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Sam's Club Fertilizer Optimization Model

The document presents several examples of problems formulated as linear programming models to maximize profit or minimize costs given constraints. It describes problems involving determining optimal production levels at two mills to meet supply contracts, optimal investment amounts in two securities given return and risk constraints, optimal blending processes at an oil company, and optimal crop production levels on a farm to maximize profit under labor and land constraints. The examples are presented to illustrate how to set up linear programming problems mathematically to solve real-world optimization issues.

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Radhika Majithia
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35 views13 pages

Sam's Club Fertilizer Optimization Model

The document presents several examples of problems formulated as linear programming models to maximize profit or minimize costs given constraints. It describes problems involving determining optimal production levels at two mills to meet supply contracts, optimal investment amounts in two securities given return and risk constraints, optimal blending processes at an oil company, and optimal crop production levels on a farm to maximize profit under labor and land constraints. The examples are presented to illustrate how to set up linear programming problems mathematically to solve real-world optimization issues.

Uploaded by

Radhika Majithia
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

11.

12.

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14 Solve graphically

15 solve graphically

16 Solve graphically
17 Solve graphically

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19 Graphical Method

20 Graphical Method
21 Graphical Method

22 Graphical Method

23 Graphical Method
24 Graphical Method

25 Graphical Method

26 Graphical Method

27 Graphical Method
28 Graphical Method

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Suppose an industry is manufacturing tow types of products P1 and P2. The profits per Kg of the
two products are Rs.30 and Rs.40 respectively. These two products require processing in three
types of machines. The following table shows the available machine hours per day and the time
required on each machine to produce one Kg of P1 and P2. Formulate the problem in the form of
linear programming model.
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A company owns two flour mills viz. A and B, which have different production capacities for
high, medium and low quality flour. The company has entered a contract to supply flour to a firm
every month with at least 8, 12 and 24 quintals of high, medium and low quality respectively. It
costs the company Rs.2000 and Rs.1500 per day to run mill A and B respectively. On a day, Mill
A produces 6, 2 and 4 quintals of high, medium and low quality flour, Mill B produces 2, 4 and
12 quintals of high, medium and low quality flour respectively. How many days per month
should each mill be operated in order to meet the contract order most economically.

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38 Solve graphically
39 Solve graphically

40 Solve graphically

41 Solve graphically

42 Solve graphically

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An investor is considering investing in two securities 'A' and 'B'. The risk and return associated with
these securities is different. Security 'A' gives a return of 9% and has a risk factor of 5 on a scale of
zero to 10. Security 'B' gives return of 15% but has risk factor of 8.
Total amount to be invested is Rs. 5, 00, 000/- Total minimum returns on the investment should be
12%. Maximum combined risk should not be more than 6. Formulate as LPP.

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50 A manager at an oil company wants to find optimal mix of two blending processes. Formulate
LPP.

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A farmer has 200 acres of land. He produces three products X, Y & Z. Average yield per acre for X,
Y & Z is 4000, 6000 and 2000 kg.
Selling price of X, Y & Z is Rs. 2, 1.5 & 4 per kg respectively. Each product needs fertilizers. Cost of
fertilizer is Rs. 1 per kg. Per acre need for fertilizer for X, Y & Z is 200, 200 & 100 kg respectively.
Labour requirements for X, Y & Z is 10, 12 & 10 man hours per acre. Cost of labour is Rs. 40 per man
hour. Maximum availability of labour is 20, 000 man hours. Formulate as LPP to maximise profit.

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