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Chapter 2—Introduction to Optimization and Linear Programming

MULTIPLE CHOICE
1. What most motivates a business to be concerned with efficient use of their resources?
a
.
Resources are limited and valuable.
b
.
Efficient resource use increases business costs.
c
.
Efficient resources use means more free time.
d
.
Inefficient resource use means hiring more workers.
ANS A !"S 1
#. Which of the following fields of management science finds the o$timal method of using resources to
achieve the ob%ectives of a business?
a
.
Simulation
b
.
Regression
c
.
&athematical $rogramming
d
.
'iscriminant anal(sis
ANS ) !"S 1
*. &athematical $rogramming is referred to as
a
.
o$timi+ation.
b
.
satisficing.
c
.
a$$ro,imation.
d
.
simulation.
ANS A !"S 1
-. What are the three common elements of an o$timi+ation $roblem?
a
.
ob%ectives. resources. goals.
b
.
decisions. constraints. an ob%ective.
c
.
decision variables. $rofit levels. costs.
d decisions. resource re/uirements. a $rofit function.
.
ANS 0 !"S 1
1. A mathematical $rogramming a$$lication em$lo(ed b( a shi$$ing com$an( is most likel(
a
.
a $roduct mi, $roblem.
b
.
a manufacturing $roblem.
c
.
a routing and logistics $roblem.
d
.
a financial $lanning $roblem.
ANS ) !"S 1
2. What is the goal in o$timi+ation?
a
.
3ind the decision variable values that result in the best ob%ective function and satisf( all
constraints.
b
.
3ind the values of the decision variables that use all available resources.
c
.
3ind the values of the decision variables that satisf( all constraints.
d
.
None of these.
ANS A !"S 1
4. A set of values for the decision variables that satisf( all the constraints and (ields the best ob%ective
function value is
a
.
a feasible solution.
b
.
an o$timal solution.
c
.
a corner $oint solution.
d
.
both 5a6 and 5c6.
ANS 0 !"S 1
7. A common ob%ective in the $roduct mi, $roblem is
a
.
ma,imi+ing cost.
b
.
ma,imi+ing $rofit.
c
.
minimi+ing $roduction time.
d
.
ma,imi+ing $roduction volume.
ANS 0 !"S 1
8. A common ob%ective when manufacturing $rinted circuit boards is
a
.
ma,imi+ing the number of holes drilled.
b
.
ma,imi+ing the number of drill bit changes.
c
.
minimi+ing the number of holes drilled.
d
.
minimi+ing the total distance the drill bit must be moved.
ANS ' !"S 1
19. :imited resources are modeled in o$timi+ation $roblems as
a
.
an ob%ective function.
b
.
constraints.
c
.
decision variables.
d
.
alternatives.
ANS 0 !"S 1
11. Retail com$anies tr( to find
a
.
the least costl( method of transferring goods from warehouses to stores.
b
.
the most costl( method of transferring goods from warehouses to stores.
c
.
the largest number of goods to transfer from warehouses to stores.
d
.
the least $rofitable method of transferring goods from warehouses to stores.
ANS A !"S 1
1#. &ost individuals manage their individual retirement accounts 5IRAs6 so the(
a
.
ma,imi+e the amount of mone( the( withdraw.
b
.
minimi+e the amount of ta,es the( must $a(.
c
.
retire with a minimum amount of mone(.
d
.
leave all their mone( to the government.
ANS 0 !"S 1
1*. "he number of units to shi$ from )hicago to &em$his is an e,am$le of a5n6
a
.
decision.
b
.
constraint.
c
.
ob%ective.
d
.
$arameter.
ANS A !"S 1
1-. A manager has onl( #99 tons of $lastic for his com$an(. "his is an e,am$le of a5n6
a
.
decision.
b
.
constraint.
c
.
ob%ective.
d
.
$arameter.
