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Nutritional Cost Optimization Model

The document presents 6 mathematical modeling problems. The first problem presents a linear programming model to determine the lowest cost diet that meets daily nutritional requirements. The second problem is a radio frequency assignment problem. The third problem seeks to minimize the cost of steel required to manufacture cylindrical drums. The fourth problem maximizes revenue by producing different colors of ink using available additives. The fifth problem optimizes the production of a PET refinery.

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0% found this document useful (0 votes)
19 views71 pages

Nutritional Cost Optimization Model

The document presents 6 mathematical modeling problems. The first problem presents a linear programming model to determine the lowest cost diet that meets daily nutritional requirements. The second problem is a radio frequency assignment problem. The third problem seeks to minimize the cost of steel required to manufacture cylindrical drums. The fourth problem maximizes revenue by producing different colors of ink using available additives. The fifth problem optimizes the production of a PET refinery.

Translated by

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© All Rights Reserved
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Practice

Modeling
Problem 1
Each gallon of milk, pound of cheese, and pound of apple
they provide a known number of milligrams of
proteins and vitamins A, B, and C. The following table includes
these data with the daily requirements of the
nutritional ingredients. The table also includes the
minimum amount of each food that must be included in the
food and its cost.
Leche, mg/gal Queso, mg/lb Apples, Minimum requirement
mg/lb diary, mg
Proteins 40 30 10 80
Vitamin A 50 50 30 60
Vitamin B 20 30 40 50
Vitamin C 30 50 60 30
Minimum quantity 0.5 gal 0.5 lb 0.5 lb
Unit cost (S/.) 2.15 2.25 1.25

As the school pediatrician, I developed a model to


determine the minimum cost food that meets all the requirements
nutritional requirements.
Solution
Decision variables
•X1 = Cantidad, en libras, de leche que se incluye en la comida
per day.
X2 = Amount, in pounds, of cheese included in the meal
per day.
X3 = Quantity, in pounds, of apples included in the
food per day.
Objective function
Minimize Z = 2.15 ($/lb) + 2.25 ($/lb) + 1.25 ($/lb)
s.a.:
Total food X1 + X2 + X3 = 3 pounds
Protein 40 X1 + 30 X2 + 10 X3 ≥ 80 mg
Vitamin A 5 X1 + 50 X2 + 30 X3 ≥ 70 mg
Vitamin B 20 X1 + 30 X2 + 40 X3 < 80 mg
Vitamin C 30 X1 + 50 X2 + 60 X3 < 120 mg
Non-negativity condition
X1, X2, X3 ≥ 0
Problem No. 2:
ASSIGNMENT PROBLEM (binary)
The Undersecretary of Telecommunications has received requests.
of frequency allocation for four new stations of
radio.
Two radio frequencies produce interference if they are at 0.5
megahertz of distance.
The availability of radio frequencies (in megahertz)
currently existing are: 100.0 MHz; 100.1 MHz; 100.3 MHz;
100.7 MHz; 101.0 MHz; 101.1 MHz; 101.4 MHz; 101.8 MHz.
Formulate a model to determine what frequency can
assign the undersecretary of telecommunications.
Step No. 1: Definition of decision variables Xi = (0,1)

•X1Assignment 100.0 MHz.


•X2Assignment 100.1 MHz.
•X3Assignment 100.3 MHz.
X4Assignment 100.7 MHz.
•X5Assignment 101.0 MHz.
•X6Assignment 101.1 MHz.
•X7Assignment 101.4 MHz.
X8Assignment 101.8 MHz.
Decision: Frequency Allocation
Step No. 2: Objective function and constraints
MAX (Z) = X1+ X2+ X3+ X4+ X5+ X6+ X7+ X8
s.a.
•X1+ X2 + X3 1
•X3+ X4 1
•X4+ X5+ X6 1 Note:
•X5+ X6+ X7 1 X1+ X2 1
•X7+ X8 1 X1+ X3 1 X1+ X2+ X3 1
•Xi = (0, 1) X2+ X3 1
Problem 3
A factory has received an order to make
cylindrical steel drums, with the base and lid
circulars. The total volume of the container must be
at least 10 cubic feet. The cost of steel for
The side of the container is $3 per foot.
square. The cost of the base and the lid is $3.82
per square foot. As a production engineer,
formulate a model to determine a design that
minimize the required steel cost
Solution
Decision variables:
•R: radius of the cylinder in [feet]
•H: altura del cilindro en [pie]
Objective Function:
Minimize (cost of steel on the side of the container +
cost of the base and lid steel
Minimize

Restrictions
Problem 4
Una compañía mezcla 3 aditivos A1, A2y A3to one
base in different proportions to obtain
different ink colors. Red ink is obtained
mixing A1A2y A3in the proportion of 3:1:2;
the blue ink - 2:3:4 and the green - 1:2:3. After
mix these additives, a quantity is added
same base for each color. The company
currently has 1000 gallons of A11500 of
A22000 of A3and 4000 as a base. Given that the
the selling price per gallon of each type of ink is
the same, develop a model to determine
how these resources should be used for
obtain the maximum income.
Solution
a) Decision variable
•TRGallons of red ink
TAGallons of blue ink
•TVGallons of green ink
•BRBase for red ink
•BABase for blue ink
•BV Base for green ink
•XR1Gallons of additive A1 for red ink
•XR2Gallons of A2 additive for red ink
•XR3Gallons of A3 additive for red ink
•XA1 gallons of additive A1 for blue ink
•XA2Gallons of A2 additive for blue ink
•XA3Gallons of A3 additive for blue ink
XV1Gallons of A1 additive for green ink
•XV2Gallons of A2 additive for green ink
•XV3Gallons of A3 additive for green ink
Function
Goal: Maximize Revenue

c) Restrictions
No negativity
Pr. 5
The diagram of a very simplified oil refinery is
shown in the figure.

