280. CHAPTER7 + LINEAR PROGRAMMING Discussion Questions and Problems Statement has any merit? Explain why the manager ‘may have said it, ‘The mathematical relationships that follow were formulated by an operations research analyst at the ‘Smith-Lawton Chemical Company. Which ones are invalid for use in an LP problem, and why? 18 AX, + 3XiXp + 8X + 5% 2K ++ WHS 50 x — aX, 26 ISX} + 6X + 3% = 21 19X) ~ 0.35X3 = 17 SX + 4X, + 3V% = 80 “x ate ee 7-9. Discuss the role of sensitivity analysis in LP. Under what circumstances is it needed, and under what conditions do you think itis not necessary” MODELS: GRAPHICAL AND COMPUTER METHODS Discussion Questions 7-10 A linear program has the objective of maximiz~ 7-1 Discuss the similarities and differences between ing profit jum profit is a cu aaxienization problems using the $5,000, Using a computer we find the upper bound ee can armenian for profit on Xis 20 andthe lower bound is 9. Dis- ———rt— tus the changes to the optimal solution (the values Te ant uate agi ode Sf the variables and the profit) that would ooeur if ‘What are the assumptions and requirements for an the profit on X were increased to S15, How would Te eet thea sion change ifthe poston wer 7-3 It bas been said that each LP problem that has a ieee eee feasible region has an infinite number of solutions. 7-11. A linear program has « maximum profit of $600 an One constraint in this problem is 4X + 2Y = 80. 1.4, Yeah jot ommuated a maximization LP prob Using compa i he i lem and ase preparing to solve it graphically. What tipper bound of 100, Explain what this meses Caiteria should you consider in deciding whether it crea shold you cose in idng whee 7.12 Develp your own origina! LP rblem with two Seca a menace est constrains and (wo rea variables 5. Under what condition is it possible for an LP prob- (@) Explain the meaning of the numbers om he gh te ee ae al lea hand side ofeach of your constrains. 2 ee mira of consi euatns mn (@) Explain the significance ofthe techological ceeficiets rales and use thers to ilusrate graphically each quate and ue hen oes gop {0 Solve yout problem graphically to find the opi mma solution (a) an unbounded problem (@) Illustrate graphically the effect of increasing ‘the (b) an infeasible problem contribution rate of your first variable (X;) by (©) aproblem containing redundant constants 50% over the value you Gest assigned it, Does 1-1 ‘The production manager of a large Cincinnati this change the optimal solution? Mmonefactoring firm once made the statement, 7-[3_Expainhow a change na techeologis ose’ T wool ike to use LP, but it's a technique that {au affect problem's optima solution, How cana ‘operates under conditions of certainty. My plant ‘change in resource availabilty affect a solution? oesn't have that certainty; i's a world of une diay. So LP can't be used here” Do you think his Problems ‘The Electrocomp Corporation manufactures (wo cleetrical products: air conditioners and large fans. ‘The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each fir conditioner takes 3 hours of wiring and 2 hours of Grilling. Ench fan must go through 2 hours of wiring fand 1 hour of drilling. During the next production period, 240 hours of wiring time are available and Up to 140 hours of drilling time may be used. Each air conditioner sold yields a profit of $25. Each fan assembled may be sold for a $15 profit. Formulate fand solve this LP production mix situation to find the best combination of air conditioners and fans that yields the highest profit. Use the corner point raphical approach, Feleetrocomp's management realizes that it forgot 10 {include two critical constraints (see Problem 7-14) In particular, management decides that there should bea minimum number of air conditioners produced aur means th problem ny be solved wth QM fr Windows: 26 means the problem may Be solved with ce: and & means he problem ‘quatosve Anal for Management, Tw Eon, y Bary Rede, maybe solved with QM fr Windows anor Excel alin Sa Meal E Hanna, and Trever Sale, Puno by Prev Ha "Sopyegnt © 2045 by Pearson Ean,isan t2serstee7 inorder to full a contact Alo, de toa overap- ply of fae in the preceding pred iit shouldbe placed on the ttl number of fans produce (a) IPEleewocomp decides that a least 20 ai one diioners shuld be produced bu no mere han 80 fane should be produced, wht