ANS 0 !"S 1
11. "he desire to ma,imi+e $rofits is an e,am$le of a5n6
a
.
decision.
b
.
constraint.
c
.
ob%ective.
d
.
$arameter.
ANS ) !"S 1
12. "he s(mbols ;1. <1. 'og are all e,am$les of
a
.
decision variables.
b
.
constraints.
c
.
ob%ectives.
d
.
$arameters.
ANS A !"S 1
14. A greater than or e/ual to constraint can be e,$ressed mathematicall( as
a
.
f5;1. ;#. .... ;n6 ≤ b.
b
.
f5;1. ;#. .... ;n6 ≥ b.
c
.
f5;1. ;#. .... ;n6 = b.
d
.
f5;1. ;#. .... ;n6 ≠ b.
ANS 0 !"S 1
17. A $roduction o$timi+ation $roblem has - decision variables and resource 1 limits how man( of the -
$roducts can be $roduced. Which of the following constraints reflects this fact?
a
.
f5;1. ;#. ;*. ;-6 ≤ b1
b
.
f5;1. ;#. ;*. ;-6 ≥ b1
c
.
f5;1. ;#. ;*. ;-6 = b1
d
.
f5;1. ;#. ;*. ;-6 ≠ b1
ANS A !"S 1
18. A $roduction o$timi+ation $roblem has - decision variables and a re/uirement that at least b1 units of
material 1 are consumed. Which of the following constraints reflects this fact?
a
.
f5;1. ;#. ;*. ;-6 ≤ b1
b
.
f5;1. ;#. ;*. ;-6 ≥ b1
c
.
f5;1. ;#. ;*. ;-6 = b1
d
.
f5;1. ;#. ;*. ;-6 ≠ b1
ANS 0 !"S 1
#9. Which of the following is the general format of an ob%ective function?
a
.
f5;1. ;#. .... ;n6 ≤ b
b
.
f5;1. ;#. .... ;n6 ≥ b
c
.
f5;1. ;#. .... ;n6 = b
d
.
f5;1. ;#. .... ;n6
ANS ' !"S 1
#1. :inear $rogramming $roblems have
a
.
linear ob%ective functions. non>linear constraints.
b
.
non>linear ob%ective functions. non>linear constraints.
c
.
non>linear ob%ective functions. linear constraints.
d
.
linear ob%ective functions. linear constraints.
ANS ' !"S 1
##. "he first ste$ in formulating a linear $rogramming $roblem is
a
.
Identif( an( u$$er or lower bounds on the decision variables.
b
.
State the constraints as linear combinations of the decision variables.
c
.
?nderstand the $roblem.
d
.
Identif( the decision variables.
e
.
State the ob%ective function as a linear combination of the decision variables.
ANS ) !"S 1
#*. "he second ste$ in formulating a linear $rogramming $roblem is
a
.
Identif( an( u$$er or lower bounds on the decision variables.
b
.
State the constraints as linear combinations of the decision variables.
c
.
?nderstand the $roblem.
d
.
Identif( the decision variables.
e
.
State the ob%ective function as a linear combination of the decision variables.
ANS ' !"S 1
#-. "he third ste$ in formulating a linear $rogramming $roblem is
a
.
Identif( an( u$$er or lower bounds on the decision variables.
b
.
State the constraints as linear combinations of the decision variables.
c
.
?nderstand the $roblem.
d
.
Identif( the decision variables.
e
.
State the ob%ective function as a linear combination of the decision variables.
ANS E !"S 1
#1. "he following linear $rogramming $roblem has been written to $lan the $roduction of two $roducts.
"he com$an( wants to ma,imi+e its $rofits.
;1 = number of $roduct 1 $roduced in each batch
;# = number of $roduct # $roduced in each batch
&A; 119 ;1 @ #19 ;#
Sub%ect to # ;1 @ 1 ;# ≤ #99
* ;1 @ 4 ;# ≤ 141
;1. ;# ≥ 9
Aow much $rofit is earned $er each unit of $roduct # $roduced?
a
.
