Beaver Creek

The Beaver Creek Pottery Company

Products: Bowl Mug

Profit per unit: Resources
Resources: Usage Constraint
labor (hr/unit) <=
clay (lb/unit) <=

Production:
maximize Z = 40x1 + 50x2
Bowls =
Mugs = subject to:
Profit =
1x1 + 2x2 <= 40
4x1 + 3x2 <= 120
x1, x2 >= 0

Q2) If increase in labor hours from 40 to 80?

Page 1
 Beaver Creek

Resources
Available Left over

maximize Z = 40x1 + 50x2

subject to:

1x1 + 2x2 <= 40

4x1 + 3x2 <= 120
x1, x2 >= 0

Page 2
 Additional constraints

The Beaver Creek Pottery Company

Products: Bowl Mug

Profit per unit:
Resources: Usage Constraints Available Left over
labor (hr/unit) <=
clay (lb/unit) <=
packaging(hr/unit) <=

Production:
Bowls = maximize Z = 40x1 + 50x2
Mugs =
Profit = subject to:

1x1 + 2x2 <= 40

4x1 + 3x2 <= 120
0.2x1 + 0.1x2 <= 5
x1, x2 >= 0

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 Xecho

Example Problem: The Xecko Tool Company

Products: Part 1 Part 2

Profit per unit:
Resources: Usage Constraints Available Left over
stamping (hr) <=
drilling (hr) <=
finishing (hr) <=

Production:
Part 1 =
Part 2 =
Profit = 0

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 T-shirts Product Mix

A Product Mix Example

Products: X1 X2 X3 X4
Profit per box:
Resources:
processing time (hr/box)
shipping capacity (boxes)
budget ($/box)
blank sweatshirts (boxes)
blank T-shirts (boxes)

Production:
X1 = sweatshirts, front printing
X2 = sweatshirts, back and front printing
X3 = T-shirts, front printing
X4 = T-shirts, back and front printing
Profit =

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 T-shirts Product Mix

Resources
Usage Constraints Available Left over
<=
<=
<=
<=
<=

maximize Z = 90x1 + 125x2 + 45x3 + 65x4

subject to:

.1x1 + .25x2 + .08x3 + .21x4 <= 72

3x1 + 3x2 + x3 + x4 <= 1200
36x1 + 48x2 + 25x3 + 35x4 <= 25000
x1 + x2 <= 500
x3 + x4 <= 500
x1, x2, x3, x4 >= 0

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T-shirts Product Mix

Page 7
 Diet

A Diet Example
Nutrient Contributions
Calories Fat Cholesterol Iron
Breakfast Food Serving Unit Cost ($) g mg mg
Bran cereal = cup 0.18 90 0 0 6
Dry cereal = cup 0.22 110 2 0 4
Oatmeal = cup 0.10 100 2 0 2
Oat bran = cup 0.12 90 2 0 3
Egg = egg 0.10 75 5 270 1
Bacon = slice 0.09 35 3 8 0
Orange = orange 0.40 65 0 0 1
Milk - 2% = cup 0.16 100 4 12 0
Orange juice = cup 0.50 120 0 0 0
Wheat toast = slice 0.07 65 1 0 1
Nutritional Levels
Constraints >= <= <= >=
Nutritional Requirements 420 20 30.00 5

Cost Per Meal =

minimize Z = .18x1 + .22x2 + .10x3 + .12x4 +

subject to:

90x1 + 110x2 + 100x3 + 90x4 + 75x5 + 35x6

2x2 + 2x

6x1 +
20x1 + 48x2 + 12x3 + 8x4 + 30
3x1 + 4x2 + 5x3 + 6x4 +
5x

Page 8
 Diet

ient Contributions
Calcium Protein Fiber
mg g g
20 3 5
48 4 2
12 5 3
8 6 4
30 7 0
0 2 0
52 1 1
250 9 0
3 1 0
26 3 3

>= >= >=

400 20.00 12

e Z = .18x1 + .22x2 + .10x3 + .12x4 + .10x5 + .09x6 + .40x7 + .16x8 + .50x9 + .07x10

o:

+ 110x2 + 100x3 + 90x4 + 75x5 + 35x6 + 65x7 + 100x8 + 120x9 + 65x10 >= 420
2x2 + 2x3 + 2x4 + 5x5 + 3x6 + 4x8 + x10 <= 20
270x5 + 8x6 + 12x8 <= 30
6x1 + 4x2 + 2x3 + 3x4 + x5 + x7 + x10 >= 5
20x1 + 48x2 + 12x3 + 8x4 + 30x5 + 52x7 + 250x8 + 3x9 + 26x10 >= 400
3x1 + 4x2 + 5x3 + 6x4 + 7x5 + 2x6 + x7 + 9x8 + x9 + 3x10 >= 20
5x1 + 2x2 + 3x3 + 4x4 + x7 + 3x10 >= 12
xij >= 0

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 Investment

An Investment Example

Investments: X1 X2 X3 X4
Rate of return:
Guidelines:
1. municipal bonds
2. CDs
3. treasury bills and CDs
4. ratio
total invested

Returns:
X1 = invested in municipal bonds
X2 = invested in CDs
X3 = invested in treasury bills
X4 = invested in stock fund
Z= total return

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 Investment

Guidelines
Achievement Constraints Requirements Slack/Surplus
<= 14000.00
<= 0.00
>= 21000.00
>= 0.00
= 70000.00

maximize Z = .085x1 + .050x2 + .065x3 + .130x4

subject to:

x1 <= 14000
x2 - x1 - x3 - x4 <= 0
x2 + x3 >= 21000
-1.2x1 + x2 + x3 - 1.2x4 >= 0
x1 + x2 + x3 + x4 = 70000
x1, x2, x3, x4 >= 0

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Investment

Page 12
A Marketing Example

Exposure Cost
Type of Advertising Number (people/ad) ($) Resources Actual
Television commercials = 20,000 15,000 TV commercials
Radio commercials = 12,000 6,000 Radio commercials
Newspaper ads = 9,000 4,000 Newspaper ads
Total ads and commercials
Total Exposures = Cost ($)

maximize Z = 20000x1 + 12000x2 + 9000x3

subject to

15000x1 + 6000x2 + 4000x3 <= 100000

x1 <= 4
x2 <= 10
x3 <= 7
x1 + x2 + x3 <= 15
x1, x2, x3 >= 0
 Constraint Available
<=
<=
<=
<=
<=

0000x1 + 12000x2 + 9000x3

x1 + 6000x2 + 4000x3 <= 100000

x1 <= 4
x2 <= 10
x3 <= 7
x1 + x2 + x3 <= 15
x1, x2, x3 >= 0
A Transportation Example

Store TV Sets
Warehouse New York Dallas Detroit Shipped Constraint Supply
Cincinnati <= 300
Atlanta <= 200
Pittsburgh <= 200
TV Sets Shipped
Constraints = = =
Demand 150 250 200
Cost = $

minimize Z = 16x1A + 18x1B + 11x1C + 14x2A + 12x2B + 13x2C + 13x3A + 15x3B + 17x3C

subject to

x1A + x1B + x1C <= 300

x2A + x2B + x2C <= 200
x3A + x3B + x3C <= 200
x1A + x2A + x3A = 150
x1B + x2B + x3B = 250
x1C + x2C + x3C = 200
xij >= 0
3A + 15x3B + 17x3C
 Sol-Beaver Creek

The Beaver Creek Pottery Company

maximize Z = 40x
Products: Bowl Mug
Profit per unit: 40 50 Resources subject to:
Resources: Usage Constraint Available Left over
labor (hr/unit) 1 2 40 <= 40 3.5729E-07 1x1 + 2x2 <
clay (lb/unit) 4 3 120 <= 120 0 4x1 + 3x2 <
x1, x2 >
Production:
Bowls = 24
Mugs = 8
Profit = 1360

Page 17
 Sol-Beaver Creek

maximize Z = 40x1 + 50x2

subject to:

1x1 + 2x2 <= 40

4x1 + 3x2 <= 120
x1, x2 >= 0

Page 18
 Sol-Additional constraints

The Beaver Creek Pottery Company

maximize Z = 40x1 + 50x2
Products: Bowl Mug
Profit per unit: 40 50 subject to:
Resources: Usage Constraints Available Left over
labor (hr/unit) 1 2 40 <= 40 0 1x1 + 2x2 <= 40
clay (lb/unit) 4 3 110 <= 120 10 4x1 + 3x2 <= 120
packaging(hr/unit) 0.2 0.1 5 <= 5 0 0.2x1 + 0.1x2 <= 5
x1, x2 >= 0
Production:
Bowls = 20
Mugs = 10
Profit = 1300

