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LPProblemsforModels
1.

ProductionScheduligModel:AmidwestAirplaneCompanybuildscommercialairplanesforvarious
airlinescompaniesaroundtheworld.Thelaststageintheirproductionprocessistoproducethejetengines
andthentoinstallthemthroughaveryfastoperationinthecompletedairplaneframe.Thecompanyhas
been
workingundersomecontractstodeliveraconsiderablenumberofairplanesinthenearfuture,andthe
productionofthejetenginesfortheseplanesmustnowbescheduledforthenextfourmonths.
Tomeetthecontracteddatesfordelivery,itisnecessarytosupplyenginesforinstallationinthequantities
indicatedinthesecondcolumnoftheTablebelow.Thusthecumulativenumbersproducedbytheendof
month1,2,3and4mustbeatleast10,25,50and70respectively.Thefacilitiesthatwillbeavailablefor
producingtheenginesvaryaccordingtootherproduction,maintenanceandrenovationworkscheduled
duringthisperiod.Theresultingmonthlydifferencesinmaximumnumberthatcanbeproducedandthecost
(inmillionsofdollars)ofproducingeachonearegiveninthethirdandfourthcolumnsoftheTablebelow.
Becauseofthevariationsinproductioncosts,itmaywellbeworthwhiletoproducesomeoftheenginesa
monthamonthormorebeforetheyarescheduledforinstallation,andthispossibilityisbeingconsidered.
Thedrawbackisthatsuchenginesmustbestoreduntilthescheduledinstallation(theairplaneframewill
notbereadypreviously)atastoragecostof$15000/month(includinginterestonexpendedcapital),as
showninthelastcolumnoftheTable.Therefore,theproductionmanagerwantsascheduledevelopedfor
howmanyenginestoproduceineachofthefourmonthssothatthetotaloftheproductionandstoragecosts
willbeminimized.
TableforProductionSchedule
________________________________________________________________________________
Month
Scheduled
Maximum
UnitCostof
UnitCostof
Month
Installations
Production
Production
Storage
________________________________________________________________________________
1
10
25
1.08
.015
2
15
35
1.11
.015
3
25
30
1.10
.015
4
20
10
1.13
.015
________________________________________________________________________________
Formulate the problem as a linear programming problem. Solve it using a computer
softwareandinterprettheresults.

2.
TheJointProductsModel:
CosidertheABcompany.ThecompanyprocessesMaterial X in
Department 1 with a yield of 3 units of Products A and 2 units of Product B for every unit processed in
Department1.ProductsAandBconotbeidentifiedasseparateproductsuntilaftertheyareprocessedin
Department1.Thisiscalledthesplitoffpoint.ThevariableoperatingcostsinDepartment1total$2.00per unit of
materialXprocessed(thisincludesthecostoftheamterial).ProductAcaneitherbesoldatthe splitoff point for
$8.00perunit,orprocessedfurtherinDepartment2atacostof$6.00perunitandthen soldatapriceof$15.00per
unit.ProductBcanbesoldata$7.00perunitatthesplitoffpointorsoldat $10.00 after additional processing in
Department3atacostof$4.00perunit.
Aparticularkindofskilledlaborisusedineachofthethreedepartments.Theavailableamountofthis
timeislimitedto80,000hoursperweek.Toprocess1uintofMaterialXrequires1.5hoursofskilledlabor.IfProduct
AisprocessedfurtherinDepartment2,3hoursofskilledlaboeareneeded,andifProductBis
processedfurther,1
hourperunitisrequired.MaterialXcanbeacquireduptoamaximumquantityof40,000
units per week.
FormulatetheproblemasanLPmodeltomaximizetherevenuessubjecttothespecified limitations. Solve the model
usingacomputersoftwareandinterprettheresults.

