BLEND EXAMPLE

A petroleum company produces three grades of motor oil-super, premium, and extra-from three components. The company wants to
determine the optimal mix of the three components in each grade of motor oil that will maximize profit. The maximum quantities
available of each component and their cost per barrel are as follows. Company wants to produce at least 3,000 barrels of each grade of oil.

Maximize Z = 11x1s + 13x2s + 9x3s + 8x1p + 10x2p + 6x3p + 6x1e + 8x2e + 4x3e
23(x1S + x2S + x3S) + 20 (x1P + x2P + x3P) + 18 (x1e + x2e + x3e) 12 (x1S + x1p + x1e) 10 (x2S + x2P + x2e) 14 (x3s + x3p + x3e)
Availability constraints:
Min production level for each grade:
Blending constraints:
x1s + x1p + x1e 4,500 bbl.
x1s + x2s + x3s 3,000 bbl.
0.50x1s - 0.50x2s - 0.50x3s 0
x2s + x2p + x2e 2,700 bbl.
x1p+ x2p + x3p 3,000 bbl.
0.70x2s - 0.30x1s - 0.30x3s 0
x3s + x3p + x3e 3,500 bbl.
x1e+ x2e + x3e 3,000 bbl.
0.60x1p - 0.40x2p - 0.40x3p 0
0.75x3p - 0.25x1p - 0.25x2p 0
x1S
0.5
0.40x1e- 0.60x2e- - 0.60x3e 0
x1s + x2s + x3s
0.90x2e - 0.10x1e - 0.10x3e 0
MULTI-PERIOD SCHEDULING EXAMPLE
PM computers assembles computers. They want to determine a schedule that
will indicate how much regular and overtime production it will need each week
to meet its orders at the minimum cost. The company wants no inventory left
over at the end of the 6-week period.
Production Capacity: 160 computers per week, 50 more computers with
overtime
Assembly Costs: $190 per computer regular time; $260 per computer
overtime
Inventory Holding Cost: $10/computer per week
Minimize Z = $190(r1 + r2 + r3 + r4 + r5 + r6) + $260(o1+o2 +o3 +o4+o5+o6) +
10(i1 + i2 + i3 + i4 + i5)
subject to:
rj 160 computers in week j (j = 1, 2, 3, 4, 5, 6)
oj 50 computers in week j (j = 1, 2, 3, 4, 5, 6)
r1 + o1 - i1 = 105
week 1 i1 = r1 + o1 105
r2 + o2 + i1 - i2 = 170
week 2 i2 = i1 + r2 + o2 170
r3 + o3 + i2 - i3 = 230
week 3
r4 + o4 + i3 - i4 = 180
week 4
r5 + o5 + i4 - i5 = 150
week 5
r6 + o6 + i5 = 250
week 6
rj, oj, ij 0