Scribd
Upload
30 views

Assign Formulation 1

The document describes several linear programming applications including product mix, transportation/distribution, and portfolio selection. It then provides more details on two specific LP problems - a product mix problem for a furniture company and a make/buy decision problem for an electronics company. The product mix problem involves determining the optimal number of benches and tables for the furniture company to produce given constraints on available labor hours and materials. The make/buy problem involves deciding whether to produce parts in-house or purchase them externally to minimize total costs within capacity constraints.

Uploaded by

Sohaib Arif
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
30 views

Assign Formulation 1

The document describes several linear programming applications including product mix, transportation/distribution, and portfolio selection. It then provides more details on two specific LP problems - a product mix problem for a furniture company and a make/buy decision problem for an electronics company. The product mix problem involves determining the optimal number of benches and tables for the furniture company to produce given constraints on available labor hours and materials. The make/buy problem involves deciding whether to produce parts in-house or purchase them externally to minimize total costs within capacity constraints.

Uploaded by

Sohaib Arif
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 19

LP Formulation

LP Applications

· Product Mix

· Diet / Blending

· Scheduling

· Transportation / Distribution

· Assignment

· Portfolio Selection (Quadratic)

LP-Formulation Ardavan Asef-Vaziri June-2013 2


Product mix problem : Narrative representation

The Quality Furniture Corporation produces


benches and tables.
The firm has two main resources
Resources
labor and redwood for use in the furniture.
During the next production period
1200 labor hours are available under a union agreement.
A stock of 5000 pounds of quality redwood is also available.

LP-Formulation Ardavan Asef-Vaziri June-2013 3


Product mix problem : Narrative representation

Consumption and profit


Each bench that Quality Furniture produces requires
4 labor hours and 10 pounds of redwood
Each picnic table takes 7 labor hours and 35 pounds of
redwood.
Total available 1200, 5000
Completed benches yield a profit of $9 each,
and tables a profit of $20 each.
Formulate the problem to maximize the total profit.

LP-Formulation Ardavan Asef-Vaziri June-2013 4


Product Mix : Formulation

x1 = number of benches to produce


x2 = number of tables to produce

Maximize Profit = ($9) x1 +($20) x2


subject to
Labor: 4 x1 + 7 x2  1200 hours
Wood:10 x1 + 35 x2  5000 pounds
and x1  0, x2  0.

We will now solve this LP model using the Excel Solver.


LP-Formulation Ardavan Asef-Vaziri June-2013 5
Product Mix : Excel solution

LP-Formulation Ardavan Asef-Vaziri June-2013 6


Make / buy decision : Narrative representation

Electro-Poly is a leading maker of slip-rings.


A new order has just been received.
Model 1 Model 2 Model 3
Number ordered 3,000 2,000 900
Hours of wiring/unit 2 1.5 3
Hours of harnessing/unit 1 2 1
Cost to Make $50 $83 $130
Cost to Buy $61 $97 $145

The company has 10,000 hours of wiring capacity and 5,000


hours of harnessing capacity.

LP-Formulation Ardavan Asef-Vaziri June-2013 7


Make / buy decision : decision variables

x1 = Number of model 1 slip rings to make


x2 = Number of model 2 slip rings to make
x3 = Number of model 3 slip rings to make
y1 = Number of model 1 slip rings to buy
y2 = Number of model 2 slip rings to buy
y3 = Number of model 3 slip rings to buy
The Objective Function
Minimize the total cost of filling the order.
MIN: 50x1 + 83x2 + 130x3 + 61y1 + 97y2 + 145y3

LP-Formulation Ardavan Asef-Vaziri June-2013 8


Make / buy decision : Constraints

Demand Constraints
x1 + y1 = 3,000 } model 1
x2 + y2 = 2,000 } model 2
x3 + y3 = 900 } model 3
Resource Constraints
2x1 + 1.5x2 + 3x3 <= 10,000 } wiring
1x1 + 2.0x2 + 1x3 <= 5,000 } harnessing
Nonnegativity Conditions
x1, x2, x3, y1, y2, y3 >= 0

LP-Formulation Ardavan Asef-Vaziri June-2013 9


Make / buy decision : Excel

LP-Formulation Ardavan Asef-Vaziri June-2013 10


Make / buy decision : Constraints

Do we really need 6 variables?


x1 + y1 = 3,000 ===> y1 = 3,000 - x1
x2 + y2 = 2,000 ===> y2 = 2,000 - x2
x3 + y3 = 900 ===> y3 = 900 - x3
The objective function was
MIN: 50x1 + 83x2 + 130x3 + 61y1 + 97y2 + 145y3
Just replace the values
MIN: 50x1 + 83x2 + 130x3 + 61 (3,000 - x1 ) + 97 ( 2,000 - x2) +
145 (900 - x3 )
MIN: 507500 - 11x1 -14x2 -15x3
We can even forget 507500, and change the the O.F. into
MIN - 11x1 -14x2 -15x3 or
MAX + 11x1 +14x2 +15x3
LP-Formulation Ardavan Asef-Vaziri June-2013 11
Make / buy decision : Constraints

