Operations Research

Lecture 3:
Linear Programming:
Mathematical Models
Part II

Instructor: Dr. Safaa Amin

2020/2021
 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 I Grade II

• The objective is to minimize the Check 20

pieces /h
Check 14
pieces /h
daily cost of inspection Accuracy 96% 92%
• Two costs: wages paid by costs Error 3 0.04 0.08
Wages 5 4
inspectors and the cost of inspector
available 10 inspectors 15
error
• The cost of grade I inspector
• (5 + 3𝑥0.04𝑥20) = 7.4
• The cost of grade II inspector
(4 + 3𝑥0.08𝑥14) = 7.36
The objective function
𝒁 = 𝟖 (𝟕. 𝟒𝒙 + 𝟕. 𝟑𝟔𝒚)
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The Mathematical Model

Mininze: Z= 8 (7.4x+7.36y)
Subject to
• 𝑥 ≤ 10
• 𝑦 ≤ 15
• 20(8𝑥) + 14(8𝑦) ≥ 1500
• 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
7
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
K1 K2 K3 K4 K5 K6
Width 5 0 0 4 2 2 1
Width 7 0 1 0 0 1 2
Width 9 2 1 0 1 0 0
Loss 2 4 0 1 3 1

Let 𝑥1 the number of rolls cutted by knife setting 1 K1

Let 𝑥𝑖 the number of rolls cutted by knife setting i Ki, i=1,2…6
Minimize: 𝑍 = 2𝑥1 + 4𝑥2 +0𝑥3 + 𝑥4 + 3𝑥5 + 𝑥6
Subject to: 4𝑥3 + 2𝑥4 + 2𝑥5 + 𝑥6 ≥ 450 Width 5 Requirement

𝑥2 + 𝑥5 + 2𝑥6 ≥ 120 Width 7 Requirement

Width 9 Requirement
2𝑥1 + 𝑥3 + 𝑥4 ≥ 200
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
 𝑥1 𝑥2 𝑥3 𝑥4 𝑥5
Employee starting at week 1 would
get salary for all the five weeks
w1 w2 w3 w4 w5

• Let 𝑥𝑖 the Number of employee Starting at weeki

• Minimize: Z=300[5 𝑥1 + 4 𝑥2 + 3 𝑥3 + 2 𝑥4 + 𝑥5 ]
• Subject to: 𝑥1 + 𝑥2 + 𝑥3 + 𝑥4 + 𝑥5
𝑥1
• Week1: 300 − ≥ 280 There are 300 trained
3 employees available. Out of
𝑥1 𝑥2 𝑥1
• Week2: 300 − − ≥298 3
will be required to train
3 3
𝑥2 𝑥3 𝑥1 trainee
• Week3: 300 + 𝑥1 − − ≥ 305
3 3
𝑥3 𝑥4
• Week4: 300 + 𝑥1 + 𝑥2 − − ≥ 360
3 3
𝑥4 𝑥5
• Week5: 300 + 𝑥1 + 𝑥2 + 𝑥3 − − ≥400
3 3
• 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 𝑥1 and 𝑥2 the number of units of A and B to be
Product Mix Model manufactured per hour
Part A Part B Cost/hour