NLV
Raw GE
NPV
DV

NC GC
PCL
PCP

PD
The refinery produces:
special gasoline (GE) sold at $50/barrel with a higher octane rating
or the same as 95
regular gasoline (RG) sold at $45/barrel with an octane rating
mayor o igual que 89
• diesel oil (DO) sold at $25/barrel with a number of
pollution not exceeding 55.
The specifications of each component of the mixture are the
next:

Component Octane Number Pollution Number


Heavy Catalytic Petroleum (HCP) - 59
Light Catalytic Crude Oil (LCCO) 88 50
Catalytic naphtha (NC) 97 -
Virgin heavy naphtha (NPV) 84 -
Light virgin naphtha (LVN) 92 -
To meet market demand, the refinery must produce at least:
25,000 daily barrels of GE
10,000 barrels per day of GC
30,000 daily barrels of PD.

Crude oil costs $27.5/barrel.


The operating costs of the crude oil distillation column are 2.5
$/barrel of each of the obtained products: NLV, NPL, and virgin distillate (DV).
The DV and part of the NPL are sent to the catalytic separation unit. The cost of the
operation depends on the supply to the unit and costs $1.0/barrel of NPV and 1.5
$/barrel of DV.
The capacity of the catalytic separation unit must not exceed 50,000 barrels.
per day. The crude oil distillation column has its capacity limited to
100,000 barrels per day.
Crude oil is separated into 3 volume fractions: 0.2 NLV, 0.5 NPV, and 0.3 DV.
In the catalytic cracking unit, the operating cost per barrel of NPV is $1.0
and the distribution of the product is 0.7 barrels of NC; 0.4 barrels of PCL and 0.2
PCP barrels.
The distribution of the DV in the catalytic separation unit is 0.1 barrels of NC, 0.3
PCL barrels and 0.7 PCP barrels per DV barrel.
Determine the optimal production plan.
Pr. 5
The diagram of a very simplified oil refinery is
shown in the figure.

NLV
Raw GE
NPV
DV

NC GC
PCL
PCP

PD
Restrictions
GE
Volume: NLVge + NCge >= 25000
•Octane: 92NLVge + 97NCge >= 95(NLVge + NCge) or 2NCge >= 3NLVge
GC
Volume: NLVgc + NPVgc + NCgc + PCLgc >= 10000
Octane: 92NVLgc + 97NCgc + 84NPVgc + 88PCLgc >=
89(NVLgc + NCgc + NPVgc + PCLgc) o 3NLVgc+8NCgc>=5NPVgc+PCLgc
•PD
Volume: PCLpd + PCPpd >= 30000
Contamination: 59PPCpd + 50PLCpd <= 55(PPCpd + PLCpd) or 4PCPpd <= 5PCLpd
• Catalytic separation capacity: NPVc + DVc <= 50000
Crude oil distillation capacity: Cr <= 100000
Material Balance:
NLVge + NLVgc = 0.2Cr
NPVp + NPVgc = 0.5Cr
DVp = 0.3Cr
NLCge + Ncge = 0.7NPVc + 0.1DVc
PCLgc + PCLpd = 0.4NPVc + 0.3DVc
PCLpd = 0.2NPVc + 0.7DVc
Problem 6
A company receives annual orders from 4 countries: Japan, South Korea, Taiwan, and Mexico.
for two distinct types of steel that it produces: high caliber and low caliber.
These steels are produced in their 2 plants, located in cities 1 and 2, using
iron ore supplied by two mining companies K and M. The management
needs a comprehensive annual plan for purchasing / production / distribution to minimize
the total costs.
Various departments have gathered the necessary data regarding
sales commitment, availability and cost of the mineral, characteristics of
production and distribution costs of the mineral and finished steel. The company
You can obtain up to 1000 tons of grade A iron ore from mine K.
up to 2000 tons of grade B iron ore from mine M. The company
Can you specify how much of each mineral should be shipped to each of your two?
plants. The associated purchase cost and shipping charge per ton are given
in the following table:

Cost of Shipping cost ($/ton) to


purchase ($)
City 1 City 2
Mina K 130 10 13
Mina M 110 14 17
Each of the company plants can produce high-caliber steel.
low caliber. High caliber steel requires mixing iron ore
of caliber A and B in a ratio of 1 to 2. the low caliber steel
requires a ratio of 1 to 3. City plant 1 can process
up to 1500 tons of iron ore, and the city plant 2 can
to handle a maximum of 700 tons. The city 2 plant is a modern
installation and has a lower processing cost per ton of
steel produced that the city 1 facility, as indicated in the
next table:
Processing cost ($/ton)

Plant
City 1 City 2
High gauge steel 32 39
Low gauge steel 27 32
Finished steel is shipped to Japan, Korea, Taiwan, and Mexico. Division
International sales has received an order for each type of steel, which is
they show in the following table, this table also includes the costs of
shipment per ton for each type of steel:
• Demand and unit shipping costs of steel