119
b
.
141
c
.
#99
d
.
#19
ANS ' !"S 1
#2. "he following linear $rogramming $roblem has been written to $lan the $roduction of two $roducts.
"he com$an( wants to ma,imi+e its $rofits.
;1 = number of $roduct 1 $roduced in each batch
;# = number of $roduct # $roduced in each batch
&A; 119 ;1 @ #19 ;#
Sub%ect to # ;1 @ 1 ;# ≤ #99 − resource 1
* ;1 @ 4 ;# ≤ 141 − resource #
;1. ;# ≥ 9
Aow man( units of resource 1 are consumed b( each unit of $roduct 1 $roduced?
a
.
1
b
.
#
c
.
*
d
.
1
ANS 0 !"S 1
#4. "he following linear $rogramming $roblem has been written to $lan the $roduction of two $roducts.
"he com$an( wants to ma,imi+e its $rofits.
;1 = number of $roduct 1 $roduced in each batch
;# = number of $roduct # $roduced in each batch
&A; 119 ;1 @ #19 ;#
Sub%ect to # ;1 @ 1 ;# ≤ #99
* ;1 @ 4 ;# ≤ 141
;1. ;# ≥ 9
Aow much $rofit is earned if the com$an( $roduces 19 units of $roduct 1 and 1 units of $roduct #?
a
.
419
b
.
#199
c
.
#419
d
.
*#19
ANS ) !"S 1
#7. A com$an( uses - $ounds of resource 1 to make each unit of ;1 and * $ounds of resource 1 to make
each unit of ;#. "here are onl( 119 $ounds of resource 1 available. Which of the following constraints
reflects the relationshi$ between ;1. ;# and resource 1?
a
.
- ;1 @ * ;# ≥ 119
b
.
- ;1 @ * ;# ≤ 119
c
.
- ;1 @ * ;# = 119
d
.
- ;1 ≤ 119
ANS 0 !"S 1
#8. A diet is being develo$ed which must contain at least 199 mg of vitamin ). "wo fruits are used in this
diet. 0ananas contain *9 mg of vitamin ) and A$$les contain #9 mg of vitamin ). "he diet must
contain at least 199 mg of vitamin ). Which of the following constraints reflects the relationshi$
between 0ananas. A$$les and vitamin )?
a
.
#9 A @ *9 0 ≥ 199
b
.
#9 A @ *9 0 ≤ 199
c
.
#9 A @ *9 0 = 199
d
.
#9 A = 199
ANS A !"S 1
*9. "he constraint for resource 1 is 1 ;1 @ - ;# ≤ #99. If ;1 = #9. what it the ma,imum value for ;#?
a
.
#9
b
.
#1
c
.
-9
d
.
19
ANS 0 !"S 1
*1. "he constraint for resource 1 is 1 ;1 @ - ;# ≥ #99. If ;# = #9. what it the minimum value for ;1?
a
.
#9
b
.
#-
c
.
-9
d
.
19
ANS 0 !"S 1
*#. "he constraint for resource 1 is 1 ;1 @ - ;# ≤ #99. If ;1 = #9 and ;# = 1. how much of resource 1 is
unused?
a
.
9
b
.
79
c
.
199
d
.
#99
ANS 0 !"S 1
**. "he constraint for resource 1 is 1 ;1 @ - ;# ≥ #99. If ;1 = -9 and ;# = #9. how man( additional units.
if an(. of resource 1 are em$lo(ed above the minimum of #99?
a
.
9
b
.
#9
c
.
-9
d
.
79
ANS ' !"S 1
*-. "he ob%ective function for a :! model is * ;1 @ # ;#. If ;1 = #9 and ;# = *9. what is the value of the
ob%ective function?
a
.
9
b
.
19
c
.
29
d
.
1#9
ANS ' !"S 1
*1. A com$an( makes two $roducts. ;1 and ;#. "he( re/uire at least #9 of each be $roduced. Which set of
lower bound constraints reflect this re/uirement?
a
.
