Formulating LPs, V

1. Sue and Al, Plywood and Pressboard

Sue and Al have formed a partnership. They are planning to operate a small lumber mill producing sheets of
plywood and pressboard. They have decided to split up the work in such a way that their total profit is maximized.
The profit per sheet of plywood is P5, while each sheet of pressboard brings P8 in profit. If Sue works a full day on
plywood alone, she can produce 12 sheets. If Al works a full day on plywood alone, he can produce 10 sheets. If they
produce only pressboard, Sue can complete 10 sheets and Al can complete 9 sheets in a day's time. Formulate a
linear programming model for this problem.

2. Requirements for a Solvent

A solvent producer manufactures a product with the following requirements.

Boiling Point: 300

Freezing Point: 20

Specific Weight: 0.85

The product can be made from two possible ingredients, A and B, which cost 40 cents and 50 cents per liter,
respectively. These ingredients have the following characteristics, which can be assumed to combine linearly.

The manufacturer would like to make the product at minimum cost. Provide a linear programming formulation for
the problem.
3. Quality Control, Battery Inspection

A company has three grades of inspectors (grade 1, grade 2, grade 3) who are to be assigned to perform a quality
control test on batteries. The company requires that at least 1200 batteries be inspected in a 7-hour day. The
wages, accuracy rates, and inspection rates for the inspectors are as follows.

Each inspection error made costs the company P4. There are 9 Grade 1, 13 Grade 2, and 12 Grade 3 inspectors
available. The company wants to determine the number of inspectors of each grade it should employ to carry out
the testing at minimum cost.

4. Four Parts, Three Departments

A company manufactures a mechanical device which consists of four parts, each of which can be produced in three
different departments. The table below shows the production rates (# of units per hour) for the four parts in each of
the three departments. Departments 1, 2, and 3 have limited capacities of 240, 320, and 170 hours, respectively.

The company wants to determine the number of hours of each department which should be assigned to each part in
order to maximize the number of complete mechanical devices. Formulate the problem as a linear programming
model.
5. Tireless Rent-A-Car

The Tireless Rent-A-Car Company operates a fleet of rental cars in Metro Manila. The company has forecast its
demand for rental cars for the next six months as shown below.

The company obtains its cars by leasing them from an automobile manufacturer. Three leasing plans are available,
involving leases with duration of three, four, or five months. Cars are leased beginning on the first day of a month,
and are returned to the manufacturer on the last day of the month at the end of the lease period. The costs for the
three types of leases are shown below.

The costs include lease payments to the manufacturer and standard maintenance and repair expenses. A lease may
be taken out in any month. The manufacturer has certain restrictions: at least 60% of the cars leased must be on a
five-month lease, and no more than 20% can be on a three-month lease.

On September 30, the fleet consists of 300 cars. For 100 of these, the lease expires at the end of October; the lease
on an additional 100 cars expires at the end of November; and the lease for the remaining 100 expires at the end of
December. Tireless would like to have between 300 and 350 cars remaining in the fleet at the end of March (after
returning leased cars that are due to be returned that month).

ireless would like to minimize its leasing costs. Formulate a linear programming model to solve this fleet planning
problem.

6. Combustion Points, Etc

A solvent producer manufactures a product with the following requirements.

Combustion Point: 260o

Specific Weight: 1.00

Content 1: 8% By Volume

Content 2: 4% By Volume

The product may be made from three possible ingredients: A, B, C, which cost 20 cents, 19 cents, and 25 cents per
liter, respectively. These ingredients have the following characteristics, which can be assumed to combine linearly.
The manufacturer would like to make the product (subject to the above requirements) at minimum cost. Formulate
the problem as a linear programming model.

7. A Silo for Corn

A speculator operates a silo with a capacity of 5000 bushels for storing corn. At the beginning of month 1, the silo
contains 2000 bushels. Estimates of the selling and purchase prices of corn during the next four months are given
below.

