Operational Research I Linear Programming

LINEAR PROGRAMMING EXERCISES

1. RMC is a small company that produces various chemical products. In a

In the production process, three raw materials are specifically used to elaborate.
two products: a fuel additive and a solvent base. The fuel additive for
fuel is sold to oil companies and is used in production of
gasoline and other related fuels. The solvent base is sold at various
chemical companies and is used for both household cleaning products
as industrials. To form the additive for fuel and the base of
Solvent mixed with three raw materials, as shown in the following table.

RAW MATERIAL REQUIREMENTS PER TON

Raw Material
Product 1 2 3
Fuel additive 2/5 0 3/5
Base solvent 1/2 1/5 3/10

Use ½ tons of raw material 1 for every ton of solvent base.

The production of RMC is limited by the availability of the three raw materials.
cousins. For the current production period, RMC has available the
the following quantities of each of the raw materials

Available quantities
Raw Material for production
Raw material 1 20 tons
Raw Material 2 5 tons
Raw material 3 21 tons

Due to deterioration and the nature of the production process, any

raw material that is not used for current production becomes useless and must
to discard oneself.

The quality control department has analyzed the production figures,

assigning all the corresponding costs, and for both products, it came to
prices that will result in a contribution to profit of 40 dollars per
ton of fuel additive produced and 30 dollars for each
ton of solvent base produced. The management of RMC, after
a potential demand analysis has concluded that prices
established will ensure the sale of all the fuel additive and all
the solvent base that is produced.

The RMC problem is to determine how many tons of each product should be
produce to maximize the total contribution of utility. If you were to
position of production programming for RMC. What decision would you make?
That is, how many tons of fuel additive and how many tons

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What solvent base would you produce for the current production period?
Write your decisions below and find your results.1

Solution:
Design of the mathematical model:

Definition of variables
X1 = número de toneladas de aditivo para combustible
X2 = número de toneladas de base disolvente

Objective function:
Maximize the contribution to utility, Z = 40 X1 + 30 X2

Restrictions
Tons of raw material 1 2/5X1 + 1/2X2 ≤ 20
Tons of raw material 2 1/5X2 ≤ 5
Tons of raw material 3 3/5X1 + 3/10X2≤21

No negativity
Xi≥0; i=1,2

Data entry for Solver

Output of results

1
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 220.

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Operational Research I Linear Programming

Problem report:

Production order:
25 tons of additive
20 tons of solvent base
con:
20 tons of raw material 1,
4 tons of raw material 2, and
21 tons of raw material 3

Innis Investments manages funds for companies and wealthy clients.

investment strategy is tailored to the needs of each client. For a
new client, Innis has been authorized to invest up to $1,200.00 in
investment funds: an equity fund and a money market fund.
Each unit of the stock fund costs 50 dollars, with a rate of
rendimiento anual de 10%; cada unidad del fondo de mercado de dinero cuesta
100 dollars, with an annual interest rate of 4%.

The client wants to minimize risk but wants to have an annual income on
the investment of at least 60,000 dollars. According to the system of
measurement of Innis risk, each unit acquired in the stock fund
it has a risk index of 8, and each unit acquired in the fund of
the money market has a risk index of 3. The highest risk index
high with the background of actions indicates, simply that it is about a
riskier investment. The Innis client has also specified that it
Invest at least 3,000 dollars in the money market fund.
How many of each of the funds should Innis acquire for the client, if the
Is the objective to minimize the total risk index for that portfolio?2

Solution:
Mathematical model design:

Definition of variables
X1 = número de unidades adquiridas en el fondo de acciones
X2 = number of units acquired in the market fund of
money

Objective function:
Minimize the risk, Z = 8 X1 + 3 X2

Restrictions
Available funds 50X1 + 100X2 ≤ 1,200,000
Annual income 5 X1 + 4X2 ≥ 60,000
Units in fund 100X2≥3.000

2
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 242.

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No negativity
Xi≥0; i=1,2

Data entry for Solver

Solver output data

Advisory report:

Innis Investments advises the client to purchase 400 units at 50 dollars.

each one in shares and 10,000 units at 100 dollars each in the market of
money to earn a profit of 62,000 dollars a year.

PAR is a small manufacturer of golf equipment and accessories whose distributor

he convinced him that there is a market for both the price golf bag
medium, known as standard model, for a golf bag at price
elevated, known as deluxe model. The distributor has so much confidence in
the market that PAR can manufacture the bags at a competitive price, the
the distributor agrees to acquire all the bags that PAR can manufacture
in the next three months. A careful analysis of the requirements of
manufacturing resulted in the following table, which shows the
production time needs for the four operations of
required manufacturing and the estimation by the department of
accounting of the contribution to the profit by bag.

Production time
Cut and Sewing Inspection Completed Use by

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Product dyeing and packaging bag

Standard 7/10 1/2 1 1/10 $10
Deluxe 1 5/6 2/3 1/4 $9

The manufacturing director estimates that during the next three months they will be
630 hours of cutting and dyeing time available, 600 hours of time
sewing, 708 hours of completion time and 135 hours of inspection time
and packaging for the production of golf bags.

a) If the company wants to maximize the total contribution to the

utility, how many bags of each model should be manufactured?
b) What contribution to profit can PAR obtain from these amounts?
of production?
c) How many hours of production will be scheduled for each operation?
d) What is the slack time for each operation?3

Solution:
Model formulation:
Definition of variables
X1= Cantidad de unidades de bolsas de golf estandar
X2= Cantidad de unidades de bolsas de golf de lujo

Objective Function
Z max = 10X1 + 9X2

Restrictions
0.7X1 + 1.0X2 ≤ 630 Cutting and dyeing hours
0.5X1 + 0.8334X2 ≤ 600 Sewing Hours
1.0X1 + 0.6667X2 ≤ 708 Finished Hours
0.1X1 + 0.25X2 ≤ 35 Inspection and Packing Hours

No negativity
Xi≥0; i=1,2

Graphical solution:

3
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 264. Problem 15.

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Solver data entry:

Solver Solution:

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a) You must manufacture 539.98 standard golf bags and 252.01 golf bags of
Luxury.
b) Contribución total = $ 7.667,942
c) 620 hours of Cutting and Dyeing will be scheduled, 480.02 hours of Sewing,
708 hours of Finished and 117 hours of Inspection and Packing.
d) The slack times are 119.98 for Sewing and 18 hours for
Inspection and Packaging. The Cutting and Dyeing operations, and Finishing are not
they have slack.

PAR is a small manufacturer of golf equipment and accessories whose distributor

he convinced him that there is a market for both the price golf bag.
medium, known as standard model, for a golf bag of price
elevated, known as the Deluxe model. The distributor has such confidence in
the market that PAR can manufacture the bags at a competitive price, the
the distributor agrees to purchase all the bags that PAR can manufacture
in the next three months. A careful analysis of the requirements of
manufacturing resulted in the following table, which shows the
production time requirements for the four operations of
required manufacturing and the estimation by the department of
accounting of the contribution to the unit per bag.

Production time
Court and Sewing Inspection Finished Utility by
Product dyed and packaging Bag
Standard 7/10 1/2 1 1/10 $10
Deluxe 1 5/6 2/3 1/4 $9

The manufacturing director estimates that over the next three months there will be
available 630 hours of cutting and dyeing time, 600 hours of time for
sewing, 708 hours of finishing time and 135 hours of inspection time
and packaging for the production of golf bags.

Solve the described problem and then answer the following questions:

a) The accounting department reviews its contribution estimate to

the utility for the Deluxe bag at 18 dollars per bag.
b) A new low-cost raw material is available for the stock market.
standard, and the contribution to the unit by the standard bag may
increase to 20 dollars per bag. (assume that the contribution to the
the profit from the Deluxe bag is the original value of 9 dollars
c) You can obtain new sewing equipment that will increase the
sewing operation capacity at 750 hours. (suppose that 10X1 +
9X2 is the appropriate objective function.

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Operations Research I Linear Programming

If each of these situations is found separately, what would be the

optimal solution and the total contribution to profit?4

Solution:
Model formulation:
Definition of variables
X1= Cantidad de unidades de bolsas de golf estandar
X2= Cantidad de unidades de bolsas de golf de lujo

Objective Function
Z max = 10X1 + 9X2

Restrictions
0.7X1 + 1.0X2 ≤ 630 Cutting and dyeing hours
0.5X1 + 0.8334X2 ≤ 600 Sewing Hours
1.0X1 + 0.6667X2 ≤ 708 Finished Hours
0.1X1 + 0.25X2 ≤ 135 Inspection and Packaging Hours

No negativity
Xi≥0; i=1,2

LPG Solution
665
630 Payoff:10.0000X1+9.0000X2=7667.9417
595
560
525
490
455 :0.5000X1+0.8334X2=600.0000
420
385
350
315 :0.1000X1+0.2500X2=135.0000
:0.7000X1+1.0000X2=630.0000
280
245
210
175
140 1.0000X1+0.6667X2=708.0000
105
70
35
0
0 60 120 180 240 300 360 420 480 540 600 660 720 780 840 900 960 1020 1080 114

OptimalDecisions(X1,X2):(539.9842,252.0110)
0.7000X1+1.0000X2<=630.0000
0.5000X1+0.8334X2<=600.0000
1.0000X1+0.6667X2<=708.0000
0.1000X1+0.2500X2<=135.0000

4
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 265. Problem 16.

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Operational Research I Linear Programming

Solver data entry:

Solver Solution:

a)

b)

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Operational Research I Linear Programming

c)

The optimal solution is alternative b) where the contribution is increased to

the utility of standard bags at $20 and their total contribution is $14,160
manufacturing only standard golf bags.

5. Kelson Sporting Equipment manufactures two models of baseball gloves: one

normal and a catcher's mitt. The company has 900 hours available
production time in your department and cutting and sewing, 300 hours
available in the finishing department and 100 hours available in the
packing and shipping department. The time requirements of
the production and contribution to the profit of each of the products is:

Production time (hours)

Court it is finished Packing and Utility by
Model sewing embark Glove
Normal 1 1/2 1/8 $5
Catcher 3/2 1/3 1/4 $8

Assume that the company is interested in maximizing the total contribution of

the utility.

a) What is the linear programming model for this problem?

b) Find the optimal solution. How many gloves of each model should be
manufacture Kelson?

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c) What is the total contribution to the profit that Nelson can earn with
the aforementioned production quantities?
d) How many hours of production would be scheduled in each
department?
e) What is the free time of each department?5

Solution:

a) Formulation of the model:

Definition of variables
X1 = Cantidad de guantes de Béisbol normal
X2 = Cantidad de guantes de Béisbol tipo Manopla

Objective Function
Z max = 5X1 + 8X2

Restrictions
X1 + 1.5X2 ≤ 900 hours of Cutting and Sewing
0.5X1 + 0.3334X2 ≤ 300 hours of Completion
0.125X1 + 0.25X2 ≤ 100 hours of Packing and Shipping

No negativity
Xi≥0; i=1,2
LPG Solution

5
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 266. Problem 22.

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Operations Research I Linear Programming

455
Payoff: 5.0 X1 + 8.0 X2 = 3699.9
420

385

350

315

280

245

210

175

140

105

70 0.1 X1 + 0.3 X2 = 100.0

35 : 0.5 X1 + 0.3 X2 = 300.0

0 : 1.0 X1 + 1.5 X2 = 900.0

0 60 120 180 240 300 360 420 480 540 600 660 720 780 840 900 96

OptimalDecisions(X1,X2):(500.0,150.0)
1.0X1 + 1.5X2 <= 900.0
0.5X1 + 0.3X2 <= 300.0
: 0.1X1 + 0.3X2 <= 100.0

Solver input data:

Solver Output:

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6. George Johnson recently inherited a large sum of money; he wants to use

part of this money to establish a trust for his two children. The
The trust has two investment options: (1) a bond fund and (2) a
equity fund. The projected returns over the life of the
investments are 6% for the bond fund and 10% for the stock fund.
Regardless of the portion of the inheritance that you ultimately decide
commit the trust, wishes to invest at least 30% of that amount
in the bond fund. Additionally, you want to select a combination that will
allows obtaining a total return of at least 7.5%.

a) Formulate a linear programming model that can be used for

determine the percentage that should be assigned to each of the possible ones
investment alternatives.
b) Solve the problem using the graphical solution procedure and
for solving6

Solution:

Definition of variables
X1 = amount of money invested in bond fund
X2 = cantidad de dinero invertido en fondo de acciones

Objective Function
Zmax = 1X1 + 1X2

Restrictions
X1≥30% (100) investment in bond fund
6% X1 + 10% X2 ≥ 7.5% (100) total yield
X1 + X2 ≤ 100 relationship between investments

No negativity
Xi≥0; i=1,2

Solver input data

6
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 266. Problem 23.

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Operational Research I Linear Programming

Solver results:

Graphical solution:

7. The owner of Sea Warf Restaurant would like to determine the best way
to assign a monthly advertising budget of 1,000 dollars among

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Operations Research I Linear Programming

newspapers and radio. The administration has decided that at least 25% of
the budget should be used for each of these two types of media and that the
the amount of money spent on advertising in local newspapers must have for the
less than double what is spent on radio. A marketing consultant has
developed an index that measures audience exposure per dollar of
advertising on a scale from 0 to 100, where higher index values
indicate higher exposures to the audience. If the value of the index for advertising
In local newspapers it is 50, and for the radio announcement it is 80, how
the administration should allocate the advertising budget in order to
maximize the total exposure value in the auditorium?

a) Formulate a linear programming model that can be used for

determine the way in which management should allocate the
advertising budget in order to maximize the value of exposure
total of the auditorium.
b) Solve the problem using the graphical solution method and
by solving7

Solution:
Model formulation:
Definition of variables
X1 = Cantidad de dólares asignados a periódicos
X2 = Cantidad de dólares asignados a radio

Objective Function
Zmax= 50X1 + 80X2

Restrictions
X1 ≥ 0.25(X1 + X2) minimum for newspapers
X2 ≥ 0.25(X1 + X2) minimum for radio
X1 ≥ 2X2 relationship between periodicals and radius
X1 + X2 ≤ 1000 budget
No negativity
Xi≥0; i=1,2

LPG solution

7
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 266. Problem 24.

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X2
400 Payoff:50.00X1+80.00X2=46000.00
380
360
340
320
300 : 1.00 X1 + 2.00 X2 = 1000.00
280
260 0.75 X1 - 0.25 X2 = 0.00
240
220
200
180
160
140
120 :-0.25X1+0.75X2=0.00
100
80
60 1.00 X1 - 2.00 X2 = 0.00
40
20
0
0 33 66 99 132 165 198 231 264 297 330 363 396 429 462 495 528 561 594 627 660

OptimalDecisions(X1,X2):(600.00,200.00)
0.75X1 - 0.25X2 >= 0.00
:-0.25X1+0.75X2>=0.00
1.00X1 - 2.00X2 >= 0.00
1.00X1 + 2.00X2 <= 1000.00

8. Investment Advisors is a brokerage firm that manages portfolios of

values for customers. A new client has requested that the company manage a
investment portfolio of $80,000. As an initial investment strategy, the
the client wishes to restrict the portfolio to a combination of the following stocks:

Action Price by Performance annual irrigation index

Action estimated per action
U.S. OIL $25 $3 0.50
Hub Properties $50 $5 0.25

The risk index per action is a classification of the relative risk of two
investment alternatives. For the given data, it is thought that U.S. OIL is the
investment subject to higher risk. By restricting the total risk of the portfolio, the firm
of investments avoids placing excessive amounts of the portfolio in investments
potentially high yield and high risk. For the current portfolio, it
It has set an upper limit of 700 for the total risk index of all the
investments, the company has also established an upper limit of 1,000
shares for the riskier U.S. OIL values. How many shares of each
one of these values must be acquired in order to maximize performance
annual total?8

Solution:

8
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 267. Problem 25.

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Model formulation:
Definition of variables
X1 = Cantidad de acciones en [Link]
X2 = Cantidad de acciones en Hub Properties

Objective Function
Z max = 3X1 + 5X2

Restrictions
0.50X1 + 0.25X2 ≤ 700 for risk
X1 ≤ 1000 investment in U.S. OIL
25X1 + 50X2 = 80,000 investment in stocks

No negativity
Xi≥0; i=1,2
LPG solution

X2 Payoff: 3.00 X1 + 5.00 X2 = 8400.00

1580
1501
1422
1343
1264
1185
1106
1027
948
869
790
711
632
553
474
395 :25.00X1+50.00X2=80000.00
316
237 : 1.00 X1 + 0.00 X2 = 1000.00
158
79
0 : 0.50 X1 + 0.25 X2 = 700.00
0 49 98 147 196 245 294 343 392 441 490 539 588 637 686 735 784 833 882 931 980 X1

OptimalDecisions(X1,X2):(800.00,1200.00)
0.50X1 + 0.25X2 <= 700.00
1.00X1 + 0.00X2 <= 1000.00
25.00X1+50.00X2<=80000.00

Solver input data

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WORK PLANNING INVESTMENT ADVISORS

Actions U.S. Oil HUB

Quantity 1 1 max
Contrib. Utility 3 5 8

No
Restrictions Used Limit Utilize
Risk 0.5 0.25 0.75 ≤ 700 699.25
In U.S. Oil 1 1≤ 1000 999
Investment 25 50 75≤ 80000 79925
SOLVER Output Data

WORK PLANNING INVESTMENT ADVISORS

Actions U.S. Oil HUB

Quantity 800 1200 max
Contribution. Utility 3 5 8400

No
Restrictions Used Limit Utiliz
Risk 0.5 0.25 700≤ 700 -7.4E-10
In U.S. Oil 1 800≤ 1000 200
Investment 25 50 80000≤ 80000 -7.3E-08

Tom produces several Mexican food products and sells them to Western.
Foods, a chain of grocery stores located in Texas and New Mexico.
Tom's sauce factory: Western Foods Salsa and Mexico City Salsa.
Essentially, both products are mixtures of whole tomatoes, 30% sauce.
20% tomato and 20% tomato paste. The Mexico City Salsa, which has a
thicker and chunkier consistency, made with 70% tomatoes
whole tomatoes, 10% tomato sauce and 20% tomato paste. Each jar of
salsa produced weighs 10 ounces. For the current production period, Tom's
you can acquire up to 280 pounds of whole tomatoes, 130 pounds of sauce of
tomato and 100 pounds of tomato paste, the price per pound of these ingredients
$0.96, $0.64, and $0.56 respectively. The cost of the spices and of the
other ingredients are approximately $0.10 per container. Tom's purchase
empty glass jars for $0.02 each, and the labeling and filling costs are
they estimate at $0.03 for each jar of sauce produced. Tom's contract with
Western Foods results in sales revenue of $1.64 for each jar of
Western Foods Salsa and $1.93 for each jar of Mexico City Salsa.
[Link] a linear programming model that allows Tom's
determine the sauce mix that maximizes the total contribution to profit.
b. Make a graph of the feasible region.
c. Solve the appropriate simultaneous linear equations in order to determine
the coordinates of each endpoint.

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d. Find the optimal solution9

Solution:
Model formulation:
Definition of variables
X1 = Cantidad de tarros de salsa Western Foods
X2 = Cantidad de tarros de salsa México City

Objective Function
Z max =
(1.64 - (0.10 + 0.02 + 0.03 + 50% (10)(0.96) / 16 + 30% (10)(0.64) / 16 + 20% (10)(0.56) / 16)) X1 +
(1.93 - (0.10 + 0.02 + 0.03 + 70%(10)(0.96)/16 + 10%(10)(0.64)/16 + 20%(10)(0.56)/16)) X 2

Z max = (1.64–(0.15 + 0.3 + 0.12 + 0.07))X1 + (1.93–(0.15 + 0.42 + 0.04 + 0.07))X2

Z max = 1X1 + 1.25X2

Restrictions
5X1 + 7X2 ≤ 4480 pounds of whole tomatoes
3X1 + 1X2 ≤ 2080 pounds of tomato sauce
2X1 + 2X2 ≤ 1600 pounds of tomato paste

No negativity
Xi≥0; i=1,2

Solution with LPG

9
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 267. Problem 26.

