IT Lab Assignment 10BM60005

[LP models and Formulations]

IT Lab Assignment

1. WYNDOR GLASS CO. produces i! "ualit# !lass products$ includin! %indo%s and !lass doors. &t as t ree plants. Aluminum 'rames and ard%are are made in Plant ($ %ood 'rames are made in Plant ) and Plant * produces t e !lass and assem+les t e products. ,ecause declinin! earnin!s$ top mana!ement as decided to re-amp t e compan#.s product line. /npro'ita+le products are +ein! discontinued$ releasin! production capacit# to lunc t%o ne% products a-in! lar!e sales potential 0 Product (0 Product )0 Product ( and *$ +ut An 12'oot !lass door %it aluminum 'ramin! A 4 6 'oot dou+le2 un! %ood 'ramed %indo%. re"uires some o' t e production capacit# in Plants ( none in plant ). Product ) needs onl# plant ) and *.

3 e mar4etin! di-ision as concluded t at t e compan# could sell as muc o' eit er product as could +e produced +# t ese plants. 5o%e-er$ +ecause +ot t e products %ould +e competin! 'or t e same production capacit# in Plant *$ it is not clear % ic mi6 o' t e t%o products %ould +e most pro'ita+le. Find out. Data 'or W#ndor Glass Co pro+lem Plant Production time per Production time +atc $ 5ours a-aila+le per %ee4$ 5ours Product ( ) ( ( 7 8 ) 7 ) () * * ) (1 Pro'it per +atc 9*$777 9 :$777 Ans. Let 6( +e t e num+er o' %indo%s and 6) +e t e num+er o' doors Objective Function: ;a6imi<e = > *777?6(@:777?6)

IT Lab Assignment 10BM60005 Subject to constraints: (?6(@7?6)A>8 7?6(@)?6)A>() *?6(@)?6)A>(1 2. &C&C& prudential li'e insurance co. Ltd is introducin! t%o product lines0 special ris4 insurance and mort!a!es. 3 e e6pected pro'it is Rs :7B2 per unit on special ris4 insurance and Rs )7B2 per unit on mort!a!es. ;ana!ement %is es to esta+lis sales "uotas 'or t e ne% product lines to ma6imi<e total e6pected pro'it. 3 e %or4 re"uirements are as 'ollo%s0 Department Wor4 =2 5ours per unit Wor4 E 5ours A-aila+le Sp. Ris4 ;ort!a!es /nder%ritin! * ) )877 Administration Claims 7 ) ( 7 177 ()77

CaD Formulate LPP model 'or t is pro+lem and % at is t e ma6imum pro'it. C+D /se !rap ical met od to sol-e t is. Ans. Let 6) +e t e no o' mort!a!e and 6( +e t e num+er o' special ris4 Objective Function: ;a6imi<e = > :7?6(@)7?6) Subject to constraints: *?6(@)?6)A>)877 7?6(@(?6)A>177 )?6(@7?6)A>()77 3. Wild West produces t%o t#pes o' co%+o# ats. 3#pe ( at re"uires t%ice as muc la+or time as t#pe ). &' all t e a-aila+le la+or time is dedicated to t#pe ) alone$ t e compan# can produce a total o' 877 t#pe ) ats a da#. 3 e respecti-e mar4et limits 'or t e t%o t#pes are (:7 and )77 per da#. 3 e pro'it is 9 1 per t#pe ( at and 9 : per t#pe ) at. Determine t e num+er o' ats o' eac t#pe to +e produced to ma6imi<e t e pro'it. Ans. Let 6( +e t e t#pe ( at and 6) +e t e t#pe ) at Objective function: ;a6imi<e => 1?6(@:?6)

IT Lab Assignment 10BM60005 Subject to Constraints: )?6(26)>7 6(A>(:7 6)A>)77 4. 3%o products re"uire t ree se"uential processes. 3 e time a-aila+le 'or eac procedure is (7 our a da#. 3 e 'ollo%in! ta+le summari<es t e data o' t e ta+le0 ;inutes per unit Product Process ( ( (7 ) : Process ) F )7 Process * 1 (7 /nit Pro'it 9) 9*

