Self-check 1: problems of TV sets: Solution

• Company A decided to manufacture two models of color TV sets; Model A

and B. The profit realized is $300 from A and $250 from set B. Model A
requires 2 labor hrs and model B requires 1 labour hr. Moreover, Model A
requires 1 machine hr and model B requires 3 machine hrs. There are only
40 hrs available for labor each day in the production department and only
45hrs available on machine time. The company has an ability to sale
(supply) 12 set of model A. The problem of the company is to produce the
optimal models that maximize the profit.
• Required:
Formulate L.P.M. to maximize the profit.
How many sets of each model of TV sets will be produced each day so that
the total profit will be as large as possible?
Compute the amount of slack for the Optimal of TV sets.
Cont.

Resources used per

unit
Constraints Model A Model B Maximum Available hrs.
(x2)
(x1)

Labor hr. 2 1 40
Machine hr. 1 3 45
Marketing/demand 1 0 12
Profit $300 $250
 Solution
1. Formulation of mathematical model (LPM):
Max Z=300X1 +250X2
st: 2X1 +X2 < 40  Labor hr.
X1 + 3X2 < 45  Machine hr.
X1 + < 12  Marketing hr.
X1, X2 > 0
2.Convert constraints inequalities into equalities and
calculate intercepts by simply assuming both sides (RHS & LHS) are
equal
2X1 +X2 = 40 ==> (0, 40) and (20, 0)
X1 +3X2 = 45 ==> (0, 15) and (45, 0)
X1 = 12 ==> (12, 0)
 Solution…Cont’d
3. Draw the graph using the intercepts

•X.2 2x1 +x2 ≤ 40-Labor

hrs.
(0, 40) x1 ≤ 12-Marketing

x1 +3x2 ≤ 45-Machine hr.

B (0,15)
C (12, 11)
Feasible
Region
X1
A D(12, 0) 20 45
 Solution…Cont’d
4. Identify the feasible area/Space/ of the solution which satisfies all constrains.
• Feasible area/region/space is the region in which all solutions that possibly
satisfy the all constraints at same time are included
• Feasible solutions are all values that can satisfy all constraints and can be
included in the FR
• Optimal solutions are the values that optimize the LP model.
• In case of Max problem, optimal solutions are that maximize the objective
function/target value/
• In case of Min problem, optimal solutions are that minimize the objective
function/target value/
• Note that all optimal solutions are feasible solutions but the vice versa may not
• In this case the FR lies in
• Polygon ABCD: A (0, 0), B (0, 15), C (12, 11) and D (12, 0)
 Solution…Cont’d
5. Identify the optimal points/values:
 In maximization problem, we select the co-ordinates giving maximum value.
 And in minimization problem, we select the co-ordinates, which give
minimum value.
Corners Max Z = 300 x1 + 250x2
A(0, 0) = 300x$0 + 250x$0 = $0
B(0, 15) = 300x$0 + 250x$15 = $3750
C(12, 11) = 300x$12 + 250x$11 = $6,350
D(12, 0) = 300x$12 + 250x$0 = $3600

6. Interpretation of the result - The company has to produce 12 units of

Model A TV set and 11 units of model B TV set to yield the maximum
profit of $6,350
 Slack
• is any unused capacity/resources/ for a constraint
• represents idle resource or unused resources,
• do not affect the value of the objective function.
• can not be less than 0, that is, it does not assume negative value because it is
associated with ≤ constraints.
• for each constraint is determined using optimal solution; x1= 12, & x2 = 11.