Country Type of steel Demand, ton Shipping cost ($/ton)


since
City 1 City 2
Japan High caliber (HC) 400 110 115
Low Caliber (BC) 200 100 110
Korea AC 200 140 150
BC 100 130 145
Taiwan AC 200 130 135
BC 100 125 127
Mexico AC 150 80 90
BC 50 80 85

Recommendations are requested regarding purchasing functions.


processing and shipping with the aim of minimizing annual cost
total.
Step 1:
•Identify the decision variables (DV):
Decompose the global problem into a collection of
smaller and manageable subproblems
The purchase of iron ore from the two companies
mining and shipment of the minerals to the 2 steel presses.
2. The processing of the minerals in the 2 presses to produce
the 2 calibers of steel
3. The shipment of finished steel to the 4 countries.
VD for the purchase and shipment of mineral
TAK1 - the number of tons of caliber iron ore
Go to buy at mine K and seize towards the city press
1
TAK2 - the number of tons of iron ore of grade
To go buy at mine K and seize towards the city press
2
TBM1–the number of tons of calibrated iron ore
B for buying in mine M and seizing towards the press of
city 1
•TBM2–the number of tons of iron ore of caliber
B for buying at mine M and seizing towards the press of
city 2
City 1
K

City 2
M

•Purchase cost = cost of mineral to be purchased + Cost of


embarque = (130 TAK1+130TAK2 + 110TBM1 + 110TBM2)
(10TAK1 + 13TAK2 + 14TBM1 + 17TBM2)
•CC = (140TAK1 + 143TAK2 + 124TBM1 + 127TBM2)
2. VD to produce steel
H1–number of tons (NT) of AC steel to be produced in the C1 press
L1–NT steel from BC to be produced in the C1 press
H2–NT steel of AC to be produced in the C2 press
L2–NT steel from BC to be produced in the C2 press
•TKH1–NT mineral from mine K used to produce AC steel in C1
TMH1–NT mine mineral M used to produce AC steel in C1
TKL1–NT mine mineral K used to produce BC steel at C1
•TML1–NT of mine mineral M used to produce BC steel in C1
TKH2–NT mine mineral K used to produce AC steel in C2
TMH2-NT from mine mineral M used to produce AC steel in the C2
•TKL2–NT mine mineral K used to produce BC steel in C2
TML2–NT mine mineral M used to produce BC steel in C2
H1

L1
K

M H2

L2

•Costo de Producción (CP) = CP en C1 + CP en C2 = 32


H1 + 27L1 + 39H2 +32L2
3. VD for the distribution of steel
TH1J–NT steel AC to be shipped from C1 to Japan
•TH1C–NT steel AC to be shipped from C1 to Korea
•TH1T–NT steel AC to be shipped from C1 to Taiwan
•TH1M–NT steel AC to be shipped from C1 to Mexico
TH2J–NT steel AC to be shipped from C2 to Japan
Steel AC TH2C–NT to be shipped from C2 to Korea
TH2T–NT steel AC to be shipped from C2 to Taiwan
•TH2M–NT steel AC to be shipped from C2 to Mexico

•TL1J–NT steel BC to be shipped from C1 to Japan
•TL1C-NT steel BC to be shipped from C1 to Korea
•TL1T–NT steel BC to be shipped from C1 to Taiwan
•TL1M–NT steel BC to be shipped from C1 to Mexico
Steel TL2J–NT BC to be shipped from C2 to Japan
Steel T2C–NT BC to be shipped from C2 to Korea
•TL2T–NT of steel BC to be shipped from C2 to Taiwan
•TL2M–NT steel BC to be shipped from C2 to Mexico
H1 Japan