Determine t e optimal mi6 o' t e t%o products. Ans. Let 6( +e t e no o' units o' product ( and 6) +e t e num+er o' units o' product) Objective Function: ;a6imi<e = > )6(?@*?6) Subject to constraints: (7?6(@:?6)A>F77 F?6(@)7?6)A>F77 1?6(@(7?6*A>F77 5. ,er!er Paints produces +ot interior and e6terior paints 'rom t ree ra% materials$ ;($ ;)$ ;*. 3 e 'ollo%in! ta+le pro-ides t e +asic data o' t e pro+lem0 3ons o' Ra% material per ton o' G6terior paint &nterior paint ;a6. dail# a-aila+ilit# Ra% F 8 )8 material$;( ( ) F Ra% material * ) * ;) 5 4 Ra% material ;* Pro'it per tonC9 (777D 3 e mar4et sur-e# indicates t at t e dail# demand 'or interior paint cannot e6ceed t at o' e6terior paint +# more t an ( ton. Also t e ma6imum dail# demand o' interior paint is ) ton. Determine t e

IT Lab Assignment 10BM60005 optimum product mi6 o' interior and e6terior paints t at ma6imi<es t e total dail# pro'it. Ans. Let 6) +e t e no o' tons o' interior paint and 6( +e t e num+er o' tons o' e6terior paints Objective function: ;a6imi<e = > :?6(@8?6) Subject to constraints: F?6(@8?6)A>)8 (?6(@)?6)A>F *?6(@)?6)A>* 6)26(A>( 6)A>) 6. A !am+ler pla#s a !ame t at re"uires di-idin! +et mone# amon! 'our c oices. 3 e !ame as t ree outcomes. 3 e 'ollo%in! ta+le !i-es t e correspondin! !ain or loss per dollar 'or di''erent options o' t e !ame. Return per dollar deposited in !i-en c oice Out come ( ) * ( 2* 8 2I ) : 2* H * * 2H (7 8 (: 8 21

3 e !am+ler as total o' 9:77$ % ic ma# +e pla#ed onl# once. 3 e e6act outcome o' t e !ame is not 4no%n. ,ecause o' t is uncertaint#$ t e !am+ler.s strate!# is to ma6imi<e t e minimum return produced +# t e t ree outcomes. 5o% s ould t e !am+ler allocate t e 9:77 amon! t e 'our c oicesJ C5int0 is net return ma# +e positi-e$ ne!ati-e or <eroD Ans.
Out come ( ) * Amount in-ested Return per dollar deposited in !i-en c oice ( ) * 8 Return 9($(F8. 2* 8 2I (: 77 9*$887. : 2* H 8 77 9($(18. * 2H (7 21 77 97.77 97.7 9)11.7 9)().7

IT Lab Assignment 10BM60005

7 3otal Amount 9:77.7 A-aila+le 7 3otal Amount 9:77.7 &n-ested 7 7 7

7. Sol-e t e LPP
subject to

Max Z = 2 x1 + 5 x 2 + 7 x3 3 x1 + 2 x 2 + 4 x 3 100 x1 + 4 x 2 + 2 x3 100 x1 + x 2 + 3 x3 100 x1 , x 2 , x3 0

Ans.

Objective function: ;a6imi<e = > )?6(@:?6)@I?6* Subject to constraints: *6(@)6)@86*A>(77 (6(@86)@)6*A>(77 (6(@(6)@*6*A>(77 6(@6)@6*K>7