;1 ≥ #9. ;# ≥ #9
b
.
;1 @ ;# ≥ #9
c
.
;1 @ ;# ≥ -9
d
.
;1 ≥ #9. ;# ≥ #9. ;1 @ ;# ≤ -9
ANS A !"S 1
*2. Wh( do we stud( the gra$hical method of solving :! $roblems?
a
.
:ines are eas( to draw on $a$er.
b
.
"o develo$ an understanding of the linear $rogramming strateg(.
c It is faster than com$uteri+ed methods.
.
d
.
It $rovides better solutions than com$uteri+ed methods.
ANS 0 !"S 1
*4. "he constraints of an :! model define the
a
.
feasible region
b
.
$ractical region
c
.
ma,imal region
d
.
o$$ortunit( region
ANS A !"S 1
*7. "he following diagram shows the constraints for a :! model. Assume the $oint 59.96 satisfies
constraint 50.B6 but does not satisf( constraints 5'.A6 or 5).I6. Which set of $oints on this diagram
defines the feasible solution s$ace?
a
.
A. 0. E. 3. A
b
.
A. '. C. B
c
.
3. C. A. B
d
.
3. C. I. B
ANS ' !"S 1
*8. If constraints are added to an :! model the feasible solution s$ace will generall(
a
.
decrease.
b
.
increase.
c
.
remain the same.
d
.
become more feasible.
ANS A !"S 1
-9. Which of the following actions would e,$and the feasible region of an :! model?
a
.
:oosening the constraints.
b
.
"ightening the constraints.
c
.
&ulti$l(ing each constraint b( #.
d
.
Adding an additional constraint.
ANS A !"S 1
-1. :evel curves are used when solving :! models using the gra$hical method. "o what $art of the model
do level curves relate?
a
.
constraints
b
.
boundaries
c
.
right hand sides
d
.
ob%ective function
ANS ' !"S 1
-#. "his gra$h shows the feasible region 5defined b( $oints A)'E36 and ob%ective function level curve
50C6 for a ma,imi+ation $roblem. Which $oint corres$onds to the o$timal solution to the $roblem?
a
.
A
b
.
0
c
.
)
d
.
'
e
.
E
ANS ' !"S 1
-*. When do alternate o$timal solutions occur in :! models?
a
.
When a binding constraint is $arallel to a level curve.
b
.
When a non>binding constraint is $er$endicular to a level curve.
c
.
When a constraint is $arallel to another constraint.
d
.
Alternate o$timal solutions indicate an infeasible condition.
ANS A
)ha$ter sa(s level curve sits on feasible region edge. which im$lies $arallel
!"S 1
--. A redundant constraint is one which
a
.
$la(s no role in determining the feasible region of the $roblem.
b
.
is $arallel to the level curve.
c
.
is added after the $roblem is alread( formulated.
d
.
can onl( increase the ob%ective function value.
ANS A !"S 1
-1. When the ob%ective function can increase without ever contacting a constraint the :! model is said to
be
a
.
infeasible.
b
.
o$en ended.
c
.
multi>o$timal.
d
.
unbounded.
ANS ' !"S 1
-2. If there is no wa( to simultaneousl( satisf( all the constraints in an :! model the $roblem is said to be
a
.
infeasible.
b
.
o$en ended.
c
.
multi>o$timal.
d
.
unbounded.
ANS A !"S 1
-4. Which of the following s$ecial conditions in an :! model re$resent $otential errors in the
mathematical formulation?
a
.
Alternate o$timum solutions and infeasibilit(.
b
.
Redundant constraints and unbounded solutions.
c
.
Infeasibilit( and unbounded solutions.
d
.
Alternate o$timum solutions and redundant constraints.
ANS ) !"S 1
PROBLEM
-7. Solve the following :! $roblem gra$hicall( b( enumerating the corner $oints.