L1
K
Korea

M H2 Taiwan

L2

Mexico

•Shipping cost (CE) = CE of steel AC from C1 + CE of steel BC


from C1 + CE of steel AC from C2 + CE of steel BC from C2 =
110TH1J + 140TH1C + 130TH1T + 80 TH1M + 100TL1J + 130TL1C +
125TL1T + 80 TL1M + 115TH2J + 150TH2C + 135TH2T + 90 TH2M +
110Tl2J + 145Tl2C + 127Tl2T + 85 Tl2M
Step 2: Objective Function
Minimize the total cost
CT =CC+CP+ CE= (140TAK1 +143TAK2 + 124TBM1 +
127TBM2)+ (32 H1 + 27L1 + 39H2 +32L2)+ 110TH1J
+ 140TH1C + 130TH1T + 80TH1M + 100TL1J +
130TL1C + 125TL1T + 80TL1M + 115TH2J + 150TH2C +
135TH2T + 90TH2M + 110Tl2J + 145Tl2C + 127Tl2T +
85Tl2M min
Step 3: Restrictions
Purchase restrictions (limitation of physical capacity of
the 2 mines):
TAK1 + TAK2 <= 1000 mine supply K
•TAM1 + TAM2 <= 1500 mine supply M
Production restrictions (capacity limitations)
mineral processing, limitations of
market requirements)
Iron ore
TKH1 + TMH1 + TKL1 + TML1 <= 700
•TKH2 +TMH2+ TKL2+TML2<=1500
From the market - the iron ore from mines K and M must be mixed
in
A ratio of 2 to 1 to produce high-caliber steel AC:
2TKH1 = TMH1 and 2TKH2 = TMH2
A ratio of 3 to 1 to produce low-caliber steel BC
3TKL1 = TML1 y 3TKL2 = TML2
Production and purchase relationship
TKH1 + TKL1 <= TAK1 - mine K mineral used in C1
•TMH1 + TML1 <= TAM1 - mine mineral M used in C1
•TKH2 + TKL2 <= TAK2 - mine K mineral used in C2
•TMH2 + TML2 <= TAM2 - mineral from mine M used in C2
Restrictions on the total amount of mineral used in the
production process is equal to the total amount of steel
produced
TKH1 + TMH1 <= H1-steel AC produced in C1
TKL1 + TML1 <= L1 - steel BC produced in C1
TKH2 + TMH2 <= H2-steel AC produced in C2
TKL2 + TML2 <= L2 –steel BC produced in C2
Distribution restrictions - that meet demands
of the quantities of the 2 calibers of steel supplied by
the 2 presses to each of the 4 countries
Supply in the presses
•TH1J + TH1C + TH1T + TH1M<=H1–steel AC embedded from C1
TL1J + TL1C + TL1T + TL1M <= L1-steel BC shipped from C1
•TH2J + TH2C + TH2T + TH2M <= H2 - steel AC shipped from C
• Tl2J + Tl2C + Tl2T Tl2M <= L2 - steel BC shipped from C2
Steel demand in 4 countries
•TH1J+TH2J >=400–steel demand of AC in Japan
•TL1J + Tl2J >= 200 - steel demand of BC in Japan
•TH1C+TH2C >=200–steel demand from AC in Korea
•TL1C +Tl2C >=100 - steel demand of BC in Korea
•TH1T+TH2T >=200—steel demand for AC in Taiwan
•TL1T +Tl2T >=100 - steel demand of BC in Taiwan
•TH1M+TH2M >=150–demand for AC steel in Mexico
•TL1M +Tl2M >=50 - steel demand of BC in Mexico
Non-negativity constraints
EXERCISE N°1
"CRUDE DISTILLATION PROBLEM"
An oil company produces diesel (G) and gasoline in its refineries.
regular (N) and super gasoline (S) from two different types of crude C1
and C2. The refineries are equipped with two types of technologies, the technology
New (Tn) uses 7 units of C1 and 12 of C2 for each distillation session.
to produce 8 units of G, 6 of N and 5 of S, while with the
Ancient technology (Ta) obtains 10 units of G, 7 in each distillation.
from N and 4 from S, with an expenditure of 10 units of C1 and 8 of C2.
Considering the demand studies for the three products for the
next, the company estimates that at least 900 must be produced
units of G, 300 of N and between 800 and 1700 of S. The availability of crude oil
C1 is 1400 units and C2 is 2000 units. The profits from
produced unit of the three products, in monetary units, is
are found in the following table.
G N S
Benefit (per unit) 4 6 7
•Pose the problem that allows the use of both distillation processes and
the available crude, so that the benefit is as great as possible.
SOLUTION
Oil company produces:
Diesel (G)
•Gasolina Normal (N)
Super Gasoline (S)
Types of Crude:
•C1
C2
Types of Technologies:
New Technology (Tn)
Ancient Technology (Ta)
Step No. 1 Determine the decision variables
Therefore, the company is interested in the number of distillations with each
technology, NOT the units to be obtained from each product
So, X1number of distillations with Tn
• X2number of distillations with Ta
Step No. 2: The goal is to maximize the benefit of the units of
distilled products
[ profit x unit of G x units produced of G ] + [profit x unit of N
x units produced of N ] + [profit x unit of S x units produced of S ]
That is,
Z = 4 (8 X1+ 10 X2) + 6 ( 6 X1+ 7 X2) + 7 (5 X1+ 4 X2)
Z = 103 X1+ 110 X2
Step No. 3: The limitations in the availability of both types of
Raw
That is,
(7 units of C 1 x X1distillations) + (10 units of C1x X2distillations
availability of C1]

•7 X1+ 10 X2 1400 (crude C1)
12 X1+ 8 X2 2000 (raw C2)
If X occurs1distillations with Tn and X2with Ta, the products
obtained are:
•8 X1+ 10 X2 (G units)
6 X1+ 7 X2 (units of N)
5 X1+ 4 X2 (units of S)
From the studies of the demands
•8 X1+ 10 X2 900 (demand for G)
•6 X1+ 7 X2 300 (demand for N)
•5 X1+ 4 X2 1700 demand of S
•5 X1+ 4 X2 800 (demand for S)
Non-negativity constraint
•Xj 0 (j = 1,2)
The model will be:
•MAX (Z) = 4 (8 X1+ 10 X2) + 6 ( 6 X1+ 7 X2) + 7 (5 X1+ 4
X2)
s.a.
7 X1+ 10X2 1400 (raw C1)
12 X1+ 8 X2 2000 (raw C2)
•8 X1+ 10 X2 900 (demand for G)
•6 X1+ 7 X2 300 (demand for N)
5 X1+ 4 X2 1700 (demand for S)
•5 X1+ 4 X2 800 (demand for S)
•Xj 0 (j = 1,2)
EXERCISE N°2
NEED FOR EQUIPMENT IN EXECUTION OF
PROJECTS
A consulting company has a portfolio of projects to undertake.
two types (A and B) whose unit development cost is the same. The
needs of analysts, programmers, and terminals for each type of
project are indicated in the attached table. These projects can be done well
totally or partially and the company's desire is to minimize the cost of
development of the projects that will be carried out.
The conditions for the development of these projects are: At least 10
programmers and 5 analysts must be busy with them and it is counted
only with 6 terminals. Establish the model that optimizes the cost of
development.