8. We+ ;ercantile sells man# ouse old products t rou! an online catalo!ue. 3 e compan# needs su+stantial %are ouse space 'or storin! its !oods. Plans no% are +ein! made 'or leasin! %are ouse stora!e space o-er t e ne6t : mont s. 5o%e-er$ since t ese space re"uirements are "uite di''erent$ it ma# +e most economical to lease onl# t e amount needed eac mont on a mont 2+#2 mont +asis. On t e ot er and$ t e additional cost 'or leasin! space 'or additional mont s is muc less t an 'or t e 'irst mont $ so it ma# +e less e6pensi-e to lease t e ma6imum amount needed 'or t e entire mont s. Anot er option is t e intermediate approac 'or c an!in! o' c an!in! t e total amount o' space leased at least once +ut not e-er# mont . 3 e space re"uirement and t e leasin! costs 'or t e -arious leasin! periods are as 'ollo%s0 ;ont ( ) * 8 : Re"uire d space Cs". 'tD *7$777 )7$777 87$777 (7$777 :7$777 Leasin! periodCmont sD ( ) * 8 : Cost per s". 't. leased 9 9 9 9 9 F: (77 (*: (F7 (H7

IT Lab Assignment 10BM60005

Sol-e t e model to minimi<e t e total leasin! cost 'or meetin! t e space re"uirement. Ans. Let 6(($6()$6(*$6(8$6)($6)*$6)8$6*(.6*).6**$68($68)$ $6:($+e t e -aria+les Optimal Solution ;inimi<e = > F:?C6((@6)(@6*(@68(@6:(D@(77?C6()@6))@6*)@68)D@(*:?C6 (*@6)*@6**D@ (F7?C6(8@6)8D@(H7?6(: Subject to Constraints 6((@6()@6(*@6(8@6(:K>*7777 6)(@6))@6)*@6)8@6()@6(*@6(8@6(:K>)7777 6*(@6*)@6**@6))@6)*@6)8@6(*@6(8@6(:K>87777 68(@68)@6*)@6**@6)*@6)8@6(8@6(:K>(7777 6:(@68)@6**@6)8@6(:K>:7777 9. 3 e Nort ern Airplane Compan# +uilds commercial airplanes 'or -arious airplane companies around t e %orld. 3 e last sta!e in t e production process is to produce t e Let en!ines and t en to install t em in t e completed airplane 'rame. 3 e compan# as +een %or4in! under some contacts to deli-er a considera+le num+er o' airplanes in t e near 'uture$ and t e production o' t e Let en!ines 'or t ese planes must no% +e sc eduled 'or ne6t 'our mont s. 3o met t e contracted dates 'or deli-er#$ compan# must suppl# en!ines 'or installation in t e "uantities indicated in t e ta+le C)nd columnD. 3 us t e cumulati-e num+er en!ines produced +# t e end o' t e mont s ($)$*$8 must +e at least (7$):$:7$I7. 3 e 'acilities t at %ill +e a-aila+le 'or producin! t e en!ines -ar# accordin! to ot er production$ maintenance$ t e reno-ation %or4 sc eduled durin! t is period. 3 e resultin! mont l# di''erences in t e ma6imum num+er t at can +e produced and t e cost Cin ;illion dollarsD o' producin! eac one are !i-en in t e *rd column o' ta+le. ,ecause o' -ariations in production costs$ it ma# %ell +e %ort % ile to produce some o' t e en!ines a mont or more +e'ore t e# are sc eduled 'or installation. 3 e dra%+ac4 is t at t e en!ines must +e stored until t e sc eduled installation at stora!e cost o' 9(:777 pm 'or eac en!ine s o%n in t e ri! tmost column o' t e ta+le. De-elop a sc edule 'or t e num+er o' en!ines to +e produced in eac o' t e 'our mont s so t at t e total o' t e production and stora!e cost %ill +e minimi<ed. Production sc edulin! data 'or Nort ern Airplane compan# ;ont Sc eduled ;a6imum /nit cost o' /nit cost o' &nstallation production production t e stora!e

IT Lab Assignment 10BM60005 ( ) * 8 (7 (: ): )7 ): *: *7 (7 (.71 (.(( (.(7 (.(* 7.7(: 7.7(: 7.7(:

Ans. Let 6(($6()$6(*$6(8$$6))$6)*$6)8$6**$6*8$ 688 +e t e num+er o' mac ines produced in eac period.. Objective Function: ;inimi<e = >(.71?6((@(.7H:6()@(.((?6(*@(.):?6(8@(.((?6)(@(.():?6))@(.( 8?6)*@(.(?6*(@ (.(:?6*)@(.(*?68( Subject to constraints: 6((@6()@6(*@6(8A>): 6)8@6))@6)*A>*: 6**@6*)A>*7 688A>(7 6((>(7 6()@6))>(: 6(*@6)*@6**>): 6(8@6)8@6*8@688>(7 10. 3 e Mersatec Corporation as decided to produce t ree ne% products. Fi-e +ranc plants no% a-e e6cess product capacit#. 3 e unit manu'acturin! cost o' t e 'irst product %ould +e 9*($9)H$9*)$9)1$ and 9)H in plants ($)$*$8 and : respecti-el#. 3 e unit manu'acturin! o' t e second product %ould +e 98:$ 98($ 98F$ 9 8)$ and 98* in plants ($)$*$8 and : respecti-el#. 3 e unit manu'acturin! o' t e t ird product %ould +e 9*1$ 9*:$ 987$ in plants ($ )$ * respecti-el#$ % ereas Plants 8 and : don.t a-e capa+ilit# 'or producin! t is product. Sales 'orecast indicates t at F77$ ($777$ 177 units o' products ($ ) and * respecti-el# s ould +e produced per da#. Plants ($)$*$ respecti-el# s ould +e produced per da#. Plants ($)$*$8$and : a-e t e capacit# to produce 877$F77$ 877$ F77$ and ($777 units dail#.$ respecti-el#$ re!ardless o' t e product or com+ination o' products in-ol-ed. Assume t at an# plants a-in! t e capa+ilit# and capacit# to produce t em can produce an# com+ination o' t e products in an# "uantit#. 5o% to allocate t e ne% products to t e plants to minimi<e total manu'acturin! costJ CaD Formulate t e transportation pro+lem +# constructin! t e appropriate parameter ta+le. C+DO+tain t e optimal solution.

IT Lab Assignment 10BM60005

Ans. Let 6(($ 6()$6(*$6(8$6(: +e t e num+er o' units produced o' product ( in plants($)$*$8 and : respecti-el#. Similarl# 6)($6))$6)*$6)8$6): +e t e num+er o' units produced o' product ) in plants($)$*$8 and : respecti-el#. and 6*($6*)$6**$6*8$6*: +e t e num+er o' units produced o' product ) in plants($)$*$8 and : respecti-el#. Objective Function: ;inimi<e = > *(?6((@)H?6()@*)?6(*@)1?6(8@)H?6(:@8:?6)(@8(?6))@8F?6)*@ 8)?6)8@8*?6):@*1?6*(@*:?6*)@87?6** Subject to Constraints: 6 ((@6()@6(*@6(8@6(:>F77 6 )(@6))@6)*@6)8@6):>(777 6 *(@6*)@6**>177 6 ((@6)(@6*(A>877 6 ()@6))@6*)A>F77 6 (*@6)*@6**A>877 6 (8@6)8A>F77 6(: @6):A>(777

3ransportation Pro+lems
11. 3 e s ippin! cost C9D per truc4 load o' a compan# is !i-en +elo%. Formulate a transportation pro+lem +# constructin! appropriate parameters and o+tain t e optimal solution usin! G6cel Sol-er s ippin! costC9D Ware ouseCdestinationD ( ) 8 Sources ( ) * 8F8 1FI *:) IH( HH: F1: 17 1: :(* 8(F F1) F:

* F:8 FH7 *11 I7

OutputCtotal s ippedD I: (): (77

Allocation

IT Lab Assignment 10BM60005

Ans. Let 6(($6()$6(*$6(8 +e t e transportation cost 'rom source ( to destinations ($)$* and 8 respecti-el#. Similarl# 6)($6))$6)*$6)8 +e t e transportation cost 'rom source ) to destinations ($)$* and 8 respecti-el# and 6*($6*)$6**$6*8 +e t e transportation cost 'rom source * to destinations ($)$* and 8 respecti-el#. Objective Function: ;inimi<e = > C8F8?6((@:(*?6()@F:8?6(*@1FI?6(8@*:)?6)(@8(F?6))@FH7?6)* @IH(?6)8@HH:?6*(@F1)?6*)@*11?6**@F1:?6*8D Subject to constraints 6((@6()@6(*@6(8>I: 6)(@6))@6)*@6)8>(): 6*(@6*)@6**@6*8>(77 6((@6)(@6*(>17 6()@6))@6*)>F: 6(*@6)*@6**>I7
12. 3 e Mersatec Corporation as decided to produce t ree ne% products. Fi-e +ranc plants no% a-e e6cess product capacit#. 3 e unit manu'acturin! cost o' t e 'irst product %ould +e 9*($9)H$9*)$9)1$ and 9)H in plants ($)$*$8 and : respecti-el#. 3 e unit manu'acturin! o' t e second product %ould +e 98:$ 98($ 98F$ 9 8)$ and 98* in plants ($)$*$8 and : respecti-el#. 3 e unit manu'acturin! o' t e t ird product %ould +e 9*1$ 9*:$ 987$ in plants ($ )$ * respecti-el#$ % ereas Plants 8 and : don.t a-e capa+ilit# 'or producin! t is product. Sales 'orecast indicates t at F77$ ($777$ 177 units o' products ($ ) and * respecti-el# s ould +e produced per da#. Plants ($)$*$ respecti-el# s ould +e produced per da#. Plants ($)$*$8$and : a-e t e capacit# to produce 877$F77$ 877$ F77$ and ($777 units dail#.$ respecti-el#$ re!ardless o' t e product or com+ination o' products in-ol-ed. Assume t at an# plants a-in! t e capa+ilit# and capacit# to produce t em can produce an# com+ination o' t e products in an# "uantit#. 5o% to allocate t e ne% products to t e plants to minimi<e total manu'acturin! costJ CaD Formulate t e transportation pro+lem +# constructin! t e appropriate parameter ta+le. C+D O+tain t e optimal solution usin! G6cel Sol-er.

Ans. Let 6(($ 6()$6(*$6(8$6(: +e t e num+er o' units produced o' product ( in plants($)$*$8 and : respecti-el#.

IT Lab Assignment 10BM60005 Similarl# 6)($6))$6)*$6)8$6): +e t e num+er o' units produced o' product ) in plants($)$*$8 and : respecti-el#. and 6*($6*)$6**$6*8$6*: +e t e num+er o' units produced o' product ) in plants($)$*$8 and : respecti-el#. Objective Function: ;inimi<e = > *(?6((@)H?6()@*)?6(*@)1?6(8@)H?6(:@8:?6)(@8(?6))@8F?6)*@ 8)?6)8@8*?6):@*1?6*(@*:?6*)@87?6** Subject to Constraints: 6 ((@6()@6(*@6(8@6(:>F77 6 )(@6))@6)*@6)8@6):>(777 6 *(@6*)@6**>177 6 ((@6)(@6*(A>877 6 ()@6))@6*)A>F77 6 (*@6)*@6**A>877 6 (8@6)8A>F77 6(: @6):A>(777
13. 3 e mo-e2it compan# as t%o plants producin! 'or4 li't truc4s t at t en s ipped to t ree distri+ution centers. 3 e production costs are same at t%o plants$ and t e cost o' s ippin! o' eac truc4 is s o%n 'or eac com+ination o' plants and distri+ution centre. Distri+ution Centre ( ) 9177 9877 9F77 9:77 * 9I77 9177

Plant A ,

A total o' F7 'or4li'ts are produced and s ipped per %ee4. Gac plant can produce and s ip an# amount up to a ma6imum o' :7 truc4s per %ee4s$ so t ere is no considera+le 'le6i+ilit# on o% to di-ide t e total production +et%een t e t%o plants so as to reduce s ippin! costs. 5o%e-er eac distri+ution centre must recei-e e6actl# )7 truc4s per %ee4. ;ana!ers o+Lecti-e is to determine o% man# 'or4li't truc4s s ould +e produced at eac plant$ and t en % at is t e o-er all s ippin! pattern s ould +e to minimi<e total s ippin! costs. Formulate t e transportation pro+lem and sol-e +# e6cel sol-er to 'ind optimal solution

Ans. Let 6(($6() and 6(* +e t e transportation cost 'rom plant A to destinations ($) and * respecti-el#.

