Optimize Dairy Production Profit Model
Optimize Dairy Production Profit Model
THEME:
COURSE:
Operations Research
MEMBERS:
TEACHER:
CYCLE:
VII CYCLE
PIURA 2018
PROBLEM #4
The company PARMALAT has two different machines to process pure milk and produce milk.
skimmed, butter or cheese. The amount of time required in each machine for
produce each resulting product unit and the net profits are provided in the
next table:
MILK
BUTTER CHEESE
skimmed
MACHINE #1 (mini/gallon) 0.2 0.5 1.5
MACHINE #2 (mini/gallon) 0.3 0.7 1.2
NET INCOME 0.22 0.38 0.72
Assuming that there are 8 hours available on each machine daily, as the Manager of
Department of Administration, formulate a model to determine a production plan
daily that maximizes net corporate profits and produces a minimum of 300 gallons of
skim milk, 200 pounds of butter, and 100 pounds of cheese, in addition to the amount of
products must be 650.
Decision variables
Objective function
X1 X3 RHS Dual
Maximize .22 .72
Skim milk production 1 0 0 >= 300 -0.5
Butter production 0 1 0 greater than or equal
-0.34 to 200
3. List of solutions.
Interpretation:
X1 = 300 liters of skimmed milk
X2 = 200 liters of butter Production Rhythm
X3 = 150 liters of cheese
Zmax = 250
Surplus:
S4= 95 minutes machine 1
S570 minutes machine 2
4. Iterations.
0 0 0 0 0 0 0 0 0
Variable
Cj Cantidad .2199.. .3799.. .7200.. Artfcl Surplus Artfcl surplus artfcl surplus slack slack slack
Basic
1 1 2 2 3 3 4 5 6
Phase 1–
Iteration
1
1 artfcl 1 300 1 0 0 1 -1 0 0 0 0 0 0 0
1 artfcl 2 200 0 1 0 0 0 1 -1 0 0 0 0 0
1 artfcl 3 100 0 0 1 0 0 0 0 1 -1 0 0 0
0 slack 4 480 0.2 0.5 1.5 0 0 0 0 0 0 1 0 0
0 slack 5 480 0.3 0.7 1.2 0 0 0 0 0 0 0 1 0
1 artfcl 6 650 1 1 1 0 0 0 0 0 0 0 0 1
Zj 1,250 -2 -2 -2 1 1 1 1 1 1 0 0 1
cj-zj 2 2 2 0 -1 0 -1 0 -1 0 0 0
Iteration
2
0 X1 300 1 0 0 1 -1 0 0 0 0 0 0 0
1 artfcl 2 200 0 1 0 0 0 1 -1 0 0 0 0 0
1 artfcl 3 100 0 0 1 0 0 0 0 1 -1 0 0 0
0 slack 4 420.0 0 0.5 1.5 -0.2 0.2 0 0 0 0 1 0 0
0 slack 5 390.0 0 0.7 1.2 -0.3 0.3 0 0 0 0 0 1 0
1 artfcl 6 350 0 1 1 -1 1 0 0 0 0 0 0 1
Zj 650 0 -2 -2 3 -1 1 1 1 1 0 0 1
cj-zj 0 2 2 -2 1 0 -1 0 -1 0 0 0
Iteration
3
0 X1 300 1 0 0 1 -1 0 0 0 0 0 0 0
0 X2 200 0 1 0 0 0 1 -1 0 0 0 0 0
1 artfcl 3 100 0 0 1 0 0 0 0 1 -1 0 0 0
0 slack 4 320.0 0 0 1.5 -0.2 0.2 -0.5 0.5 0 0 1 0 0
0 slack 5 250.0 0 0 1.2 -0.3 0.3 -0.7 0.7 0 0 0 1 0
1 artfcl 6 150 0 0 1 -1 1 -1 1 0 0 0 0 1
Zj 250 0 0 -2 3 -1 3 -1 1 1 0 0 1
cj-zj 0 0 2 -2 1 -2 1 0 -1 0 0 0
Iteration
4
0 X1 300 1 0 0 1 -1 0 0 0 0 0 0 0
0 X2 200 0 1 0 0 0 1 -1 0 0 0 0 0
0 X3 100 0 0 1 0 0 0 0 1 -1 0 0 0
0 slack 4 170.0 0 0 0 -0.2 0.2 -0.5 0.5 -1.5 1.5 1 0 0
