OPERATIONAL RESEARCH

INDEX

1. Introduction ………………………………………………………. P . 4
2. Background.....…………..……………………..………………….. P. 4
3. General Objective ……..…………………………………………….. P. 5
4. Specific Objective ……………….………………………….....Page 5
5. Methodology .……………………………………………………. Page 5
6. Conceptual Framework ……………………………………………………Page 5
7. Development……………………………………………………………… Page 6
a. Simple Solution.………………………………………………….. Page 10
b. Solver Solution ………………………………………………….. Page 10
c. Tora Solution……………………………………………………….. Page 10
d. Lingo Solution…………………………………………………….. Page 10
e. Win QSB Solution..……………………………………………….. Page 10
8. Conclusions and Recommendations……….…….………………………. Page 11
a. Recommendations…………………………….……………………… Page 11
9. 9. Bibliography…………………………..…….………………………. Page 12
10. 10. Annexes…………………………..…….………………………. Page 13

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1. Introduction

In this project, the work of the company PIL ANDINA will be carried out, which will give us the
information to obtain the specific model of an Operational Research.

Applying graphical methods, simplex, among others, where a feasible zone will be demonstrated,
the optimal point of the company in order to maximize the greatest utility and minimize production
costs.

The Bolivian company Pil Andina has the specific data to carry out an Operational Research,
according to the established problem, for the optimization of ice cream manufacturing.

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2. Background
1996
FORCE
That force crossed borders and reached Peru, where we captivated the GLORIA S,A group, who
gave us the necessary boost to strengthen and consolidate our operations in Cochabamba and La
Paz.

1999
TRANSFORMATION
In 1999, they acquired 100% of the shares of PIL SAM from Santa Cruz and transformed it into
IPILCRUZ.
2004
FUSION
A few years later, PIL Andina SA merged the two companies, and together we formed the great PIL
family that you know today: The leading company in the industrialization of dairy products and food.

OUR MISSION

Our mission is to maintain leadership in each of the markets in which we participate through the
production and marketing of goods, with brands that guarantee added value for our clients and
consumers.

The processes and actions of all the corporation's companies will be developed in an environment
that motivates and develops its employees, maintains respect and harmony in the communities in
which it operates and ensures the maximum return on investment for its shareholders.

OUR VISION

We are a Peruvian-owned corporation with a diversified business portfolio and international

presence and projection.

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We aim to meet the needs of our customers and consumers with the highest quality products and
services to always be their first choice.

3. General Objective
The general objective is to determine decision-making, this to determine, identify, to make an
adequate resolution of problems, this to ensure correct decision-making within companies or
organizations.

4. Specific Objective

In the specific objectives, it will be executed at each stage by applying the different methods used in
an Operational Research, this to resolve the different levels of results through the detailed:

- Simplex method,

- This is to determine the Company's utility.

5. Methodology

Operations Research uses mathematical modeling, statistical analysis and mathematical

optimization techniques, with the aim of achieving optimal or near-optimal solutions when facing
complex decision problems. Decisions reached through the use of an operations research model
are expected to be significantly better than those that could be made using the decision maker's
simple intuition or experience.

- Linear Programming Method: The usefulness of this technique is increased by the use and
availability of highly efficient https://www.monografias.com/Computacion/Programacion/computer
programs. In fact, LP, due to its high level of
https://www.monografias.com/trabajos11/veref/veref.shtmlcomputational efficiency, is the basis for the
development of algorithms for solving other (more complex) types of IO models, including integer,
nonlinear and stochastic programming.
- Graphic Method: This method has only two decision variables and two dimensions, to solve
it graphically. Making a two-dimensional graph with x1 and x2 on the axes.
- Simplex Method: The Simplex algorithm is an algebraic method that solves all linear
programming problems in a finite number of steps on a computer. It is an iterative procedure
that allows the solution to be improved at each step.
-
6. Conceptual Framework

Operations Research: Operations Research is a modern discipline that uses mathematical,

statistical models and algorithms to model and solve complex problems, determining the optimal
solution and improving decision making. This subject is also called Operations Research,
Operational Research or Management Sciences. Currently, Operational Research includes a large
number of branches such as Linear Programming, Nonlinear Programming, Dynamic Programming,
Simulation, Queuing Theory, Inventory Theory, and Graph Theory.

Linear Programming:
Linear programming is a set of rational analysis and problem-solving techniques that aims to assist
decision makers in making decisions on issues involving a large number of variables.

Problem formulation and definition: In this phase of the process, the following are needed: a
description of the system's objectives, i.e., what is to be optimized; identifying the variables involved,

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whether they are controllable or not; determining the system's restrictions. Possible decision
alternatives and constraints must also be taken into account in order to produce an appropriate
solution.

Model Building: In this phase, the operations researcher must decide on the model to use to
represent the system. It must be a model that relates the decision variables to the parameters and
restrictions of the system.

Model Solution: Once the model is available, a mathematical solution is derived using various
mathematical techniques and methods to solve problems and equations. We must bear in mind that
the solutions obtained at this point in the process are mathematical and we must interpret them in
the real world. In addition, to solve the model, sensitivity analyses must be performed, that is,
seeing how the model behaves to changes in the specifications and parameters of the system. This
is done because the parameters are not necessarily precise and the constraints may be wrong.

Model validation: Validation of a model requires determining whether the model can reliably predict
the behavior of the system. A common method to test the validity of the model is to subject it to
available past data of the current system and observe whether it reproduces the past situations of
the system. But since there is no guarantee that the future behavior of the system will continue to
replicate past behavior, then we must always be aware of possible changes in the system over time,
in order to properly adjust the model.