Corn sold during any given month is removed from the silo at the beginning of that month. Thus, 2000 bushels are
available for sale in month 1. Corn bought during any given month is put into the silo during the middle of that
month, but it cannot be sold until the following month. Given the above sales and purchase prices, as well as the
assumptions on storage costs (see below), the speculator wishes to know how much corn to buy and sell each month
so as to maximize total profits shortly after the beginning of the fourth month (which means after any sale that may
occur in that month).

To aid in defining the assumptions on storage cost, let:

At = the number of bushels in the silo immediately after the quantity sold in period t is removed (t = 1, 2, 3, 4)
Bt = number of bushels in the silo immediately after the quantity purchased in period t is put into the silo (t = 1, 2, 3)
Assume that the storage cost in period t (t = 1, 2, 3) equals: $0.005 (At + Bt)/2.
Formulate a linear programming model for this problem.
8. Allure and Revenge

Love Bug Company has announced the introduction of two new exciting perfumes – Allure and Revenge. These are
to be blended from two major sources, which the company has coded as Aphrody and Olympus. Three processes
can be used to convert Aphrody and Olympus into Allure and Revenge. Process A utilizes 6 gallons of Aphrody and 4
gallons Olympus to produce 4 gallons of Allure and 6 gallons of Revenge. Process B utilizes 3 gallons of Aphrody and
7 gallons of Olympus to produce 5 gallons each of Allure and Revenge. Process C utilizes 5 gallons each of Aphrody
and Olympus to produce 3 gallons of Allure and 7 gallons of Revenge. Each gallon of Aphrody and Olympus costs
P180 and P120, respectively. The quantity supplied for Aphrody and Olympus is limited to 2,000 and 1,600 gallons,
respectively, per month. Assuming that Love Bug can sell all the perfume that it can produce, what amount of
Aphrody and Olympus should be mixed for each of the three processes to maximize profit contribution? Allure sells
for P400 and Revenge for P300. Provide a linear programming formulation for the problem.

9. Throwback

Well, never mind the dates are way, way back ... -- and that the engagement period is quite long.

Your best friend is asking you to help him with his problem. He is planning to get married on June 1, 1990. He has
promised his fiancee a house and lot as wedding gift. Toward this objective, he wants to raise as much cash as is
possible, using as seed money his personal savings of P100,000. Presently, he is considering five different
investment projects with varying returns rates, availability and maturation rates.

Investment Plan A will be available for a total of 5 times on June 1 of each year from 1983 to 1987. Each peso
invested in Plan A will earn P0.40 exactly 2 years later. Investment Plan B will be available for a total of 5 times, on
June 1 of each year from 1984 to 1988. Each peso placed in Plan B earns P0.70 exactly 3 years later. Investment Plan
C will be available only once in June 1, 1984. Each peso placed in Plan C will earn P2.00 exactly 6 years later on June
1, 1990. Investment Plan D will be available only once on June 1, 1984. Each peso placed in Plan D will earn P2.20
exactly 6 years later on June 1, 1990. Any amount may be placed or invested but no withdrawals are allowed before
maturation. Any amount which is not placed or invested may be put into a one-year time deposit to earn 16% annual
interest.

Formulate the LP model for this problem to maximize the cash available on June 1, 1990.

10. Democratization of Admissions

A regional unit of the University of the Philippines System has only enough academic facilities to admit at most 1000
freshmen student. Under the Democratization of Admissions Policy of the University of the Philippines, the unit
plans to accept both regular students (admitted under the usual criteria) and also the so-called XDS students
(admitted under modified admissions criteria to improve the socio-economic mix of the student population.)

It is estimated that 80% of XDS students will need dormitory facilities while only 30% of the regular students will
need it. Only 350 places are available in the old dormitory. Funds for the planned new dormitory have been
appropriated but yet released by the government and so the dormitory constraint is crucial. Pressure from some
alumni groups and the more affluent parents dictates that no more than one XDS students be admitted for each 5
regular students. On the other hand, a directive from the U.P Central Administration dictates that at least 50 XDS
freshmen must be admitted.

If 80% of the regular students and 70% of the XDS students are expected to earn their degrees in the regional unit
and the object is to maximize the number of expected graduates, how many regular students and how many XDS
students should be admitted by the unit? (Ignore the obvious integer constraint). Formulate this problem as a linear
programming model.