Constraints Amount of Hrs used Available hrs Slack hrs = (Av – used)
Labour hrs 2 (12) + 11= 35 40 5
12 = 12 0
Marketing 12
Machine hr. 12 +3 (11) = 45 45 0
Note the constraint that includes the feasible solution always have zero slack
 Slack …Cont.
• Thus, the complete solution tells management that
the production of 12 Model A TV set and 11 Model B TV set will
require
 all available Machin hours ( 45 hrs) &
 all available demand (11), and
 Unused /idle/ 7 hours of labour time
• Thus 7 hours of unused labour time is referred to as slack.
 Self-check 2: problem of forklift and truck
• Application: Product Mix:
• A company manufactures two products: forklift and truck. These products
require the following machine resources. The resources are the capacities
of machine M1, M2, and M3. The available capacities for the machines are
50, 25, and 15 hours respectively in the planning period. Forklift requires 1
hour of machine M2 and 1 hour of machine M3. the truck requires 2 hours
of machine M1, 2 hours of machine M2 and 1 hour of machine M3. The
profit contribution of products X and Y are Birr 4 per unit and Birr 5 per
unit respectively.
• Formulate the LP model to the optimal values that maximize the profit of
the company
 Solution…Cont’d
• Step 1: determine the decision variables
• Let the company manufactures x units of forklift and y units of truck.
• Step2: determine the objective: Max(Z): 4x + 5y
• Step 3: determine the constraints for each product and machine
Const. M1 = 0x + 2y ≤ 50
Const. M2 = 1x + 1y ≤ 25
Const. M3 = 1x + 2y ≤ 15
 Solution…Cont’d

• Step 4: formulate the LP model and determine intercepts

Max Z = 4x + 5y
St. M1. 0x + 2y ≤ 50
M2 1x + 2y ≤ 25
M3. 1x + 1y ≤ 15
x, y ≥ 0

Intercepts:
St. M1. 0x + 2y = 50  (0, 25) => horizontal line
M2 1x + 2y ≤ 25  (0, 12.5), ( 25,0)
M3. 1x + 1y ≤ 15  (0, 15), (15, 15)
Step 5: Draw the graph &
determine the FR
Max Z = 4x + 5y M1. 0x + 2y ≤ 50
M2 1x + 2y ≤ 25

M3. 1x + 1y ≤ 15

The FR lies in quadrant ABCD:

A(0, 0), B(0, 12.5) C (5, 10 ) & D(0, 15)
FR
Step 6: Detrain the Optimal points/value/

First determine the point C. 1x + 2(10) = 25

1x + 2y = 25 x = 25- 20 = 5
1x + 1y = 15 C(5, 10)
y = 10 – by eliminating x

Corners OF values
A(0, 0) = 4(0) + 5(0) = $0
B(0, 0) = 4(0) + 5(12.5) = $62.5
C(5, 10) = 4(5) + 5(10) = $70
D( 0, 15) = 4(0) + 5(15) = $75 The Optimal value
 Interpret the result
 The exact location of the optimal solution point is x = 5 & y= 10
 Hence, the optimal production quantities for manufacturing company are 5
forklifts and 10 trucks, with a resulting optimal profit contribution of
$6,350 (optimal value)