0 slack 5 130.0 0 0 0 -0.3 0.3 -0.7 0.7 -1.2 1.2 0 1 0
1 artfcl 6 50 0 0 0 -1 1 -1 1 -1 1 0 0 1
Zj 50 0 0 0 3 -1 3 -1 3 -1 0 0 1
cj-zj 0 0 0 -2 1 -2 1 -2 1 0 0 0
Iteration
5
0 X1 350 1 0 0 0 0 -1 1 -1 1 0 0 1
0 X2 200 0 1 0 0 0 1 -1 0 0 0 0 0
0 X3 100 0 0 1 0 0 0 0 1 -1 0 0 0
0 slack 4 160.0 0 0 0 0 0 -0.3 0.3 -1.3 1.3 1 0 -0.2
0 slack 5 115.0 0 0 0 0 0 -0.4 0.4 -0.9 0.9 0 1 -0.3
surplus
0 50 0 0 0 -1 1 -1 1 -1 1 0 0 1
1
Zj 0 0 0 0 2 0 2 0 2 0 0 0 2
cj-zj 0 0 0 -1 0 -1 0 -1 0 0 0 -1
Phase 2
.22 X1 350 1 0 0 0 0 -1 1 -1 1 0 0 1
.38 X2 200 0 1 0 0 0 1 -1 0 0 0 0 0
.72 X3 100 0 0 1 0 0 0 0 1 -1 0 0 0
0 slack 4 160.0 0 0 0 0 0 -0.3 0.3 -1.3 1.3 1 0 -0.2
0 slack 5 115.0 0 0 0 0 0 -0.4 0.4 -0.9 0.9 0 1 -0.3
surplus
0 50 0 0 0 -1 1 -1 1 -1 1 0 0 1
1
Zj 225 .22 .38 .72 0 0 .16 -.16 .5 -0.5 0 0 .22
cj-zj 0 0 0 0 0 -0.16 0.16 -0.5 0.5 0 0 -0.22
Iteration
7
.22 X1 300 1 0 0 1 -1 0 0 0 0 0 0 0
.38 X2 200 0 1 0 0 0 1 -1 0 0 0 0 0
.72 X3 150 0 0 1 -1 1 -1 1 0 0 0 0 1
0 slack 4 95.0 0 0 0 1.3 -1.3 1 -1 0 0 1 0 -1.5
0 slack 5 70.0 0 0 0 0.9 -0.9 0.5 -0.5 0 0 0 1 -1.2
0 surplus 50 0 0 0 -1 1 -1 1 -1 1 0 0 1
3
Zj 250 0.22 0.38 .72 -0.5 .5 -.34 .34 0 0 0 0 0.72
cj-zj 0 0 0 0.5 -0.5 0.34 -0.34 0 0 0 0 -0.72
5. Dual.
Problem
Original
Maximize X1 X2 X3
Quantity
milk 1 0 0 >= 300
skimmed
Quantity
of 0 1 0 >= 200
butter
Quantity
0 0 1 >= 100
of cheese
Times
0.2 0.5 1.5 <= 480
machine 1
Times
0.3 0.7 1.2 <= 480
machine 2
Quantity
of 1 1 1 = 650
products
Problem
Dual
Amount Amount Times Times
Quantity Amount of
milk of machine machine
of cheese products
skimmed butter 1 2
Minimize -300 -200 -100 480 480 650
X1 -1 0 0 0.2 0.3 1 is greater than or equal to 0.22
Unrestricted
PRIMAL MODEL
Subject A:
Standard Model
X1 >= 300…Y 1
X2 >= 200... Y2
X3 >= 100…Y 3
0.2X1 + 0.5X2 + 1.5X3 <= 480…Y
4
0.3X1 + 0.7X2 + 1.2X3 <= 480… 5Y
X1 + X2 + 3X = 650...Y
6
Y1 =-0.5 Y3 =0 Y5 =0
Y2 = -0.34 Y4 =0 Y6 =0.72
Gmin= 300 Y1+ 200 Y2+ 100 Y3+ 480 Y4+ 480 Y5+ 650 Y6
Gmin= 300(-0.5) + 200(-0.34) + 100(0) + 480(0) + 480(0) + 650(0.72)
Gmin = -150 - 68 + 468
$250
$250
Then: Zmax = Gmin
Interpretation.
X1 = 300 liters of skim milk
X2 = 200 liters of butter
X3 = 150 liters of cheese
Quantity of products:
X1+X2+X3= 650
300+200+150 = 650
650 = 650
The required quantity of products, which is 650, is met.
c) What strategy would you follow to improve the solution to the problem?
The daily hours allocation for each machine should be reduced, as we see in the
results we have a surplus of 95 minutes on machine 1 and a surplus of 70 minutes on the
machine 2, which shows a waste of daily hours on both machines
production.