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800
750
700
Payoff: 1.00 X1 + 1.25 X2 = 860.00
650
600 : 2.00 X1 + 2.00 X2 = 1600.00
550
: 3.00 X1 + 1.00 X2 = 2080.00
500
450
: 5.00 X1 + 7.00 X2 = 4480.00
400
350
300
250
200
150
100
50
0
1 50 99 148 197 246 295 344 393 442 491 540 589 638 687 736 785 834 883 932

OptimalDecisions(X1,X2):(560.00,240.00)
5.00X1 + 7.00X2 <= 4480.00
3.00X1 + 1.00X2 <= 2080.00
: 2.00X1 + 2.00X2 <= 1600.00

Input data SOLVER

Planificación para Tom’s

Western Mexico
SALSA Foods City
Number of jars 1 1 Max
Utility 1 1.25 2.25

Restrictions Used Limit Not used

whole tomatoes 5 7 12 ≤ 4480 4468
tomato sauce 3 1 4≤2080 2076
tomato paste 2 2 4 is less than or equal
1596to 1600

Solver output
Planning for Tom's

Western Mexico
SALSA Foods City
Number of jars 560 240 Max
Utility 1 1.25 860

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Restrictions Used Limit Do not use

whole tomatoes 5 7 4480≤ 4480 -6.2E-09
tomato sauce 3 1 1920≤ 2080 160
tomato paste 2 2 1600≤ 1600 -3.7E-09

The production editor of Rayburn Publishing Company has 1,800 pages of

manuscript that needs to be reviewed. Due to the limited time involved, there are only
two available reviewers Erhan Mergen and Sue Smith. Erhan has ten days
available and Sue twelve days. Erhan can process 100 pages of manuscript.
per day, and Sue 150 pages daily. Rayburn Publishing Company has developed
an index to measure the overall quality of a reviewer on a scale of 1 (worst)
a 10 (better). The quality of Erhan is 9 and that of Sue is 6, furthermore, Erhan charges 3.
dollars per page of revised manuscript, Sue charges 2 dollars per page. She
A budget of $4,800 has been allocated for the review, how many pages should be
to be assigned to each reviewer to complete the project with the highest quality
possible elevated?10

Solution:
Formulation of the model:
Definition of variables
X1 = cantidad de páginas revisadas por Erhan
X2 = cantidad de páginas revisadas por Sue

Objective Function
Z max = 9X1 + 6X2

Restrictions
3X1 + 2X2 ≤ 4,800 budget
X1 + X2 = 1.800 number of pages
X1/100 ≤ 10 days available of Erhan
X2/150 ≤ 12 available days of Sue

No negativity
Xi≥0; i=1,2
LPG solution

10
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 267. Problem 27.

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Payoff: 9.0 X1 + 6.0 X2 = 13800.0

X2
2000 : 3.0 X1 + 2.0 X2 = 4800.0
1900
1800 0.0 X1 + 1.0 X2 = 1800.0
1700
1600
1500
1400 : 1.0 X1 + 0.0 X2 = 1000.0
1300
1200
1100
1000
900 : 1.0 X1 + 1.0 X2 = 1800.0
800
700
600
500
400
300
200
100
0
0 60 120 180 240 300 360 420 480 540 600 660 720 780 840 900 960 1020108011401200 X1

OptimalDecisions(X1,X2):(1000.0,800.0)
3.0X1 + 2.0X2 <= 4800.0
1.0X1 + 1.0X2 <= 1800.0
1.0X1 + 0.0X2 <= 1000.0
0.0X1 + 1.0X2 <= 1800.0

Input data SOLVER

Reviewed pages Ehran Sue

Quantity 1 1 Max
Quality 9 6 15

Restrictions Used Limit I do not use

Budget 3 2 5≤ 4800 4795
Ehran Hours 1 1≤ 1000 999
Dream Hours 1 1≤ 1800 1799
Number of Pages 1 1 2 ≤ 1800 1798

Output SOLVER

RAYBURN WORK PLANNING

Reviewed pages Ehran Sue

Quantity 1000 800 Max
Quality 9 6 13800

Restrictions Used Limit Do not use

Budget 3 2 4600 ≤ 4800 200

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Ehran Hours 1 1000≤ 1000 -1.1E-10

Hours Dream 1 800≤ 1800 1000
Number of Pages 1 1 1800≤ 1800 -4.2E-09

[Link] Phones sells two models of car phone: X and Y. The records
it shows that 3 hours of sales time are used for each model of
X phone sold, and 5 hours of sales time for each phone of the model.
Y. A total of 600 hours of sales are available for the next period.
four weeks. In addition, the administration's planning policies
they require minimum sales targets of 25 units, both for the X and for the
Y.
a. Show the feasible region
b. If the company obtains a contribution to profit of 40 dollars for each
Model X sold and a contribution to the profit of 50 dollars for each
Y model sold. What is the optimal sales goal for the company during
the 4-week period?
c. Develop a constraint and show the feasible region if the administration
add the restriction that Car Phones must sell at least as many
phones And like phones X.
d. What is the new optimal solution if the constraint is added to the problem?
of clause (c)?11

Solution:
Model formulation:
Definition of variables
X1 = Número de unidades de teléfonos modelo X
X2 = Número de unidades de teléfonos modelo Y

Objective Function
Zmax = 40X1 + 50X2

Restrictions
3X1 + 5X2 ≤ 600 available sales hours
X1 ≥ 25 minimum sales meta
X2 ≥ 25 minimum sales target

No negativity
Xi≥0; i=1,2
LPG Solution

11
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 268. Problem 28.

Oswaldo Paul Rivadeneira Page: 23

Operational Research I Linear Programming

Payoff: 40.0 X1 + 50.0 X2 = 7583.3

: 1.0 X1 + 0.0 X2 = 25.0

: 3.0 X1 + 5.0 X2 = 600.0

0.0 X1 + 1.0 X2 = 25.0

X2
2
2 X1

OptimalDecisions(X1,X2):(158.3,25.0)
3.0X1 + 5.0X2 <= 600.0
1.0X1 + 0.0X2 >= 25.0
0.0X1 + 1.0X2 >= 25.0

Input data SOLVER

CAR PHONES PLANNING

Model Model
Telephone X Y
Quantity 1 1 Max
Utility 40 50 90

No
Restrictions Used Limit Utilize
Available hours 3 5 8≤ 600 592
Sale min X 1 1≥ 25 -24
Minimum sale Y 1 1≥ 25 -24

Solver Output Data

CAR PHONE PLANNING

Model Model
Telephone X Y
Quantity 158.3333 25 Max
Utility 40 50 7583.333

Restrictions Used Limit Do not use

Available hours 3 5 600≤ 600 -1.4E-09
Sale min X 1 158.3333 ≥ 25 133.3333
Minimum sale Y 1 25≥ 25 2.64E-12

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Operational Research I Linear Programming

12. Greentree Kennels provides overnight accommodation for pets. A

A particular feature of Greentree is the quality of care that they receive.
pets, including excellent nutrition. The dog food of the
Dog kennel prepares a mixture of two brand-name dog foods in order to
obtain what the kennel identifies as a 'good dog diet'
balanced.” The data for the two meals are as follows:

Food Cost/ounce Proteins % Grasa %

Bark Bits 0.06 30 15
Canine Chow 0.05 20 30

If Greentree wants to ensure that the dogs receive at least 5 ounces

of proteins and at least 3 ounces of fats each day, what is the mix of
minimum cost of dog food?12

Solution:
Model formulation:
Definition of variables
X1 = Cantidad de onzas de comida Bark Bits
X2 = Cantidad de onzas de comida Canine Chow

Objective Function
Zmin = 0.06X1 + 0.05X2

Restrictions
0.3X1 + 0.2X2 ≥ 5 protein content
0.15 X1 + 0.3 X2 ≥ 3 fat content

No negativity
Xi≥0; i=1,2

LPG solution

12
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 269. Problem 34.

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Operational Research I Linear Programming

36

30

24

Payoff: 0.06 X1 + 0.05 X2 = 1.02

18

: 0.30 X1 + 0.20 X2 = 5.00

12
0.15 X1 + 0.30 X2 = 3.00

0
0 10 20 30 40 50 60 70 80

OptimalDecisions(X1,X2):(15.00,2.50)
0.30X1 + 0.20X2 >= 5.00
0.15X1 + 0.30X2 >= 3.00

Solver data entry

WORK PLANNING Greentree Kennels

Bark Canine
Food Bits Chow
Quantity 1 1 Min
Quality 0.06 0.05 0.11

No
Restrictions Used Usage limit
Proteins 0.3 0.2 0.5 ≥ 5 4.5
Fats 0.15 0,3 0.45 ≥ 3 2.55

Solver Data Output

WORK PLANNING Greentree Kennels

Bark Canine
Food Bits Chow
Quantity 15 2.5 minutes
Quality 0.06 0.05 1,025

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Operational Research I Linear Programming

No
Restrictions Used Usage limit
-3.3E-
Proteins 0.3 0.2 5 ≥ 5 12
-2.2E
Fats 0.15 0.3 3≥ 3 12

13. The New England Cheese Company produces two cream cheeses by mixing cheeses.
both mild and extra strong cheddar. Cream cheeses are packaged in
12-ounce containers, which are then sold to distributors all over the
northwest. The Regular blend contains 80% mild cheddar and 20%
extra strong and the Zesty mix contains 60% mild cheddar and 40%
extra strong. This year, a local dairy cooperative has offered to deliver up to
8.100 pounds of cheddar cheese at $1.20 per pound and up to 3,000 pounds of cheese
extra strong cheddar at $1.40 per pound. The cost of mixing and packing these
cream cheeses, excluding the cost of the cheese itself, is $0.20 per container.
If each Regular container sells for $1.95 and each Zesty container sells
at $2.20. How many containers should New England Cheese produce of Regular?
and Zesty?13

Solution:
Model formulation:
Definition of variables
X1 = Cantidad (en miles) de recipientes de queso Regular
X2 = Cantidad (en miles) de recipientes de queso Zesty

Objective Function
Zmax = (1.95–0.20 - 0.80*0.75*1.20–0.60*0.75*1.40)X1 +
(2.20–2.0–0.20*0.75*1.20–0.40*0.75*1.40)X2
Zmax = 0.40X1 + 1.40X2
Restrictions
0.80*0.75X1 + 0.60*0.75X2 ≤ 8.1 soft cheddar cheese
0.20*0.75X1 + 0.40*0.75X2 ≤ 3.0 extra strong cheddar cheese

No negativity
Xi≥0; i=1,2

LPG Solution

13
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 269. Problem 35.

Oswaldo Paul Rivadeneira Page: 27

Operational Research I Linear Programming

0.82 X1 + 0.64

X2
10
Payoff: 0.4 X1 + 1.4 X2 = 14.0
9

0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 X1

OptimalDecisions(X1,X2):(0.0,10.0)
: 0.8X1 + 0.6X2 <= 10.8
0.2X1 + 0.4X2 <= 4.0

Solver input data

WORK PLANNING at New England Cheese Company

Cheese containers Regular Zesty

Amount in thousands 1 1 max
Utility 0.4 1.4 1.8

No
Restrictions Used Usage Limit
Soft Ch. cheese 0.8 0.6 1.4≤ 10.8 9.4
Production time min 0.2 0.4 0.6 ≤ 4 3.4

Solver output data

Regular Zesty Cheese Containers

Amount in thousands 0 10 max
Utility 0.4 1.4 14

No
Restrictions Used Limit Utilize
Soft Ch. cheese 0.8 0.6 6 ≤ 10.8 4.8
Production time min 0.2 0.4 4≤ 4 -5.5E-12

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Operational Research I Linear Programming

14. The administrators of Healthtech Foods are considering developing a

new low-fat sandwich. It is a mixture of two types of
cereals, each of them with different characteristics in fibers, fats and
proteins. The following table shows these characteristics per ounce of each type
of cereal.

Fibra dietética Grasas Proteins

Cereal (grams) (grams) (grams)
A 2 2 4
B 1.5 3 3

Note that each ounce of cereal A provides two grams of dietary fiber and that
each ounce of cereal B provides 1.5 grams of dietary fiber, so if Healthtech
going to develop the new product using a blend made of 50% of
cereal A and 50% of cereal B, one ounce of this would contain 1.75 grams of fiber
dietetic. The nutritional requirements of Healthtech demand that each ounce of the
new food should have at least 1.7 grams of dietary fiber, no more than 2.8
grams of fat and no more than 3.6 grams of protein. The cost of cereal A is
at $0.02 per ounce and that of B is $0.025 per ounce. Healthtech wants
determine how much of each cereal is needed to produce one ounce of
new product at the lowest possible cost.

a. Formulate the linear programming model for this situation

b. Solve the problem using the graphical solution method
c. What are the slack and surplus variables?
d. If Healthtech puts the new cereal on the market in an 8-ounce package.
What would be the cost of the package?14

Solution:
Model formulation:
Definition of variables
X1 = Cantidad de onzas de cereal A
X2 = Cantidad de onzas de cereal B

Objective Function
Zmin = 0.02X1 + 0.025X2

Restrictions
2X1 + 1.5X2 ≥ 1.7 for dietary fiber
2X1 + 3X2 ≤ 2.8 for fats
4X1 + 3X2 ≤ 3.6 for proteins
X1 + X2 = 1 ounce

14
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 269. Problem 36.

Oswaldo Paul Rivadeneira Page: 29

Operational Research I Linear Programming

No negativity
Xi≥0; i=1,2

LPG solution

X2
1

Payoff:0.020X1+0.025X2=0.017

:4.000X1+3.000X2=3.600

:2.000X1+3.000X2=2.800

0 :2.000X1+1.500X2=1.700
0 1 X1

OptimalDecisions(X1,X2):(0.850,0.000)
2.000X1+1.500X2>=1.700
2.000X1+3.000X2<=2.800
4.000X1+3.000X2<=3.600

Input data SOLVER

Planning of Healthtech Foods

Cereal A B
Quantity in ounces 1 1 min
Cost 0.02 0.025 0.045

No
Restrictions Used Limit Use
dietary fiber 2 1.5 3.5 greater than or 1.7
equal to 1.8
for fats 2 3 5≤ 2.8 -2,2
for proteins 4 3 7≤ 3.6 -3.4

Solver output data

Planning of Healthtech Foods

Cereal A B
Quantity in ounces 0.85 0 min

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Operational Research I Linear Programming

Cost 0.02 0.025 0.017

No
Restrictions Used Limit Utilize
9.12E-
dietary fiber 2 1.5 1.7≥ 1.7 13
for fats 2 3 1,7≤ 2.8 1,1
by proteins 4 3 3.4 ≤ 3.6 0.2

15.MD Chemical produces two products that are sold as raw materials for
companies that manufacture bath soaps, laundry detergents, and others
soap products. Based on an analysis of the current levels of
inventories and potential demand for the next month, the administration
of MD has specified that the total production of products 1 and 2
combinations must be at least 350 gallons. It must also comply with
an order from a client of importance for 125 gallons of product 1. The
processing time of product 1 requires two hours per gallon, and of the
product 2 requires one hour; for the following month, there are availabilities
600 hours of process. The production costs are 2 dollars per gallon of
product 1 and 3 dollars of product 2.
a. Determine the production quantities that meet the requirements
specified at the minimum cost.
b. What is the total cost of the product?
c. Identify the amount of any excess production.15

Solution:
Model formulation:
Definition of variables
X1 = Cantidad de galones del producto 1
X2 = Cantidad de galones de producto 2

Objective Function
Zmin = 2X1 + 3X2

Restrictions
X1 + X2 ≥ 350 gallons produced
X1 ≥ 125 customer order
2X1 + 1X2 ≤ 600 process hours

No negativity
Xi≥0; i=1,2

LPG solution

15
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 270. Problem 37.

Oswaldo Paul Rivadeneira Page: 31

Operational Research I Linear Programming

X2
440
418
396
374
352
330
308
286
264 Payoff: 2.0 X1 + 3.0 X2 = 800.0
242
220
198
176
154
132
110
88 : 2.0 X1 + 1.0 X2 = 600.0
66
44 : 1.0 X1 + 0.0 X2 = 125.0
22
0 : 1.0 X1 + 1.0 X2 = 350.0
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 X1

OptimalDecisions(X1,X2):(250.0,100.0)
1.0X1 + 1.0X2 >= 350.0
: 1.0X1 + 0.0X2 >= 125.0
2.0X1 + 1.0X2 <= 600.0

Solver input data

Planning of 55. M&D Chemical

Product 1 2
Gallons amount 1 1 min
Cost 2 3 5

No
Restrictions Used Limit Utilize
Gallons
produced 1 1 2≥ 350 -348
Customer order 1 1≥ 125 124
Process hours 2 1 3≤ 600 597

Output data SOLVER

Planning of M&D Chemical

Product 1 2
Quantity gallons 250 100 min
Cost 2 3 800

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Operational Research I Linear Programming

Restrictions Used Limit Not Used

Gallons
produced 1 1 350≥ 350 8.11E-10
Customer order 1 250≥ 125 -125
Process hours 2 1 600≤ 600 -2.9E-10

[Link] Chemicals produces two types of fluid for photographic development. Both
products cost the company one dollar per gallon to produce. Based on
an analysis of current inventory levels and outstanding orders for the
Next, the management of Photo Chemicals has decided that during
the following two weeks at least 30 gallons of the product are produced
1 and at least 20 gallons of product 2. The administration has also said
that the inventory should be used within the next two weeks
existing of a very perishable raw material necessary in the production of
both fluids. The current inventory of this highly perishable raw material is
80 pounds. Although if necessary, more of this material can be ordered.
First, any unused part of the current inventory will go to waste.
within the following two weeks; hence the requirement of the
administration that at least 80 pounds are used in the following two
weeks. Additionally, product 1 requires one pound of this raw material
perishable per gallon, and product 2 requires 2 pounds of the raw material per
gallon. Since the objective of management is to keep costs of
production at the lowest possible level, they are looking for a production plan of
minimum cost that utilizes all 80 pounds of the raw material
perishable and that obtains at least 30 gallons of product 1 and for
less than 20 gallons of product 2. What is the minimum cost solution?16

Solution:
Model formulation:
Definition of variables
X1 = Cantidad de galones de fluido tipo 1
X2 = Cantidad de galones de fluido tipo 2

Objective Function
Zmin = X1 + X2

Restrictions
X1 ≥ 30 minimum production of product 1
X2 ≥ 20 minimum production of product 2
X1 + 2X2 ≥ 80 pounds of raw material

No negativity
Xi≥0; i=1,2

16
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 270. Problem 38.

Oswaldo Paul Rivadeneira Page: 33

Operations Research I Linear Programming

LPG solution

Payoff: 1.0 X1 + 1.0 X2 = 60.0

X2
25 : 1.0 X1 + 2.0 X2 = 80.0
24
23
22
21
20
19 : 0.0 X1 + 1.0 X2 = 20.0
18
17
16
15
14
13
12
11 1.0 X1 + 0.0 X2 = 30.0
10
9
8
7
6
5
4
3
2
1
0
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 X1

OptimalDecisions(X1,X2):(40.0,20.0)
1.0X1 + 0.0X2 >= 30.0
0.0X1 + 1.0X2 >= 20.0
1.0X1 + 2.0X2 <= 80.0

[Link]'s Pizza is a producer of frozen pizzas. The company has a

utility of one dollar for each normal pizza produced and 1.5 dollars for
each luxury pizza. Each pizza includes a combination of flour dough and
filling mix. The company currently has 150 pounds of pasta mix
and 50 pounds of filling mix. Each regular pizza uses a pound of
mix of flour dough and 4 ounces of filling dough mixture. Each pizza
luxury uses a pound of pasta flour mix and 8 ounces of mezcal
filler. Based on past demand, Bryant can sell at least
50 normal pizzas and at least 25 luxury pizzas. How many normal pizzas?
and luxury should the company manufacture to maximize profit?
a. What is the linear programming model for this problem?
b. Write this linear program in its standard form.
c. Find the optimal solution.
d. What are the values and interpretations of all the slack variables and
of surplus?
What restrictions are associated with limiting resources?17

Solution:
Formulation of the model:

17
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 270. Problem 39.