Page 19
 Sol-Additional constraints

mize Z = 40x1 + 50x2

ect to:

1x1 + 2x2 <= 40

4x1 + 3x2 <= 120
0.2x1 + 0.1x2 <= 5
x1, x2 >= 0

Page 20
 Sol-Xecko

Example Problem: The Xecko Tool Company

Products: Part 1 Part 2

Profit per unit: 650 910
Resources: Usage Constraints Available Left over
stamping (hr) 4.0 7.5 105 <= 105 0
drilling (hr) 6.2 4.9 90 <= 90 0
finishing (hr) 9.1 4.1 98.6487 <= 110 11

Production:
Part 1 = 5.97
Part 2 = 10.82
Profit = 13722.49

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 Sol-T-shirts mix

A Product Mix Example

Products: X1 X2 X3 X4
Profit per box: 90 125 45 65 Resources
Resources: Usage Constraints
processing time (hr/box) 0.1 0.25 0.08 0.21 72.0 <=
shipping capacity (boxes) 3 3 1 1 1200.0 <=
budget ($/box) 36 48 25 35 21593.3 <=
blank sweatshirts (boxes) 1 1 233.3 <=
blank T-shirts (boxes) 1 1 500.0 <=

Production:
X1 = 175.56 sweatshirts, front printing maximize Z = 90x1 + 125x2 + 45x3 + 65x4
X2 = 57.78 sweatshirts, back and front printing
X3 = 500.00 T-shirts, front printing subject to:
X4 = 0.00 T-shirts, back and front printing
Profit = 45522.22 .1x1 + .25x2 + .08x3 + .21x4 <= 72
3x1 + 3x2 + x3 + x4 <= 1200
36x1 + 48x2 + 25x3 + 35x4 <= 2500
x1 + x2 <= 500
x3 + x4 <= 500
x1, x2, x3, x4 >= 0

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 Sol-T-shirts mix

Resources
Available Left over
72 0.0
1200 0.0
25000 3406.7
500 266.7
500 0.0

e Z = 90x1 + 125x2 + 45x3 + 65x4

o:

.1x1 + .25x2 + .08x3 + .21x4 <= 72

3x1 + 3x2 + x3 + x4 <= 1200
36x1 + 48x2 + 25x3 + 35x4 <= 25000
x1 + x2 <= 500
x3 + x4 <= 500
x1, x2, x3, x4 >= 0

Page 23
A Diet Example
Nutrient Contributions
Calories Fat Cholesterol Iron Calcium
Breakfast Food Serving Unit Cost ($) g mg mg mg
Bran cereal = 0 cup 0.18 90 0 0 6 20
Dry cereal = 0 cup 0.22 110 2 0 4 48
Oatmeal = 1.025 cup 0.10 100 2 0 2 12
Oat bran = 0 cup 0.12 90 2 0 3 8
Egg = 0 egg 0.10 75 5 270 1 30
Bacon = 0 slice 0.09 35 3 8 0 0
Orange = 0 orange 0.40 65 0 0 1 52
Milk - 2% = 1.241 cup 0.16 100 4 12 0 250
Orange juice = 0 cup 0.50 120 0 0 0 3
Wheat toast = 2.975 slice 0.07 65 1 0 1 26
Nutritional Levels 420 9.99 14.90 5.02 400
Constraints >= <= <= >= >=
Nutritional Requirements 420 20 30.00 5 400

Cost Per Meal = $ 0.509

minimize Z = .18x1 + .22x2 + .10x3 + .12x4 + .

subject to:

90x1 + 110x2 + 100x3 + 90x4 + 75x5 + 35x6

2x2 + 2x3

6x1 + 4
20x1 + 48x2 + 12x3 + 8x4 + 30x
3x1 + 4x2 + 5x3 + 6x4 + 7
5x
butions
Protein Fiber
g g
3 5
4 2
5 3
6 4
7 0
2 0
1 1
9 0
1 0
3 3
25.22 12
>= >=
20.00 12