Compute the Slack

Constraints Amount of Hrs used Available hrs Slack hrs = (Av – used)
M1 0 (0) + 2(15) = 30 50 20
M2 1 (0) + 2(15) = 25 30 0
1(0) + 1(15) = 15 15 0
M3
 Self-Check 2: the problem of bags: Solution
• Par, Inc., is a small manufacturer of golf equipment and supplies whose
management has decided to move into the market for medium- and high-priced
golf bags. Par’s distributor is enthusiastic about the new product line and has
agreed to buy all the golf bags Par produces over the next three months.
• A golf bag, management determined that each golf bag produced will require the
following four operations: cutting and dyeing the material; sewing, finishing
and inspection and packaging.
• The director of manufacturing analysed each of the operations and concluded
that if the company produces a medium-priced standard model, each bag will
require 7⁄10 hour in the cutting and dyeing department, 1⁄2 hour in the sewing
department, 1 hour in the finishing department, and 1⁄10 hour in the inspection
and packaging department.
• The more expensive deluxe model will require 1 hour for cutting and dyeing,
5⁄6 hour for sewing, 2⁄3 hour for finishing, and 1⁄4 hour for inspection and
packaging.
cont’d
• Par’s production is constrained by a limited number of hours available in
each department where the director of manufacturing estimates that 630
hours for cutting and dyeing, 600 hours for sewing, 708 hours for
finishing, and 135 hours for inspection and packaging will be available
for the production of golf bags during the next three months.
• The accounting department analysed the production data, assigned all
relevant variable costs, and arrived at prices for both bags that will result in a
profit contribution of $10 for every standard bag and $9 for every deluxe
bag produced.
• Required tasks:
• Formulate the LP model
• Determine the optimal solution and the optimal value using corner points method of
graphical method
• Interpret the result
• Determine the slake amount.
 Cont’d
• Describe the Objective: The objective is to maximize the total contribution to
profit.
• Describe Each Constraint: Four constraints relate to the number of hours of
manufacturing time available; they restrict the number of standard bags and the
number of deluxe bags that can be produced.
• Constraint 1: Number of hours of cutting and dyeing time used must be less
than or equal to the number of hours of cutting and dyeing time available.
• Constraint 2: Number of hours of sewing time used must be less than or equal
to the number of hours of sewing time available.
• Constraint 3: Number of hours of finishing time used must be less than or equal
to the number of hours of finishing time available.
• Constraint 4: Number of hours of inspection and packaging time used must be
less than or equal to the number of hours of inspection and packaging time
available.
 Formulation of LPM-E.g. 2 ….cont’d
• Define the Decision Variables:
• The controllable inputs for Par, Inc., are (1) the number of standard bags
produced, and (2) the number of deluxe bags produced.
• Let S = number of standard bags and D = number of deluxe bags.
• In linear programming terminology, S and D are referred to as the
decision variables.
• Par’s total profit contribution comes from two sources: the profit
contribution made by producing S standard bags, and the profit contribution
made by producing D deluxe bags.
• If Par makes $10 for every standard bag, the company will make $10S if S
standard bags are produced. Also, if Par makes $9 for every deluxe bag, the
company will make $9D if D deluxe bags are produced.
• Thus, we have Total Profit Contribution, Max Z = 10S + 9D
 Formulation of LPM-E.g. 2….cont’d

• Formulate the Mathematical Model for the Problem:

• Max Z = 10S + 9D st.