Type Number of programmers Number of analysts Number of terminals


A 2 2 3
B 3 6 1
SOLUTION
The decision variables are:
•X1= number of projects of type A
•X2number of projects of type B
• The model is:
MIN (W) = X1+ X2
s.a.
2 X1+ 3 X2 10
2 X1+ 6 X2 5
3 X1+ X2 6
•X1, X2 0
EXERCISE N°3
RESOURCE ALLOCATION PROBLEM
In a factory, three different types of beers are produced that are called
black (N), blonde (R) and low alcohol content. To obtain it, it is necessary,
in addition to water and hops for which there is no limitation on availability,
malt and yeast, which limit the daily production capacity. In the table it
find the necessary amount of each of these resources to produce a
liter of each of the respective beers, the available kilos of each
resource and the benefit per liter of each beer produced. The problem of
the manufacturer consists of deciding how much of each beer to produce so that the
total daily benefit should be maximized.

N R B Availability
Malta 2 1 2 30
Yeast 1 2 2 45
Benefits 4 7 3
SOLUTION
Step No. 1: Define the decision variables
•X1production in liters of (N) per day
•X2production in liters of (R) per day
•X3production in liters of (B) per days
A plan to produce, X1liters of N, X2liters of R and X3liters of B are
denomination PLAN OR PRODUCTION PROGRAM
Step No.2: The objective function that will provide the daily profit is:
MAX (Z) = 4 X1+ 7 X2+ 3X3, that is
(benefits per unit of N x liters of N produced per day) + (benefits for
R unit x liters of R produced per day) + benefits per unit of B x
liters of B produced per day
•Paso Nº3:Restricciones
Observing the first row of the daily availability table
(resources used) (available resources)
It is given:
•2 X1+ X2+ 2X3 30 (Malta)
•X1+ 2X2+ 2X3 45 (yeast)
Non-negativity condition
Invalid input 0 (j = 1,2,3)
It can be concluded that the allocation problem
of resources or production planning, it is
where 2 resources (malt and yeast) are used for
manufacture three products (beers N, R, and B) that
different benefits are reported per liter.
MAX (Z) = 4 X1+ 7 X2+ 3X3
•s.a. 2 X1+ X2+ 2X3 30 (Malta)
•X1+ 2X2+ 2X3 45 (yeast)
• Xj 0 (j = 1,2,3)
EXERCISE N°4
MIXING PROBLEM
To produce a certain metal alloy that requires copper,
tin and zinc, three types of alloy of these three metals will be mixed,
available in the market: A, B, and C.
Each pound of the desired final alloy must contain at least 20%.
of copper, no more than 45% of tin and the proportion of zinc must be
30%. The characteristics of the alloys A, B, and C are:
A B C
% copper 30% 10% 70 %
% tin 50% 60% 10 %
% five 20% 30% 20%
Costs $ 130 $ 110 $90
SOLUTION
Sea
X1proportion of A in 1 pound of alloy
X2= proportion of B in 1 pound of alloy
X3proportion of C in 1 pound of alloy
MIN (W) = 130 X1+ 110 X2+ 90 X3
s.a.
0.30 X1+ 0.10 X2+ 0.70 X30.20
0.50 X1+ 0.60 X2+ 0.10 X3< 0.45
0.20 X1+ 0.30 X2+ 0.20 X3= 0.30
X1+ X2+ X3 = 1
Xj 0 j= (1,2,3)
EXERCISE N°5:
PRODUCTION PROBLEM
In a plant, 4 products (Pi) are manufactured for purification.
water in a pool from 3 raw materials. The table that is
presents below, delivers the units of raw materials
necessary for the manufacture of each unit of product thus
as the unit benefits and availability of materials
cousins.
P1 P2 P3 P4 Availability
M1 3 2 4 5 700
M2 2 0 3 4 600
M3 5 1 2 1 900
Benefit 7 5 9 8

It is requested to formulate the PPL that allows determining how much is owed.
to manufacture each product to obtain the highest profit
possible.
SOLUTION
Step 1: Definition of variables
•X1quantity of product 1
•X2quantity of product 2
X3quantity of product 3
•X4product quantity 4
Decision: Amount of P1, P2, P3y P4to produce for
to have a greater utility or benefit.
Step No. 2: Objective function and constraints
MAX (Z) = 7 X1+ 5 X2+ 9 X3+ 8 X4
s.a. 3 X1+ 2 X2+ 4 X3+ 5 X4 700
•2 X1 + 3 X3+ 4 X4 600
•5 X1+ 1 X2+ 2 X3+ 1 X4 900
•Xj 0 j = (1,2,3,4)
EXERCISE NO. 6:
"ASSIGNMENT PROBLEM"
Suppose that England, France, and Spain produce all the wheat, barley and
oats in the world. The global demand for wheat requires that it be allocated
130 million acres to the production of this cereal. Likewise, it
They need 60 million acres for barley and 70 million for oats.
the total amount of land available in the three countries is 70 million acres in
England, 110 million acres in France and 80 million acres in Spain.
The number of hours of labor required in England, France, and Spain
To produce an acre of wheat, it takes 18, 13, and 16 hours, respectively. The
producing an acre of barley requires 15 hours of labor in
England, 12 in France and 12 in Spain. The number of hours of labor
the necessary amount to produce two acres of oats is 24 in England, 20 in
France and 32 in Spain. The cost of labor per hour in the three countries
respective are $3.00, $2.40, and $3.30 for wheat production $270, $3.00 and
$2.80 for barley production and $2.30, $2.50, and $2.10 for production
of oats.
The problem of assigning land use in each country in a way that meets
with the food requirements in the world and minimize the cost
total labor cost.
Step No. 1: Definition of decision variables
•X1Amount of wheat produced by England
•X2Amount of wheat produced by France
•X3 Amount of wheat produced by Spain
•X4Amount of barley produced by England
•X5Amount of barley produced by France
•X6Amount of barley produced by Spain
•X7Amount of oats produced by England
•X8Quantity of oats produced by France
•X9Amount of oats produced by Spain
Decision: minimize operating costs
Step No. 2: Objective function and constraints
MIN (W) = (18 x 3) X1(13 x 2.4) X2(16 x 3.3) X3(15 x 2.7) X4(12 x 3) X5+
(12 x 2.8) X6(12 x 2.3) X7+ (10 x 2.5) X8(16 x 2.1) X9
MIN (W) = 54 X1+ 31.2 X2+ 52.8 X3+ 40.5 X4+ 36 X5+ 33.6 X6+ 27.6 X7+ 25 X8
+ 33.6 X9
Limited Company