3.
Gasoline Blending Model: One of the oil companies named as GOC. The GOC produces regular,
premium and lowlead gasoline by blending three constituents type 1, 2, and 3. The three constituents are
availableinlimitedquantitiesandcostsasfollows:

constituent
MaximumAvailable/Day
Cost/Barrel
(Barrels)________________________________________
Type1
2,000
$10.00
Type2
3,000
7.50
Type3
1,000
5.00
__________________________________________________________________________________________
Thesellingpricesare$0.20pergallon(thereare50gallonsinabarrel)forregular,
$0.30forpremium,and$0.15forlowleadgasoline.Thelowleadmarketislimitedto5,000gallonsper
day.Thegasolinemustbeproducedaccordingtothefollowingspecifications.
Regular:
1.Notlessthan20%ofconstituentofType1.
2.Notmorethan30%ofconstituentofType3.
Premium:
1.Notlessthan40%ofconstituentofType1.
2.Notlessthan10%andnotmorethan20%ofconstituentofType2.
3.Notmorethan10%ofconstituentofType3.
LowLead:
1.Notlessthan30%ofconstituentofType2.
FormulatetheproblemasaLinearProgrammingproblemsoastodeterminethevolumeofeachgasolineto
sellthatwillmaximizeprofits.Solvethemodelusingacomputersoftwareandinterprettheresults.
4.

CoffeeBlendingModel:Acoffeemanufacturerblendsfourcomponentcoffeebeansintothreefinalblendsof
coffee. The Table below summarizes the very precise recipes for the final coffee blends, the cost and
availabilityinformationforthefourcomponents,andthewholesalepriceperpoundofthefinalblends.The
percentagesinthebodyofthetableindicatethepercentageofeachcomponenttobeusedineachblend.
Table:Percentageofeachcomponenttobeusedineachblend
_______________________________________________________________________________________
FinalBlend(percent)
CostPer
MaximumAvailability
Component
1
2
3
Pound
EachWeek(Pound)
_____________________________________________________________________________________
1
20
35
10
$0.60
40,000
2
40
15
35
$0.80
25,000
3
15
20
40
$0.55
20,000
4
25
30
15
$0.70
45,000
_______________________________________________________________________________________
WholesalePrice/lb.
$1.25
$1.50 $1.40
_______________________________________________________________________________________

Weeklycapacityfortheprocessor'splantis100,000pounds,andthecompanywishestooperateatcapacity.
Thereisnoprobleminsellingthefinalblends,althoughthereisarequirementthatminimumproductionlevelof10,000,
25,000and30,000pounds,respectively,bemetforblends1,2and3.Themanufacturerwishestodeterminethenumber
ofpoundsofeachcomponentwhichshouldbeusedineachblendsoastomaximizetotalweeklyprofit.
FormulatetheproblemasanL.P.model. Solvethemodelusingacomputersoftwareandinterpretthe
results.

5.
Multiperiod InvestmentProblem. TheWinnipeg Company has $200,000available for
investmentinaseriesofopportunities.Thereisnolimitontheamountthatcanbeinvestedinany
opportunity.OpportunityAisavailableineachofthenextfiveyearsandcanberepeatedasmany
timesasdesired.FoeeverydollarinvestedinAatthebeginningofayear,$1.20willbereturnedtwo
yearslater.Similarly,opportunityBisavailableineachofthe5yearsand,after3years,willreturn
$1.30foreverydollarinvestedatthebeginningofayear.Theotheropportunitiesareavailableonly
once.OpportunityCwillreturn,atthebeginningofthefifthyear,$1.40perdollarinvested.But
opportunityCisavailableonlyatthebeginningofthefirstyear.OpportunityD,availableatthe
beginning of the second year will return $1.70 at the end of the fifth year per dollar invested.
OpportunityEisavailableatthebeginningofthefourthyearandwill,inoneyear,return$1.40per
dollarinvested.
Thecompanywishestodetermineaninvestmentschemethatallowsthe$200,000togrow
bythegreatestamountduringthe5yearperiod.Anyrealizedgainsonthe$200,000canalsobe
invested.Formulatealinearprogrammingmodelthatwillfulfillcompany'swishes.Solveitusinga
computersoftwareandinterprettheresults.