Oswaldo Paul Rivadeneira Page: 34

Operational Research I Linear Programming

Definition of variables
X1 = Cantidad de Pizzas Normales
X2 = Cantidad de Pizzas De Lujo

Objective Function
Zmax = 1X1 + 1.5X2

Restrictions
X1 + X2 ≤ 150 flour dough
0.25X1 + 0.5X2 ≤ 50 stuffing pasta
X1 ≥ 50 sale of regular pizzas
X2 ≥ 25 luxury pizza sales

No negativity
Xi≥0; i=1,2
LPG solution
160
152
144
136
: 1.00 X1 + 0.00 X2 = 50.00
128
120
112
104
96
88
80 : 1.00 X1 + 1.00 X2 = 150.00
72
64
Payoff: 1.00 X1 + 1.50 X2 = 175.00
56
48
40
32 : 0.00 X1 + 1.00 X2 = 25.00
24
: 0.25 X1 + 0.50 X2 = 50.00
16
8
0
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160

OptimalDecisions(X1,X2):(100.00,50.00)
: 1.00X1 + 1.00X2 <= 150.00
0.25X1 + 0.50X2 <= 50.00
1.00X1 + 0.00X2 >= 50.00
0.00X1 + 1.00X2 >= 25.00

Input data SOLVER

PLANNING WORK BRYANT'S PIZZA

Pizzas Normal Luxury

Quantity 1 1 max

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Operational Research I Linear Programming

Usefulness 1 1.5 2.5

No
Restrictions Used Limit Used
Pasta flour 1 1 2 ≤ 150 148
Filling 0.25 0.5 0.75 ≤ 50 49.25
Regular Pizzas 1 1≥ 50 -49
Luxury Pizzas 1 1≥ 25 -24

Solver output data

BRYANT'S PIZZA WORK PLANNING

Pizzas Normal Luxury

Amount 100 50 max
Utility 1 1.5 175

No
Restrictions Used Limit Utilize
Flour pasta 1 1 150≤ 150 -3.4E-10
Filling 0.25 0.5 50≤ 50 -6E-11
Normal Pizzas 1 100≥ 50 50
Luxury Pizzas 1 50≥ 25 25

18. English Motors, Ltd. (EML) has developed a new sports vehicle.
utility, with all-wheel drive. As part of the campaign
marketing, EML has developed a sales presentation on video tape
that will be sent to owners of four-wheel drive vehicles
Current EMLs, such as for owners of four-wheel drive utility vehicles.
wheels offered by EML competitors refer to these two markets
objective as current customer market and new customer market. The
Individuals who receive the new promotional video will also receive a coupon.
for a test drive of the new EML model, over a weekend.
A key factor in the success of this new promotion is the response rate, it is
say the percentage of individuals who receive the new promotion and make the
test run of the new model, EML estimates that the response rate
for the current customer market is 25% and for the customer market
New is 20%. The sales rate is the percentage of individuals who receive
the new promotion, take the test drive and make the purchase. The
Market research studies indicate that the sales rate is 12%
for the current customer market and 20% for the new customer market.
The cost of each promotion, excluding the costs of the trial run, is
5 dollars for each promotion sent to the current customer market and 4
dollars for each promotion sent to the market of new customers. The
the administration has also decided that the new promotion should be sent to
un mínimo d 30.000 clientes actuales y a un mínimo de 10.000 clientes nuevos.
In addition, the number of current customers who take the test drive of the

Oswaldo Paul Rivadeneira Page: 36

Operational Research I Linear Programming

new vehicle must be at least double the number of customers

new ones who will do a test drive of the new vehicle. If the budget of
Marketing, including the costs of the test run, is 1,200,000.
dollars, how many promotions should be sent to each group of customers
to maximize total sales?18

Solution:
Model formulation:
Definition of variables
X1 = Cantidad de promociones enviadas a clientes actuales
X2 = Cantidad de promociones enviadas a clientes nuevos

Objective Function
Zmax = 0.12*5X1 + 0.20*4X2

Restrictions
X1 ≥ 30,000 current customers
X2 ≥ 10,000 new clients
0.25X1 ≥ 2*0.20X2 relationship between customers who respond to the promotion
5X1 + 4X2 ≤ 1,200,000 budget

No negativity
Xi≥0; i=1,2
LPG Solution

18
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 274. Problem 61.

Oswaldo Paul Rivadeneira Page: 37

Operational Research I Linear Programming

X2
273
260
247
234
221 Payoff: 0.60 X1 + 0.80 X2 = 176.00
208
195
182 : 5.00 X1 + 4.00 X2 = 1200.00
169
156
143 : 1.00 X1 + 0.00 X2 = 30.00
130
117
104
91
78
65 : 0.25 X1 - 0.40 X2 = 0.00
52
39
26 : 0.00 X1 + 1.00 X2 = 10.00
13
0
0 13 26 39 52 65 78 91 104 117 130 143 156 169 182 195 208 221 234 247 2

OptimalDecisions(X1,X2):(160.00,100.00)
1.00X1 + 0.00X2 >= 30.00
0.00X1 + 1.00X2 >= 10.00
: 0.25X1 - 0.40X2 >= 0.00
5.00X1 + 4.00X2 <= 1200.00

Input data SOLVER

PLANNING WORK ENGLISH MOTOR LTD.

Clients Clients
Promotions Current New
Quantity in
miles 1 1 max
Sales 0.6 0.8 1.4

No
Restrictions Used Limit utilize
Current clients 1 1≥ 30 29
New clients 1 1≥ 10 9
Client relationship 0.25 -0.4 -0.15≥ 0 -0.15
Budget 5 4 9≤ 1200 -1191

Solver Output Data

PLANNING WORK ENGLISH MOTOR LTD.

Clients Clients
Promotions Current New
Quantity in
miles 160 100 max
Sales 0.6 0.8 176

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Operational Research I Linear Programming

Restrictions Used Limit Not using

Current clients 1 160≥ 30 -130
New customers 1 100≥ 10 -90
Customer relationship 0.25 -0.4 -1.1E-11 ≥ 0 -1,1E-11
Budget 5 4 1200≤ 1200 2.78E-09

19. Creative Sports Designs (CSD) manufactures standard size rackets and
extragrande. The company's rackets are extremely light due to
use of a magnesium and graphite alloy invented by the founder of the
company. Each standard-sized racket uses 0.125 kilograms of alloy and
each extra-large racket uses 0.4 kilos; for the next period of
Production for two weeks only has 80 kilos of alloy available. Each
Standard size racket takes 10 minutes of manufacturing time and each
The oversized racket takes 12 minutes. Contributions to the
profit is 10 dollars for each standard racket and 15 dollars for each
super oversized racket and 40 hours of production time are available for
week. The administration has specified that at least 20% of the
Total production must be of standard sized rackets. How many rackets
each type must manufacture CSD in the following two weeks, in order to
maximize the contribution to profit? Assume that, due to the nature
unique to its products, CSD can sell as many rackets as it can
produce.19

Solution:
Model formulation:
Definition of variables
X1 = Cantidad de unidades de raquetas estandar
X2 = cantidad de unidades de raquetas extra grande

Objective Function
Zmax = 10X1 + 15X2

Restrictions
0.125X1 + 0.4X2 ≤ 80 kilograms of alloy
10X1 + 12X2 ≤ 40*60 minutes of production time
X1 ≥ 0.20(X1 + X2)

No negativity
Xi ≥ 0; i = 1, 2
LPG solution

19
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 274. Problem 62.

Oswaldo Paul Rivadeneira Page: 39

Operational Research I Linear Programming

X2
200
190 :0.125X1+0.400X2=80.000
180
170 Payoff:10.000X1+15.000X2=2896.551
160
150
140 10,000X1+12,000X2=2,400,000
130
120
110
100
90
80
:0.800X1-0.200X2=0.000
70
60
50
40
30
20
10
0
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 X1

OptimalDecisions(X1,X2):(41.379,165.517)
0.125X1+0.400X2<=80.000
10.000X1+12.000X2<=2400.000
:0.800X1-0.200X2>=0.000

Input data SOLVER

WORK PLANNING 59. Creative Sports Designs

Rackets Extra Standard G

Quantity 1 1 max
Contribution. Utility 10 15 25

No
Restrictions Used Limit Utilize
Alloy kilos 0.125 0.4 0.525 ≤ 80 79,475
Production time min 10 12 22≤ 2400 2378
20% production standard 0.8 -0.2 0.6 ≥ 0 0.6

Solver output data

PLANIFICACION TRABAJO 59. Creative Sports Designs

Rackets Extra Standard G

Quantity 41.37931 165.5172 max
Contribution. Utility 10 15 2896.552

Restrictions Used Limit Not Utilized

Alloy kilograms 0.125 0.4 71.37931≤ 80 8.62069
Production time min 10 12 2400≤ 2400 3.03E-10

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Operational Research I Linear Programming

20% production standard 0.8 -0.2 9.03E-11 ≥ 0 9.03E-11

20. The management of High Tech Service (HTS) wants to develop a model that will
help assign the time of your technicians between service calls for
contract for both regular and new clients. During the planning period of
In two weeks, a maximum of 80 hours of technician time is available. In order to
to meet cash flow requirements, at least 800 must be generated
dollars of income (per technician) during the two-week period. The time
technician for regular clients generates 25 dollars per hour, but for
new clients only generate an average of 8 dollars per hour, because in
In many cases, contact with the client does not result in billable services.
To ensure that new contacts are maintained, the technician's time
used in contacts with new clients must be at least 60% of the
time spent in contacts with normal clients. For the requirements of
income and stated policies, HTS would like to determine how to allocate the
time of technicians between regular and new clients, in order to maximize the
total number of clients in contact during the two-week period. The
Technicians require an average of 50 minutes for each customer contact.
normal and one hour for each contact with a new client.
a. Develop a linear programming model that allows HTS to allocate the
time of the technicians between regular and new clients.
b. Make a graph of the feasible region
c. Solve the appropriate simultaneous linear equations to determine the
values of X1 and X2 at each extreme point of the feasible region.
d. Find the optimal solution20

REFERENCE: Page 274 Problem 63. Quantitative Methods for the

Business. 7th Edition. Anderson Sweeney Williams. Thomson Publishing.

Solution:
Model formulation:
Definition of variables
X1 = Numero de horas de técnico asignado a clientes normales
X2 = Numero de horas de técnico asignado a clientes nuevos

Objective Function
Zmax = 60X1/50 + 60X2/60 number of customers

Restricciones
X1 + X2 ≤ 80 available hours of technician
X2 ≥ 0.6X1 relationship of technician time
25X1 + 8X2 ≥ 800 income in dollars

No negativity
Xi≥0; i=1,2

20
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 274. Problem 63.

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Operational Research I Linear Programming

LPG Solution
104

91 Payoff: 1.20 X1 + 1.00 X2 = 90.00

78

65

52

39
:25.00X1+8.00X2=800.00
:-0.60X1+1.00X2=0.00

26

13 : 1.00 X1 + 1.00 X2 = 80.00

0
0 11 22 33 44 55 66 77

OptimalDecisions(X1,X2):(50.00,30.00)
1.00X1 + 1.00X2 <= 80.00
-0.60X1+1.00X2>=0.00
25.00X1+8.00X2>=800.00

Solver Data Entry

WORK PLANNING High Tech Service

Clients Clients
New normal working hours
Number of hours 1 1 max
Number of clients 1.2 1 2.2

Restrictions Used Limit Not use

Hours
available 1 1 2 ≤ 80 78
Time relationship -0.6 1 0.4 is greater than or0 equal to -0.4
Income 25 8 33≥ 800 -767

SOLVER Output Data

WORK PLANNING High Tech Service

Clients Clients
New regular working hours
Number of hours 50 30 max
Number of clients 1.2 1 90

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Operational Research I Linear Programming

Restrictions Used Limit Do not use

Hours
available 1 1 80≤ 80 -1.8E-10
Time relationship -0.6 1 -2.2E-11 ≥ 0 2.18E-11
Income 25 8 1490≥ 800 690

21. Jackson Hole Manufacturing is a small manufacturer of plastic products.

that are used in the automotive and computing industries. It has a
important contract with a computer company that involves the
production of plastic boxes for the portable printers of that company.
The printer boxes are produced in two injection molding machines.
The M100 machine has a production capacity of 20 printer boxes.
per hour and the M200 machine has a capacity of 40 boxes per hour. Both
machine uses the same chemical raw material to produce the boxes of
printer.; the M100 uses 40 pounds of raw material per hour, and the M200 uses
50 per hour. The computer company has asked Jackson Hole to
produce as many boxes during the following week as possible, and it has
he said that he will pay him 18 dollars for each box that he can deliver. However,
next week is a normal scheduled vacation period for the
majority of the production employees of Jackson Hole. During this
At this time, the annual maintenance of all the plant equipment is carried out.
Due to the downtime for maintenance, the M100 will not be available.
for more than 15 hours and the M200 for more than 10 hours. However, in
reason for the high preparation cost involved in both machines,
management requires that if the production program in any of
these machines, the machine must operate for at least 5 hours. The
supplier of the chemical material used in the production process has
informed Jackson Hole that it will have a maximum of 1,000 pounds available
the raw material for the production of next week. The cost of the
raw material is 6 dollars per pound. In addition to the cost of the raw material,
Jackson Hole estimates that the hourly operating cost of the M100 and the M200
they are 50 and 75 dollars, respectively.
a. Formulate a linear programming model that can be used to
maximize the contribution of utility.
b. Solve the problem using the graphical solution procedure.21

Solution:
Formulation of the model:
Definition of variables
X1 = Numero de horas de trabajo de maquina M100
X2 = Numero de horas de trabajo de maquina M200

Objective Function
Zmax = (20X1*18–40X1*6–50X1) + (40X2*18–50X2*6–75X2)

21
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 275. Problem 64.

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Operational Research I Linear Programming

Zmax = (360–240–50)X1 + (720–300–75)X2

Zmax = 70X1 + 345X2

Restrictions
X1 ≤ 15 maximum working hours M100
X2 ≤ 10 maximum working hours of M200
X1 ≥ 5 minimum working hours of M100
X2 ≥ 5 minimum working hours of M200
40X1 + 50X2 ≤ 1000 pounds of available raw material

No negativity
Xi≥0; i=1,2

LPG solution

Payoff: 70.0 X1 + 345.0 X2 = 4325.0

12

: 40.0 X1 + 50.0 X2 = 1000.0

: 0.0 X1 + 2.0 X2 = 5.0

: 1.0 X1 + 0.0 X2 = 5.0

: 0.0 X1 + 1.0 X2 = 10.0

0 : 1.0 X1 + 0.0 X2 = 15.0

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

OptimalDecisions(X1,X2):(12.5,10.0)
1.0X1 + 0.0X2 <= 15.0
0.0X1 + 1.0X2 <= 10.0
1.0X1 + 0.0X2 >= 5.0
0.0X1 + 2.0X2 >= 5.0
40.0X1 + 50.0X2 <= 1000.0

Solver input data

WORK PLANNING High Tech Service

Machine Machine
Working hours M100 M200
Number of hours 1 1 max
Contribution utility 70 345 415

Restrictions Used Limit Do Not Use

Max hours M100 1 0 1≤ 15 14
Max hours M200 0 1 1≤ 10 9

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Operational Research I Linear Programming

Hours min M100 1 0 1≥ 5 -4

Hours min M200 0 1 1≥ 5 -4
Available books 40 50 90≤ 1000 910

SOLVER Output Data

Machine Machine
Working hours M100 M200
Number of hours 12.5 10 max
Contribution utility 70 345 4325

Restrictions Used Limit Do not use

Max hours M100 1 0 12.5≤ 15 2.5
Max M200 hours 0 1 10≤ 10 -9.9E-13
Hours min M100 1 0 12.5≥ 5 7.5
Hours min M200 0 1 10≥ 5 5
Available books 40 50 1000≤ 1000 -1.5E-09

22. Electronic Communications manufactures portable radios that can be used in

two-way communications. The new product from the company that has a
range of up to 25 miles, is suitable for a variety of commercial uses
and personal. The distribution channels for the new radio are:

1. marine equipment distributors

2. office equipment distributors,
3. national retail store chains
4. orders by mail.

Due to different distribution and promotional costs, the profitability of

the product will vary according to the distribution channel. In addition, the cost of advertising
and the effort required for personal sales will also vary according to
the distribution channels. The following table summarizes the distribution of the
utility, the cost of advertising and the data of personal sales effort
corresponding to the problem of Electronic Communications. The company to
a budget of 5,000 dollars has been formulated, and a
maximum of 1800 hours of the sales force to allocate to the effort of
sales. Finally, an active contract with the national chain of stores at
wholesale requires that at least 150 units be distributed through
this distribution channel.

Profit data, costs, and effort of the sales staff for Electronic
Effort of
Channel of Utilities by Cost of personal sales advertising
distribution unit sold per unit sold per unit sold
Marine Distribution $90 $10 2 hours

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Operations Research I Linear Programming

Office distribution $84 $8 3 hours

National stores $70 $9 3 hours
Orders by mail $60 $15 None

Electronic Communications now faces the problem of establishing a

distribution strategy for the radios that maximizes overall profitability
on the production of new radios. Decisions must be made regarding
how many units should be assigned to each of the four channels of
distribution, as well as allocate the advertising budget and the effort of the
sales force to each of the distribution channels.22

Solution:
Model formulation:
Definition of variables
X1 = Numero de radios asignados a distribuidores de equipo marino
X2 = Numero de radios asignados a distribuidores de equipos de oficina
X3 = Numero de radios asignados a cadenas nacionales de tiendas
X4 = Numero de radios asignados a pedidos por correo

Objective Function
Zmax = 90X1 + 84X2 + 70X3 + 60X4

Restrictions
10X1 + 8X2 + 9X3 + 15X4 ≤ 5,000 for budget
2X1 + 3X2 + 3X3 ≤ 1,800 hours of sales effort
X3 ≥ 150 minimum units for national chains

No negativity
Xi≥0; i=1,4

Input data SOLVER

ELECTRONIC COMMUNICATION
Distributors Order chains
National teams for
Radios assigned to Marino Office of stores email
Number of Radios 1 1 1 1 Max
Utilities 90 84 70 60 304

USE OF
RESTRICTIONS RESOURCES Used LIMIT Do not use
Budget 10 8 9 15 42≤ 5000 4958.00
Labor effort 2 3 3 8≤ 1800 1792.00
Nation chain contract 1 1≥ 150 -149.00

22
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 298.

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Operational Research I Linear Programming

OUTPUT DATA SOLVER

ELECTRONIC COMMUNICATION
Distributors Order chains
Team Teams nationals by
Radios assigned to Office Store Mail Marino
Number of Radios 10.71429 442.85714 150 0 Max
Utilities 90 84 70 60 48664.29

USE OF
RESTRICTIONS RESOURCES Used LIMIT Do not use
Budget 10 8 9 15 5000≤ 5000 0.00
Labor effort 2 3 3 1800≤ 1800 0.00
Chain contract
nation 1 150≥ 150 0.00

23. National Insurance Associates maintains a portfolio of investments in stocks,

bonds and other investment alternatives. Currently, there are funds available for
200,000 dollars and must be taken into consideration for new
investment opportunities. The four options of securities that National is
considering thus that the relevant financial data correspond to
what follows:

Action
Financial data A B C D
Price per share ($) 100 50 80 40
Annual yield rate 0.12 0.08 0.06 0.10
Irrigation measure per dollar 0.10 0.07 0.05 0.08

The risk measure indicates the relative uncertainty associated with the action, in
function of its ability to reach its projected annual performance; values
higher values indicate greater risk. Risk measures are provided
by the main financial advisor of the company.

The general administration of National has stipulated the following courses of action.
for investments:
The annual return rate of the portfolio must be at least 9%
None of the values can represent more than 50% of the investment.
total in dollars.

a. Use linear programming to develop an investment portfolio that

minimize the risk.
b. If the company ignores the risk and uses a maximum yield strategy
Regarding the investment, what would the investment portfolio be?

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Operational Research I Linear Programming

c. What is the dollar difference between the investment portfolios of the

sections (a) and (b)? Why would the company prefer the solution developed in the
item (a)23

REFERENCE: Page 316 Problem 16. Quantitative Methods for the

Business. 7th Edition. Anderson Sweeney Williams. Thomson Publishing.

Solution a):

Model formulation:
Definition of variables
X1 = Cantidad de acciones asignados a opción A
X2 = Cantidad de acciones asignados a opción B
X3 = Cantidad de acciones asignados a opción C
X4 = Cantidad de acciones asignados a opción D

Objective Function
Zmin = 10X1 + 3.5X2 + 4.0X3 + 3.2X4

Restrictions
100X1 + 50X2 + 80X3 + 40X4 ≤ 200,000 dollars available
12X1 + 4.0X2 + 4.8X3 + 4.0X4 ≥ 0.09*200,000 output
100 times 1 is less than or equal to 0.5 times 200,000.
maximum investment of X1
50X2 ≤ 0.5 * 200,000 maximum investment of X2
80X3 ≤ 0.5 * 200,000 maximum investment of X3
40X4 ≤ 0.5 * 200,000 maximum investment of X4

No negativity
Xi≥0; i=1,4
Input data SOLVER
National Insurance Associates
Actions
Assigned actions to A B C D
Cantidad 1 1 1 1 Min
Risk 10 3.5 4 3.2 20.7

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

Available dollars 100 50 80 40 270 ≤ 200,000 199,730.00
Annual performance 12 4 4.8 4 24.8 ≥ 18000 - 17975.20
Max investment in A 100 100≤100000 99900.00
Max investment in B 50 50≤100000 99950.00
Max investment in C 80 80≤100000 99920.00
Max investment in D 40 40 ≤ 100,000 99960.00

23
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 316. Problem 16.