woul be the tinal solution? Flow much lack or sup there foreach ofthe fur constins? (ele Blewwocomp dcies that a leas 30 ai cone dionrs shoud be produced but no more than 50 fans should be prodoced, what would be the optima solution? How moch slack or Supls i Atere foreach of the our costns athe opt mal solation? ‘candidat or mayor nasal town has allocated 40000 for lst-minue averting nthe dys pre= feding the election Two types of ads wil be usd fadio and television, Each ado ad cost 200 and reaches a estimated 3,000 people. Each elevison td cost $500 and reaches an estimated 7,000 peo: ple In planing the advertising eampiga, th eam- Paign managet would like to reach a mary people re reubl, ut se has stpulted that at east 10 ad teach type mst be used Also, the numberof radio fd mst be atleast a5 peat tthe number of tele Mision as Hor many ads of each type should Be Used? How many people wil his each? ‘The Outdoor Furniture Corporation manufatores the products, benches and pint ables, fr use in Yards nd pas Te fir has two mi ere {S carpetrs abo free) and a supply of edvood forse inte future During the next production {Geto 1-200 hours of labor are avaiable under & hon agreement The fim aso ha stock of 3.500 board fro good-quality redwood. Each bench hat ardoos Pariore produces requires 4 labor hours fd 1) board feet of redwood each pile table tates 6 labor hours and 35 board feof redwood Completed benches wil yield a profit of $9 cach, Sd bes wl result na profit of $20 each, How Run benches and tables sould Outdoor Furniture rode webu he largest posible profi? Use he apical LP approach dean of the Western Collegeof Business must plan he ehool's course oflerings fr he fal emes- we sudent demands make i ecesay offer a Tet 30 undergradate and 20 graduate courses in thetexm, Faculty contracts alto ditt tha atleast 60 courses be offered in ttl. Each undergrad fre course taught costs the eologe an average of $5500 in fclty wage, and each graduate course fonts $3,000 How many undergraduate and grad Ste course should be taut in tefl so ha ttal facly sles are kept oa nino? Be7-19 MSA Computer Corporation manufactures two Models of minicompoters, the Aipha 4 and the ge716 + 7-17 gers ke 8 DISCUSSION QUESTIONS AND PROBLEMS 284 Beta 5, The firm employs five technicians, work- ing 160 hours each per month, on its assembly line. Management insists that full employment (Le. all 160 hours of time) be maintained for each worker during next month’s operations, It requires 20 labor hours to assemble each Alpha 4 computer and 25 labor hours to assemble cach Beta S model. MSA ‘wants to see atleast 10 Alpha 4s and a least 15 Beta ‘5s produced during the production period. Alpha 4s generate $1,200 profit per unit, and Beta 5s yield $1,800 each. Determine the most profitable number of each model of minicomputer to produce during the coming month ‘A winner of the Texas Lotto has decided to invest ‘$50,000 pet year in the stock market, Under con- sideration are stocks fora petrochemical firm and a ‘public utility. Although a long-range goal is to get the highest possible return, some consideration is ‘given to the risk involved with the stocks. A risk in- dex on a scale of 1-10 (with 10 being the most risky) is assigned to each of the two stocks. The total risk of the portfolio is found by multiplying the risk of teach stack by the dollars invested in thet stock, ‘The following table provides a summary of the return and risk STOCK ESTIMATED RETURN RISK INDEX Petrochemical ne 9 Uslity om 4 27-21 gir ‘The investor would like to maximize the return on the investment, but the average risk index ofthe in- vestment should not be higher than 6. How much should be invested in each stock? What is the aver- age risk for this investment? What is the estimated return for this investment? Referringto the TexasLottosituationin Problem 7-20, suppose the investor has changed his attitude about the investment and wishes to give greater empha- sis to the risk of the investment, Now the investor ‘wishes to minimize the risk of the investment as Tong as a retum of at least 8% is generated. Formu- late this as an LP problem and find the optimal solu tion. How much should be invested in each stock? ‘What is the average risk for this investment? What is the estimated return for this investment? Solve the following LP problem