Machining
capacity
25/hr 40/hr 20
Maximize: Z=1.2 𝑥1 + 1.4𝑥2
Boring 28/hr 35/hr 14
capacity Constraints are on the capacities of the
Polishing 35/hr 25/hr 17
capacity
machines. For one hour running of each
machine
Part A($) Part B($) 1 1
𝑥1 + 𝑥2 ≤1
Machining cost 20/25 =0.8 20/40=0.5 25 40
1 1
Boring cost 14/28=0.5 14/35=0.4
𝑥1 + 𝑥2 ≤1
Polishing cost 17/35 17/25=0.7 28 35
Casting cost 2 3 1 1
𝑥1 + 𝑥2 ≤1
Total cost 3.8 4.6 35 25
Selling Price 5 6
Profit 1.2 1.4
𝑥1 𝑎𝑛𝑑 𝑥2 ≥ 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
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Agriculture 10 0.08
Commercial 13 0.06
 Investment Model
• Decision Variables:
• Let 𝑥1 : 𝑡ℎ𝑒 𝑎𝑚𝑜𝑛𝑡 𝑜𝑓 𝑚𝑜𝑛𝑒𝑦 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑡𝑜 𝑝𝑒𝑟𝑠𝑜𝑛𝑎𝑙 𝐿𝑜𝑎𝑛
• Let 𝑥2 : 𝑡ℎ𝑒 𝑎𝑚𝑜𝑛𝑡 𝑜𝑓 𝑚𝑜𝑛𝑒𝑦 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑡𝑜 𝐶𝑎𝑟 𝐿𝑜𝑎𝑛
• Let 𝑥3 : 𝑡ℎ𝑒 𝑎𝑚𝑜𝑛𝑡 𝑜𝑓 𝑚𝑜𝑛𝑒𝑦 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑡𝑜 𝐻𝑜𝑢𝑠𝑒 𝐿𝑜𝑎𝑛
• Let 𝑥4 : 𝑡ℎ𝑒 𝑎𝑚𝑜𝑛𝑡 𝑜𝑓 𝑚𝑜𝑛𝑒𝑦 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑡𝑜 𝐹𝑎𝑟𝑚𝑖𝑛𝑔 𝐿𝑜𝑎𝑛
• Let 𝑥5 : 𝑡ℎ𝑒 𝑎𝑚𝑜𝑛𝑡 𝑜𝑓 𝑚𝑜𝑛𝑒𝑦 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑡𝑜 𝑐𝑜𝑚𝑚𝑒𝑟𝑐𝑖𝑎𝑙 𝐿𝑜𝑎𝑛

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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

• 𝑛𝑒𝑡 𝑟𝑒𝑡𝑢𝑟𝑛 = 𝑡𝑜𝑡𝑎𝑙 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 − 𝑙𝑜𝑠𝑡 𝑏𝑎𝑑 𝑑𝑒𝑏𝑡
• 𝑡𝑜𝑡𝑎𝑙 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡=0.17(0.90𝑥1 ) + 0.14 0.93𝑥2 + 0.11 0.95𝑥3
+ 0.1 0.92𝑥4 + 0.13(0.94𝑥5 )
• Lost Bad debt= 0.1𝑥1 + 0.07𝑥2 + 0.05𝑥3 + 0.08𝑥4 + 0.06𝑥5
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 Example 6: Investment Model
• Subject to: 𝑥1 + 𝑥2 +𝑥3 + 𝑥4 + 𝑥5 ≤ 600
• 𝑥4 + 𝑥5 ≥ 0.4 𝑥1 + 𝑥2 +𝑥3 + 𝑥4 + 𝑥5
• 𝑥3 ≥ 0.5 𝑥1 + 𝑥2
• 0.1𝑥1 + 0.07𝑥2 + 0.05𝑥3 + 0.08𝑥4 + 0.06𝑥5 ≤ 0.06 𝑥1 + 𝑥2 +𝑥3 + 𝑥4 + 𝑥5
• 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 𝑥1 : the number of runs of Method1

•Let 𝑥2 : the number of runs of Method2
•Let 𝑥3 : the number of runs of Method3
•The Number of Part A unit to be produced 6 𝑥1 +5 𝑥2 + 7𝑥3
•The Number of Part B unit to be produced 4 𝑥1 +8 𝑥2 + 3𝑥3
•The Number of complete units to be produced
6 𝑥1+5 𝑥2+7𝑥3 4 𝑥1+8 𝑥2+3𝑥3
Y=Min( , )
5 4 18
 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 𝑥1 +5 𝑥2 + 7𝑥3 ≥5Y
• 4 𝑥1 +8 𝑥2 + 3𝑥3 ≥4Y
• 7 𝑥1 +4 𝑥2 + 2𝑥3 ≤ 120
• 5 𝑥1 +7 𝑥2 + 9𝑥3 ≤ 240
• With all variables Non-negative and integer

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