Oswaldo Paul Rivadeneira Página: 48

Operational Research I Linear Programming

Solver Results
National Insurance Associates
Actions
Assigned actions to A B C D
Quantity 333.3333 0 833.333333 2500 Min
Risk 10 3.5 4 3.2 14666.67

USE OF
RESTRICTIONS RESOURCES Used LIMIT I do not use
Available dollars 100 50 80 40 200000≤200000 0.00
Annual performance 12 4 4.8 4 18000 ≥ 18000 0.00
Max investment in A 100 33333.33 ≤ 100000 66666.67
Max investment in B 50 0≤100000 100000.00
Max investment in C 80 66666.67 ≤ 100000 33333.33
Max investment in D 40 100000≤100000 0.00

24. The management of Carson Stapler Manufacturing Company forecasts for the
next quarter a demand of 5000 units for its Sure-Hold model.
This stapler is assembled from three main components: the
base, the staple cartridge and the handle. So far Carson has manufactured the three.
components. However, the forecast of 5000 units is a new
maximum sales volume and the company may not have enough capacity to
production for the manufacture of all components. The management is
thinking of hiring a local maquiladora company to produce at least
a part of the components. The production time requirements for
unit are as follows:

Time
Production time (hours) available
Department Base Cartridge Handle (hours)
A 0.03 0.02 0.05 400
B 0.04 0.02 0.04 400
C 0.02 0.03 0.01 400

Note that each component manufactured by Carson takes production time

in each of the three departments.

After taking into account overhead costs, raw materials and

the company's labor costs, the accounting department has
arrived at the unit cost, in dollars, of manufacturing each component.
This data along with the quotes from the maquiladora company of the prices
The purchase, in dollars, is as follows:

Component Manufacturing cost Acquisition cost

Base 0.75 0.95
Cartridge 0.40 0.55
Handle 1.10 1.40

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Operational Research I Linear Programming

a. Determine what the decision to manufacture or buy would be for Carson, that makes
that the demand for 5000 units can be met at a minimum total cost.
For each component, how many units should be manufactured and how many
should be acquired?
b. What departments are limiting the production volume? If I could
considered overtime at an additional cost of $3 per hour, what
Should department or departments be a reason for extra time?
Explain.
c. Suppose that in department A up to 80 hours can be scheduled
overtime. What would you recommend?24

Solution:
Model formulation:
Definition of variables
X11 = Numero de bases para grapadoras producidas
X12 = Numero de cartuchos para grapadoras producidos
X13 = Numero de manijas producidas para grapadoras producidas
X21 = Numero de bases para grapadoras adquiridas
X22 = Numero de cartuchos para grapadoras adquiridos
X23 = Numero de manijas para grapadoras adquiridas

Objective Function
Zmin = 0.75X11 + 0.40X12 + 1.10X13 + 0.95X21 + 0.55X22 + 1.40X23

Restrictions
0.03X11 + 0.02X12 + 0.05X13 ≤ 400 available hours Dep. A
0.04X11 + 0.02X12 + 0.04X13 ≤ 400 available hours Dep. B
0.02X11 + 0.03X12 + 0.01X13 ≤ 400 available hours Dep. C
X11 + X21 = 5,000 quantity of bases
X12 + X22 = 5.000 quantity of cartridges
X13 + X23 = 5.000 cantidad de manijas

No negativity
Xij≥0; i=1,2; j=1,3

Input data SOLVER

Carson Stapler Manufacturing Company
Produced Acquired
Units of staples Cartridges Handles Staples Cartridges Handles
Quantity 1 1 1 1 1 1 Min
Costs 0.75 0.4 1.1 0.95 0.55 1.4 5.15

24
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 316. Problem 17.

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Operational Research I Linear Programming

RESTRICTIONS USE OF RESOURCES Used LIMIT Don't use

Department A Hours 0.03 0.02 0.05 0.1 ≤ 400 399.90
Hours Department B 0.04 0.02 0.04 0.1 ≤ 400 399.90
Hours Department C 0.02 0.03 0.01 0.06 ≤ 400 399.94
Number of bases 1 1 2 = 5000 4998.00
Number of cartridges 1 1 2 = 5000 4998.00
Number of handles 1 1 2 = 5000 4998.00

SOLVER output data

Carson Stapler Manufacturing Company
Produced Acquired
Units of Staples Cartridges Handles Staples Cartridges Handles
Quantity 3750 5000 3750 1250 0 1250 Min
Costs 0.75 0.4 1.1 0.95 0.55 1.4 11875

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

Hours Department A 0.03 0.02 0.05 400 ≤ 400 0.00
Hours Department B 0.04 0.02 0.04 400 ≤ 400 0.00
Hours Department C 0.02 0.03 0.01 262.5 ≤ 400 137.50
Number of bases 1 1 5000 = 5000 0.00
Number of cartridges 1 1 5000 = 5000 0.00
Number of handles 1 1 5000 = 5000 0.00

[Link] Shafts (GSI) produces graphite shafts for various club manufacturers.
golf. Two manufacturing facilities of GSI, one located in San Diego and another
in Tampa, they have the capacity to produce rods in various degrees of stiffness,
from normal models, primarily used by average golfers, to
ultra-rigid models, primarily used by golfers with a low handicap and
professionals. GSI has just received a contract for the production of 200,000
normal poles and 75,000 rigid ones. Given that both plants are currently
producing golf clubs to fulfill previous orders, none of the
The plant has sufficient capacity, on its own, to fulfill the new order.
The San Diego plant can produce up to a total of 120,000 sticks, and the one in
Tampa, up to a total of 180,000 golf clubs. Due to differences in
equipment in each of the plants and different labor costs,
unit production costs are different, as shown in
continuation:

Cost of San Diego Cost of Tampa

Normal pole $ 5.25 $ 4.95
Rigid stick $ 5.45 $ 5.70

a. Formulate a linear programming model to determine the way in which

GSI must schedule the production of this new order to minimize
total production cost.
b. Use any linear programming code to solve the model
developed in paragraph (a)
c. Suppose that some of the previous orders from the Tampa plant could
to be reprogrammed to release the additional capacity for this new order.
Would this be worth it? Explain.
d. Suppose that the cost of producing a rigid golf club in Tampa was
incorrectly calculated, and that the correct cost is 5.30 dollars per stick.

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Operational Research I Linear Programming

What effect, if any, would the above have on the solution?

optimal developed in subsection (b)? What effect would the above have on the
total production cost?25

Solution a):
Model formulation:
Definition of variables
X1 = Numero de unid. de palos de golf normales fabricados en San Diego
X2 = Numero de unid. de palos de golf extrarígidos fabricados en San Diego
X3 = Numero de palos de golf normales fabricados en Tampa
X4 = Numero de palos de golf extrarígidos fabricados en Tampa

Objective Function
Zmin = 5.25X1 + 5.45X2 + 4.95X3 + 5.70X4

Restrictions
X1 + X3 = 200,000 normal golf clubs
X2 + X4 = 75,000 extra stiff golf clubs
X1 + X2 ≤ 120,000 poles manufactured in San Diego
X3 + X4 ≤ 180,000 poles manufactured in Tampa
No negativity
Xi≥0; i=1,4
Input data SOLVER
Golf Shafts (GSI)
San Diego Tampa
Golf Clubs Normal Extrarigid Normal Extrarigid
Quantity 1 1 1 1 Min
Costs 5.25 5.25 4.95 5.7 21.15

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

Normal sticks 1 1 2 ≥ 200000 199998.00
Sticks
extra-rigid 1 1 2 ≥ 75000 74998.00
Fabric. San Diego 1 1 2 ≤ 120000 119998.00
Fabric. Tampa 1 1 2 ≤ 180000 179998.00

Solver Output Data

25
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 317. Problem 18.

Oswaldo Paul Rivadeneira Page: 52

Operational Research I Linear Programming

Golf Shafts (GSI)

San Diego Tampa
Golf Clubs Normal Extrarigid Normal Extrarigid
Quantity 20000 75000 180000 0 Min
Costs 5.25 5.25 4.95 5.7 1,000,000

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

Normal sticks 1 1 200000 ≥ 200000 0.00
Sticks
extra-rigid 1 1 75000 ≥ 75000 0.00
Fabric. San Diego 1 1 95000 ≤ 120000 25000.00
Fabric. Tampa 1 1 200000 ≤ 180000 0.00

26. The Pfeiffer Company manages approximately 15 million dollars for its
clients. For each Client, Pfeiffer chooses a blend of three types of
investments: a growth equity fund, an income fund, and a
money market fund. Each client has different investment goals.
and different risk tolerances. To cater to these differences, Pfeiffer
set limits on each portfolio for the percentages that can be invested
in these three funds and assigns a risk index to each client.

Just as this system works for Dennos Hartmann, one of the clients of
Pfeiffer Based on an assessment of Hartmann's risk tolerance,
Pfeiffer has assigned a score of 0.05 to Hartmann's portfolio. In addition,
to maintain some diversity, the fraction of Hartmann's portfolio invested
in growth and income funds must be at least 10% each
at least 20% must be invested in money market funds.

Risk assessments for growth, income, and funds

money market are respectively 0.10, 0.05, and 0.01. The risk index of
each one is calculated as the weighted average of the risk assessments of
the three funds, where the weighting coefficients are equal to the fraction
from the portfolio invested in each of the three funds. Hartmann has given you
300,000 dollars to Pfeiffer for his management. Pfeiffer is forecasting
currently a return of 20% in the growth fund, 10% in the
income fund and 6% in the money market fund.

a. Develop a linear programming model to select the

best investment mix for the Hartmann portfolio.
b. Solve the model developed in part (a)
c. How much can the returns of the three funds vary before
that Pfeiffer has to modify the composition of the portfolio
Hartmann?
d. If Hartmann were more risk tolerant, what increase in
What performance could you expect? For example, what would happen if your index
would the portfolio risk increase to 0.06?

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Operational Research I Linear Programming

e. If Pfeiffer lowers his performance estimate for the

growth fund up to 0.10, how would you recommend that it
Will Hartmann's portfolio be modified?
What information should Pfeiffer maintain about each customer for
use this system for the management of the portfolios of the
clients?
Pfeiffer reviews the performance estimates on a weekly basis
of each of the three funds. Suppose Pfeiffer has 50
clients. Describe how Pfeiffer could be modified
weekly in each client portfolio, and assign the total funds
managed among the three investment funds.26

Solution a):
Model formulation:
Definition of variables
X1 = Cantidad de dólares asignados a valores de crecimiento
X2 = Cantidad de dólares asignados a ingresos
X3 = Cantidad de dólares asignados a mercado de dinero

Objective Function
Zmax = 0.20X1 + 0.10X2 + 0.06X3

Restrictions
X1 ≥ 0.10*300,000 for growth values
X2 ≥ 0.10*300,000 for income
X3 ≥ 0.20*300,000 for money market
X1 + X2 + X3 ≤ 300,000 portfolio
0.10X1 + 0.05X2 + 0.01X3 ≤ 0.05*300,000 portfolio risk

No negativity
Xi≥0; i=1,3
Solver Input Data
The Pfeiffer Company
Assigned to Market Revenue Growth
Quantity of
dollars 1 1 1 Max
Performance 0.2 0.1 0.06 0.36

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

Growth 1 1 ≥ 30000 -29999.00
Income 1 1 ≥ 30,000 - 29,999.00
Money market 1 1 ≥ 60000 -59999.00
Risk 0.1 0.05 0.01 0.16 ≤ 15000 14999.84
Wallet 1 1 1 3 ≤ 300000 299997.00

26
Anderson Sweeney Willams. Métodos Cuantitativos para los Negocios. 7ma Edición. Editorial
Thomson. Page 317. Problem 19

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Operational Research I Linear Programming

The Pfeiffer Company

Assigned to Market Revenue Growth
Amount of
dollars 120000 30000 150000 Max
Performance 0.2 0.1 0.06 36000

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

Growth 1 100000 ≥ 30,000 90,000.00
Income 1 30000 ≥ 30000 0.00
Money market 1 2E+05 ≥ 60000 90000.00
Risk 0.1 0.05 0.01 15000 ≤ 15000 0.00
Wallet 1 1 1 300,000 ≤ 300000 0.00

27. La Jolla Beverage Products is considering producing a wine soda,

it would be a blend of white wine, rosé wine, and fruit juice. In order to
fill in the flavor specifications, the wine cooler must be made with
at least 50% white wine, a minimum of 20% and no more than 30%
of pink, and 20% fruit juice. La Jolla acquires the wine from the vineyards or
nearby places and the fruit juice from a processing plant in San
Francisco. For the current production period, 10,000 can be acquired.
gallons of white wine and 8,000 gallons of rosé wine, there is no limit on the
amount of fruit juice that can be ordered. The cost of the wines is of a
dollars per gallon for white wine and 1.50 dollars per gallon for wine
rosé; fruit juice can be purchased at 0.50 per gallon. La Jolla Beverage
Products can sell all the soda they can produce for $2.50 each.
gallon.
a. In this situation, is the cost of wine and the cost of fruits a sunk cost?
or a relevant one? Explain.
b. Formulate a linear program to determine the number of gallons that La
Jolla Beverage Products must acquire each ingredient and the contribution
to the total utility they will obtain from this mix.
c. If La Jolla Beverage Products could obtain additional quantities of wine
white, should I do it? If I do, how much should I be willing to pay?
for each additional gallon, how many additional gallons would you like to purchase?
d. If La Jolla Beverage Products could obtain additional quantities of wine
rosado, should I do it? If I do, how much should I be willing to pay?
for each additional gallon, how many additional gallons would you like to purchase?
e. Interpret the dual price for the constraint corresponding to the requirement of
that the wine spritzer must contain at least 50% white wine. What
What would be your advice to the administration regarding this dual price?
f. Interpret the dual price of the constraint corresponding to the requirement that
Wine refreshment must contain exactly 20% fruit juice. What?
What is your advice to the administration regarding this dual price?27

27
Anderson Sweeney Williams. Quantitative Methods for Business. 7th Edition. Publisher
Thomson. Page 317. Problem 18.

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Operational Research I Linear Programming

Solution b):
Model formulation:
Definition of variables
X1 = Cantidad de galones de vino blanco
X2 = Cantidad de galones de vino rosado
X3 = Cantidad de galones de jugo de frutas

Objective Function
Zmax = 2.5*(X1+X2+X3)–1X1–1.5X2 -0.5X3

Restrictions
X1 ≤ 10.000 maximum quantity of white wine
X2 ≤ 8.000 maximum amount of rosé wine
X1 ≥ 0.5(X1 + X2 + X3) maximum dosage of white wine
X2 ≥ 0.2(X1 + X2 + X3) minimum dosage of rosé wine
X2 ≤ 0.3(X1 + X2 + X3) maximum dosage of rosé wine
X3 ≤ 0.2(X1 + X2 + X3) fruit juice dosing

No negativity
Xi≥0; i=1,3

Input data SOLVER

The Pfeiffer Company
Wine V.
Gallons of White Pink Fruits
Quantity 1 1 1 Max
Utility 1.5 1 2 4.5

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

White wine 1 1 ≤ 10000 9999.00
Rosé wine 1 1 ≤ 8000 7999.00
Minimum white wine 0.5 -1 -1 -1.5 ≥ 0 -1.50
Minimum rosé wine -0.2 0.8 -0.2 0.4 ≥ 0 -0.40
Max. rosé wine -0.3 0.7 -0.3 0.1 ≤ 0 -0.10
Max. fruits -0.2 -0.2 0.8 0.4 ≤ 0 -0.40

SOLVER output data

The Pfeiffer Company

Wine V.
Gallons of White Pink Fruits
Quantity 10000 3000 2000 Max
Utility 1.5 1 2 22000

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Operational Research I Linear Programming

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

White wine 1 10000 ≤ 10000 0.00
Rosé wine 1 3000 ≤ 8000 5000.00
Minimum white wine 0.5 -1 -1 1E-08 ≥ 0 0.00
Minimum pink wine -0.2 0.8 -0.2 6E-09 ≥ 0 0.00
Max. rosé wine -0.3 0.7 -0.3 -1500 ≤ 0 1500.00
Max. fruits -0.2 -0.2 0.8 -1000 ≤ 0 1000.00

28. The programming manager of Channel 10 wants to determine the best way to
assign the time for the evening news broadcast from 11:00 to
11:30. Specifically, he would like to determine the number of minutes of time.
of broadcasting dedicated to local news, national news, the weather and the
sports. Throughout the 30 minutes of broadcasting, 10 minutes are reserved for
cloudiness. The broadcasting policy states that at least 15% of the time
available will be dedicated to covering local news the time dedicated to
local and national news should be at least 50% of the total time of
broadcast; the time dedicated to the weather segment should be less than or equal to
time dedicated to the sports segment; the time spent on
the sports segment should not exceed the total time dedicated to
local and national news; and at least 20% of the time should be dedicated
to the climate segment. The production costs per minute are 300 dollars
{"local_news":"200 dollars for local news,","national_news":"100 dollars for national news,"}
weather and 100 dollars for sports.

Solution:
Model formulation:
Definition of variables
X1 = número de minutos para noticias locales
X2 = número de minutos para noticias nacionales
X3 = número de minutos sobre clima
X4 = número de minutos sobre deportes

Objective Function
Min Z = 300X1 + 200X2 + 100X3 + 100X4

Restrictions
X1 ≥ 15%(X1 + X2 + X3 + X4) local news time
X1 + X2 ≥ 50%(X1 + X2 + X3 + X4) local and national news time
X3 ≤ X4 weather news time
X4 ≤ (X1 + X2) time for sports
X3 ≥ 20%(X1 + X2 + X3 + X4) time for weather
X1 + X2 + X3 + X4 = 20 available time in minutes
No negativity
Xi≥0; i=1,4

Solver input data

CHANNEL 10 PROGRAMMING

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Operations Research I Linear Programming

MINUTES in
News National Locales Weather Sports
Quantity 1 1 1 1 Min
Costs 300 200 100 100 700

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

Local News 0.85 -0.15 -0.15 -0.15 0.4 ≥ 0 -0.40
Not. Locales and Nac 0.5 0.5 -0.5 -0.5 0 ≥ 0 0.00
Weather News 1 -1 0 ≤ 0 0.00
Sports News 1 1 -1 1 ≥ 0 -1.00
Weather News -0.2 -0.2 0.8 -0.2 0.2 ≥ 0 -0.20
Available time 1 1 1 1 4 ≤ 20 16.00

Solver output data

CHANNEL 10 PROGRAMMING
MINUTES in
News National Locales Weather Sports
Quantity 3 7 5 5 Min
Costs 300 200 100 100 3300

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

Local News 0.85 -0.15 -0.15 -0.15 -2E-12 ≥ 0 0.00
Not. Locales and Nac 0.5 0.5 -0.5 -0.5 9E-12 ≥ 0 0.00
Weather News 1 -1 0 ≤ 0 0.00
Sports News 1 1 -1 5 ≥ 0 -5.00
Weather News -0.2 -0.2 0.8 -0.2 1 ≥ 0 -1.00
Available time 1 1 1 1 20 ≤ 20 0.00

29. Gulf Coast Electronics is ready to award contracts for the printing of its
annual report. In recent years, a four-color annual report has
printed by Johnson Printing and Likeside Litho. A new company,
Benson Printing has inquired about the possibility of carrying out part of the
print. The quality and service level of Likeside Litho has been
extremely high; in fact, only 0.05% of their reports had to
be discarded due to quality issues. Johnson Printing has also had
a historically high level of quality, producing an average of only 1%
unacceptable reports. Since Gulf Coast Electronics has not had
experience with Benson Printing has estimated its defect rate at 10%.
Gulf Coast Electronics would like to determine how many reports will be needed.
prints by each of these companies, to obtain 75,000 reports of
acceptable quality. To ensure that Benson Printing will receive a part
the administration contract has specified that the number of reports
assigned to Benson Printing shall be at least 10% of the volume that is
assigned to Johnson Printing. In addition, the total volume assigned to Benson Printing,
Johnson Printing and Likeside Lithono must exceed 30,000, 50,000, and 50,000.
respective specimens. Due to the long relationship developed with Likeside
Litho, the administration has also indicated that Likeside Litho should be

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Operational Research I Linear Programming

assign at least 30,000 reports. The cost per copy is 2.45 dollars
for Benson Printing, 2.50 dollars for Johnson Printing, and 2.75 dollars for
Likeside Litho.
a. Formulate and solve a linear program to determine how many copies
each company printer should be assigned to maximize the total cost of
obtain 75,000 reports of acceptable quality.
b. Suppose that the quality level of Benson Printing is much better than that
Dear. What effect, if any, would it have?
c. Suppose that the management is willing to reconsider its requirement of
that Likeside Litho is given at least 30,000 reports. What effect, if any
Is there any, would this have it?

