This document contains solved linear programming problems and their solutions. It includes problems related to business decision analysis, production planning, and resource allocation. The solutions are obtained using graphical solution procedure to find the optimal solution and maximize total profit contribution.
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BUsiness decision analysis maths <student name> <UNIVERSITY NAME> APRIL 25, 2019
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Individual Problem 3: Question 10: For the linear program SELF test Max 2A + 3B s.t. 1A+2B≤6 5A + 3B≤15 A, B≤0 Find the optimal solution using the graphical solution procedure. What is the value of the objective function at the optimal solution? Sol. On plotting the constraints, we get the following graphical output: Thus, the requires area has only one extreme point, i.e., (0,0) We can check the objective function only on this point Putting P(0,0) in 2A + 3B Max(z) = 0 Checking objective function for any other value in the range, say, (-1,-1) z= 2(-1) +3(-1) z = -5 Hence for all other values other than (0,0), z will be negative, 1A+2B≤ 6 5A + 3B≤ 15 A<=0 B<=0
So max value of z will be at P(0,0) Question 13: Consider the following linear program: Max 1A + 2B s.t. 1A≤5 1B≤5 2A + 2B =12 A, B≤0 a. Show the feasible region Sol. b. what are the extreme points of the feasible region? Sol. Extreme points of the feasible region: P(5,1) and Q(1,5) c. Find the optimal solution using the graphical procedure. Sol. Checking the objective function at P(5,1) z= 5 + 2(1) z= 5+2=7 B<=5A<= 5 2A + 2B = 12P(5,1) Q(1,5 )
Checking objective function at Q(1,5) z=1+2(5) z=11 Optimal solution = Q(1,5) Question 14: Par, Inc., is a small manufacturer of golf equipment and supplies. Par’s distributor be- lieves a market exists for both a medium-priced golf bag, referred to as a standard model, and a high-priced golf bag, referred to as a deluxe model. The distributor is so confident of the market that, if Par can make the bags at a competitive price, the distributor will purchase all the bags that Par can manufacture over the next three months. A careful analysis of the manufacturing requirements resulted in the following table, which shows the production time requirements for the four required manufacturing operations and the accounting department’s estimate of the profit contribution per bag: The director of manufacturing estimates that 630 hours of cutting and dyeing time, 600 hours of sewing time, 708 hours of finishing time, and 135 hours of inspection and packaging time will be available for the production of golf bags during the next three months. a. If the company wants to maximize total profit contribution, how many bags of each model should it manufacture? Sol. Let the company manufacture x no Standard of bags and y no of Deluxe bags Max(z)=10x + 9y s.t: 7 10x+1y≤630 1 2x+5 6y≤600
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x+2 3y≤708 1 10x+1 4y≤135 x≥0 y≥0 We get the value of extreme points as P(0,540), Q(300,420), R(540,250), S(710,0) and T(0,0) z(P)=10*0+9*540=4860 z(Q)=10*300+9*420 = 3000+3780=6780 z(R)=10*540+9*250=5400+2250=7650 z(S)=10*710+0*9=7100 z(T)=0 Max(z) is at r(540,250) For maximized production, the company should produce 540 standard bags and 250 deluxe bags b. what profit contribution can Par earn on those production quantities? Sol.
z(R)=10*540+9*250=5400+2250=7650 profit earned = 7650 c. How many hours of production time will be scheduled for each operation? Sol. Cutting and Dying 7 10x+1y 7 10∗540+250 628hours Sewing 1 2x+5 6y 1 2∗540+5 6∗250 270+208.33=478.33hours Finishing x+2 3y 540+2 3∗250 540+166.66=706.66hours Inspection and packaging 1 10x+1 4y 540 10+250 4 54+62.5 116.5hours d. what is the slack time in each operation? Sol.