6.

7.

Caterer'sProblem.Supposeacaterermustsupplycleannapkinsintheamounts1,000;700;800;1,200and
1,500forthenextfivedays,respectively.Thecatererhasthreealternativesforsupplyingnapkinsonanygiven
day:
(i)
Purchasenewnapkinsatacostof$1.00each.
(ii) Utilizepreviouslysoilednapkinswhichhavebeencleanedby 1day(nextday)serviceatacostof
$0.20each.
(iii) Utilizepreviouslysoilednapkinswhichhavebeencleanedbya2dayserviceatacostof$0.10each.
FormulateanLPmodelforminimizingthetotalcostofsupply.Solvethemodel using acomputer
softwareandinterprettheresults.
City1produces500tonsofwasteperday,andcity2produces400tonsofwasteperday.Wastemustbe
incineratedatincinerator1orincinerator2,andeachincineratorcanprocessupto500tonsofwasteperday.
Thecosttoincineratewasteis$40/tonatincinerator1and$30/tonatincinerator2.Incinerationreduceseach
tonofwasteto0.2tonsofdebris,whichmustbedumpedatoneoftwolandfills.Eachlandfillcanreceiveat
most200tonsofdebrisperday.Itcosts$3permiletotransportatonofmaterial(eitherdebrisorwaste).
Distances(inmiles)betweenlocationsareshowninTablebelow. FormulateanLPthatcanbeusedto
minimizethetotalcostofdisposingoffthewasteofbothcities.
TABLE
________________________________________________________________________
INCIN.1
INCIN.2
________________________________________________________________________
City1
30
5
City2
36
42
________________________________________________________________________

LANDFILL1
LANDFILL2
_____________

8.

Incin.1
5
8
Incin.2
9
6
________________________________________________________________________
Apostofficerequiresdifferentnumbersoffulltimeemployeesondifferentdaysoftheweek.Thenumberof
fulltimeemployeesrequiredoneachdayisgiveninthetablebelow.
Table:NumberofEmployeesRequirements
___________________________________________________________________________
Day1(Mon)Day2(Tue)Day3(Wed)Day4(Thu)Day5(Fri)Day6(Sat)Day7(Sun)
17131519141611
___________________________________________________________________________
Unionrulesstatethateachfulltimeemployeemustworkfiveconsecutivedaysandthenreceivetwodaysoff.
Forexample,anemployeewhoworksMondaythroughFridaymustbeoffonSaturdayandSunday.Thepost
office wantstomeet itsdailyrequirementsusingonlyfulltimeemployees.Formulate anLPmodel ofthe
problemthatthepostofficecanusetominimizethenumberoffulltimeemployeesthatmustbehired.Solve
themodelusingacomputersoftwareandinterprettheresults.

Hospital Administration: A local hospital administration is attempting to determine a work schedule for
registerednurses(R.N.'s).Theunioncontractspecifiesthatnursesaretoworkanormaldayofsixhours.Nurses
mayworkanadditionalthreehoursonanovertimeworkbasis(atoneandonehalftheirhourlypayrate).
R.N.'sarepaidonanaverageof $12 perhour.Theadministratorhasdeterminedadailyworkschedulein
whichthedayisdividedintoeightthreehourshifts.Thetablebelowindicatestheestimateddemandfornurses
pershift.