Solution:
Model formulation:
Definition of variables
X1 = cantidad de ejemplares asignados a Litho
X2 = cantidad de ejemplares asignados a Johnson
X3 = cantidad de ejemplares asignados a Benson

Objective Function
Zmax = 2.75X1 + 2.5X2 +2.45X3

Restrictions
99.5%X1 + 99%X2 + 90%X3 ≤ 75,000 copies of good quality
X3 ≥ 10%X2 minimum allocation Benson
X3 ≤ 30.000 maximum assignment to Benson
X2 ≤ 50,000 maximum assignment Johnson
X1 ≤ 50,000 maximum allocation to Litho
X1 ≥ 30,000 minimum allocation to Litho

No negativity
Xi≥0; i=1,3

Input data SOLVER

PROGRAMMING Gulf Coast Electronics

Specimens Litho Johnson Benson
Quantity 1 1 1 Max
Costs 2,75 2.5 2.45 7.7

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

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Operational Research I Linear Programming

Quality specimens 0.995 0.99 0.9 2,885 ≤ 75000 74997.12

Johnson and Benson -0.1 1 0.9 ≥ 0 -0.90
-
Benson specimens 1 1 ≤ 30000 29999,00
Johnson specimens 1 1 ≤ 50000 49999.00
Litho specimens 1 1 ≤ 50000 49999.00
Litho specimens 1 1 ≥ 30000 -29999

Solver output data

PROGRAMMING Gulf Coast Electronics
Specimens Litho Johnson Benson
Quantity 50000 0 28055.6 Max
Costs 2.75 2.5 2.45 206236

RESTRICTIONS USE OF RESOURCES Used LIMIT Do not use

Quality specimens 0.995 0.99 0.9 75000 ≤ 75000 0.00
-
Johnson and Benson -0.1 1 28055.6 ≥ 0 28055.56
Benson specimens 1 28055.6 ≤ 30000 -1944,44
Johnson specimens 1 0 ≤ 50000 50000.00
Litho samples 1 50000 ≤ 50000 0.00
Litho specimens 1 50000 ≥ 30000 20000

30. As an illustration of the allocation of resources that uses linear programming,

consider the following problem about production planning in a
store. The production must be set for two types of machines, machine 1 and the
machine 2. One hundred twenty hours of canning time can be set for
machine1, and 80 hours for machine 2. The production during the period of
planning is limited to two products. A and B, each unit of product A requires
2 hours of process time on each machine. Each unit of product that B
requires 3 hours on machine 1 and 1.5 hours on machine 2. The margin
the contribution is $4.00 for each unit of product A and $5.00 for each
Product unit B. Both types of products can be marketed
promptly; therefore, production must be set with the aim of
maximize profit.28

The formulation:
Given
X1= número de unidades del producto A para producción
X2 = number of units of product B for production

Maximize the contribution to profit, Z = 4X1 + 5X2

28
Sets, Matrices, and Linear Programming. Robert L. Childress

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Operational Research I Linear Programming

Subject to:
2X1 + 3X2 ≤ 120 (resource machine 1)
2X1 + 1.5X2 ≤ 80 (resource machine 2)
X1 ≥ 0 (no negativity)
X2 ≥ 0 (no negativity)
Input data for Solver

Solver output data

Solution: option b)

Solution a) b) c) d) e)
Z max 213.33 213.33 313.33 213.33 213.33
X1 20 20 25 15 20
X2 25 26.667 26.667 25 16.667

31. To illustrate a linear programming problem where the cost is minimized,

consider the problem faced by the metal manufacturer. The company produces
an alloy that is made of steel and metal scraps. The cost per ton of
steel is $50 and the cost per ton of scrap is $20. The requirements
technological for the alloy are (1) a minimum of one ton of steel is

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Operational Research I Linear Programming

requires one hour of time for every two tons of piece;

Processing is required for each ton of steel, and four are required.
processing time hours per ton of piece; (3) the steel and the
pieces are combined linearly to make the alloy. The loss in process of the
steel is 10 percent and the loss in the process of the piece is 20 percent. Although
production may exceed demand, a minimum of 40 tons of the
alloy must be manufactured. To maintain the operation of the plant.
effectively, a minimum of 80 hours of processing time must be used. The
The supply of both the pieces and the steel is suitable for production of
the alloy. The manufacturer's goal is to produce the alloy at a minimal cost.29

The mathematical formulation of the linear programming problem can be posed

in the following way

Given,
X1= número de toneladas de acero para producción de aleación
X2 = number of tons of chunk for alloy production

Minimize the cost Z = 50X1 + 20X2

Analysis:

a minimum of one ton of steel is required for every two tons of

piece
1 X1
2X2 ; X 2 2X 1 ; X2 - 2X1 ≥ 0 ; 2X1 - X2 ≥ 0
It takes one hour of processing for each ton of steel and
four hours of processing time for each ton of piece and a
minimum of 80 hours
1X1 + 4X2 ≥ 80
(3) The loss in process is 10% of steel and 20% of piece, demand
minimum of 40 tons of alloy

steel yield (1-10%)X1

piece performance (1-20%)X2

(1-10%)X1 + (1-20%)X2 ≥ 40
0.90X1+ 0.80X2≥ 40

Subject to:

2X1–X2≥ 0 (1)
1X1+ 4X2≥ 80 (2)
0.90X1 + 0.80X2 ≥ 40 (3)
X1 ≥ 0 (no negativity)

29
Sets, Matrices, and Linear Programming. Robert L. Childress

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Operations Research I Linear Programming

X2 ≥ 0 (no negativity)

Input data for Solver

Solver output data

Solution: option a)

Solution a) b) c) d) e)
Z max 1.440 1.440 144 1.440 1.044
X1 16 32 16 15 32
X2 32 16 26.667 25 16.667

32. The Kenmore Corporation, a progressive manufacturer of civil mechanisms and

military, currently manufactures a line of weapons for civilians, with a production
daily production of 30 units of model Z-1200 and 120 units of model Z-
1500. The vice president of manufacturing wants to know if the could be increased.
profits changing the product mix between the two models. A compilation was made

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Operational Research I Linear Programming

next information about the hours required for the manufacturing of each
model and the capabilities of the factory departments.30
Man-Hours Required Capacity
Departments Model Z- Model Z- Departmental (hours
1200 1500 daily)
Dep. 1 2 0 300
Dep. 2 0 3 540
Dep. 5 2 2 440
Dep. 4 1 1/5 1 1/2 300
Contribution
per unit $ 50 $40

Problem formulation:
X1= Cantidad de unidades del modelo Z-1200
X2= Cantidad de unidades del modelo Z-1500
Función Objetivo: Maximizar Z = 50 X1+ 40 X2
Restrictions:
2 X1 + 0 X2 ≤ 300 by Dep. 1
0 X1 + 3 X2 ≤ 540 by Dep. 2
2 X1 + 2 X2 ≤ 440 by Dep. 5
1.2 X1+ 1.5 X2≤ 300 by Dep. 4
No negativity:
X i ≥ 0; i =1,2
Computer graphics solution (using the GLP)

30
Robert J. Thierauf and Richard A. Grosse. Decision making through Research
Operations. Limusa. Page 273

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Operational Research I Linear Programming

Solution with SOLVER:

Input data

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Operational Research I Linear Programming

Output data:

Current Production: Z = 50(30) + 40(120) = $6,300

New Production: Z = 50(150) + 40(70) = $10,300
Increase profits by: 10,300–6,300 = $4,000

Multiple answers: correct answer d)

a) increases profits by $3,000

b) increases profits by $6,300
c) increases profits by $10,300
d) increases the profits by $4,000
e) does not increase profits

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Operational Research I Linear Programming

Reddy Mikks produces paints for both interiors and exteriors from
from two raw materials, M1 and M2. The following table provides the basic data
from the problem:

Tons of raw material

per ton of Availability
Painting for Painting for daily maximum
exteriors interiors in tons
Raw material, M16 4 24
Raw material, M21 2 6
Utility for
ton $5 $4
(1000 dollars)

A market survey restricts the maximum daily demand for paint to

interiors at 2 tons. In addition, the daily demand for interior paint
it cannot exceed that of exterior paint by more than 1 ton.
Reddy Mikks wants to determine the optimal product mix (the best one)
interior and exterior paints that maximize daily utility
total.31

Problem formulation:

Definition of variables:
X1= Número de toneladas de Pintura para Exteriores
X2= Número de toneladas de Pintura para Interiores

Función objetivo: Maximizar Z = 5.000 X1+ 4.000 X2

Restrictions
6 X1 + 4 X2 ≤ 24 for disp. Raw material M1
1 X1 + 2 X2 ≤ 6 for disposal. Raw material M2
0 X1 + 1 X2 ≤ 2 maximum daily internal paint.
-1X1 + 1 X2 ≤ 1 daily demand

No negativity:
X i ≥ 0; i =1,2

31
Handy A. Taha. Investigación de Operaciones. Una Introducción. Prentice Hall. Pag. 11

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Operational Research I Linear Programming

Computer graphics solution (using the GLP)

Solution with SOLVER:

Input data

Output data:

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Operational Research I Linear Programming

Solution:

To produce daily 3 tons of outdoor paint and 1.5 tons of

interior paint, to achieve a maximum profit of $21,000.00

Multiple choice solution: correct answer c)

Answers
Industry a b c d e
Pint. Ext (ton) 1.5 3.0 3.0 1.5 3.5
Pint. Int (ton) 3.0 1.5 1.5 1.5 2.0
Earnings. max.($) 21,000 20,000 21,000 20,000 21.000

34. Ozark Farms uses 800 pounds of special feed daily. The feed
special is a mixture of corn and soybean, with the following
compositions:

Pound for pound of food

for livestock Costo (/libra)
Proteins Fiber
Corn 0.09 0.02 0.30
Soybean Seed 0.60 0.06 0.90

The daily dietary requirements of the special food stipulate that for
less than 30% protein and at most 5% fiber. Ozark Farms wishes
determine the minimum daily cost of the feed mixture.32

Problem formulation:
Definition of variables:
X1= Cantidad de libras de Maíz
X2= Cantidad de libras de Semilla de Soya
32
Handy A. Taha. Investigación de Operaciones. Una Introducción. Prentice Hall. Pag. 18

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Operational Research I Linear Programming

Función Objetivo: Minimizar Z = 0.30 X1+ 0.90 X2

Restrictions:
0.09 X1 + 0.60 X2 ≥ 0.30 * (X1 + X2) for proteins
0.02 X1 + 0.06 X2 ≤ 0.05 * (X1 + X2) by fiber
X1+ X2≥800 production
No negativity:
X i ≥ 0; i = 1, 2

Computer graphic solution (using the GLP)

Solution with SOLVER:

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Operations Research I Linear Programming

Input data

Output Data:

Solution:

470.59 pounds of corn,

329.41 pounds of soybean seed
costo mínimo del alimento: 437.65 por día.

Multiple solution: correct answer b)

a) $ 457.65 por día

b) $ 437.65 per day
c) $ 417.65 per day
d) $ 517.65 per day
e) $ 537.65 per day

Jack is a first-year entrepreneurial student at UTE. He understands that

“Only work and no play make Jack a dull boy.”
As a result of this, Jack wants to distribute his available time, from
around 10 hours a day, between work and fun. Calculate that the game
It is twice as fun as work. He also wants to study for it.
less as he plays. However, Jack understands that if he wants to finish
all his university tasks, he cannot play more than four hours a day.

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How should Jack allocate his time to maximize his satisfaction in both
Does it work like in the game?33

Problem formulation:
Definition of variables
X1= número de horas de juego
X2= número de horas de trabajo
Función objetivo: Maximizar Z = 2X1+ X2
Restrictions:
X1 + X2 = 10 availability of time
X2 is greater than or equal to X1
X1–X2≤ 0 work at least as much as he/she plays
X1 ≤ 4 game limit
No negativity
Xi ≥ 0; i = 1, 2

LPG solution

X2

Payo: ff1:.0:2X.01.X+0:1X+1.-01X.1021.0X=+2X12=00=..0104X0.02.0= 4.0

OptimalDecisions(X1,X2):(4.0,6.0)
1.0X1 + 1.0X2 <= 10.0
1.0X1 - 1.0X2 <= 0.0
1.0X1 + 0.0X2 <= 4.0

Solver Input Data

33
Handy A. Taha. Investigación de Operaciones. Una Introducción. Prentice Hall. Pag. 18

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Operational Research I Linear Programming

Solver Output Data

Play four hours and work six hours.

Multiple solution: correct answer d)

Answers
Industry a b c d e
Play 1.5 3.0 3.0 4.0 6.0
Work 3.0 6.0 6.0 6.0 2.0
Maximum satisfaction 14.0 20.0 14.0 14.0 21,000

John must work at least 20 hours a week to complete his

income while attending school. He has the opportunity to work in two
retail stores: in store 1 John can work between 5 and 12 hours a
week, and in store 2 they allow him to work between 6 and 10 hours. Both stores
they pay the same hourly wage. So John wants to base his decision
about how many hours one should work in each store under a different criterion: the
factor of stress at work. Based on interviews with employees
currently, John estimates that, on a scale of 1 to 10, the stress factors are
from 8 and 6 in stores 1 and 2, respectively. Because stress increases
for now, he assumes that the total stress at the end of the week is proportional to the

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Operational Research I Linear Programming

number of hours worked in the store. How many hours should he work in
each store?34

Problem formulation:
Definition of variables
X1 = number of hours worked in store 1
X2 = number of hours worked in store 2

Función objetivo: Minimizar Z = 8X1+ 6X2

Restrictions:
X1 ≥ 5
X1 ≤ 12
X2 ≥ 6
X2 ≤ 10
X1 + X2 ≥ 20

No negativity
Xi ≥ 0; i = 1, 2

LPG solution

Payoff: 8.0 x1 + 6.0 X2 = 140.0

: 1.0 x1 + 1.0

: 1.0 x1 + 0.0 X2 = 5.0

X2
12
11
10
0.0 x1 + 1.0 X2 = 10.0
9
8
7
6 : 0.0 x1 + 1.0 X2 = 6.0
5
4
: 1.0 x1 + 0.0 X2 = 12.0
3
2
1
0
0 1 2 3 4 5 6 7 8 9 10 11 12 x1

OptimalDecisions(x1,X2):(10.0,10.0)
1.0x1 + 0.0X2 >= 5.0
1.0x1 + 0.0X2 <= 12.0
0.0x1 + 1.0X2 >= 6.0
0.0x1 + 1.0x2 <= 10.0
1.0x1 + 1.0X2 >= 20.0

34
Handy A. Taha. Investigación de Operaciones. Una Introducción. Prentice Hall. Pag. 20

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Solver input data

Solver output data

Solution:

John must work 10 hours a week at store 1 and 10 hours at store 2.

Multiple solution: correct answer d)

Answers
Sector a b c d e
Store 1 11 10 10 10 10
Store 2 11 10 6.0 10 10
Minimum stress 14.0 20.0 14.0 140 21,000

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37. The Dumont Company, a testing equipment manufacturer, has three

main departments for the manufacturing of their S-1000 and S- models
2000. The monthly capacities are as follows:

Unit requirements
time (hours)
Departments Model Model S- Available hours in
S-1000 2000 the present month
From Main Structure 4 2 1600
Electric fencing 2.5 1 1200
Of Ensemble 4.5 1.5 1600

The contribution of model S-1000 is $40,000 per unit, and that of model S-
2000 is $10,000 per unit. Assuming that the company can sell
any amount of each of your products, due to the conditions
market favorable. Determine the optimal output for each model, the
highest possible contribution for the current month and the remaining time in the
three departments.35

Problem formulation:
Definition of variables
X1 = número de unidades del modelo S-1000
X2 = number of units of model S-2000

Función objetivo: Maximizar Z = 40.000X1 + 10.000X2

Restrictions
4X1 + 2X2 ≤ 1600 Department of Structures
2.5X1 + 1X2 ≤ 1200 Electric fence dep.
4.5X1 + 1.5X2 ≤ 1600 Assembly Department
No negativity
Xi≥ 0; i=1,2

LPG Solution

35
Robert J. Thierauf and Richard A. Grosse. Decision making through Research of
Operations. Limusa. Page 273

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Operations Research I Linear Programming

: 2.5 X1 + 1.0 X2 = 1200.

Payoff: 40.0 X1 + 10.0 X2 = 14222.2

: 4.5 X1 + 1.5 X2 = 1600.0

: 4.0 X1 + 2.0 X2 = 1600.0

0
221 229 237 245 253 261 269 277 285 293 301 309 317 325 333 341 349 357 365 373 38

OptimalDecisions(X1,X2):(355.6,0.0)
4.0X1 + 2.0X2 <= 1600.0
2.5X1 + 1.0X2 <= 1200.0
4.5X1 + 1.5X2 <= 1600.0

Input data for Solver

Solver output data

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Operational Research I Linear Programming

Manufacture 355.5 units of Model S-1000 solely to generate a profit

$14,222.20
If the restriction is to manufacture complete components, produce 355 units of the
model S-1000 and 1 unit of model S-2000 to produce a profit of $14
210,00

Multiple solution: correct answer b)

Answers
Sector a b c d e
Model S-1000 255.5 355.5 355.5 350 350
Model S-2000 0.0 0.0 10.0 6.0 10.0
Maximum contribution 14.210 14,222.2 14.222,2 14.220 14,222.2

38. The Cincinnati Chemical Company must produce 10,000 pounds of a mixture
special for a client. The mixture consists of the ingredients: X1, X2 and
X3. X1 costs $8/pound, X2 $10/pound, and X3 $11/pound. No more than can be used.
3,000 pounds of X1 and at least 1,500 pounds of X2 should be used. Additionally
At least 2,000 pounds of X3 are required.

a) Calculate the number of pounds of each ingredient that will be needed.

to employ. In order to minimize the total cost of the 10,000 pounds.
b) Calculate the lowest possible total cost.
c) Are there leftover pounds in the problem?36

Decision making through Operations Research.

Thierauf. Limusa. Page 274)
Problem formulation
Definition of variables
X1 = número de libras del ingrediente X1

36
Robert J. Thierauf and Richard A. Grosse. Decision making through Research
Operations. Limusa. Page 274

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Operational Research I Linear Programming

X2 = número de libras del ingrediente X2

X3 = número de libras del ingrediente X3
Función objetivo: Minimizar Z = 8X1 + 10X2 + 11X3
Restrictions:
X1 + X2 + X3 = 10,000 production quantity
X1 ≤ 3.000 amount of X1
X2 ≥ 1.500 amount of X2
X3 ≥ 2.000 amount of X3

No negativity
Xi ≥ 0; i = 1, 3

Input data for Solver

Solver output data

Solution:

a) X1= 3000 libras

X2 = 5000 pounds
X3 = 2000 pounds
b) Lowest cost = $96,000.00
c) I must use 3500 pounds more of X2

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Multiple choice solution: correct answer d)

Answers
Branch a b c d e
Ingredient X1 3.000 2,500 3,000 4,000 3.000
Ingredient X2 5,000 6.000 6,000 4,000 5,000
Ingredient X3 2.000 1.500 1.000 2.000 2.000
Minimum cost 96,000 69,000 69.000 96,000 69,000
Are there any leftovers? No If No Yes No

39. The Gray Manufacturing Company has consistently followed a policy of

manufacturing of those products that contribute the most to the
fixed costs and profits. However, it has always been sought to produce
the minimum weekly sales requirements, which are the following for the
products K, L, M and N:

Product K 25 units
Product L 30 units
Product M 30 units
Product N 25 units

The production requirements and the available time for the week
next are:

Time
available the
Time required per product (hours)
next week
Departamento K L M N (hours)
Department1 0.25 0.20 0.15 0.25 400
Department 2 0.30 0.40 0.50 0.30 1000
Department 3 0.25 0.30 0.25 0.30 500
Department 4 0.25 0.25 0.25 0.25 500
Contribution by
unit $ 10.50 $ 9.00 $ 8.00 $ 10.0

Currently, the weekly production mix (considering the

minimum sales requirements are:

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Operational Research I Linear Programming

Product K 1,533 units

Product L 30 units
Product M 30 units
Product N 25 units

Is the current mix of products and the contribution to the company,

optimal? Otherwise, what is the current contribution? What should it be?
37
the optimal ones?