Cutting and dying 630−628=2hours sewing 600−478.33=121.67hours finishing 708−706.66=1.34hours inspection and packaging 135−116.5=18.5hours Question24: Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a regular model and a catcher’s model. The firm has 900 hours of production time available in its cutting and sewing department, 300 hours available in its finishing department, and 100 hours available in its packaging and shipping department. The production time requirements and the profit contribution per glove are given in the following table: Assuming that the company is interested in maximizing the total profit contribution, an- swer the following: a. what is the linear programming model for this problem? Sol. Let the company produces x regular model and y catcher’s model Max(z)=5x+8y s.t: x+3 2y≤900 x 2+y 3≤300
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x 8+y 4≤100 x≥0 y≥0 b. Find the optimal solution using the graphical solution procedure. How many gloves of each model should Kelson manufacture? Extreme point coordinates: P(0,400), Q(0,0), R(500,150), S(600,0) z(P)=5(0)+8(400)=3200 z(Q)=0 z(R)=5(500)+8(150)=2500+1200=3700 z(S)=5(600)+8(0)=3000 Solution: R(500,150) c. what is the total profit contribution Kelson can earn with the given production quantities? Sol. Total profit contribution is z(R)=3700 d. How many hours of production time will be scheduled in each department? Sol. Cutting and Sewing:
x+3 2y ¿500+3 2150 500+225=725hours Finishing x 2+y 3 500 2+150 3 250+50=300 Packaging and Shipping x 8+y 4 500 8+150 4 62.2+37.5=100 e. what is the slack time in each department? Cutting and Sewing: 900-725=175 hours Finishing: 30-300= 0 hours Packaging and Shipping: 100-100=0 hours Question 36 36. As part of a quality improvement initiative, Consolidated Electronics employees complete a three-day training program on team building and a two-day training program on problem solving. The manager of quality improvement has requested that at least 8 training pro- grams on team building and at least 10 training programs on problem solving be offered during the next six months. In addition, senior-level management has specified that at least 25 training programs must be offered during this period. Consolidated Electronics uses a consultant to teach the training programs. During the next quarter, the consultant has 84 days of training time available. Each
training program on team building costs $10,000 and each training program on problem solving costs $8000. a. Formulate a linear programming model that can be used to determine the number of training programs on team building and the number of training programs on problem solving that should be offered in order to minimize total cost. Sol. Let the no of training programs on team building be x and the no of no of training program on problem solving be y Min(z)=10000x+8000y s.t: x≥8 y≥10 x+y≥25 2x+3y≤84 b. Graph the feasible region. c. Determine the coordinates of each extreme point. Sol. Coordinates are P(8,22), Q(28,10) d. Solve for the minimum-cost solution. z(P) =10000(8)+8000(22)
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=80000+176000 =256000 z(Q)=10000(28)+8000(10) =280000+80000 360000 Min cost solution =P(8,22) Question 41: Southern Oil Company produces two grades of gasoline: regular and premium. The profit contributions are $0.30 per gallon for regular gasoline and $0.50 per gallon for premium gasoline. Each gallon of regular gasoline contains 0.3 gallons of grade A crude oil and each gallon of premium gasoline contains 0.6 gallons of grade A crude oil. For the next production period, Southern has 18,000 gallons of grade A crude oil available. The re- finery used to produce the gasolines has a production capacity of 50,000 gallons for the next production period. Southern Oil’s distributors have indicated that demand for the premium gasoline for the next production period will be at most 20,000 gallons. a.Formulate a linear programming model that can be used to determine the number of gallons of regular gasoline and the number of gallons of premium gasoline that should be produced in order to maximize total profit contribution. Sol. Let the company produces x gallons of regular gasoline and y gallons of premium gasoline Max(z)=0.30x+0.50y s.t: b. what is the optimal solution? c. Extreme points: P(0,0),Q(0,20000),R(20000,20000), S(40000,10000), T(50000,0) z(P)=0 z(Q)=0.3*0+0.5*20000=10000
z(R)=0.3*20000+0.3*20000=12000 z(S)=0.3*40000+0.5*10000=17000 z(T)=0.3*50000=15000 Extreme Value solution = S(40000,10000) c. what are the values and interpretations of the slack variables? y=20000-10000=10000 x=0 d. what are the binding constraints? 0.3x+0.6y<=18000 x+y<=50000 y<=20000 x>=0 y>=0