7⁄10S + 1D ≤ 630  hrs of cutting & dying time
1⁄2 S + 5/6D ≤ 600 hrs sewing time
1S + 2⁄3D ≤ 708 Hrs of finishing time
1⁄10S + 1⁄4D ≤ 135  Hrs of inspection and packaging time
S, D ≥ O  Non-negativity
Cont’d.
Determine the optimal solutions and optimal value.
• Our job now is to find the product mix (i.e., the combination of S and
D) that satisfies all the constraints and, at the same time, yields a
value for the objective function that is greater than or equal to the
value given by any other feasible solution. This values are called
feasible values (alternative courses of actions).
• Once Feasible values are calculated, we will have found the optimal
solution and optimal value to the problem and determine the slack
amounts
 Compute the point of intersection of concurrent constraints
• Use simultaneous equation to obtain the intersection points of the constraints at
points C and D (i.e., intersection points of C & D constraint and finishing constraint).
7/10 S + 1D = 630……C & D
1S + 2⁄3 D = 708…….finishing
• To solve for D: 1S + 2⁄3 D= 708  S = 708 – 2/7 D. By substituting this result in the
equation 7/10 S + 1D = 630, we get:
7/10 (708 – 2/3 D) + 1D = 630
495.5 -14⁄30 D + 1D = 630
(-14D + 30D)/30 = 630 – 495.5
16D/30 = 134.5  D = (30 *134.5)/16  D = 252
• To solve for S:1S +2/3 D =708  S+2/3(252)S =708 – 168 S = 540
• In the same way solve for constraints C & D and I & P at point C. We get D = 300,
and S = 420
Draw the Graph
 Determine the Feasible Region (FR)
• The Feasible solutions lie in the feasible region that satisfies all constraints.
• The Feasible region is the Polygon ABCD. Therefore the alternative feasible
solutions are included under this polygon.
• But note that all feasible solutions in FR does not mean they are optimal values but
optimal values are included in feasible solutions.
• Determine the Optimal solution and Value that can achieve the greatest profit
using the corner points/coordinates/method.
Coordinates Max Z = 10S + 9D
A(0,0) 10*0 + 9*0 = $ 0
B(0,360) 10*0+9*360 = $ 3240
C (300, 420) 10*300+9*429 = $6861
D( 252, 540) 10*540+9*252 = $7668
E (708,0) 10*708 +9*0 = $1,080
 Interpretation of the Result
• The exact location of the optimal solution point is S = 540 and D = 252.
• Hence, the optimal production quantities for Par, Inc., are 540 standard
bags and 252 deluxe bags, with a resulting optimal profit contribution of
10(540) 9(252) = $7668 (optimal value).
Determine the amount of Slack variable of hrs at S = 540, and D = 252
for each constraints
Constraints Amount of Hrs used Available hrs Slack hrs
C & D hrs 7⁄10 *(540) + 1*(252) 630 0
Sewing hrs 1⁄2*(540)+5/6*(252) =480 600 120
Finishing hrs 540 + 2⁄3*(252) = 708 708 0
I & P hrs 1⁄10*(540)+1⁄4*(252) =117 135 18
 The Slack Variable
• Thus, the complete solution tells management that the production of 540
standard bags and 252 deluxe bags will require all available cutting and
dyeing time (630 hours) and all available finishing time (708 hours) while
600-480 =120 hours of sewing time and 135-117 = 18 hours of inspection
and packaging time will remain unused.
• The 120 hours of unused sewing time and 18 hours of unused inspection
and packaging time are referred to as slack for the two departments.
• In linear programming terminology, any unused capacity for a constraint
is referred to as the slack associated with the constraint.
• Unused capacity (slack) makes no contribution to profit; thus, slack
variables have coefficients of zero in the objective function. This zero
coefficient implies that slack variables, which represent unused resources,
do not affect the value of the objective function.
 Other Information at graphical solution
• By finding the optimal solution point Par, Inc. bags case, we can see that:
• the cutting and dyeing and the finishing constraints restrict, or bind, the
feasible region at these optimal points. These constraints are called binding
constraints. Thus, this solution requires the use of all available time for these
two operations. In other words, the graph shows us that the cutting and dyeing
and the finishing departments will have zero slack.
• On the other hand, the sewing and the inspection and packaging constraints are
not binding the feasible region at the optimal solution, which means we can
expect some unused time or slack for these two operations. These constraints are
called non-binding constraints.
• In addition the sewing capacity constraint in particular, did not affect the
feasible region. That is, the feasible region would be the same whether the
sewing capacity constraint were included or not. The sewing constraint does not
affect the feasible region and thus cannot affect the optimal solution; it is called
a redundant constraint.
 Solution…Cont’d

• Interpreting the Result:

• The lowest cost to Cohen Chemicals is at point a. Hence the operations
manager should produce 40 tons of the black-and-white chemical and 20 tons
of the color chemical to minimize the cost of production.
• Determine the Surplus resource at x1 =40, and x2= 20
Amount Originally available Surplus
Constraints
Chemical produced resource (Av –Used)

tons of b & w chemical 40 + 0 = 40 30 -10

tons of color chemical 0 + 20 = 20 20 0- no surplus
40 +20 = 60 60 0- no surplus
Total production

• NB - slack variables are always positive whereas

- surplus variables are always negative
 Self-Check 1 (Min. case): problem of
food K & food L-
Solution
• ABC Company mixes two foods – food K & food L- for a special diet. Food
K has 30 units of vitamin C and 90 units of vitamin D per kg. Food L has 40
units of vitamin C and 50 units of vitamin D per kg. The mixture is to have
at least 1,200 units of vitamin C and at least 2970 units of vitamin D. If
Food K costs 30 cents per kg, and Food L costs 20 cents per kg, how many
kg of each food should be used to meet this requirement while keeping
costs to minimum?. Solve the problem using graphic method.
Cont’d…
Cont’d…
 Cont’d…