Problem formulation:
Definition of variables
X1= Número de unidades del producto K
X2= Número de unidades del producto L
X3= Número de unidades del producto M
X4= Número de unidades del producto N
Objective function:
Maximize Z = 10.5X1 + 9.0X2 + 8.0X3 + 10.0X4
Restrictions
0.25X1+ 0.20X2+ 0.15X3+ 0.25X4≤ 400 Disp. Dep. 1
0.30X1 + 0.40X2 + 0.50X3 + 0.30X4 ≤ 1000 Disp. Dep. 2
0.25X1 + 0.30X2 + 0.25X3 + 0.30X4 ≤ 500 Disp. Dep. 3
0.25X1 + 0.25X2 + 0.25X3 + 0.25X4 ≤ 500 Disp. Dep. 4
X1 ≥ 25 Minimum sale of K
X2 ≥ 30 Minimum sale of L
X3 ≥ 30 Minimum sale of M
X4 ≥ 25 Minimum sale of N
No negativity
Xi ≥ 0; i = 1, 4

Input data for the Solver

37
Robert J. Thierauf and Richard A. Grosse. Decision making through Research
Operations. Limusa. Page 275

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Solver output data

Multiple choice: correct answer b)

Answers
Sector a b c d e
Optimal mix? Yes No If No Yes
Contribution act 18.433,2 16.856,5 16.556.0 16.856.5 16.500.0
Opt. contribution 16.856,5 18.433,25 14.055.0 18.500.0 14.500.0
Product K 976.5 976.5 906.5 950 976
Product L 30 30 25 30 30
Product M 957.5 957.5 975.6 956.0 950.0
Product N 25 25 30 25 35

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40. La LaCross Manufacturing Company is considering the manufacturing of a

product line, consisting of four products. Each product can
manufactured using two different and completely distinct methods, one of which
which consists of two processes and the other of three. They will be manufactured based on the
second shift. The selling price of these products and their variable costs, as
as the quantities that can probably be sold, according to the
marketing research groups are as follows:38

Product
1 2 3 4
Wholesale selling price (40% of
discount $ 100 $ 150 $ 125 $ 140
Variable costs - Method A $ 80 $ 135 $ 120 $ 135
Variable costs - Method B $ 110 $ 150 $ 100 $ 110
Quantity that can be sold 1000 3000 4000 6000

The manufacturing section of the company has determined that the times of
manufacturing for each process is as follows:

Product
1 2 3 4
Method A
Department 20 3.0 3.6 2.0 3.5
Department 21 9.0 10.0 8.0 9.0
Department 22 1.0 1.0 0.5 0.5
Method B
Department 31 4.0 4.0 2.0 4.0
Department 32 5.0 8.0 4.0 3.0

The available hours per month:

Department 20 15 000
Department 21 50 000
Department 22 8 000

38
Robert J. Thierauf and Richard A. Grosse. Decision making through Research
Operations. Limusa. Page 275

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Operations Research I Linear Programming

Department 31 10 000
Department 32 10 000

Problem formulation:
Definition of variables
X11= Número de unidades del producto 1 elaborados con el método A
X21 = Number of units of product 2 made with method A
X31= Número de unidades del producto 3 elaborados con el método A
X41= Número de unidades del producto 4 elaborados con el método A
X12= Number of units of product 1 made using method B
X22= Número de unidades del producto 2 elaborados con el método B
X32= Number of units of product 3 made using method B
X42= Número de unidades del producto 4 elaborados con el método B

Objective Function:
Maximize Z = (100-80)X11 + (150-135)X21 + (125-120)X31 +
(140-135)X41+ (100-110)X12+ (150-150)X22+ (125-100)X32+
(140-110)X24
Restrictions
X11 + X12 ≤ 1000 Sale of product 1
X21 + X22 ≤ 3000 Sale product 2
X31 + X32 ≤ 4000 Sale of product 3
X41 + X42 ≤ 6000 Sale of product 4
3.0X11+ 3.6 X21+ 2.0X31+ 3.5X41≤ 15.000 Hours Dep. 20
9.0X11 + 10.0X21 + 8.0X31 + 9.0X41 ≤ 50.000 Hours Dep. 21
1.0X11 + 1.0X21 + 0.5X31 + 0.5X41 ≤ 8.000 Hours Dep. 22
4.0X12+ 4.0X22+ 2.0X32+ 4.0X42≤ 10.000 Hours Dep. 31
5.0X12+ 8.0X22+ 4.0X32+ 3.0X42≤ 10.000 Hours Dep. 32
No negativity
Xij ≤ 0; i = 1, 4; j = 1, 2

Input data for the solver

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Solver output data

Solution:

P1= 1 000 unidades (Método A)

P2= 3 000 unidades (Método A)
P3= 600 units (Method A)
P3= 1,000 units (Method B)
P4 = 2,000 units (Method B)

Contribution, $153,000.00

41. A factory produces two products, A and B. Each of them must be processed.
on two different machines. One machine has an available capacity of 24

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hours and the other of 16 hours. Each unit of product A requires two hours
on both machines. Each unit of product B requires three hours on the
first machine and one hour in the second. The incremental utility is $6
for $5 per unit of product A and $7 per unit of product B, and the factory can
sell as many units of each product as I can manufacture.

The objective of the factory is to maximize profits. The problem lies in

determine how many units of product A and product B could be produced
within the limits available by the machines' capacity.39

Resumen:

Products Capacity of
Machines A B the machines
1 2 hours 3 hours 24 hours
2 2 hours 1 hour 16 hours
Utility in $ 6 7

Problem formulation
Definition of variables
X1= número de unidades del producto A
X2 = number of units of product B

Función objetivo: Maximizar Z = 6X1 + 7X2

Restrictions
2X1 + 3X2 ≤ 24 machine 1 capacity
2X1 + 1X2 ≤ 16 machine capacity 2

No negativity
Xi≥0 ;i=1,2

Solution with LPG

39
Bonini, Hansman, Bierman. Quantitative Analysis for Business. Ninth Edition. Irwin McGraw-Hill.
Hill. Page 43

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Operational Research I Linear Programming

7
: 2 X1 + 1 X2 = 16

5 : 2 X1 + 3 X2 = 24

3
Payoff: 6 X1 + 7 X2 = 64
2

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1

OptimalDecisions(X1,X2):(6,4)
: 2X1 + 3X2 <= 24
: 2X1 + 1X2 <= 16

Input data for Solver

Solver output data

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Solution:
X1= 6
X2= 4
Z = 64

By mixing different hydrocarbons, gasoline of different grades is obtained.

what is the direct result of refinery operations. In an operation
refining real, several mixtures of hydrocarbons are made, which yield many
gasoline grades as final product (for example, gasoline of different
degrees for airplane and for car), with important characteristics for the
different grades of gasoline composition (for example, octane rating,
vapor pressure, sulfur content, and oxidant content). In this
simplified example, it is assumed that a refinery has only two types of
gasoline, whose characteristics are presented in the following table:

Characteristics of gasoline mixtures

Mixtures Pressure of Quantity
available Octane rating vapor Available
Type 1 gasoline 104 5 30,000 barrels
Type 2 gasoline 94 9 70,000 barrels
These types of gasoline can be combined to produce two products.
finals, airplane fuel and car fuel. The qualities that
the final products required appear in the following table:

Characteristics of gasoline as a final product

Pressure Price
Products Octane rating Maximum Sales For sale
finals minimum of steam maxima (per barrel)
Aviation gasoline 102 6 20,000 barrels $45.10
Car gasoline 96 8 anyone $32.40

When gasoline is combined, the resulting mixture has an octane rating and a
vapor pressure proportional to the volume of each type of gasoline that is
mixed. For example, if 1,000 barrels of type 1 gasoline are mixed with 1
000 barrels of type 2 gasoline, the resulting gasoline will have an octane rating of 99:

1.000 times 10 to the power of 4 1.000x94

99
2,000
And a vapor pressure of 7:

1,000x5 1,000x9
7
2,000

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The company wants to maximize revenue from gasoline sales as

final product40

Problem formulation:
Definition of variables
X1= número de barriles de gasolina Tipo 1, utilizada para gasolina de avión
X2= número de barriles de gasolina Tipo 1, utilizada para gasolina de carro
X3= número de barriles de gasolina Tipo 2, utilizada para gasolina de avión
X4= número de barriles de gasolina Tipo 2, utilizada para gasolina de carro

Objective function: Maximize Z = 45.10 (X1 + X3) + 32.40 (X2 + X4)

Z = 45.10 X1 + 32.40 X2 + 45.10 X3 + 32.40 X4
Restrictions
104X1 94X3
102
X 1 X 3
2X1–8X3≥ 0 oct. for airplane
104X2 94X 4
96
X 2 X 4
8X2–2X4≥ 0 oct. for car
5X 1 9X 3
6
X 1 X 3
-1X1 + 3X3 ≤ 0 pres. for plane
5X 2 9X 4
8
X 2 X 4
-3X2 + X4 ≤ 0 car part
X1 + X2 ≤ 30,000 availability of Type 1 gas
X3 + X4 ≤ 70.000 Type 2 gas availability
X1 + x3 ≤ 20.000 aviation gasoline sales

No negativity
Xi≥0; i=1,4

Input data for Solver

40
Bonini, Hansman, Bierman. Análisis Cuantitativo para los Negocios. Novena Edición. Irwin McGraw-
Hill. Page 46

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Operational Research I Linear Programming

Solver output data

Solution:
Z = 3,355,454.5
X1 = 7.272,72
X2 = 22,727.27
X3 = 1,818.18
X4 = 68.181,82

A factory produces four items: A, B, C, and D. Each quantity of product A

requires two hours of machining, one hour of assembly, and $10 of inventory
in process. Each unit of product B requires one hour of machining,
three hours of assembly and $5 of work in process. Each unit of the product
C requires two and a half hours of machining, two and a half hours of assembly.
$2 of work-in-process inventory. Finally, each unit of product D requires
five hours of machining, none of assembly and $12 of inventory in
process.

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The factory has 120,000 hours of machining time and 160,000 hours.
of assembly time. Furthermore, it cannot have more than one million dollars in
inventory in process.

Each unit of product A generates a profit of $40, each unit of

product B generates a profit of $24, each unit of product C generates a
profit of $36 and each unit of product D generates a profit of $23. No
more than 20,000 units of product A can be sold, 16,000 units of
product C, and any quantity of products B can be sold.
D. However, they must produce and sell at least 10,000 units of the
product D to comply with the requirements of a contract.

Based on these conditions, formulate a linear programming problem. The

the objective of the factory is to maximize the profit resulting from the sale of the
four products.41

Summary:
Product Available
Process A B C D (hours)
Machining 2 hr 1 hr 2,5 hr 5 hr 120,000
Assembly 1 hr 3 hr 2.5 hr 0 hr 160,000
Inventory $10 $5 $2 $121 ’000.000
Utility $40 $24 $36 $23

Problem formulation:

Definition of variables:
X1 = Número de unidades del producto A
X2 = Número de unidades del producto B
X3 = Número de unidades del producto C
X4 = Número de unidades del producto D

Función objetivo: Maximizar Z = 40X1 + 24X2 + 36X3 + 23X4

Restrictions:
2X1 + X2 + 2.5X3 + 5X4 ≤ 120.000 machining availability
X1 + 3X2 + 2.5X3 + 0X4 ≤ 160.000 mounting availability
10X1 + 5X2 + 2X3 + 12X4 ≤ 1,000,000 inventory availability
X1 ≤ 20.000 sales limit product A
X3 ≤ 16.000 sales limit of product C
X4 ≥ 10.000 product D contract

No negativity:
Xi≥0 ;i=1,4

41
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Hill. Page 57

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Solver input data

Solver output data

Solution:
Z = 1’830.000
X1 = 10.000
X2 = 50,000
X3 = 0
X4 = 10.000

44. The U-Save Loan Company is planning its operations for the next year.
The company offers five types of loans, which are listed below, with
an annual return (in percentage) for her.

Type of loan Annual return

Unsecured loans 15
Loans for furniture 12
Auto loans 9
Second lien real estate mortgages 10

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First lien real estate mortgages 7

The legal requirements and the company's policy establish the following
limits on the amounts of the different types of loans.

Unsecured loans cannot exceed 10% of the total amount of the type of
Loans. The amount of unsecured loans and those for furniture cannot
exceeding 20% of the total type of loans. First-degree mortgages
they must be at least 40% of the total mortgages and, at least, 20%
of the total amount of types of loans. Second-degree mortgages do not
They can exceed 25% of the total amount of the type of loans.

The company must maximize the interest income from loans.

subject to the indicated restrictions. The company can provide a
maximum of $1.5 million.42

Problem Formulation:
Definition of variables
X1= Monto en dólares para Préstamos Quirografarios
X2= Monto en dólares para Préstamos para Muebles
X3= Monto en dólares para préstamos para Automóviles
X4= Monto en dólares para Hipotecas de bienes raíces en segundo grado
X5= Amount in dollars for first-degree real estate mortgages

Objective function:
Maximizar Z = 0.15X1+ 0.12X2+ 0.09X3+ 0.10X4+ 0.07X5

Restrictions
X1 ≤ 0.10 (X1 + X2 + X3 + X4 + X5) limit on amount of unsecured credit.
0.90X1 - 0.10X2 - 0.10X3 - 0.10X4 - 0.10X5 ≤ 0

X1 + X2 ≤ 0.20 (X1 + X2 + X3 + X4 + X5) limit on amount for loan.

0.80X1 + 0.80X2 - 0.20X3 - 0.20X4 - 0.20X5 ≤ 0 furniture.

X5 ≥ 0.40 (X4 + X5) limit on mortgage amount

- 0.40X4 + 0.60X5 ≥ 0

X5 ≥ 0.20 (X1 + X2 + X3 + X4 + X5) limit amount of the total loan.

- 0.20X1 - 0.20X2 - 0.20X3 - 0.20X4 + 0.80X5 ≥ 0

X4 ≤ 0.25(X1 + X2 + X3 + X4 + X5) limit on second-degree mortgages

- 0.25X1 - 0.25X2 - 0.25X3 + 0.75X4 - 0.25X5 ≤ 0

X1 + X2 + X3 + X4 + X5 ≤ 1,500,000 available amount

42
Bonini, Hansman, Bierman. Análisis Cuantitativo para los Negocios. Novena Edición. Irwin McGraw-
Hill. Page 58

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Operational Research I Linear Programming

No negativity
Xi≥0 ;i=1,5

Input data for the Solver

Solver Output Data

A factory sells two different types of products, A and B. The information

about the selling price and the incremental cost is as follows:

Product A Product B
Selling price $60 $40
Incremental cost $30 $10
Incremental utility $30 $30

The two products are manufactured within a common process and are sold in
two different markets.

The production process has a capacity of 30,000 man-hours.

It takes three hours to produce one unit of A and one hour to
produce a unit of B. The market has already been studied, so the
company employees believe that the maximum quantity of units
The maximum it can be sold for is 8,000; the maximum amount of B is 12,000.

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Operational Research I Linear Programming

units. According to these limitations, the products may be sold

in any combination. Formulate this situation as a problem of
linear programming.43

Problem formulation
Definition of variables
X1 = Número de unidades del producto A
X2 = Número de unidades del producto B

Objective function: Maximize Z = 30X1 + 30X2

Restrictions
3X1 + 1X2 ≤ 30.000 for labor
X1 ≤ 8.000 sale of A
X2 ≤ 12.000 sale of B

No negativity
Xi≥0 ; i=1,2

LPG solution

Payoff: 30.0 X1 + 30.0 X2 = 540000.0

X2
11995 : 0.0 X1 + 1.0 X2 = 12000.0
11400
10805
10210
: 3.0 X1 + 1.0 X2 = 30000.0
9615
9020
8425
7830
7235
6640
6045
5450
4855
4260 : 1.0 X1 + 0.0 X2 = 8000.0
3665
3070
2475
1880
1285
690
95
30 428 826 1224 1622 2020 2418 2816 3214 3612 4010 4408 4806 5204 5602 6000 6398 6796 7194 7592 7990 X1

OptimalDecisions(X1,X2):(6000.0,12000.0)
3.0X1 + 1.0X2 <= 30000.0
: 1.0X1 + 0.0X2 <= 8000.0
0.0X1 + 1.0X2 <= 12000.0

Solver input data

43
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Hill. Page 58

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Operational Research I Linear Programming

Solver output data

46. Recently, the company EMBUTIDOS experienced drastic changes in the

raw material prices; for which the manager ordered an analyst
re-examine the proportions of the ingredient mixtures for the
sausage production.

The production of sausages involves meeting two essential requirements for the
product. The percentage of protein, by weight, must be at least 15%, and the
fat percentage by weight must not exceed 30% (the remaining weight is
filler). The company has four raw materials available for the blend, with
the following characteristics:

Percentage of Percentage of Cost for

Ingredient Proteins Fat Libra
A 40 10 $1.80
B 20 15 $0.75
C 10 35 $0.40
D 5 40 $0.15

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Formulate the linear programming problem that will help the company to
determine the most appropriate mixing problem44

Problem formulation:
Definition of variables
X1= Cantidad en libras del ingrediente A
X2= Cantidad en libras del ingrediente B
X3= Cantidad en libras del ingrediente C
X4= Cantidad en libras del ingrediente D

Objective function
Minimize Z = 1.80X1 + 0.75X2 + 0.40X3 + 0.15X4

Restrictions
0.40X1 + 0.20X2 + 0.10X3 + 0.05X4 ≥ 0.15 proteins
0.10X1 + 0.15X2 + 0.35X3 + 0.40X4 ≤ 0.30 fats
X1 + X2 + X3 + X4 = 1 total pound of mixture

No negativity
Xi≥0 ;i=1, 4

Input data for Solver

Solver output data

44
Bonini, Hansman, Bierman. Análisis Cuantitativo para los Negocios. Novena Edición. Irwin McGraw-
Hill. Page 58

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Operational Research I Linear Programming

A furniture manufacturer produces two types of desks: standard and executive.

These desks are sold to a wholesaler of office furniture; and for everything
Finally, there is an unlimited market for any mix of them; at least
within the manufacturer's production capacity. Each desk must pass
by four basic operations: wood cutting, assembly of the pieces, pre-
finished and final finish. Each unit produced of the desk of the desk
standard requires 48 min of cutting time, 2 hours of assembly, 40 min
of pre-finishing and 5 hours and 20 minutes of final finishing time. Each unit of
Executive desk requires 72 minutes of cutting, 3 hours of assembly, 2 hours
of pre-finishing and 4 hours of final finishing time. The daily capacity for
each operation is equivalent to 16 hours of cutting, 30 hours of assembly, 16 hours
of pre-finishing and 64 hours of final finishing. The profit per unit produced.
It is $40 for the standard desk and $50 for the executive desk. What
Is the product mix optimal?45

Problem formulation
Definition of variables
X1= Número de unidades de escritorios estándar
X2= Número de unidades de escritorios ejecutivos

Función objetivo: Maximizar Z = 40X1+ 50X2

Restrictions
0.8X1+ 1.2X2≤ 16 cut-off times
2.0X1 + 3.0X2 ≤ 30 assembly hours
0.6667X1 + 2.0X2 ≤ 16 pre-finishing hours
5.3334X1+ 4.0X2≤ 64 hours finished final

No negativity
Xi ≥ 0; i = 1, 2

LPG solution

45
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11

10
Payoff:40.000X1+50.000X2=559.998

7 :5.333X1+4.000X2=64.000

5
:0.667X1+2.000X2=16.000
4 :0.800X1+1.200X2=16.000
:2.000X1+3.000X2=30.000
3

0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1

OptimalDecisions(X1,X2):(9.000,4.000)
0.800X1+1.200X2<=16.000
2.000X1+3.000X2<=30.000
0.667X1+2.000X2<=16.000
5.333X1+4.000X2<=64.000

Solver input data

Solver output data

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48. A chicken feed manufacturer wants to determine the least mixture

cost for a high protein formula that contains 90 g of nutrient A, 48
grams of nutrient B, 20 grams of nutrient C and 1.5 grams of vitamin X per kg.
food. You can mix the formula using two ingredients and another one
filling. Ingredient 1 contains 100 g of nutrient A, 80 g of nutrient B,
40 g of nutrient C and 10 g of vitamin X; and it costs $0.40 per Kg.
ingredient 2 contains 200 gr. of A, 150 gr. of B, 20 gr. of C, no vitamins
X and y cost $0.60 per kg.46

Problem formulation:
Definition of variables
X1 = Cantidad de Kg. de ingrediente Tipo 1
X2 = Cantidad de Kg. de ingrediente Tipo 2

Función objetivo: Minimizar Z = 0.40X1 + 0.60X2

Restrictions
100X1 + 200X2 = 90 Nutrient A
80X1 + 150X2 = 48 Nutrient B
40X1 + 20X2 = 20 Nutrient C
10X1 + 0X2 = 1.5 Vitamin X

No negativity
Xi≥0 ;i=1,2

They are redundant equations; it is assumed that they will be satisfied by

except for the ingredient orders, their results will be analyzed by a
dietitian to avoid harming the chickens, then:

Restrictions
100X1 + 200X2 ≥ 90 Nutrient A
80X1 + 150X2 ≥ 48 Nutrient B
40X1 + 20X2 ≥ 20 Nutrient C
10X1 + 0X2 ≥ 1.5 Vitamin X

46
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Solver Input Data

Solver output data

In the graphical solution, redundant equations can be noticed:

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A company produces three types of refined chemical products: A, B, and C. It is

It is necessary to produce at least 4 tons of A, 2 tons of B, and 1 ton of C daily.
The input products are the compounds X and Y. Each ton of X
provide 0.25 tons of A, 0.25 tons of B, and 0.0834 tons of C. Each ton of Y
yields 0.5 tons of A, 0.10 tons of B, and 0.0834 tons of C. The ton of compound
X costs $250 and compound Y $400. The processing cost is $250.
per ton of X and $200 per ton of Y. The quantities produced that exceed the
Daily requirements have no value, as the product undergoes changes.
chemicals if not used immediately. The problem is to determine the
mix with minimum entry cost.47

Problem formulation
Definition of variables
X1 = Tons of compound X
X2 = Tons of compound Y

Función objetivo: Minimizar Z = 500X1+ 600X2

Restrictions
0.25X1+ 0.5X2≥ 4 tons of A
0.25X1+ 0.10X2≥ 2 tons of B

47
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0.0834X1+ 0.0834X2≥ 1 tons of C

No negativity
Xi≥0; i=1,2
LPG solution

Payoff:500.0000X1+600.0000X2=6396.1630
8

7
:0.2500X1+0.1000X2=2.0000

:0.2500X1+0.5000X2=4.0000
3
0.0834X1+0.0834X2=1.0000

0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2

OptimalDecisions(X1,X2):(7.9808,4.0096)
0.2500X1+0.5000X2>=4.0000
0.2500X1+0.1000X2>=2.0000
0.0834X1+0.0834X2>=1.0000

Solver Input Data

Solver Output Data

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50. The Palysafe Insurance Company of Knockville, ME, has idle funds for
a total of $20 million, available for short and long-term investments. The
government specifications require that no more than 80% of all the
investments should be long-term; no more than 40% should be invested in the short term; and
that the ratio of long-term to short-term investments not exceed 3 to 1.
Currently, long-term investments yield 15% annually; while
The annual rate for short-term investments is 10%. Consider this.
problem as a linear program with the objective of maximizing profit
weighted.48

Problem Formulation
Definition of variables
X1= Cantidad en millones de dólares para inversión a corto plazo
X2= Cantidad en millones de dólares para inversión a largo plazo

Función objetivo: Maximizar Z = 0.10X1 + 0.15X2

Restrictions
X1 + X2 ≤ 20 investment funds
X2 ≤ 0.80(X1 + X2)
0.80X1–0.20X2≥ 0 long-term investments
X2 ≤ 0.40(X1 + X2)
0.40X1 - 0.60X2 ≥ 0 short-term investments
X2/X1 ≤ 3/1
3X1 - X2 ≥ 0 relationship between investments

No negativity
Xi≥0 ;i=1,2

GLP solution

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Payoff: 0.1 X1 + 0.1 X2 = 2.4

X2
12

11
: 0.4 X1 - 0.6 X2 = 0.0
10 : 0.8 X1 - 0.2 X2 = 0.0
9

7 3.0 X1 - 1.0 X2 = 0.0

4 : 1.0 X1 + 1.0 X2 = 20.0

0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 X1

OptimalDecisions(X1,X2):(12.0,8.0)
1.0X1 + 1.0X2 <= 20.0
0.8X1 - 0.2X2 >= 0.0
: 0.4X1 - 0.6X2 >= 0.0
: 3.0X1 - 1.0X2 >= 0.0

Input data for Solver

Solver output data

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51. A fiberglass boat manufacturer produces four different models that

They must go through three different operations: molding, assembly, and finishing.
The given table contains all the necessary information.