&A; # ;1 @ 4 ;#
Sub%ect to 1 ;1 @ 8 ;# ≤ 89
8 ;1 @ 7 ;# ≤ 1--
;# ≤ 7
;1. ;# ≥ 9
ANS
Db% = 2*.#9
;1 = *.2
;# = 7
!"S 1
-8. Solve the following :! $roblem gra$hicall( b( enumerating the corner $oints.
&A; - ;1 @ * ;#
Sub%ect to 2 ;1 @ 4 ;# ≤ 7-
;1 ≤ 19
;# ≤ 7
;1. ;# ≥ 9
ANS
Db% = 19.#7
;1 = 19
;# = *.-*
!"S 1
19. Solve the following :! $roblem gra$hicall( using level curves.
&A; 4 ;1 @ - ;#
Sub%ect to # ;1 @ ;# ≤ 12
;1 @ ;# ≤ 19
# ;1 @ 1 ;# ≤ -9
;1. ;# ≥ 9
ANS
Db% = 17
;1 = 2
;# = -
!"S 1
11. Solve the following :! $roblem gra$hicall( using level curves.
&A; 1 ;1 @ 2 ;#
Sub%ect to * ;1 @ 7 ;# ≤ -7
1# ;1 @ 11 ;# ≤ 1*#
# ;1 @ * ;# ≤ #-
;1. ;# ≥ 9
ANS
Db% = 14.-*
;1 = 8.-*
;# = 1.41
!"S 1
1#. Solve the following :! $roblem gra$hicall( b( enumerating the corner $oints.
&IN 7 ;1 @ * ;#
Sub%ect to ;# ≥ 7
7 ;1 @ 1 ;# ≥ 79
* ;1 @ 1 ;# ≥ 29
;1. ;# ≥ 9
ANS
Db% = -7
;1 = 9
;# = 12
!"S 1
1*. Solve the following :! $roblem gra$hicall( b( enumerating the corner $oints.
&IN 7 ;1 @ 1 ;#
Sub%ect to 2 ;1 @ 4 ;# ≥ 7-
;1 ≥ -
;# ≥ 2
;1. ;# ≥ 9
ANS
Db% = 4-.72
;1 = -
;# = 7.14
!"S 1
1-. Solve the following :! $roblem gra$hicall( using level curves.
&A; 1 ;1 @ * ;#
Sub%ect to # ;1 − 1 ;# ≤ #
2 ;1 @ 2 ;# ≥ 1#
1 ;1 @ * ;# ≤ 1
;1. ;# ≥ 9
ANS
Db% = 11.#8
;1 = 1.14
;# = 1.1-
!"S 1
11. Solve the following :! $roblem gra$hicall( using level curves.
&IN 7 ;1 @ 1# ;#
Sub%ect to # ;1 @ 1 ;# ≥ 12
# ;1 @ * ;# ≥ *2
4 ;1 @ 7 ;# ≥ 11#
;1. ;# ≥ 9
ANS
Alternate o$tima solutions e,ist between the corner $oints
;1 = 8.2 ;1 = 17
;# = 1.2 ;# = 9
!"S 1
12. Solve the following :! $roblem gra$hicall( using level curves.
&IN 1 ;1 @ 4 ;#
Sub%ect to - ;1 @ 1 ;# ≥ 12
2 ;1 @ 1 ;# ≥ 29
1 ;1 @ 7 ;# ≥ 79
;1. ;# ≥ 9
ANS
Db% = 4#.14
;1 = *.-7
;# = 4.7*
!"S 1
14. "he Aa$$( !et $et food com$an( $roduces dog and cat food. Each food is com$rised of meat.
so(beans and fillers. "he com$an( earns a $rofit on each $roduct but there is a limited demand for
them. "he $ounds of ingredients re/uired and available. $rofits and demand are summari+ed in the
following table. "he com$an( wants to $lan their $roduct mi,. in terms of the number of bags
$roduced. in order to ma,imi+e $rofit.