•X1+ X2+ X3130


X4+ X5+ X6> 60
•X7+ X8+ X9> 70
•X1+ X4+ X7< 70
•X2+ X5+ X8< 110
•X3+ X6+ X9< 80
•Xj 0 j = 1,2,3,4,5,6,7,8,9
EXERCISE N°7
Calculate the most cost-effective dimensions
conveniences that a framework should have
1 m² window surface knowing that
the cost of the linear meter of the vertical sides is
10 euros and the horizontal sides are 15
euros.
Determine also the approximate cost of the frame.
more economical.
Denoting by a the length of the vertical sides and by b the length of the sides
horizontally, we have an optimization problem in which we can
establish the system: ab=1; a=1/b; c=10a+15b → c=10/b+15b
The minimum of the cost function will occur when the derivative is zero.
of said function; therefore:
10
c' = -10 / b2+15=0→b2=10/15;b=±=±0.8165
15
The negative value of b is not physically valid, so we check if
the positive value indeed gives us a minimum. It must be fulfilled that the
the value of the second derivative of the cost function is positive in that
point. We have: c = 20/b3>c"(0,8165)>0
And, therefore, at b = 0.8165, a minimum of the equation is reached.
cost.
The dimensions of the window are 1 m2of surface, which make the cost
the minimum is therefore:
b=0,8165→a=1/b=1,2247
And this cost will be given by:
cmin=10×1,2247+15×0,8165=24,495
EXERCISE N°8
With a square cardstock of 18 cm² per side, it
wants to build a box and for that a is cut
small square in each corner of the cardstock,
folding the resulting flaps. Calculate the side
of each square so that the box has the largest
possible volume.
Solution
The volume of the resulting box will be given by the
expression:
V=(18−4a2)a=18a−4a3
To calculate the maximum of this function, we obtain its
we derive and set it to zero:
3
dV/da = 18 - 12a2=0⇒3−2a2=0⇒a2=3/2⇒a=±
2
It is easy to verify that the value given to us by the volume
3
maximum that=+ since the negative value does not have
2
physical meaning in the context of this problem.
EXERCISE 9
Taking advantage of a long wall of suitable height,
we want to build a rectangular corral of 200
square meters and for that we have thought
close with wire mesh the remaining three sides of
a rectangular surface for which the wall will be
one of the walls. Calculate the dimensions of
this rectangular surface for the cost of
corral sea minimum.
Solution
It is about building a rectangular corral of 200m.2whose respective sides
we will denote by xey. In this way, we can write:
= ⋅ = 200
As they tell us that the cost of the pen must be minimal, we understand that
we have to consider the minimum amount of linear meters of wire mesh.
As we do not need to consider one side of the pen to consider the
screen consumption, due to having a wall already built at our disposal,
the function to be minimized will be:

=2 +
And taking into account the first of the equations:
200 100
=2 + =2 + ⇒ ′= +
The minimum value of L' (or what is equivalent to L) will be given when it is nullified.
first derivative, that is to say:
′ 100 100
= ( + = 1−
) 2
= 0⇒ 2− 100= 0⇒ = ±10
And from the first equation, we obtain:
= ⋅ = 200⇒ = 200/ = 200/10= 20
That is to say, the linear meters of wire mesh that we should use for a cost
the minimum is 40 distributed in + + = 10+ 10+ 20.
EXERCISE 10
La Nori&Leets Co., one of the largest steel producers in the world
occidental está localizada en la ciudad de Steeltown y es la única
large company in the locality. The community has grown and prospered
together with the company, which currently employs about 50,000
residents. The attitude of the inhabitants has always been a 'what it is
good for Nori&Leets is good for us". However, this
attitude is changing, uncontrolled air pollution due to
the blast furnaces of the plant are on their way to ruining the appearance
from the city and endangering the health of its inhabitants.
As a result, after a revolt among the shareholders, it was elected
a new more responsible board of directors. The new directors have
decided to pursue social responsibility policies and hold discussions with
the city authorities and with groups of citizens to take
measures regarding environmental pollution. Together they have
established rigorous air quality standards for the city of
Steeltown.
The three main types of pollutants are particulate matter,
sulfur oxides and hydrocarbons. The new standards require that
the company reduces its annual emissions of these pollutants in the
amounts presented in table 1. The board of directors has given
instructions to management for the engineering staff
determine how to achieve these reductions in the most economical way.
The steel manufacturing has two main sources of pollution:
the blast furnaces to produce pig iron (steel ingots) and the furnaces
Siemens-Martín to transform iron into steel. In both cases the
engineers determined that the most effective reduction methods
["1) increase the height of the chimneys,","2) use filters (with traps"]
of gas) in them and 3) include high-grade cleaners in the fuels
from the furnaces. All these methods have technological limitations in
as for the level at which they can be used; for example, an increase
maximum feasible height of the chimneys, but there is also a
great flexibility to use the method at any fractional level of
its technological limit.
Table 2 shows the amount of emissions (in millions of pounds per year)
what can be eliminated from each type of oven through the use of
maximum technological limit reduction method. For the purposes of
analysis is supposed that each method can be used at a lower level to
achieve any fraction of reduction of the emission rates that
they present in this table. Furthermore, the fractions can be different.
for the blast furnaces and the Siemens-Martin furnaces, and the simultaneous use of
another method does not significantly affect the reduction of emissions
that each of them reaches.
After obtaining this data, it became clear that no method whatsoever
I could only achieve the required reductions. On the other hand, the
combination of the three methods to their full capacity - what it would be
too expensive if you want the products to have prices
competitiveness generates a much higher result than what is
ask. For all this, the engineers' conclusion was that they should use
some combination of methods, perhaps with fractional capabilities
based on their relative costs. Even more so, due to the differences between
the blast furnaces and the Siemens-Martin furnaces, it is likely that the
the combination should be different for each type of oven.
An analysis was conducted to estimate the total annual cost of each
method of depreciation. The annual cost of a method includes the
increase in operating and maintenance expenses as well as the
reduction of life income to any loss of efficiency in the
production process that can generate the use of the method. The other
An important cost is the initial fixed cost (the initial capital) that is required.
to install the method. To make this one-time cost be
commensurate with the annual costs, the value of money was used in the
time to calculate annual expenses (based on expected lifetime)
of the method) that would be equivalent to this initial fixed cost.
The analysis allowed for an estimation of the total annual costs in millions of
dollars presented in table 3., which are incurred when using the
methods to their full capacity for reduction. It was also determined
that the cost of a method that is used at a lower level is
essentially proportional to the fractional capacity of the capacity
of the reduction achieved, an aspect that is presented in table 2.
So, for any fraction that is achieved, the total annual cost would be
essentially the fraction of the corresponding amount from table 3.
At this stage, everything is ready to develop the general framework of
company plan to reduce pollution. This plan
specify what kind of reduction methods should be used
and what fractions of their capacity for: 1) the blast furnaces and 2)
the Siemens-Martin furnaces. Due to the combinatorial nature
from the problem of finding a plan that meets the requirements
at the lowest possible cost, a research team was formed
operations to solve it. The team decided to focus on the
problem from a linear programming perspective and it must
formulate a mathematical model.
Solution
The decision variables
ChAl = Fraction of maximum use of taller chimneys for blast furnaces.
ChHo = Fraction of maximum use of taller chimneys for furnaces
Siemens- Martins.
FiAl = Fraction of maximum filter use for blast furnaces.
FiHo = Fraction of maximum filter usage for Siemens-Martins ovens.
MeAl = Fraction of maximum use of better fuels for blast furnaces.
MeHo = Fraction of maximum use of best fuels for furnaces
Siemens- Martins..3
Objective function
Minimize the total cost of pollution reduction
through abatement [Link] is, Minimize (Cost of
method of taller chimneys for blast furnaces + cost of the method
taller chimneys for Siemens-Martins ovens + cost of the filter method
for blast furnaces + cost of the filter method for Siemens-Martin furnaces +
cost of the best fuels method for blast furnaces + cost of the method
of the best fuels for Siemens-Martins ovens
Minimize 8 ChAl + 10 ChHo + 7 FiAl + 6 FiHo + 11 MeAl + 9 MeHo