Composed of
Molding Assembly Finished molding Benefit
Model (h/unit) (h/unid) (h/unid) (gall/unid) ($/unid)
1 2.8 5 10 200 160
2 2.1 3 7.5 200 124
3 4 6 12 280 212
4 3 4 3 220 170
Capacity.
week 48 h 96 h 160 h 4800 gallons

Sales forecasts indicate that, on average, there should be no production for

week more than 8 units of model 4. Except for this restriction, the
demand will be sufficient to absorb any amount produced. The objective
It is to maximize profits.49

Formulation of the Problem

Definition of variables
X1 = Número de unidades del modelo 1
X2 = Número de unidades del modelo 2
X3 = Número de unidades del modelo 3
X4 = Número de unidades del modelo 4

Función objetivo: Maximizar Z = 160X1 + 124X2 +212X3 + 170 X4

Restrictions
2.8X1 + 2.1X2 + 4X3 + 3X4 ≤ 48 molding hours
5X1 + 3X2 + 6X3 +4X4 ≤ 96 assembly hours
10X1 + 7.5X2 + 12X3 + 3X4 ≤ 160 finishing hours
200X1 + 200X2 + 280X3 + 220X4 ≤ 4800 gallons for molding

49
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X4 ≤ 8

No negativity
Xi≥0 ;i=1,4

Input data for Solver

Solver output data

52. A company manufactures three products A, B, and C. The three products

they share four machines X, Y, S, and T in their production processes.
Product A uses three operations on machines X, S, and T. Product B
use only two operations on machines X and S or on machines Y and T. The
Product C can be manufactured using machines X and S or on machines Y.
S and T. The time required in minutes per unit produced, for each
production capacity on each machine, and the variable production cost
Per minute for each machine are condensed in the following table.

Time (in min/machine unit)

Product Process X Y S T Code
A 1 10 6 3 A
B 1 8 10 B1
2 6 9 B2
C 1 8 16 C1

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2 10 3 8 C2
Variable cost
/min ($) 0.40 0.50 0.24 0.30

Each machine has a daily production capacity of 480 minutes. The

demandas mínimas de los tres productos son 36 para A, 45 para B y 10 para C.
The objective is to determine the production scheme that minimizes the
total variable production cost.50

Problem formulation:
Definition of variables
X1= número de unidades del producto A, con el proceso 1
X2= número de unidades del producto B, con el proceso 1
X3= número de unidades del producto B, con el proceso 2
X4 = number of units of product C, with process 1
X5= número de unidades del producto C, con el proceso 2

Objective function:
Minimize Z = 0.40(10X1 + 8X2 + 8X4) + 0.50(6X3 + 10X5) + 0.24(6X1 + 10X2
+ 16X4 + 3X5 + 0.30(3X1 + 9X3 + 8X5)
Minimize Z = 6.34X1 + 5.6X2 + 5.7X3 + 7.04X4 + 8.12X5

Restrictions
10X1 + 8X2 + 8X4 ≤ 480 machine X capacity
6X3+ 10X5≤ 480 machine Y capacity
6X1+10X2+ 16X4+ 3X5 ≤ 480 machine capacity S
3X1+ 9X3+ 8X5≤ 480 machine capacity T
X1 ≥ 36 demand for product A
X2 + X3 ≥ 45 demand for product B
X4+ X5≥ 10 demand for product C

No negativity
Xi≥0; i=1,4

Input data for Solver

50
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Solver output data

53. You are organizing a party and have the following amounts of
licor: 48 onz líquidas de whisky, 72 onz líquidas de vodka, 64 onz líquidas de
white vermouth, 72 ounces of red vermouth, 24 liquid ounces of brandy and 18 ounces
Coffee liqueur liquids. You plan to prepare the following drinks:
Chauncies, Black Russians, Sweet Italians, Molotov Cocktails (Russian Martins) and
Whiskey on the rocks. A Chauncy consists of 2/3 whiskey and 1/3 vermouth.
red. A Black Russian consists of ¾ vodka and ¼ coffee liqueur. An Italian
The sweet consists of ¼ brandy, ½ red vermouth, and ¼ white vermouth.
Molotov cocktails are a mixture of 2/3 vodka and 1/3 white vermouth.
Finally, the whisky on the rocks consists only of whisky. Each sip contains 4.
liquid ounces. Its purpose is to mix the ingredients in such a way that it can
prepare as many drinks as possible. However, you
consider that it is necessary to prepare at least double the Cocktails
Molotov from Black Russians, to provide a balanced selection.
Formulate it as a linear programming problem.51

Summary:

51
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Mixes (drinks of 4 ounces) Quantity

Liquors Italian Russians Whisky Cocktails Available
black chauncies sweets molotov on rocks (onz)
Whisky 2/3*4 1*4 48
Vodka 3/4 * 4 2/3*4 72
Verm.B. 1 1/3*4 64
Verm. R. 1/3*4 2/4*4 72
Brandy ¼*4 24
Lic. Coffee 1 18

Problem formulation:
Definition of variables:
X1= Número de tragos de Chauncies
X2= Número de tragos de Rusos Negros
X3= Número de tragos de Italianos Dulces
X4= Número de tragos de Cócteles Molotov
X5 = Number of rocks whiskey drinks

Función objetivo: Maximizar Z = X1+ X2+ X3+ X4+ X5

Restrictions:
2/3*4 X1 + 4X5 ≤ 48
2X1 + 3X5 ≤ 36 for whisky content
¾*4X2+ 2/3*4X4≤ 72
9X2+ 8X4≤ 216 for vodka content
¼*4X3 + 1/3*4X4 ≤ 64
3X3 + 4X4 ≤ 192 for the content of White Vermouth
1/3*4X1 + 2/4*4X3 ≤ 72
4X1 + 6X3 ≤ 216 for vermouth Red content
¼*4X3≤ 24
X3 ≤ 24 for Brandy content
¼*4X2≤ 18
X2 ≤ 18 for coffee liqueur content
2X2 ≥ X4
2X2 - X4 ≤ 0 relationship of Molotov cocktails/Black Russians

No negativity
Xi≥0 ;i=1,5

Solution:

Input data for Solver

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Solver output data

54. ProTrac, Inc. produces two lines of heavy machinery. One of its lines of
products, called excavation equipment, is primarily used in
construction applications. The other line, called forestry equipment,
is intended for the wood industry. Both the largest machine in the line
of excavation (the E-9), as the largest of the entire line of forestry equipment
(the F-9) are manufactured in the same departments and with the same equipment.
Using the economic projections for the following month, the
Marketing Manager of ProTrac has considered that during that period
It will be possible to sell all the E-9 and F-9 that the company is capable of producing.
Management now has to recommend a production goal for the month.
next. That is, how many E-9 and F-9 should they manufacture if the ProTrac management
wants to maximize the contribution of the next month to the profit (that is,
contribution margin, defined as revenue minus variable costs

Decision-making requires consideration of the following factors

important:
a. The unit contribution margin of ProTrac is $5,000 for each
E-9 sold and at $ 4,000 for each F-9
b. Each product goes through machining operations, both in the
department A as in department B.

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c. For the production corresponding to next month, these two

departments have available times of 150 and 160 hours,
respectively. The manufacturing of each E-9 requires 10 hours of
machining in department A and 20 hours in department B,
while each F-9 requires 15 hours in department a and
10 in the B.
d. So that the administration complies with the agreed arrangement with the
union, the total hours of work invested in the test of
finished products for the following month should not exceed 10%
inferior to an agreed target of 150 hours. These tests are carried out at
they end up in a third department and have nothing to do with the
activities of departments A and B. Each E-9 is subjected to
tests for 30 hours and each F-9 for 10.
e. In order to maintain its current position in the market, the high
management has decreed as operating policy: that must be built
At least one F-9 for every three E-9 that are produced.
f. One of the main distributors has ordered a total of when
less five E-9 and F-9 (in any combination) for next month,
therefore it will have to produce at least that amount.52

Resumen de datos:

HOURS
Maq. E-9 Mach. F-9 Total available
Dep. A 10 15 150
Dep. B 20 10 160
Test time 30 10 135 (150-10%)

Produce at least 1 F-9 for every 3 E-9: 1(E 9) 3(F 9)

Model formulation
1. Definition of variables (decision variables)
E-9 = number of units of E-9 type machines
F-9 = number of units of F-9 type machines

2. Objective function
Maximize Z = 5000 E-9 + 4000 F-9

3. Constraints (constraint equations)

10(E-9) + 15(F-9) ≤ 150
20(E-9) + 10(F-9) ≤ 160
30(E-9) + 10(F-9) ≥ 135
1(E-9) - 3(F-9) ≤ 0
1(E-9) + 1(F-9) ≥ 5
1(E-9) is greater than or equal to 0
1(F-9) ≥ 0

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Graphic solution:

Mathematical (analytical) solution

Initial data before applying SOLVER:

{"Definiciones de datos para SOLVER y resolver":"Data definitions for SOLVER and to solve:"}

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Model results:

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55. The company Crawler Tread wants to mix iron ores from four mines.
different to manufacture bearings intended for a new Protrac product:
a medium-sized crawler tractor, the E-6, specifically designed for
competing in the European market. Through analysis, it has been shown that,
to produce a mixture endowed with the appropriate traction qualities,
minimum requirements must be met in relation to three basic elements
which, for simplification, we will refer to here as A, B, C. In specific terms,
each ton of ore must contain at least five pounds of the
basic element A, 100 pounds of basic element B and 30 pounds of the element
basic C.

The mineral extracted from each of the four mines contains the three elements.
basics, but in different quantities. These compositions expressed in pounds
per ton, are listed in the following table:

Compositions obtained from each mine

Element MINA (pounds per ton of each element)
basic 1 2 3 4
A 10 3 8 2
B 90 150 75 175
C 45 25 20 37
Cost/ton
mineral $800 $ 400 $ 600 $500

The administrator's goal is to discover a feasible cost mix.

minimum.53

Problem formulation:

1. Definition of variables
T1 = fraction of tons from mine 1
T2 = fraction of tons from mine 2
T3 = fraction of tons from mine 3
T4 = fracción de toneladas de la mina 4

2. Objective function
Minimize Z = 800 T1 + 400 T2 + 600 T3 + 500 T4

3. Restrictions
10 T1 + 3 T2 + 8 T3 + 2 T4 ≥ 5 (element A)
90 T1 + 150 T2 + 75 T3 + 175 T4 ≥ 100 (element B)
45 T1 + 25 T2 + 20 T3 + 37 T4 ≥ 30 (element A)
T1 + T2 + T3 + T4 = 1 balance
T1, T2, T3, T4 ≥ 0 (no negativity)

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Solution: for spreadsheet

Original data:

Results :

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56. A company (ASTRO Y COSMOS) that manufactures TVs produces two models of
television sets, the star and the Cosmo. There are two production lines, one
for each model, two departments are involved in the production of each
model. The production line capacity of the Astro is 70 devices of
TV per day. The capacity of the Cosmo line is 50 televisions per day. In the
In department A, the cathode ray tubes are manufactured. This department requires
one hour of work for each Astro model and two hours of work for each
Cosmo model. Currently, a maximum of 120 hours can be assigned.
daily work for the production of both types of devices
Department A. In department B, the chassis is built. Here it is required
one hour of work for each Astro television and also one hour for each
Cosmo model. Currently, 90 hours of work can be assigned to
Department B for the production of both models. The contribution to the
profits are $20 and $10, respectively, for each Astro television and
Cosmo.

If the company knows that it can sell all the Astro and Cosmo devices that
be able to manufacture. What should the production plan be for each day (is
say, the daily production) for each model?54

Problem formulation:
Definition of variables
X1 = number of units of Astro TV
X2= número de unidades de TV Cosmo

Función objetivo: Maximizar Z = 20X1+ 10X2

Restrictions
X1+ 2X2≤ 120 capacity Dep. A
X1 + X2 ≤ 90 capacity Dep. B
X1 ≤ 70 Astro line capacity
X2 ≤ 50 Cosmo line capacity
No negativity
Xi≥0; i=1,2

LPG solution

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Payoff: 20.0 X1 + 10.0 X2 = 1600.0

X2
40
38
36
34
32
30
28
26
24
22
20
18
16
14
12 : 0.0 X1 + 1.0 X2 = 50.0
10
8 : 1.0 X1 + 0.0 X2 = 70.0
6
4 1.0 X1 + 1.0 X2 = 90.0
2
0 : 1.0 X1 + 2.0 X2 = 120.0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 X1

OptimalDecisions(X1,X2):(70.0,20.0)
1.0X1 + 2.0X2 <= 120.0
1.0X1 + 1.0X2 <= 90.0
1.0X1 + 0.0X2 <= 70.0
0.0X1 + 1.0X2 <= 50.0

Input data for solver

Solver output data

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57. Of the many products that Arco Manufacturing Company produces, only the
products C, D, E, and F go through the following departments: brushing,
milling, drilling, and assembly. The requirements per product unit in
hours and contribution are as follows:
Department
Producto Cepillado Fresado Taladrado Ensamble Contr./Unidad
C 0.5 2.0 0.5 3.0 $8
D 1.0 1.0 0.5 1.0 $9
E 1.0 1.0 1.0 2.0 $7
F 0.5 1.0 1.0 3.0 $6
The available capacities this month for products C, D, E, and F, as
the minimum sales requirements are:
Department Capacity(hours) Product Minimum Sales Requirements

Brushing 1800 C 100 units

Milling 2800 D 600 units
Drilling 3000 E 500 units
Assembly 6000 F 400 units

Determine the quantity of products C, D, E, and F that will have to be manufactured.

this month to maximize the contribution.55

Problem formulation
Definition of variables
X1= Número de unidades del producto C
X2 = Number of units of product D
X3 = Number of units of product E
X4= Número de unidades del producto F

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Función objetivo: Maximizar Z = 8X1+ 9X2+ 7X3+6X4

Restrictions
0.5X1 + 1.0X2 + 1.0X3 + 0.5X4 ≤ 1.800 brushing capacity
2.0X1 + 1.0X2 + 1.0X3 + 1.0X4 ≤ 2.800 Milling capacity
0.5X1 + 0.5X2 + 1.0X3 + 1.0X4 ≤ 3.000 drilling capacity
3.0X1 + 1.0X2 + 2.0X3 + 3.0X4 ≤ 6.000 assembly capacity
X1≥ 100 sale of C
X2 ≥ 600 sale of D
X3 ≥ 500 sale of E
X4 ≥ 400 sale of F

No negativity
Xi≥0 ;i=1,4

Input data for the Solver

Solver output data

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58. Financial planning. Willie Hanes is the president of a microenterprise.

investments that focus on managing the stock portfolios of various
clients. A new client has requested that the company take charge of
manage a portfolio of $100,000 for him. That client would like
restrict a portfolio to a mix of only three types of stocks, such as
we can appreciate in the following table. You formulate a PL to show
how many shares of each type would Willie have to buy in order to
maximize annual performance.56

RENDIMIENTO
ANNUAL INVERSION
PRICE PER ESTIMATED FOR MAXIMUM POSSIBLE
ACTIONS ACCION($) ACCION ($) ($)
Gofer Crude 60 7 60,000
Can Oil 25 3 25,000
Sloth Petroleum 20 3 30,000

Problem formulation:
Definition of variables
X1= Número de acciones de Gofer Crude
X2= Number of Can Oil shares
X3 = Number of shares of Sloth Petroleum

Función objetivo: Maximizar Z = 7X1+ 3X2+ 3X3

Restrictions
60X1 ≤ 60,000 maximum investment of Gofer Crude
25X2 ≤ 25.000 maximum investment of Can Oil
20X3 ≤ 30.000 maximum investment of Sloth Petroleum
60X1 + 25X2 + 25X3 ≤ 100,000 total investment

No negativity
Xi≥0 ;i=1,3

Input data for Solver

56
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Solver output data

59. Portfolio Planning. An investment company currently has $10

millions available for investment. The goal that has been set is to
maximize the expected return during the next year. Its four
Investment possibilities are summarized in the following table.
In addition, the company has specified that at least 30% of the funds
they will have to be placed in common stocks and treasury bonds and that not
more than 40% of the money must be invested in market funds and securities
municipal. The entire $10 million will be invested in the
hand. Formulate a PL model that indicates to the company how much money it owes.
invest in each instrument.57

POSSIBILITY OF RETRIBUTION MAXIMUM INVERSION

INVERSION EXPECTED (%) (MILLIONS OF $)
Treasury Bonds 8 5
Ordinary Shares 6 7
Money Market 12 2
Municipal Titles 9 4

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Problem formulation

Definition of variables
X1= cantidad en dólares en Bonos de Tesorería
X2= cantidad en dólares en Acciones Ordinarias
X3 = amount in dollars in Money Market
X4= cantidad en dólares en Títulos Municipales

Función objetivo: Maximizar Z = 0.08X1+ 0.06X2+ 0.12X3+ 0.09X4

Restrictions
X1 + X2 ≥ 0.30(X1 + X2 + X3 + X4)
0.70X1+ 0.70X2–0.30X3–0.30X4≥ 0 30% investment
X3 + X4 ≤ 0.40(X1 + X2 + X3 + X4)
-0.40X1 - 0.40X2 + 0.60X3 + 0.60X4 ≤ 0 40% investment
X1 ≤ 5,000,000 investment in Treasury Bonds
X2≤ 7,000,000 investment in common stocks
X3 ≤ 2,000,000 investment in Money Market
X4≤ 4,000,000 investment in Municipal Bonds
X1 + X2 + X3 + X4 ≤ 10,000,000 total investment

No negativity
Xi≥0; i=1,4

Input data for the Solver

Solver output data

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60. Wood Walter is the owner of a small furniture manufacturing workshop.

this workshop manufactures three different types of tables: A, B, and C. With each table, it
it requires a certain amount of time to cut the parts that constitute it,
assemble them and paint the finished piece. Word will be able to sell all the tables.
that can be manufactured. In addition, model C can be sold unpainted.
employs several people, who work part-time shifts, so the
The available time to carry out each of these activities is variable from one
to another month. Based on the following data, you should formulate a model.
linear programming that helps Word determine the product mix that
will allow you to maximize your profits next month.58

Cut Painting Assembly Gain by

Model (hrs) (hrs) (hrs) table ($)
A 3 4 5 25
B 1 2 5 20
C 4 5 4 50
C without painting 4 5 0 30
Capacity 150 200 300

Solution to the problem

Definition of variables
X1= Cantidad de mesas Modelo A
X2= Cantidad de mesas Modelo B
X3= Cantidad de mesas Modelo C
X4= Cantidad de mesa Modelo C sin pintar

Función objetivo: Maximizar Z = 25X1+ 20X2+ 50X3+ 30X4

Restrictions
3X1 + X2 + 4X3 + 4X4 ≤ 150 hours in Court
4X1+ 2X2+ 5X3+ 5X4≤ 200 hours in Assembly
5X1+ 5X2+ 4X3+ 0X4≤ 300 hours in Painting

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No negativity
Xi≥0 ;i=1,4
Input data for Solver

Solver Output Data

61. Douglas E. Starr, administrator of Heavenly Hound Kennels, Inc.

offers boarding in a pet pension plan. Dog food
Housed in the kennel, it is prepared by mixing three granular products, with the
how to obtain a well-balanced diet for dogs. The information about
the three products are shown in the following table. If Douglas wants
ensure that each of your dogs consumes at least 8 daily
ounces of protein, 1 ounce of carbohydrates and no more than 0.5 ounces of
fats. What amount of each grain product should be included in the food?
of the dogs in order to minimize Douglas's costs? (Note: 16 ounces = 1
libra59

PRODUCTO COST OF PROTEINS CARBOHYDRATES FATS

IN GRAIN LIBRA($) (%) (%) (%)
A 0.45 62 5 3
B 0.38 55 10 2
C 0.27 36 20 1

Solution to the problem

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Definition of variables
X1= Cantidad en libras de producto A
X2= Cantidad en libras del producto B
X3= Cantidad en libras del producto C

Función objetivo: Minimizar Z = 0.45X1+ 0.38X2+ 0.27X3

Restrictions
0.62X1+ 0.55X2+ 0.36X3≥ 0.5 for proteins
0.05X1+ 0.10X2+ 0.20X3≥ 0.0625 for carbohydrates
0.03X1 + 0.02X2 + 0.01X3 ≤ 0.03125 for fats
No negativity
Xi≥0 ;i=1,3

Input data for Solver

Solver output data

62. McNaughton, Inc. Produces two salsas for meat: Spicy Diablo and Red Baron.
smoother). This sauce is made by mixing two ingredients, A and B. It is allowed
certain level of flexibility in the formulas of these products. The percentages
permissibles, as well as the information on income and costs, appear in the
next table. It is possible to buy up to 40 liters of A and 30 of B. McNaughton
You can sell all the sauce you produce. Formulate a programming model.