MAX + 11x1 +14x2 +15x3


Resource Constraints
2x1 + 1.5x2 + 3x3 <= 10,000 } wiring
1x1 + 2.0x2 + 1x3 <= 5,000 } harnessing

Demand Constraints
x1 <= 3,000 } model 1
x2 <= 2,000 } model 2
x3 <= 900 } model 3

Nonnegativity Conditions
x1, x2, x3 >= 0
LP-Formulation Ardavan Asef-Vaziri June-2013 12
Make / buy decision : Constraints

MIN: 50x1 + 83x2 + 130x3 y1 = 3,000- x1


+ 61y1 + 97y2 + 145y3 y2 = 2,000-x2
y3 = 900-x3
Demand Constraints
MIN: 50x1 + 83x2 + 130x3
x1 + y1 = 3,000 } model 1 + 61(3,000- x1)
x2 + y2 = 2,000 } model 2 + 97(2,000-x2)
+ 145(900-x3)
x3 + y3 = 900 } model 3
Resource Constraints y1 = 3,000- x1>=0
y2 = 2,000-x2>=0
2x1 + 1.5x2 + 3x3 <= 10,000 } wiring
y3 = 900-x3>=0
1x1 + 2.0x2 + 1x3 <= 5,000 } harnessing x1 <= 3,000
Nonnegativity Conditions x2 <= 2,000
x1, x2, x3, y1, y2, y3 >= 0 x3 <= 900
LP-Formulation Ardavan Asef-Vaziri June-2013 13
Marketing : narrative

A department store want to maximize exposure.


There are 3 media; TV, Radio, Newspaper
each ad will have the following impact
Media Exposure (people / ad) Cost
TV 20000 15000
Radio 12000 6000
News paper 9000 4000
Additional information
1-Total budget is $100,000.
2-The maximum number of ads in T, R, and N are limited to
4, 10, 7 ads respectively.
3-The total number of ads is limited to 15.

LP-Formulation Ardavan Asef-Vaziri June-2013 14


Marketing : formulation

Decision variables
x1 = Number of ads in TV
x2 = Number of ads in R
x3 = Number of ads in N

Max Z = 20 x1 + 12x2 +9x3

15x1 + 6x2 + 4x3  100


x1  4
x2  10
x3  7
x1 + x2 + x3  15

x ,x , x  0
LP-Formulation
1 2 3 Ardavan Asef-Vaziri June-2013 15
Problem ( From Hillier and Hillier)

Men, women, and children gloves.

Material and labor requirements for each type and the


corresponding profit are given below.
Glove Material (sq-feet) Labor (hrs) Profit
Men 2 .5 8
Women 1.5 .75 10
Children 1 .67 6
Total available material is 5000 sq-feet.
We can have full time and part time workers.
Full time workers work 40 hrs/w and are paid $13/hr
Part time workers work 20 hrs/w and are paid $10/hr
We should have at least 20 full time workers.
The number of full time workers must be at least twice of that of
part times.
LP-Formulation Ardavan Asef-Vaziri June-2013 16
Decision variables

X1 : Volume of production of Men’s gloves


X2 : Volume of production of Women’s gloves
X3 : Volume of production of Children’s gloves

Y1 : Number of full time employees


Y2 : Number of part time employees

LP-Formulation Ardavan Asef-Vaziri June-2013 17


Constraints

Row material constraint


2X1 + 1.5X2 + X3  5000
Full time employees
Y1  20
Relationship between the number of Full and Part time employees
Y1  2 Y2
Labor Required
.5X1 + .75X2 + .67X3  40 Y1 + 20Y2
Objective Function
Max Z = 8X1 + 10X2 + 6X3 - 520 Y1 - 200 Y2
Non-negativity
X1 , X2 , X3 , Y1 , Y2  0
LP-Formulation Ardavan Asef-Vaziri June-2013 18
Excel Solution

2 1.5 1 0 <= 5000


1 0 >= 20
1 -2 0 >= 0
0.5 0.75 0.67 -40 -20 0 <= 0
8 10 6 -520 -200 0

X1 X2 X3 Y1 Y2

2 1.5 1 5000 <= 5000


1 25 >= 20
1 -2 0 >= 0
0.5 0.75 0.67 -40 -20 0 <= 0
8 10 6 -520 -200 4500
2500 0 0 25 12.5
X1 X2 X3 Y1 Y2

LP-Formulation Ardavan Asef-Vaziri June-2013 19

You might also like