!roduct
!rofit $er
0ag 5E6
'emand for
$roduct
!ounds of
&eat $er bag
!ounds of So(beans
$er bag
!ounds of
3iller $er bag
'og food - -9 - 2 -
)at food 1 *9 1 * 19
&aterial available 5$ounds6 199 1#9 129
a
.
3ormulate the :! model for this $roblem.
b
.
Solve the $roblem using the gra$hical method.
ANS
a
.
:et ;1 = bags of 'og food to $roduce
;# = bags of )at food to $roduce
&A; - ;1 @ 1 ;#
Sub%ect to - ;1 @ 1 ;# ≤ 199 5meat6
2 ;1 @ * ;# ≤ 1#9 5so(beans6
- ;1 @ 19 ;# ≤ 129 5filler6
;1 ≤ -9 5'og food demand6
;# ≤ *9 5)at food demand6
b
.
Db% = 199
;1 = 19
;# = 1#
!"S 1
17. Bones 3urniture )om$an( $roduces beds and desks for college students. "he $roduction $rocess
re/uires car$entr( and varnishing. Each bed re/uires 2 hours of car$entr( and - hour of varnishing.
Each desk re/uires - hours of car$entr( and 7 hours of varnishing. "here are *2 hours of car$entr(
time and -9 hours of varnishing time available. 0eds generate E*9 of $rofit and desks generate E-9 of
$rofit. 'emand for desks is limited so at most 7 will be $roduced.
a
.
3ormulate the :! model for this $roblem.
b
.
Solve the $roblem using the gra$hical method.
ANS
a
.
:et ;1 = Number of 0eds to $roduce
;# = Number of 'esks to $roduce
&A; *9 ;1 @ -9 ;#
Sub%ect to 2 ;1 @ - ;# ≤ *2 5car$entr(6
- ;1 @ 7 ;# ≤ -9 5varnishing6
;# ≤ 7 5demand for ;#6
;1. ;# ≥ 9
b
.
Db% = #-9
;1 = -
;# = *
!"S 1
18. "he 0(te com$uter com$an( $roduces two models of com$uters. !lain and 3anc(. It wants to $lan
how man( com$uters to $roduce ne,t month to ma,imi+e $rofits. !roducing these com$uters re/uires
wiring. assembl( and ins$ection time. Each com$uter $roduces a certain level of $rofits but faces a
limited demand. "here are a limited number of wiring. assembl( and ins$ection hours available ne,t
month. "he data for this $roblem is summari+ed in the following table.
)om$uter
&odel
!rofit $er
&odel 5E6
&a,imum
demand for
$roduct
Wiring Aours
Re/uired
Assembl(
Aours
Re/uired
Ins$ection
Aours
Re/uired
!lain *9 79 .- .1 .#
3anc( -9 89 .1 .- .*
Aours Available 19 19 ##
a
.
3ormulate the :! model for this $roblem.
b
.
Solve the $roblem using the gra$hical method.
ANS
a
.
:et ;1 = Number of !lain com$uters $roduce
;# = Number of 3anc( com$uters to $roduce
&A; *9 ;1 @ -9 ;#
Sub%ect to .- ;1 @ .1 ;# ≤ 19 5wiring hours6
.1 ;1 @ .- ;# ≤ 19 5assembl( hours6
.# ;1 @ .# ;# ≤ ## 5ins$ection hours6
;1 ≤ 79 5!lain com$uters demand6
;# ≤ 89 53anc( com$uters demand6
;1. ;# ≥ 9
b
.
Db% = *841
;1 = 1#.1
;# = 89
!"S 1
29. "he 0ig 0ang e,$losives com$an( $roduces customi+ed blasting com$ounds for use in the mining
industr(. "he two ingredients for these e,$losives are agent A and agent 0. 0ig 0ang %ust received an
order for 1-99 $ounds of e,$losive. Agent A costs E1 $er $ound and agent 0 costs E2 $er $ound. "he
customerFs mi,ture must contain at least #9G agent A and at least 19G agent 0. "he com$an( wants to
$rovide the least e,$ensive mi,ture which will satisf( the customers re/uirements.
a
.