Period
____________________________________________________________________________________
9

Shift

12
3
6
9
12
3
6
9
3A.M.
6A.M.
9A.M.
12Noon
3P.M.
6P.M.
9P.M.
12Midnight
Estimated
numberof
required
R.N.'s 30
20
50
60
70
60
50
40
_____________________________________________________________________________________
Nursesaretostartworkatthebeginningofoneoftheseshiftsandendworkattheendofthefollowingshift:
thatis,unlesstheyreceiveovertime.Thecontractspecifiesthat(i)anynursesrequestedtoworkovertimewill
receivefullpaymentforthreehoursofovertime,eveniftheyworklessthanthreehours.Thus,theadministrator
concludes that overtime, when assigned, should be for the maximum of three hours. The contract
alsospecifiesthat,ontheaverage,atleast10%ofallnursescanexpectovertimeassignments.Letx tbethe
numberofnursesreportingtoworkatthebeginningofperiodtwhodonotgetovertimeworkandy tequalthe
number ofnurses reportingtoworkinperiodtwhodowork overtime.Formulate theproblem asanLP
model which will allow the administrator to determine an assignment schedule which meets the shift
requirementsandcontractspecificationsataminimumcost.Solvethemodelusingacomputersoftwareand
interprettheresults.

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10.

B.C.WoodCorporation(BSC)producesaspecialpurposewoodusedinthehousingandconstruction
industries.ThesalesdepartmentofBSChasreceivedordersof2400,2200,2700,and2500tonsofwood
foreachofthenext4months.BSCcanmeetthesedemandsbyproducingthewood,bydrawingfromits
inventory,orbyusinganycombinationofthetwoalternatives.Theproductioncostspertonofwood
during eachofthenextfourmonthsareprojectedtobe$7400,$7500,$7600,and$7650.Becausecosts
arerising
eachmonth,duetoinflationarypressures,BSCmightbebetteroffproducingmorewood
thanitneedsina givenmonthandstoringtheexcess.Productioncapacity,though,cannotexceed4000
tonsinanyone month.Themonthlyproductionisfinishedattheendofthemonthatwhichtimethe
demandismet.Any
remainingwoodisthenstoredininventoryatacostof#120pertonforeach
monththatitremainsthere.
Thesedataaresummarizedinthetablebelow.
Table:DataforProductionPlanningProblemofBSC
____________________________________________________________________

Month
1
2
3
4
___________________________________________________________________________
Demand(Tons)
2400
2200
2700
2500
ProductionCost($/ton) 7400
7500
7600
7650
Inv.Cost($/ton/month)
120
120
120
120
___________________________________________________________________________
Iftheproductionlevelisincreasedfromonemonthtothenext,thenthecompanyincursacostof$50per
tonofincreasedproductiontocovertheadditionallaborand/orovertime.Eachtonofdecreasedproduction
incursacostof$30tocoverthebenefitsofunusedemployees.Theproductionduringthepreviousmonth
was1800tons,andthebeginninginventoryis1000tons.Inventoryattheendofthefourthmonthmustbe
atleast1550tocoveranticipateddemand.UsinglinearprogrammingformulateaproductionplanforBSC
thatminimizesthetotalcostsoverthenextfourmonths.

11.