The restrictions
Required annual reduction of particulate emissions
The required reduction in particle emissions is 60 million pounds
[Link] of the emission rate using the method of taller chimneys to
high furnaces + reduction of the emission rate using the method of taller chimneys for
SiemensMartins ovens + reduction of the emission rate using the high filters method
furnaces + reduction of the emission rate using the filter method for Siemens-Martin furnaces
reduction of the emission rate using the method of better fuels for blast furnaces
reduction of the emission rate using the best fuels method for Siemens furnaces
Martins) must be greater than or equal to 60 million pounds.
•12 ChAl + 9 ChHo + 25FiAl + 20FiHo +17MeAl + 13MeHo >= 60
•35 ChAl + 42 ChHo + 18FiAl + 31FiHo +56MeAl + 49MeHo >= 150
37 ChAl + 53 ChHo + 28 FiAl + 24 FiHo + 29 MeAl + 20 MeHo >= 125
Technological efficiency of the methods
The maximum technological efficiency of the method of taller chimneys for
high furnaces are at 100%.
•ChAl <= 1
•ChHo <= 1
•FiAl <= 1
•FiHo <= 1
•MeAl <= 1
MeHo <= 1
Logical restrictions
ChAl, ChHo, FiA, FiHo, MeAl and MeHo >= 0
EXERCISE 11
•EL PROBLEMA DE ASIGNACIÓN DE CONTAINERS [Link],Inc.,
factory containers of many sizes and shapes. Recently has
received orders to produce various quantities of containers of
Kitchens of five different sizes. Each container size.
it can be produced on any of four machines. Due to the
different technologies and disposal times, the total number of hours,
including the processing time required for each
the container size in each machine varies, as shown in the
Table 2. In the table, the container size is indicated in the first
column by its height and diameter in inches.
Modify a machine to change the size of a container
it takes a long time, so management has decided that each machine
it will produce containers of a single size. Therefore, only
They will produce four of the five sizes on the four machines.
available within the assigned deadline. As the income from
each container size is approximately the same, the management
Containers, Inc. is indifferent as to which of the five orders
not satisfy. As the manager of the production department, you have been
request to determine which four of the five orders to accept and
develop a production plan that minimizes time
total processing to fulfill those orders.
Solution
Regarding the problem of Containers, Inc., it is necessary to add a fictitious machine.
Now there are five orders and five machines, resulting in a problem of
balanced assignment.
Remember that machine 5, in fact, does not exist. The containers assigned to this
machines are not produced and therefore do not contribute anything to the total time of
processing.
EXERCISE 12
Production planning problem of Ananea Gold Pump
Ananea Gold Pump Corporation has three branch plants with
excess production capacities. The three plants have the
necessary elements to produce different sizes of
bombs and the manager has decided to use part of the capacity of
excess production for this purpose. The pumps can be manufactured in
three sizes: large, medium, and small, which result in
a net unit utility of $140, $120, and $100 respectively. The
plants 1, 2, and 3 have the capacity for labor and equipment in
excess to produce 750, 900, and 450 units per week of
this product, respectively, regardless of size or
combination of sizes that applies. However, the space of
available storage for products in process as well
imposes a limitation on production rates. Plants 1, 2 and
3 have 13000, 12000, and 5000 square feet of space.
available storage for products in process, for a
production week. Each unit of the large and medium sizes
and small produced per week requires 20, 15, and 12 feet
squares respectively.
Sales forecasts indicate that they can be sold weekly
900, 1200 y 750 bombas de los tamaños grande, mediano y pequeño.
In order to maintain a uniform workload among the
plant and maintain some flexibility, the manager has decided that
The additional production assigned to each plant must use the
same percentage of labor and equipment capacity in
excess.
The manager wants to know how much should be produced of each one
the sizes on each of the floors to maximize profitability.
Solution
The decision variables
To solve the problem we must determine the number of bombs of
different size that each plant must produce.
•X The number of large size bombs that plant 1 must produce
G1

in a week.
X= The number of large size bombs that plant 2 must produce
G2

in a week.
X = The number of large-sized bombs that plant 3 must produce
G3

in a week.
•X= El número de bombas de tamaño mediano que debe producir la planta 1
M1

in a week.
X = The number of medium-sized bombs that plant 2 must produce.
M2

in a week.
•X= El número de bombas de tamaño mediano que debe producir la planta 3
M3

in a week.
•X= El número de bombas de tamaño pequeño que debe producir la planta 1
P1

in a week.
X = The number of small-sized bombs that plant 2 must produce
P2

in a week.
X = The number of small size bombs that plant 3 must produce
P3

in a week.
The data of the problem

The additional production assigned to each plant must use the same percentage of the
excess labor and equipment capacity.
The objective function
Maximize the utility obtained from the sale of bombs of different sizes
Maximize the utility obtained from the sale of large bombs produced in the plants.
production 1, 2 and 3 + profit obtained from the sale of medium pumps produced in the plants of
production 1, 2, and 3 + profit obtained from the sale of small pumps produced in the plants
production 1, 2 and 3
Maximize 140 (XG1+ XG2+XG3) + 120(XM1+ XM2+XM3)+ 100(XP1+ XP2+XP3)
The restrictions
Production capacity of the plant
The production capacity of pumps at plant 1 is 750 units.
•The production of large pumps + The production of medium pumps + The
The production of small pumps is 750 units.
•XG1+XM1+XP1<= 750
Similarly in plants 2 and 3: X +X +X<= 900
G2 M2 P2

•XG3+XM3+XP3<= 450
Storage capacity of the plant
The available storage space for work-in-progress products in plant 1 is
of 13,000 square feet.
The available storage space for (large pumps in process +
medium pumps in process + small pumps in process) from plant 1 is
13000 square feet.
20XG1+ 15XM1+ 12XP1<= 13000
Similarly in plants 2 and 3: 20X +15X + 12X <= 12000
G2 M2 P2

20XG3+ 15XM3+ 12XP3<= 5000


Market demand for large-sized pumps
Sales forecasts indicate that they can be sold weekly.
900 large bombs.
•D: The large pumps produced in plant 1 + large pumps
produced in plant 1 + large pumps produced in plant 1) that
They can be sold weekly, it is 900 units.
•XG1+XG2+XG3<= 900
•Similarly in medium and small pumps:
•XM1+XM2+XM3<= 1200
•XP1+XP2+XP3<= 750
Management condition
The additional production assigned to each plant must use the same
percentage of excess labor and equipment capacity.
900XG1+900 XM1+900XP1-750XG2750XM2750XP2= 0
Similarly in the production of plants 1 and 3, 2 and 3.
450XG1+ 450XM1+ 450XP1-750XG3- 750XM3750XP3= 0
900XG3+900 XM3+900XP3-450XG2450XM2450XP2= 0
Logical restrictions
•XG1, XG2, XG3,XM1, XM2,XM3, XP1, XP2, XP3>= 0 and integers

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