using the comer point graphical method. AC the optimal solution, cal~ culate the slack for each constraint: Maximize profit = 4X + 4Y subject to 3X + SY = 150 X-2<10 SX + 3Y = 150 XY=0 cuantotve Ana} for Managorer,Twlth Elfen, by Bary Render, Ralph M. Stal, Michael E. Hanns, and Trevor S Hele, Pubisedby Prentice Hal Copies 2016 by Persen eaucater, ne23 27-25 grr Consider this LP formulation: K+ OY X+3Y= 90 8x + 2¥ = 160 3x +2¥ = 120 y=70 Xy=0 Minimize cost = subject to Graphically illustrate the feasible region and apply the isocost line procedure to indicate which comer point produces the optimal solution. What isthe cost of this solution?” “The stock brokerage firm of Blank, Leibowitz, and Weinberger has analyzed and recommended two stocks to an investors" club of college professors. "The professors were interested in factors such as short-term growth, intermediate growth, and divi- dnd rates, These data on each stock areas follows: STOCK) LOUISIANA GAS TRIMEX INSULATION FACTOR AND POWER ‘COMPANY ‘Shorter growth 036 028 potential, per dollar invested Intermediate gromth 167 130 potentia over next thvee yeas), per dollar invested Dividend rate 4% 8% potential Bach member of the club has an investment goal of (1) an appreciation of no less than $720 in the short term, (2) an appreciation of at least $5,000 in the next three years, and (3) a dividend income of at Teast $200 per year. What is the smallest investment that a professor can make to meet these three goals? ‘Woofer Pet Foods produces a low-calorie dog food for overweight dogs. This product is made from beef products and grain, Each pound of beef costs $0.90, ‘nd each pound of grain costs $0.60, A pound of the dog food must contain atleast 9 units of Vitamin and 10 units of Vitamin 2, A pound of beef contains 10 units, of Vitamin [and 12 units of Vitamin. A pound of grain contins 6 units of Vitamin 1 and 9 units of Vitamin 2 ‘Formulate this as an LP problem to minimize the cost ‘of the dog food, How many pounds of beef and grain shouldbe included in exch pound of dog food? What is the cost and vitamin content of the Final product? ‘The seasonal yield of olives in a Piraeus, Greece, vineyard is greatly influenced by a process of branch 727 CHAPTER 7 + LINEAR PROGRAMMING MODELS: GRAPHICAL AND COMPUTER METHODS pruning, If olive trees are pruned every two weeks, ‘output is increased, The pruning process, however, requires considerably more labor than permiting the olives to grow on their own and results in a smaller size olive. It also, though, permits olive tres to be spaced closer together. The yield of 1 barrel of ol- ives by pruning requires 5 ours of labor and I acre of land. The production of a barrel of olives by the normal process requires only 2 labor hours bat takes 2 acres of land, An olive grower has 250 hours of labor available and a total of 150 acres for growing. Because of the olive size difference, a barrel of ol- {ves produced on pruned trees sells for $20, whereas barrel of regular olives has a market price of $30. “The grower has determined that because of uncertain, demand, no more than 40 bartels of pruned olives should be produced, Use graphical LP to find (@) the maximum possible profit. (b) the best combination of barrels of pruned and regular olives. () the number of acres that the olive grower should devote to each growing process. ‘Consider the following four LP formulations. Using 1 graphical approach, determine (@) which formulation has more than one optimal solution. (b) which formulation is unbounded. (©) which formulation bas no feasible solution (@) which formulation is correcta is. Formulation 1 Formulation 3 Maximize 10%, + 10X3 Maximize 3X; + 2X2 subjectto 2X, S10 subjectio H+ HBS 2X, + 4X; = 16 % 22 aX, = 8 = 8 x =6 Formulation 2 Formulation 4 Maximize X + 2X2 Maximize 3X; + 3X2 subject to X 1 subjectto 4x; + 6X, = 48 2%, <2 4X, + 2X S12 X+2%, 52 3%) = 3 2x, 22 Qe728 Graph the following LP problem and indicate the ‘optimal solution point ‘Maximize profit = $3X + $2Y ject to 2+ Y= 150 2x + 3Y = 300 (a) Does the optimal solution change ifthe profit per unit of X changes to $4.50 (b) What happens if the profit function should have been $3X + S3¥? untae Anyi for Menegemec,Twalth Eston by Bary Render, Rash M. Star Mice E, Hana, an Trevor ile Puaned by rene Ha "Sony © 2015 by Pesan Edvston. ne