TataEnterprisesofIndiaexportswoodtocustomersinEasternEurope,CanadaandUnitedStates. Although
demandvariesfromquartertoquarter,contractsspecifyinadvancetheexactquarterlyrequirements.By
processingthesecontractsthroughthecompany'smanagementinformationsystem(MIS),salesstaffhave
determinedthatTatamustdeliver2.5,4,3,and4.5milliontonsofwoodinthenextfourquarters.There
areseveralways tomeettherequirements.Onepossibilityisto"track"demandwithproduction.Although
thisoptionenablesTatatocarrynoinventory,itcreatesemployeeturnoverandtraining problems and
leaves substantialunusedcapacityattimes.Anotherapproachistoproducewoodataconstantrateand
allowinventorytoabsorbthefluctuationindemand.Suchanapproachoffersmanufacturingefficiency,but
ittypicallyinvolvesalargeinventoryinvestment.Betweenthesetwoextremesisthemoderateoptionof
carryingsomeinventory whilevaryingtheproductionlevelsomewhat.
PastexperienceindicatesthatthemoderateoptionworksbestinTata'soperations.Managementnowmust
determinetheproductionandinventorylevelsthatwillminimizethecostsoffulfillingthecompany'swood
contracts.Currently,Tatahas500,000tonsofwoodinstock,andthecompanyismanufacturingwoodatthe
rate of 3 million tons per quarter. By processing historical manufacturing data through the MIS, the
operationsmanagerhasforecastedthatproductioncostswillbe$100,$120,$90,and$110perton
overthenextfourquarters.AsimilarMISanalysisofhistoricalchangeover(laborandfacilityadjustment)
datahasindicatedthatitwillcost$12pertontoincreaseand$3pertontodecrease production from
onequartertothenext.
Byprocessinghistoricalpurchasing,bookkeeping,andstoragetransactionsthroughthe MIS,the
operationsmanageralsohasestimatedthatitwillcost 5% oftheunitproductioncostinaquarterto
inventorywoodforthecorrespondingquarter.Companyaccountingpolicyrequirestheoperationsmanager
toasseshiscostontheendofquarterinventory.Attheendoffourquarters,Tatawantsnomorethan

6
400,000 tonsandnolessthan100,000tonsinstock.Usinglinearprogrammingformulateaproductionplan
forTata thatminimizesthetotalcostsoverthenextfourperiods.

7
1.

Given
(i)
PlanningHorizon:4Months
(ii)
ThefollowingTableforProductionSchedule
_______________________________________________________________
UnitCostof UnitCostof
Scheduled
Maximum
Production
Storage
Month
Installation
Production
(million$)
(million$)
_______________________________________________________________
1
10
25
1.08
.015
2
15
35
1.11
.015
3
25
30
1.10
.015
4
20
10
1.13
.015
________________________________________________________________
DecisionVariables. Let
xij=#ofenginesproducedinmonthiforinstallationinmonthj,(i<j)
(Therefore,fori>j,xij=0)
cij=unitproductionandstoragecostassociatedwitheachunitofxij,(i<j)
ThuswehavethecostmatrixCijasfollows.
MonthInstalled
Month Produced

Max.Prodn.

1
2
3
4

1.080

1.095
1.110

1.110
1.125
1.100

1.125
1,140
1.115
1.130

25
35
30
10

TheproductionmatrixXijis
MonthInstalled
Month Produced
1
2
3
4

x11

x12
x22

x13
x23
x33

x14
x24
x34
x44

Max.Prodn.
25
35
30
10

Thenthemodelis
O.F. Min.z=
Constraints.

c x
i 1 j 1

ij ij

wherei<j,

1.

MaximumProductionConstraints
x11+x12+x13+x1425
x22+x23+x2435
x33+x3430
x4410

2.

InstallationConstraints
x11
=10
x12+x22
=15

x13+x23+x33
=25
x14+x24+x34+x44=20

(iii)

NonnegativityConstraint:

xij0fori=1,2,3,4,j=1,2,3,4.

NOTE.Inabovedefinitionsifweassume
xij=#ofenginesproducedinmonthiforinstallationinmonthjforalliandj,
wethentake
cij=unitproductionandstoragecostassociatedwitheachunitofxij,

where,

unitproductionandstoragecostassociatedwitheachunitofxij,(i<j)
cij=
M,
averylargenumberifi>j.
Thenthemodelis

Constraints.
1.

Min.z=

c x
i 1 j 1

ij ij

MaximumProductionConstraints
x11+x12+x13+x1425
x21+x22+x23+x2435
x31+x32+x33+x3430
x41+x42+x43+x4410

10

2.

InstallationConstraints
x11+x21+x31+x41=10
x12+x22+x32+x42=15
x13+x23+x33+x43=25
x14+x24+x34+x44=20
3.NonnegativityConstraint:xij0fori=1,2,3,4,j=1,2,3,4.
2.