• Point B is the intersection point of the two graphs, which is found when
the two constraints are equal. Use elimination procedure to determine the
values at the point of intersection.
 30X1+40X2 = 1,200 - multiply by -3 30X1 + 40( 9) =1200
90X1+ 50X2 = 2970 30X1= 1200 - 360

-90X1+ -120X2= -3600 30X1 = 840

90X1+ 50X2= 2970 X1 = 28
-70X2 = -630
X2 = 9
SO B (28, 9)
• All the three corners (A, B, and C) satisfies the constraints, but where is the
optimal value found is our next concern.
• So, we have to evaluate the objective function by considering this three
corner (extreme) points:
Cont’d…

• Thus the minimum cost is 1,020 cents when 28 kg of food K and 9

kg of food L are used.
 Self-check 1- Mixed constraint (Minimization case)
• ABC gasoline company has two refineries (A & B) with different production capacities.
Refinery A can produce 4,000 gallons per day of super unleaded gasoline, 2,000 gallons
per day of regular unleaded gasoline and 1,000 gallons per day of leaded gasoline. On
the other hand, refinery B can produce 1,000 gallons per day of super unleaded, 3,000
gallons per day of regular unleaded and 4,000 gallons per day of leaded gasoline.
• The company has made a contract with an automobile manufacturer to provide 2,4000
gasolines of super unleaded, 42,000 gallons of regular unleaded and 36,000 gallons of
leaded gasoline. The automobile manufacturer wants delivery in not more than 14 days.
The cost of running refinery A is $1500 per day and refinery B is $2400 per day.
• Required:
a) Formulate this problem as a LPM
b) Determine the number of days the gasoline company should operate each refinery in
order to meet the terms of the above contract most economical.(i.e. at a minimum
running cost)
c) Which grade of gasoline would be over produced?
 Solution: a) Model

Let X1 = The No of days refinery A should =>T o simplify the problem divide by 1000 the
work & constraints
X2 =The No of days refinery B should
Min Z =1500x1+2400x2 St:
work.
a. LPP of the problem 4X1+1x2 > 24 ---(0, 24) (6, 0)
Min Z=1500x1 +2400x2 St: 2X1+3x2 > 42 ---(0, 14) (21, 0)
4000x1+1000x2 > 24000----SUG X1+4x2 > 36 ---(0, 9) (36, 0)
2000x1+3000x2 > 42000 ---RUG x1 < 14 --- vertical line

1000x1+2000x2> 36000 ----LG x2< 14 ---horizontal line

x < 14 ----delivery time of x1 , X 2 > 0

E(3,12)

=>T o simplify the problem divide by

1000 the constraints
Min Z =1500x1+2400x2 St:
4X1+1x2 > 24 ---(0, 24)
(6, 0)
2X1+3x2 > 42 ---(0, 14)
(21, 0)
X1+4x2 > 36 ---(0, 9)
(36, 0)
• Point A: • Point D:
X2 = 14---delivery time of A 2x1+3x2 =42--- RUG:

4x1+x2 =24 --- SUG: x1+4x2=36 --- LG--- multiply by 2

4x1 + 14 = 24 2x1+3x2 =42

4x1 = 10 2x1+ 8x2=72

 -5x2 = -30  x2 = 6
x1 = 2.5
• Point B: x1+4(6)=36 x1 = 36-24 x1 = 12
Point E:
X1 = 14---delivery time of A 2x1+3x2 =42--- RUG:
X2 = 14---delivery time of A 4X1+1x2 = 24 ---SUG ---multiply by
3
2x1+3x2 =42
12x1 + 3x2 = 72
-10x = 30  x = 3
 Cont.

