulate an LP to
determine how to maximize Hiland’s profit. You can assume that any item kept in stock will
eventually be sold.

2. Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades
oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 110,000 pounds of
grade 9 oranges and 130,000 pounds of grade 6 oranges on hand. The average quality of oranges
sold in bags must be a least 7, and the average quality of the oranges used to produce orange
juice must be at least 8. Each pound of oranges that is used for juice yields a revenue of $1.50
and incurs a variable cost (consisting of labor costs, variable overhead costs, inventory costs,
and so on) of $1.05. Each pound of oranges sold in bags yields a revenue of $1.50 and incurs a
variable cost of $0.70. Formulate an LP to determine how Sunblessed can maximize its profit.

3. Superclean Oil Company has three warehouses from which it can ship products to any of three
retail outlets. The demand in cans for the product Gunkout is 300 at retail outlet 1; 550 at outlet
2; and 250 at outlet 3. The inventory of Gunkout at warehouse 1 is 300; at warehouse 2 is 275;
and at warehouse 3 is 700. The cost of transporting one unit of Gunkout from each warehouse
to each retail outlet follows. Formulate an LP to determine how many units should be shipped
from each warehouse to each retailer so the demand at each retailer is met at minimum cost.

RETAILER
WAREHOUSE 1 2 4
1 8 9 6
2 6 8 10
3 4 3 11

OVER
4. During each 4-hour period, the Smalltown police force requires the following number of on-
duty police officers: 8 from midnight to 4:00 a.m., 7 from 4:00 a.m. to 8:00 a.m., 6 from 8:00
a.m. to noon, 6 from noon to 4:00 p.m., 5 from 4:00 p.m. to 8:00 p.m., and 4 from 8:00 p.m. to
midnight. Each police officer works 2 consecutive 4-hour shifts. Formulate an LP to determine
how to minimize the number of police offers needed to meet Smalltown’s daily requirements.

5. Doug Turner Food Processors wishes to introduce a new brand of dog biscuits composed of
chicken- and liver-flavored biscuits that meet certain nutritional requirements. The liver-
flavored biscuits contain 1 unit of nutrient A and 2 units of nutrient B; the chicken-flavored
biscuits contain 1 unit of nutrient A and 4 units of nutrient B. According to federal
requirements, there must be at least 40 units of nutrient A and 60 units of nutrient B in a
package of the new mix. In addition, the company has decided that there can be no more than 15
liver-flavored biscuits in a package. If it costs 1 cent to make 1 liver-flavored biscuit and 2 cents
to make 1 chicken-flavored, what is the optimal product mix for a package of the biscuits to
minimize the firm’s cost?

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