3ormulate the :! model for this $roblem.
b
.
Solve the $roblem using the gra$hical method.
ANS
a
.
:et ;1 = !ounds of agent A used
;# = !ounds of agent 0 used
&IN 1 ;1 @ 2 ;#
Sub%ect to ;1 ≥ #79 5Agent A re/uirement6
;# ≥ 499 5Agent 0 re/uirement6
;1 @ ;# = 1-99 5"otal $ounds6
;1. ;# ≥ 9
b
.
Db% = 4499
;1 = 499
;# = 499
!"S 1
21. BimFs winer( blends fine wines for local restaurants. Dne of his customers has re/uested a s$ecial
blend of two burgund( wines. call them A and 0. "he customer wants 199 gallons of wine and it must
contain at least 199 gallons of A and be at least -1G 0. "he customer also s$ecified that the wine have
an alcohol content of at least 1#G. Wine A contains 1-G alcohol while wine 0 contains 19G. "he
blend is sold for E19 $er gallon. Wine A costs E- $er gallon and 0 costs E* $er gallon. "he com$an(
wants to determine the blend that will meet the customerFs re/uirements and ma,imi+e $rofit.
a
.
3ormulate the :! model for this $roblem.
b
.
Solve the $roblem using the gra$hical method.
c
.
Aow much $rofit will Bim make on the order?
ANS
a
.
:et ;1 = Callons of wine A in mi,
;# = Callons of wine 0 in mi,
&IN - ;1 @ * ;#
Sub%ect to ;1 @ ;# ≥ 199 5"otal gallons of mi,6
;1 ≥ 199 5;1 minimum6
;# ≥ ##1 5;# minimum6
.1- ;1 @ .19 ;# ≥ 29 51#G alcohol minimum6
;1. ;# ≥ 9
b
.
Db% = 1419
;1 = #19
;# = #19
c
.
E*#19 total $rofit.
!"S 1
2#. 0ob and 'ora Sweet wish to start investing E1.999 each month. "he Sweets are looking at five
investment $lans and wish to ma,imi+e their e,$ected return each month. Assume interest rates remain
fi,ed and once their investment $lan is selected the( do not change their mind. "he investment $lans
offered are
3idelit( 8.1G return $er (ear
D$tima 12.1G return $er (ear
)aseWa( 4.*G return $er (ear
Safewa( 1.2G return $er (ear
National 1#.*G return $er (ear
Since D$tima and National are riskier. the Sweets want a limit of *9G $er month of their total
investments $laced in these two investments. Since Safewa( and 3idelit( are low risk. the( want at
least -9G of their investment total $laced in these investments.
3ormulate the :! model for this $roblem.
ANS
&A; 9.981;1 @ 9.121;# @ 9.94*;* @ 9.912;- @ 9.1#*;1
Sub%ect to ;1 @ ;# @ ;* @ ;- @ ;1 = 1999
;# @ ;1 ≤ *99
;1 @ ;- ≥ -99
;1. ;#. ;*. ;-. ;1 ≥ 9
!"S 1
PROJECT
2*. Proect 2!"
Boe( Hoons runs a small custom com$uter $arts com$an(. As a sideline he offers customi+ed and $re>
built com$uter s(stem $ackages. In $re$aration for the u$coming school (ear. he has decided to offer
two custom com$uter $ackages tailored for what he believes are current student needs. S(stem A
$rovides a strong com$uting ca$abilit( at a reasonable cost while S(stem 0 $rovides a much more
$owerful com$uting ca$abilit(. but at a higher cost. Boe( has a fairl( robust $arts inventor( but is
concerned about his stock of those com$onents that are common to each $ro$osed s(stem. A $ortion of
his inventor(. the item cost. and inventor( level is $rovided in the table below.