Implementation of results: Once we have obtained the solution or solutions of the model, the next
and last step of the process is to interpret those results and give conclusions and courses of action
for the optimization of the system. If the model used can serve another problem, it is necessary to
review and document it.

7. Development

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The company “PIL ANDINA” has asked us to determine the weekly production plan for the different
types of ice cream that make up the “Gourmet Range”, with the aim of maximizing profits, of which
they provide us with the following data for the production of ice cream:

- Expected profit per kilo of the different Ice Creams:

 Mint ice cream: 23 um the kilo
 Chocolate ice cream: 22.5 um the kilo
 Yogurt and peach ice cream: 21 um the kilo
 Almond ice cream: 20.5 um the kilo
 “Fiordilatte” ice cream: 21 um the kilo

- Weekly availability of the following raw materials:

 Base Syrup: 20.5 kg

 Fresh whole milk: 13 kg
 Skimmed yogurt: 5 kg
 Cream: 8.5 kg
 Inverted sugar: 1.3 kg
 Chocolate: 27 kg
 Cocoa butter: 5 kg
 Peppermint essence: 2 bottles of 90 ml, each bottle
provides 75 drops.

 Cocoa: 0.28 kg (2 bags of 140 gr each)

 Peach smoothie: 4 kg
 Almond paste: 0.8 kg (2 bags of 400 gr each)

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OPERATIONAL RESEARCH

- Expected weekly demand for each type of ice cream:

 Demand for mint ice cream and chocolate ice cream: 10 kilos
 Demand for yogurt ice cream and almond ice cream: 10 kilos
 No demand for Pil Andina ice cream has been estimated.
Bathroom Coverage
Fresh Yogurt Inverte Mint Peach Almen
Syrup Cream Cocoa
whole milk Desn. d sugar. Chocolate Butter essence Smoothie Pasta.
cocoa
Ice
creams 550 gr 450 gr 800 gr 200 gr 10 g
Mint
Chocolate
500 gr 440 gr 25 gr 800 gr 200 gr 35 gr
Ice Cream
Yogurt
and Peach 430 gr 300 gr 500 gr 20 gr 500 gr 250 gr
Ice Cream
Ice
creams 400 gr 495 gr 25 gr 800 gr 200 gr 80 gr
Almond
Ice
creams
510 gr 510 gr 550 gr 200 gr 1300 gr 200 gr
Fiordilatt
e

Objective Maximize Income:

1.-DECISION VARIABLE:

Decision variables:
x1 = number of kilos of mint ice cream to be made weekly

x2 = number of kilos of chocolate ice cream to be produced weekly

x3  No. of kilos of yogurt and peach ice cream to be produced weekly

x4 = number of kilos of almond ice cream to be produced weekly

x5 = number of kilos of Fiordilatte ice cream to be made weekly

2.- Objective Function:

MAX Z max: 23x1  22.5x2  21x3  20.5x4  21x5

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OPERATIONAL RESEARCH

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OPERATIONAL RESEARCH

3.- Restrictions:

Restrictions on the availability of raw materials:

Base Syrup Limit: 20.5 kilos

550x1  500x2  430x3  400x4  510x5 20500

Limitation on Whole Fresh Milk: 13 kilos

450x1  440x2  495x4  510x5  13000

Skimmed yogurt limit: 5 kilos

300x3  5000
Cream Limit: 8.5 kilos

500x3  550x5  8500

Inverted sugar limit: 1.3 kilo

25x2  20x3  25x4  200x5 1300

Chocolate Limit: 27 kilos

800x1  800x2  500x3  800x4 1300x5  27000

Cocoa butter limit: 5 kilos

200x1  200x2  200x4  200x5  5000

Mint Essence Limitation: 150 drops: 10x1  150

Cocoa Limitation: 0.28 kg: 35x2  280

Peach Smoothie Limitation: 4 kilos 250x3  4000

Almond Paste Limit: 0.8 kilo 80x4  800

Restrictions on demand:

x1  x2  10

x3  x4  10

Max z: 23x1  22.5x2  21x3  20.5x4  21x5

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OPERATIONAL RESEARCH

450x1  440x2  495x4  510x5  13000

300x3  5000
500x3  550x5  8500
25x2  20x3  25x4  200x5  1300
800x1  800x2  500x3  800x4  1300x5  27000
200x1  200x2  200x4  200x5  5000
10x1  150
35x2  280
250x3  4000
80x4  800
x1  x2  10

x3  x4  10
, , , , 0
x1 x2 x3 x4 x5

7.1. Simplex Solution

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OPERATIONAL RESEARCH

8. Conclusions and Recommendations

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Operations research has become an important tool for all areas to reach optimal solutions; it is an important element
for companies or organizations for their development and growth. It can be concluded that Operations Research is
the use of mathematics and computer science to solve real-world problems, making sound decisions that guarantee
the success of an objective.

Its most important contribution is the application of its results for decision-making at low, medium and higher
administrative levels.

9. Bibliography

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1.- http://alerce.pntic.mec.es/jjir0003/CURSOS/MATEMATICAS%20ACS%
20II/4%20programacion%20lineal.pdf.
Origin of Linear Programming, mathematical approaches and various forms of resolution.

2.-http://www.ua.es/personal/SEMCV/Actas/IVJornadas/pdf/Part102.PDF.
“Half a century of Linear Programming”, by Miguel A. Rules. Department of Statistics and
Operational Research, Faculty of Sciences, University of Alicante.

3.-http://www.lindo.com
Official website for the “LINGO” software package.

4.-http://www.pilandina.com.bo/categoria_productos/helados/

5.-http://www.pilandina.com.bo/historia/

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10.-ANNEXES.-

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