=9

Let
xA1=quantityofProductAsoldatthesplitoffpoint.
xA2=quantityofProductAsoldafterprocessinginDept.2
xB1=quantityofProductBsoldatthesplitoffpoint.
xB2=quantityofProductAsoldafterprocessinginDept.3
xq=quantityofProductXusedinDept.1
pA1=unitnetrevenueofProductAsoldatthesplitoffpoint.=$8.00
pA2=unitnetrevenueofProductAsoldafterprocessinginDept.2=$15$6
pB1=unitnetrevenueofProductBsoldatthesplitoffpoint.=$7.00
pB2=unitnetrevenueofProductBsoldafterprocessinginDept.3=$10$4=6
cq=unitcostProductXusedinDept.1=$2.00
SellA@
$8.00,xA1
A=3xq
Dept.2,xA2
Cost=$6.00
Labor=3Hrs./unit

X=xq

Dept.1
cq=$2
Labor=1.5Hrs./unit

B=2xq

SellB@
$7.00,xB1

Sell@
$15.00
xA2

11
Dept.2,xB2
Cost=$6.00
Labor=3Hrs./unit

Sell@
$10.00
xB2

12

ObjectiveFunction:Maximizethetotalnetrevenuez.

Maximizez=8xA1+9xA2+7xB1+6xB22xq
Constraints.
1.WeeklyConsumptionofxq,
xq40,000
2.SkilledLaborConsumption.
3xA2+1xB2+1.5xq80,000
3.Eachunitofxqproduces3unitsofAand2unitsofB.

xA1+xA2=3xq

xB1+xB2=2xq
4.Nonnegativity.
xA1,xA2,xB1,xB2,xq0
3.WedefinetheDecisionVariablesasfollows.Let
j=Regular(R),Premium(P),andLowLead(L)
Gj=TotalGasolineofTypejj=R,P,L
Ci=TotalConstituentofTypeii=1,2,3
xij=Amount(inBarrels)ofConstituentoftypeiingasolineoftypej,i=1,2,3;
j=R,P,L.
GasolineType
Const.Type R
P
L
1
x1R
x1P
x1L C1
2
x2R
x2P
x2L C2
3
x3R
x3P
x3L C3
S.P.ofGasoline/gallon
S.P.ofGasoline/Barrel

$.20
$.30
$10.00 $15.00 $7.50

$.15

GR

GL

Therefore,
GR=x1R+x2R+x3R
GP=x1P+x2P+x3P
GL=x1L+x2L+x3L

GP

C1=x1R+x1P+x1L
C2=x2R+x2P+x2L
C3=x3R+x3P+x3L

13

ObjectiveFunction:

Profit,z=RevenueCost

Max.z=(10GR+15GP+7.5GL)[10C1+7.5C2+5C3]

=2.5x2R+5x3R+5x1P+7.5x2P+10x3P2.5x1L+2.5x3L
Constraints.
1.
ConstituentAvailabilityConstraints.
Type1:
x1R+x1P+x1L2,000
Type2:
x1R+x2P+x2L3,000
Type3:
x3R+x3P+x3L1,000
2.

MarketPotentialforLowLeadGasolineConstraint.
x1L+x2L+x3L100
(5,000gallons)

3.

Technological(Specification)Constraints.
Regular:
AmountofConstituent1inRegularGasoline
_____________________________________.20
TotalAmountofRegularGasoline

(i)

x1R
x1R x 2R x3 R .20

i.e.

.8x1R+.2x2R+.2x3R0

Similarly,
(ii)

AmountofConstituent3inRegularGasoline
_____________________________________.30
TotalAmountofRegularGasoline
.3x1R.3x2R+.7x3R0

Premium.
(i)
(ii)
and
(iii)

.6x1P+.4x2P+.4x3P0
.1x1P.9x2P+.1x3P0,
.2x1P.8x2P.2x3P0
.1x1P.1x2P+.9x3P0

14
LowLead.
4.
4.

.3x1L.7x2L+.3x3L0,

Nonnegativity.