!art
"($e I
)ost
Dn
Aand
"($e I
)ost
Dn
Aand
"($e I
)ost
Dn
Aand
"($e I
)ost
Dn
Aand
!rocess
or
*22 &A< -9 199 &A< -9 219 &A< -9 499 &A< -9
E141 E#*8 E199 E4-#
&emor
(
2- &0 -9 82 &0 -9 1#7 &0 11 #12 &0 11
E81 E178 E#19 E-82
Aard - C0 19 2 C0 #1 1* C0 *1 #9 C0 19
'rive E78 E1** E182 E*19
&onitor 1- J * 11 J 21 14 J #1 18 J 19
E81 E129 E#79 E-79
Cra$hic
s
)ard
Stock
E199
199 *>'
E#19
11
)'> #-; 1 -9; #1 4#; 19 'K' -1
RD& E*9 E17 E1#1 E147
Sound Stock 199 Sound II 19 !lat II #1
)ard E88 E119 E181
S$eaker
s
Stock 41 29 W 41 1#9 W #1
E#8 E28 E118
&odem Stock
E88
1#1
&ouse Stock
E*8
1#1 Ergo
E28
*1
He(boa
rd
Stock
E18
199 Ergo
E1#8
*1
Came
'evices
Stock
E121
#1
"he re/uirements for each s(stem are $rovided in the following table
S(stem A S(stem 0
!rocessor *22 &A< 499 &A<
&emor( 2- &C 82 &C
Aard 'rive 2 C0 #9 C0
&onitor 11 J 11 J
Cra$hics )ard Stock Stock
)'>RD& -9; 4#;
Sound )ard Stock Stock
S$eakers Stock 29W
&odem Stock Stock
&ouse Stock Stock
He(board Stock Stock
Each s(stem re/uires assembl(. testing and $ackaging. "he re/uirements $er s(stem built and
resources available are summari+ed in the table below.
S(stem A S(stem 0 "otal Aours Available
Assembl( 5hours6 #.#1 #.19 #99
"esting 5hours6 1.#1 #.99 119
!ackaging 5hours6 9.19 9.19 41
Boe( is uncertain about $roduct demand. In the $ast he has $ut together similar t($es of com$uter
$ackages but his sales results var(. As a result is unwilling to commit all his in>house labor force to
building the com$uter $ackages. Ae is confident he can sell all he can build and is not overl(
concerned with lost sales due to stock>outs. 0ased on his market surve(. he has com$leted his
advertising fl(er and will offer S(stem A for E 1#19 and will offer s(stem 0 for E #*#1. Boe( now
needs to let his workers know how man( of each s(stem to build and he wants that mi, to ma,imi+e
his $rofits.
3ormulate an :! for 'aveFs $roblem. Solve the model using the gra$hical method. What is 'aveFs
$referred $roduct mi,? What $rofit does 'ave e,$ect to make from this $roduct mi,?
ANS
"he cost to make S(stem A is E1994 while the cost to make S(stem 0 is E188#. "he inventor( levels
for hard drives limit S(stem A $roduction to #1 while the 499 &A< $rocessor inventor( limits S(stem
0 $roduction to -9. "he common monitor is the 11 J unit and its inventor( limits total $roduction to
29. )ou$led with the assembl(. testing. and $ackaging constraints. the :! formulation is
&a,imi+e E#-* ;1 @ E*** ;#
#.#1 ;1 @ #.19 ;# ≤ #99 Lassembl( hoursM
1.#1 ;1 @ #.99 ;# ≤ 119 Ltesting hoursM
9.19 ;1 @ 9.19 ;# ≤ 41 L$ackaging hoursM
;1 ≤ #1 Lhard drive limitsM
;# ≤ -9 L$rocessor limitsM
;1 @ ;# ≤ 29 Lmonitor limitsM
;1 . ;# ≥ 9
0uild #9 S(stem A and -9 S(stem 0. total $rofit E17.179.
!"S 1