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linear whose objective is to maximize the net profits obtained from the sale of
these sauces.60

INGREDIENTE SALE PRICE

SALSA A B PER LITER
Spicy Diablo At least 25% At least 50% 3.35
Red Baron At most 75% 2.85
Cost per liter 1.60 2.59
There is no explicit maximum or minimum percentage.

Solución del problema

Definition of variables
X1= Cantidad de litros de ingrediente A para Salsa Spicy Diablo
X2= Cantidad de litros de ingrediente A para Salsa Red Baron
X3= Cantidad de litros de ingrediente B para Salsa Spicy Diablo
X4= Cantidad de litros de ingrediente B para Salsa Red Baron

Objective function: Maximize Z = 3.35(X1 + X3) + 2.85(X2 + X4) –

1.6(X1+ X2)–2.59(X3+ X4)
Z = 1.75X1 + 0.76X2 + 1.25X3 + 0.26X4

Restrictions
X1 ≥ 0.25(X1 + X3)
0.75X1 - 0.25X3 ≥ 0 content of A in the Spicy sauce
X2 ≤ 0.75(X2 + X4)
0.25X2 - 0.75X4 ≤ 0 content of A in the Red sauce
X3 ≥ 0.50(X1 + X3)
-0.50X1 + 0.50X3 ≥ 0 content of B in the Spicy sauce
X1 + X2 ≤ 40 maximum purchase of liters of A
X3 + X4 ≤ 30 maximum purchase of liters of B

No negativity
Xi≥0 ;i=1,4

Data for Solver input

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Solver Output

63. La Corey Ander ’s Spice Company has a limited quantity of three

ingredients used for the production of condiments. Corey uses the
three ingredients (HB01, HB02, and HB03) for the preparation of turmeric and
paprika. The marketing department informs that the company can
vender todo el pimentón que sea capaz de producir, pero solamente se puede
sell a maximum of 1700 bottles of turmeric. The unused ingredients
they will be able to be sold in the market. The prices are expressed in $/ounce. The
precios actuales son: HB01, $0.60; HB02, $0.70; HB03, $0.55. Además, Corey
has signed a contract to supply 600 bottles of paprika to Wal-Mart.
The following table provides additional information. Formulate the problem of
Corey as a linear programming model for maximizing revenue.61

INGREDIENTS PRICE
(ONZ/BOTELLA) DEMAND SALE
HB01 HB02 HB03 BOTTLES / BOTTLE
Turmeric 4 2 1 1700 3.25
Paprika 3 2 3 unlimited 2.75
Availability

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ounces 8000 9000 7000

Solution to the problem

Definition of variables
X1= Cantidad de botellas de Cúrcuma
X2= Cantidad de botellas de Pimentón

Objective function
Maximize Z = 3.25X1 + 2.75X2 + 0.60(8000 - 4X1 - 3X2)
+ 0.70(9000–2X1–2X2) + 0.55(7000–X1–3X2)
Z = 14.950 - 5.45X1 - 6.95X2
Restrictions
4X1 + 3X2 ≤ 8000 for ounces of HB01
2X1 + 2X2 ≤ 9000 for ounces of HB02
1X1+ 3X2 ≤ 7000 by ounces of HB03
X1 ≤ 1.700 Turmeric bottles
X2 ≥ 600 contract for Paprika

No negativity
Xi ≥ 0; i = 1, 2

LPG solution

: 2.0 X1 + 2.0 X2 = 9000.0

X2 : 4.0 X1 + 3.0 X2 = 8000.0

1701
1621
1541
1461
1381
1301 : 1.0 X1 + 0.0 X2 = 1700.0
1221 1.0 X1 + 3.0 X2 = 7000.0
1141
1061
981
901
821
741 : 0.0 X1 + 1.0 X2 = 600.0
661
581
501
421 Payoff: 1.1 X1 + 2.1 X2 = 1260.0
341
261
181
101
0 9018027036045054063072081090099010810171026103510441053106210710800 X1

OptimalDecisions(X1,X2):(0.0,600.0)
: 4.0X1 + 3.0X2 <= 8000.0
2.0X1 + 2.0X2 <= 9000.0
1.0X1 + 3.0X2 <= 7000.0
1.0X1 + 0.0X2 <= 1700.0
0.0X1 + 1.0X2 >= 600.0

Input data for the Solver

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Solver Output

64. Guy Chung, superintendent of the buildings and the surrounding land of the
Gothic University has planned to apply fertilizer to the grass in the area.
quadrangular at the beginning of spring. That meadow needs at least the
quantities of nitrogen, phosphorus, and potassium listed in the following table:

MINERAL PESO MINIMO(LIBRAS)

Nitrogen 10
Phosphorus 7
Potassium 5

There are three types of commercial fertilizer available; the analyses and prices for
1000 pounds are listed in the following table. Guy can buy any
amount of any fertilizers you want and combine them before
apply them to the grass. Formulate a PL model that determines the amount of

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Operational Research I Linear Programming

each fertilizer that you need to buy to meet the requirements with a
minimum cost.62

Content of Content of Content of

Fertilizer nitrógeno (lib) fósforo (lib) potassium (lib) Precio ($)
I 25 10 5 10
II 10 5 10 8
III 5 10 5 7

Solution to the problem

Definition of variables
X1= Thousands of pounds of Fertilizer I
X2= Thousands of pounds of Fertilizer II
X3= Thousands of pounds of Fertilizer III

Función objetivo: Minimizar Z = 10X1+ 8X2+ 7X3

Restrictions
25X1 + 10X2 + 5X3 ≥ 10 nitrogen content
10X1 + 5X2 + 10X3 ≥ 7 phosphorus content
5X1 + 10X2 + 5X3 ≥ 5 potassium content
No negativity
Xi ≥ 0; i = 1, 3

Input data for the Solver

Solver output data

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65. The Ebel Mining Company owns two mines that produce a certain type
of mineral. These mines are located in different parts of the country and,
consequence, they show differences in their production capacities and in the
quality of your mineral. After the mineral is crushed, it is classified into three
classes depending on the quality: high, medium, and low. Ebel has been hired.
to supply weekly to the foundry plant of its parent company
12 tons of high-quality ore, 8 tons of medium quality, and 24
tons of low quality. It costs Ebel $20,000 a day to operate the first one.
I have $16,000 for the second. However, on the first day of operation.
I produce 6 tons of high-quality ore, 2 tons of medium, and 4.
tons down, while the second produces 2 tons daily of
high quality material, 2 medium and 12 low. How many days a week
each mine will have to operate to meet Ebel's commitments
most economical way possible? (In this case, it is acceptable to schedule the
operation of the mines in fractions of a day63

Solution to the problem

Definition of variables
X1= Number of days per week (fraction of a week) of work of
the Mine 1
X2= Number of days per week (fraction of week) of work of the
Mine 2

Función objetivo: Minimizar Z = 20X1+ 16X2miles de dólares

Restrictions
6X1+ 2X2≥ 12 high-quality mineral
2X1 + 2X2 ≥ 8 medium quality mineral
4X1 + 12X2 ≥ 24 low quality mineral
X1 + X2 = 5 maximum time 1 week (5 days)

No negativity
Xi≥ 0; i=1,2

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LPG Solution

: 6.0 X1 + 2.0 X2 = 12.0

Payoff: 20.0 X1 + 16.0 X2 = 68.0

4

1.0 X1 + 1.0 X2 = 5.0

2.0 X1 + 2.0 X2 = 8.0 : 4.0 X1 + 12.0 X2 = 24.0

0
0 2 4 6 8 10

OptimalDecisions(X1,X2):(1.0,3.0)
6.0X1 + 2.0X2 >= 12.0
2.0X1 + 2.0X2 >= 8.0
4.0X1 + 12.0X2 >= 24.0
1.0X1 + 1.0X2 <= 5.0

Input data for Solver

MINERAL PRODUCTION AT EBEL MINING COMPANY

Mina
Production in Mine 1 2
Days of the week 1 1 MIN
Daily operating cost 20000 16000 36000

USE OF NO
RESTRICTIONS RESOURCES USED LIMIT USED
High mineral production c. 6 2 8≥ 12 -4
Medium mineral production c. 2 2 4≥ 8 -4
Mineral production down c. 4 12 16≥ 24 -8
Maximum time one week 1 1 2≤ 5 3

Solver output data

Mine Mine
Production in 1 2
Days of the week 1 3 MIN
Daily operating cost 20000 16000 68000

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NO
RESTRICTIONS USED LIMIT USED
High mineral production c. 6 2 12≥ 12 9.32E-12
Medium mineral production
c. 2 2 8≥ 8 9.32E-12
Mineral production low c. 4 12 40≥ 24 16
Maximum time one week 1 1 4≤ 5 1

66. The Sally Solar Car CO. has a plant that manufactures sedan cars.
sports cars and trucks. The selling prices, variable costs and fixed costs
corresponding to the manufacturing of these vehicles are presented in the
next table:

CONTRIBUTION TO COST VARIABLE

THE PROFITS FIXED PRODUCTION
MODEL ($) TIEMPO(HRS) ($)
Sedan 6.000 12 2,000,000
Pickup truck 8,000 15 3,000,000
Sporting 11,000 24 7,000,000

Rally has recently received orders for a total of 100 sedan cars.
200 vans and 300 sports cars. You must attend to all of these.
orders. She wants to plan production in such a way that she can achieve the
break-even point as quickly as possible, that is, wants to ensure
that the total contribution margin equals the total fixed costs and that the
variable production costs are minimized. Formulate this problem as a
linear programming model and solve it.64

Solution to the problem:

Definition of variables
X1= cantidad de automóviles Sedan
X2 = number of trucks
X3= Cantidad de automóviles Deportivos

Función objetivo: Tiempo Mínimo Z = 12X1+ 15X2+ 24X3

Restrictions
6X1-2000 ≥ 0 production of sedan cars
8X2– 3000 ≥ 0 production of vans
11X3 - 7000 ≥ 0 production of sports cars
x1 ≥ 100 number of sedan automobiles
x2 ≥ 200 number of trucks
X3≥ 300 number of sports cars
No negativity
Xi ≥ 0; i = 1, 3

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Data entry for Solver

Solver Output

67. Reese Eichler, manufacturer of complementary equipment for air filtration,

produce two types of units, the Umidaire and the Depollinator. The data
Regarding the selling prices and costs, they appear in the following table.
The company Resse has been hired to supply 500 Umidaire and wishes
calculate the quantities of the break-even point for both types of units.
Formulate the linear programming model to minimize costs and solve it.65

Product Precio de venta Costos variables Costos fijos ($)

per unit ($) per unit ($)
Umidaire 450 240 150,000
Depollinator 700 360 240,000

Definition of variables
X1 = Cantidad de unidades de Umidaire
X2 = Cantidad de unidades de Depollinator

Función objetivo: Minimizar Z = 240X1 + 360X2

Restrictions
450X1–240X1–150000≥ 0 ; 210X1 ≥150000

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700X2–360X2– 240000 ≥ 0 ; 340X2 ≥240000

X1 ≥ 500
No negativity
Xi ≥ 0; i = 1, 2

LPG solution

:210.0X1+0.0X2=150000.0
Payoff:240.0X1+360.0X2=425546.2

X2
1000
950
900
850 1.0 X1 + 0.0 X2 = 500.0
800
750
700
650
600
550
500
450
400
350
300 : 0.0 X1 + 340.0 X2 = 240000.0
250
200
150
100
50
0
0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 X1

OptimalDecisions(X1,X2):(714.3,705.9)
210.0X1+0.0X2>=150000.0
0.0X1 + 340.0X2 >= 240000.0
1.0X1 + 0.0X2 >= 500.0

Break-even point x1 > 500 and x2 > 705.9

Input Data Solver

Exit Solver

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68. A company operates four farms, whose levels of productivity are

comparables. Each of the farms has a certain number of usable hectares and
of working hours to plant and care for the harvest. The data
corresponding to the next season appear in the following table.

WORKING HOURS
Hectares AVAILABLE
FARM TOOLS PER MONTH
1 500 1700
2 900 3000
3 300 900
4 700 2200

The organization is considering the option of planting three different crops.

The main differences between these crops are the expected profits from
hectare and the amount of labor that each one requires, as indicated
in the following table.

MONTHLY HOURS EARNINGS

Hectares OF WORK HOPED FOR
CULTIVATION MAXIMUMS PER HECTARE PER HECTARE ($)
A 700 2 500
B 800 4 200
C 300 3 300

In addition, the total number of hectares that can be dedicated to any crop
in particular are limited by the requirements associated with the concept of
blind team. In order to maintain a workload more or
less uniform among the different farms, the administration's policy
It is recommended that the percentage of planted hectares should be equal for
all the farms. However, on any of those estates, it can grow.
any combination of crops, as long as all are met
restrictions (including the requirement for the workload to be uniform). The
the administration wants to know how many hectares of each crop it will have to

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Operational Research I Linear Programming

plant in their respective farms in order to maximize profits

expected.66

Definition of variables
X11 = Cantidad de Ha del Cultivo A en la Granja 1
X12 = Cantidad de Ha del Cultivo A en la Granja 2
X13 = Cantidad de Ha del Cultivo A en la Granja 3
X14 = Cantidad de Ha del Cultivo A en la Granja 4
X21 = Cantidad de Ha del Cultivo B en la Granja 1
X22 = Cantidad de Ha del Cultivo B en la Granja 2
X23 = Cantidad de Ha del Cultivo B en la Granja 3
X24 = Cantidad de Ha del Cultivo B en la Granja 4
X31 = Cantidad de Ha del Cultivo C en la Granja 1
X32 = Cantidad de Ha del Cultivo C en la Granja 2
X33 = Cantidad de Ha del Cultivo C en la Granja 3
X34 = Cantidad de Ha del Cultivo C en la Granja 4

Función objetivo: Maximizar Z = 500X11 + 500X12 + 500X13 + 500X14 +

200X21 + 200X22 + 200X23 + 200X24 + 300X31 + 300X32 + 300X33 +
300 times 34
Restrictions
X11 + X21 + X31 ≤ 500 Ha of cultivation in Farm 1
X12 + X22 + X32 ≤ 900 Hectares of crops in Farm 2
X13 + X23 + X33 ≤ 300 hectares of crop in Farm 3
X14 + X24 + X34 ≤ 700 Ha of cultivation in Farm 4
2X11 + 4X21 + 3X31 ≤ 1700 Hours of work on Farm 1
2X12 + 4X22 + 3X32 ≤ 3000 Working hours in Farm 2
2X13 + 4X23 + 3X33 ≤ 900 Hours of work on Farm 3
2X14 + 4X24 + 3X34 ≤ 2200 Hours of work on Farm 4
X11 + X12 + X13 + X14 ≤ 700 Ha of crop A
X21 + X22 + X23 + X24 ≤ 800 Ha of crop B
X31 + X32 + X33 + X34 ≤ 300 Ha of crop C

Uniform distribution compliance

500 900 300 700
X 11 X 21 X 31X 12 X 22 X 32X 13 X 23 X 33X 14 X 24 X 34
900(X11 + X21 + X31) - 500(X12 + X22 + X32) = 0 Dist. G1 and G2
500(X13 + X23 + X33) - 300(X11 + X21 + X31) = 0 Distribution G1 and G3
700(X11 + X21 + X31)–500(X14 + X24 + X34) = 0 Distribution G1 and G4

No negativity
Xij≥ 0; i=1,3; j = 1, 4
i = Cultivo; j = Granja

Data entry for Solver

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Exit Solver

69. The management of a vineyard wishes to combine four different harvests to

produce three different types of wine in a combined form. The stocks of the
crops and the sale prices of the blended wines are shown in the
next table, along with certain restrictions on the percentages included in
the composition of the three mixtures. In particular, the harvests 2 and 3 together
they must constitute at least 75% of the mix of A and at least 35%
from the mixture C. In addition, mixture A must contain at least 8% of
the harvest 4, while mixture B must contain at least 10% of the
harvest 2 and at most 35% of harvest 4. Any amount can be sold

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Operations Research I Linear Programming

that the mixtures A, B, and C be prepared. Formulate a PL model that takes advantage of
in the best way the available harvests and solve it.67

Harvest Price of
Mix 1 2 3 4 sale/gallon
A * at least 75% 2 and 3 when
in any proportion minus 8% 80
B * at least when
10% much 35% 50
C * At least 35% 2 and 3 *
in any proportion 35
Stock 130 200 150 350
gallons
* indicates that there are no restrictions

Definition of variables
X11 = Cantidad de galones de vino de la cosecha 1 para mezcla A
X12 = Cantidad de galones de vino de la cosecha 1 para mezcla B
X13 = Cantidad de galones de vino de la cosecha 1 para mezcla C
X21 = Cantidad de galones de vino de la cosecha 2 para mezcla A
X22 = Cantidad de galones de vino de la cosecha 2 para mezcla B
X23 = Cantidad de galones de vino de la cosecha 2 para mezcla C
X31 = Cantidad de galones de vino de la cosecha 3 para mezcla A
X32 = Cantidad de galones de vino de la cosecha 3 para mezcla B
X33 = Cantidad de galones de vino de la cosecha 3 para mezcla C
X41 = Cantidad de galones de vino de la cosecha 4 para mezcla A
X42 = Cantidad de galones de vino de la cosecha 4 para mezcla B
X43 = Cantidad de galones de vino de la cosecha 4 para mezcla C

Objective Function
Maximize Z = 80X11 + 80X21 + 80X31 + 80X41 + 50X12 + 50X22 + 50X32 +
50X42 + 35X13 + 35X23 + 35X33 + 35X43
Restrictions
X21 + X31 ≥ 0.75(X11 + X21 + X31 + X41) at least 75% of 2 and 3 in A
X41 ≥ 0.08(X11 + X21 + X31 + X41) at least 8% in A
X22 ≥ 0.10(X12 + X22 + X32 + X42) at least 10% in B
X42 ≤ 0.35(X12 + X22 + X32 + X42) at most 35% in B
X23 + X33 ≥ 0.35(X13 + X23 + X33 + X43) at least 35% of 2 and 3 in C
X11 + X12 + X13 ≤ 130 maximum of harvest 1 gallons
X21 + X22 + X23 ≤ 200 maximum of harvest 2 gallons
X31 + X32 + X33 ≤ 150 maximum of harvest gallons 3
X41 + X42 + X43 ≤ 350 maximum gallons of harvest 4

No negativity
Xij≥ 0; i=1,4; j = 1, 3

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i = Cosecha; j = Mezcla

Input data for Solver

Solver Output

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