Allxij0,fori=1,2,3;j=R,P,L.

WefirstdefinetheDecisionVariables.Let
xij=numberofpoundsofcomponentiusedinfinalblendj,i=1,2,3,4;j=1,2,3.
Therefore,wehave
________________________________________________________________________

FinalBlendnumberofpounds

CostPer
MaximumAvailability
Component 1
2
3

Pound
EachWeek(Pound)

(pounds)

________________________________________________________________________
1
x11
x12 x13
$0.60
40,000
2
x21
x22 x23
$0.80
25,000
3
x31
x32 x33
$0.55
20,000
4
x41
x42 x43
$0.70
45,000
________________________________________________________________________
WholesalePrice/lb. $1.25 $1.50 $1.40
________________________________________________________________________
ObjectiveFunction.Tomaximizeweeklyprofitz,say.Therefore,wehave

15

16

17

18
=.65x11+.9x12+.8x13+.45x21+.7x22+.6x23
+.7x31+.95x32+..85x33+.55x41+.8x42+..8x43
Constraints.
1.

FinalBlendofType1.

(i)

AmountofComponent1inBlendofType1
_____________________________________=.20
TotalAmountofBlendofType1

19

20

i.e.

Similarly
(ii)
(iii)
(iv)

2.

.8x11+.2x21+.2x31+.2x41=0

.4x11.6x21+.4x31+.4x41=0
.15x11+.15x21.85x31+.15x41=0
.25x11+.25x21+.25x31.75x41=0

FinalBlendofType2.
.65x12+.35x22+.35x32+.35x42=0
.15x12.85x22+.15x32+.15x42=0
.20x12+.20x22.80x32+.20x42=0
.30x12+.30x22+.30x32.70x42=0

3.

FinalBlendofType3.
.90x13+.10x23+.10x33+.10x43=0
.35x13.65x23+.35x33+.35x43=0
.40x13+.40x23.60x33+.40x43=0
.15x13+.15x23+.15x33.85x43=0

4.

PlantCapacity.

(x11+x12+x13)+(x21+x22+x23)+(x31+x32+x33)+(x41+x42+x43)=100,000
5.

ComponentAvailabilities.
x11+x12+x1340,000
x21+x22+x2325,000
x31+x32+x3320,000
x41+x42+x4345,000

6.

MinimumProductionLevelRequirements.
x11+x21+x31+x4110,000
x12+x22+x32+x4225,000
x13+x23+x33+x4330,000
Nonnegativity.
Allxij0for1=1,2,3,4;j=1,2,3.

21

5.

Let

Aj=$investedinopportunityAavailableatthebeginningofyearj,j=1,2,3,4
Bj=$investedinopportunityBavailableatthebeginningofyearj,j=1,2,3
Cj=$investedinopportunityCavailableatthebeginningofyearj,j=1only
Dj=$investedinopportunityDavailableatthebeginningofyearj,j=2only
Ej=$investedinopportunityEavailableatthebeginningofyearj,j=4only
LetSjrepresentfundsthatremainidleinjthyear,j=1,2,...,5.
$200,000
Available
1
2
3
4
5
_________________________________________________________

.....A1..........$1.20A1
.....B1....................$1.30B1
.....C1...............................$1.40C1
.....S1.$1S1
.....A2...........$1.20A2

.....B2......................$1.30B2
.....D2................................$1.70D2
.....S2..$1S2
.....A3.............$1.20A3

.....B3.......................$1.30B3
.....S3...$1S3
.....A4.............$1.20A4
.....E4...$1.40E4
.....S4...$1S4
.....S5...$1S5
__________________________________________________________

ObjectiveFunction.Itiswrittenintermsofthosevariablesthatgeneratemoneyattheendof
Fifthyear,andthereturnsfromallotheropportunitiesattheendofotheryearsappearinthe
constraints.
Therefore,wehave,
Maxz=1.70D2+1.30B3+1.20A4+1S5