IT Lab Assignment 10BM60005 Similarl# 6)($6)) and 6)*+e t e transportation cost 'rom plant ,to destinations ($) and * respecti-el# Objective Function ;inimi<e = > ((?177@6()?I77@6(*?877@6)(?F77@6))?177@6)*?:77 Subject to Constraints 6 ((@6()@6(*A>:7 6 )(@6))@6)*A>:7 6 ((@6)(>)7 6 ()@6))>)7 6 (*@6*)>)7
14. 3 e Cost2Less Corp. supplies its 'our retail outlets 'rom its 'our plants. 3 e s ippin! cost per s ipment 'rom eac plant to eac retail outlet is !i-en +elo%. /nit s ippin! cost retail OutletC9D ( ) * 8 :77 F77 877 )77 )77 H77 (77 *77 *77 877 )77 (77 )77 (77 *77 )77 mont $ and )7 e total optimal

Plant ) * 8

Plants ($) *$ and 8 ma4e (7$)7$)7$ and (7 s ipments per respecti-el#. Retail outlets ($)$ * and 8 need to recei-e )7$(7$$(7 s ipments per mont $ respecti-el#. 3 e o+Lecti-e is to minimi<e t s ippin! cost. Formulate t e transportation pro+lem and 'ind t e solution.

Ans. Let 6(($6()$6(*$6(8 +e t e s ippin! cost 'rom plant ( to retail outlet ($)$* and 8 respecti-el#. Similarl# 6)($6))$6)*$6)8 +e t e s ippin! cost 'rom plant ) to retail outlet ($)$ * and 8 respecti-el# and 6*($6*)$6**$6*8 +e t e s ippin! cost 'rom plant * to retail outlet ($) * and 8 respecti-el#. Objective Function:

IT Lab Assignment 10BM60005 ;inimi<e = > 6((?:77@6()?F77@6(*?877@6(8?)77@6)(?)77@6))?H77@6)*?(77@ 6)8?*77@ 6*(?*77@6*)?877@6**?)77@6*8?(77@68(?)77@68)?(77@68*?*77@ 688?)77 Subject to Constraints: 6 6 6 6 6 6 6 6 ((@6()@6*(@68(>(7 )(@6))@6*)@68)>)7 *(@6*)@6**@68*>)7 8(@68)@68*@688>(7 ((@6)(@6*(@68(>)7 )(@6))@6)*@6)8>(7 *(@6*)@6**@68*>(7 8(@68)@68*@688>)7

15. Consider t e transportation parameters and sol-e it 'or optimalit#. Destination ( ) * I ) 8 8 * * *

pro+lem

a-in!

'ollo%in!

Suppl# * F * 1 ) 8 8 ) : ) 8 * )

Source ) * Demand

Ans. Let 6(($ 6()$ 6(*$ 6(8 +e t e transportation cost 'rom source ( to destinations ($)$* and 8 respecti-el#. Similarl# 6)($6))$6)*$6)8 +e t e transportation cost 'rom source ) to destinations ($)$* and 8 respecti-el# and 6*($6*)$6**$6*8 +e t e transportation cost 'rom source * to destinations ($)$* and 8 respecti-el#. Objective Function: ;inimi<e = > 6((?*@6()?I@6(*?F@6(8?8@6)(?)@6))?8@6)*?*@6)8?)@6*(?8@6* )?*@6**?1@6*8 Subject to Constraints

IT Lab Assignment 10BM60005 6 6 6 6 6 6 6 ((@6()@6(*@6(8>8 )(@6))@6)*@6)8>* *(@6*)@6**@6*8>) ((@6)(@6*(>* ()@6))@6*)>* (*@6)*@6**>) (8@6)8@6*8>)