+ .22x2 + .10x3 + .12x4 + .10x5 + .09x6 + .40x7 + .16x8 + .50x9 + .07x10

0x3 + 90x4 + 75x5 + 35x6 + 65x7 + 100x8 + 120x9 + 65x10 >= 420
2x2 + 2x3 + 2x4 + 5x5 + 3x6 + 4x8 + x10 <= 20
270x5 + 8x6 + 12x8 <= 30
6x1 + 4x2 + 2x3 + 3x4 + x5 + x7 + x10 >= 5
+ 48x2 + 12x3 + 8x4 + 30x5 + 52x7 + 250x8 + 3x9 + 26x10 >= 400
3x1 + 4x2 + 5x3 + 6x4 + 7x5 + 2x6 + x7 + 9x8 + x9 + 3x10 >= 20
5x1 + 2x2 + 3x3 + 4x4 + x7 + 3x10 >= 12
xij >= 0
 Sol-Investment

An Investment Example

Investments: X1 X2 X3 X4
Rate of return: 0.085 0.05 0.065 0.13 Guidelines
Guidelines: Achievement Constraints
1. municipal bonds 1 0.00 <=
2. CDs -1 1 -1 -1 -70000.00 <=
3. treasury bills and CDs 1 1 38181.82 >=
4. ratio -1.2 1 1 -1.2 0.00 >=
total invested 1 1 1 1 70000.00 =

Returns:
X1 = 0 invested in municipal bonds
X2 = 0 invested in CDs
X3 = 38181.82 invested in treasury bills
X4 = 31818.18 invested in stock fund
Z = 6618.18 total return

maximize Z = .085x1 + .050x2 + .065x

subject to:

x1 <= 1400
x2 - x1 - x3 - x4 <= 0
x2 + x3 >= 2100
-1.2x1 + x2 + x3 - 1.2x4 >= 0
x1 + x2 + x3 + x4 = 7000
x1, x2, x3, x4 >= 0

Page 26
 Sol-Investment

Guidelines
Requirements Slack/Surplus
14000.00 14000.00
0.00 70000.00
21000.00 17181.82
0.00 0.00
70000.00 0.00

mize Z = .085x1 + .050x2 + .065x3 + .130x4

ect to:

x1 <= 14000
x2 - x1 - x3 - x4 <= 0
x2 + x3 >= 21000
-1.2x1 + x2 + x3 - 1.2x4 >= 0
x1 + x2 + x3 + x4 = 70000
x1, x2, x3, x4 >= 0

Page 27
 Sol_Marketing

A Marketing Example

Exposure Cost
Type of Advertising Number (people/ad) ($) Resources Actual
Television commercials = 1.818 20,000 15,000 TV commercials 1.82
Radio commercials = 10.000 12,000 6,000 Radio commercials 10
Newspaper ads = 3.182 9,000 4,000 Newspaper ads 3.18
Total ads and commercials 15
Total Exposures = 185000 Cost ($) 100,000

maximize Z = 20000x1 + 12000x2 + 9000x3

subject to

15000x1 + 6000x2 + 4000x3 <= 10000

x1 <= 4
x2 <= 10
x3 <= 7
x1 + x2 + x3 <= 15
x1, x2, x3 >= 0

Page 28
 Sol_Marketing

Constraint Available
<= 4
<= 10
<= 7
<= 15
<= 100,000

20000x1 + 12000x2 + 9000x3

0x1 + 6000x2 + 4000x3 <= 100000

x1 <= 4
x2 <= 10
x3 <= 7
x1 + x2 + x3 <= 15
x1, x2, x3 >= 0

Page 29
 Sol_transportation

A Transportation Example

Store TV Sets
Warehouse New York Dallas Detroit Shipped Constraint Supply
Cincinnati 0 0 200 200 <= 300
Atlanta 0 200 0 200 <= 200
Pittsburgh 150 50 0 200 <= 200
TV Sets Shipped 150 250 200
Constraints = = =
Demand 150 250 200
Cost = $ 7300

minimize Z = 16x1A + 18x1B + 11x1C + 14x2A + 12x2B + 13x2C + 13x3A + 15x3B + 17x3C

subject to

x1A + x1B + x1C <= 300

x2A + x2B + x2C <= 200
x3A + x3B + x3C <= 200
x1A + x2A + x3A = 150
x1B + x2B + x3B = 250
x1C + x2C + x3C = 200
xij >= 0

Page 30
 Sol_transportation

x3A + 15x3B + 17x3C

Page 31