________________________________________________________________
. Corners Coordinates Max Z = 1500x1 + 2400x2
A (2.5, 4) $37,350
B (14, 14) 54,600
C (14, 5.5) 34200
D (12, 6) 32,400
E (3, 12) 33,300
_______________________________________________________________

Interpretation: The oil company should operate refinery A for

12 days and refinery B for 6 days at a minimum operating cost of
$32,400.
 C) Which grade of gasoline would be over produced?
• SUG: 4000X1+1000X2> 24000
4000(12) +1000(6)> 24000
54000 > 24000
• Therefore, 30,000 gallons over production
• RUG: 2000X1+3000X2>42000
2000(12) +3000(6)>42000
42000 > 42000
• Therefore, there is no over production of RUG
• LG: 1000X1+4000X2>36000
1000(12) +1000(6)>36000
36000 > 36000
• Therefore, No over production of LG
 Self-check 2: (Mixed constraint Minim
case)- solution
• Ozark Farms uses at least 800 lb of special feed daily. The special feed is a
mixture of corn and soybean meal with the following compositions:

• The dietary requirements of the special feed are at least 30% protein and
at most 5% fibre. Ozark Farms wishes to determine the daily minimum-
cost feed mix.
 Mini. Cont.
DV: Because the feed mix consists of corn and soybean meal, the decision variables of
the model are defined as
x1 = lb of corn in the daily mix
x2 = lb of soybean meal in the daily mix
OF: The objective function seeks to minimize the total daily cost (in dollars) of the
feed mix and is thus expressed as Minimize z = 0.3x1 + 0.9x2
Constraints: The constraints of the model reflect the:
daily amount of feed needed and
the dietary requirements.
 Mini. Cont.
• Because Ozark Farms needs at least 800Ib of feed a day, the associated
constraint (daily feed) can be expressed as x1+ x2 ≥ 800- total feed mix
needed per day
• As for the protein dietary requirement constraint, the amount of protein
included in x1 lb of corn and x2 lb of soybean meal is 0.09x1lb + 0.6x2 lb.
• This quantity should equal at least 30% of the total feed mix of protein (x1 +
x2) lb-that is, 0.09x1 + 0.6x2 ≥ 0.3 (x1+x2)
• In a similar manner, the fibre requirement of at most 5% of total feed mix
of fibr is constructed as .02x1 + 0.06x2 ≤ 0.05 (x1+x2).
Mini. Cont.
• The l.p.p. model
• Minimize z= .3x1 + .9x2
• Subject to x1 + x2 ≥ 800
.21x1 –.30x2 ≤ 0
.03x1 - .0lx2 ≥ 0
x1, x2 ≥ 0
 Mini. Cont.
• Because the present model seeks the minimization of the objective
function, we need to reduce the value of z as much as possible in the
direction shown in Figure below.
• The optimum solution is the intersection of the two lines x1 + x2 = 800
and .21x1 - .3X2 = 0, which yields X1 = 470.591b and X2 = 329.41 lb.
• The associated minimum cost of the feed mix is z = .3 X 470.59 + .9 x
329.42 = $437.65 per day.
 Self-check 3 (Mixed constraint- Max case-solution

• Calculate the maximal value of z = 5x + 3y for the following constraints.

x + 2y ≤ 14
3x – y ≥ 0
x–y≤2
x, y ≥ 0
First: find interception points
x + 2y ≤ 14  (0, 7), ( 14, 0)
3x – y ≥ 0  (0, 0), ( 1, 0), (2, 0), (3,0)
x – y ≤ 2  (0, -2), ( 2, 0), (3, 1)
x, y ≥ 0
Cont.

B(6, 2)

C(6, 4)

0)
( 2,
A(0, 0) D
 Cont.

• Now pair the lines to form a system of linear equations to find the
corner points.
3x – y = 0 <--------- multiply by 2
x + 2y = 14
x + 2y = 14
X–y=2
3y = 12 6x -2y = 0
y = 4 x + 2y = 14
X -4 = 2 7x = 14
X = 6 X=2
C( 2, 6)  3(2) -y = 0
 Y= 6
 B( 2, 6)
Cont.
Coordinates Max Z = 5x + 3y
A(0,0) 5*0 + 3*0 = 0
B(6,2) 5*6 + 3*2 = 36
C (6, 4) 5*6 + 3*4 = 42
D( 2, 0) 5*2 + 3*0 = 10

Hence, the maximum of Max z = 42, lies at (6, 4)