22

Constraints.Wemustensurethattheinvestmentineachyeardoesnotexceedthetotalmoney
available.
Year1:A1+B1+C1+S1=200,000
Year2:A2+B2+D2+S2=S1
Year3:A3+B3+S3=S2+1.20A1
Year4:A4+E4+S4=S3+1.30B1+1.20A2
Year5:
S5=S4+1.40C1+1.30B2+1.20A3+1.40E4
Nonnegativity.Aj0,j=1,2,3,4;Bj0,j=1,2,3;C10,D20,E40,
Sj0,j=1,2,3,4,5.
6.Let
xj=#ofNewnapkinspurchasedonDayj,j=1,2,3,4,5
yj=#ofnapkinssentforcleaningtoonedayserviceonDayj,j=1,2,3,4
zj=#ofnapkinssentforcleaningtotwodayserviceonDayj,j=1,2,3

ObjectiveFunction:
Min.z=$1(x1+x2+x3+x4+x5)+$0.2(y1+y2+y3+y4)
+$0.1(z1+z2+z3)
Constraints:
(Day1)x1

=1000

(Day2)

x2

+y1

=700

(Day3)

x3 +y2

(Day4)

x4

(Day5)

x5 +y4

+z1

+y3

=800

+z2
+z3

=1200
=1500

ConstraintsforSoiledNapkin
(Day1)

y1

(Day2)

y2

+z1
+z2

1000

700+[1000(y1+z1)]

23

(y1+y2)+(z1+z2)

1700

(Day3)

(y1+y2+y3)+(z1+z2+z3)

2500

(Day4)

(y1+y2+y3+y4)+(z1+z2+z3) 3700

(Day5)

(y1+y2+y3+y4)+(z1+z2+z3) 5200

Nonnegativity:xj0,yj0,zj0,j=1,2,3,4,5

24

7.

CITY

CITY 1

max. 200 tons/day

Upto 500 tons per day

500 TONS /DAY


X11 30 Miles

INCIN. 1

$90/ton
X12

$108/ton

Y11 5 Miles
$15/ton

L. Fill 1

8 Miles
Y12

$27/ton

Y21

$24/ton

5Miles
$15/ton
X21
36 Miles
CITY 2

$126/ton
X22 42 Miles

400 TONS /DAY


DECISIONVARIABLES:

9 Miles

INCIN. 2

L. Fill 2

$18/ton
Y22

6 Miles
max. 200 tons/day

upto 500 tons / day

xij=AmountofwasteshippedfromcityitoIncin.j,j=1,2
yjk=AmountofwasteshippedfromcityitoIncin.j,j,k=1,2
Then,
Constraints:
City1 x11+x12=500
Incin.1

x11+x21500

City2: x21+x22=400
Incin.2:

x12+x22400

CityandIncinerator
.2(x11+x21)=y11+y12, .2(x12+x22)=y21+y22

Landfill:

y11+y12200,

y21+y22200

25
TotalCost:

z=TotalCostofTransportation+TotalCostofIncineration
=[90x11+15x12+108x21+126x22+15y11+24y12
27y21+18y22]+[40(x11+x21)+30(x12+x22)]

8.

Let,fort=1,2,....,7
xt=#ofemployeesreportingtoworkatthebeginingofDayt,t=1,2,..,7
then,thetotalnumberofEmployees=x1+x2+x3+x4+x5+x6+x7
ObjectiveFunction:Min.z=x1+x2+x3+x4+x5+x6+x7
Constraints.
Shift1:
x1+x7+x6+x5+x417
Shift2:
x2+x1+x7+x6+x513
Shift3:
x3+x2+x1+x7+x615
Shift4:
x4+x3+x2+x1+x719
Shift5:
x5+x4+x3+x2+x114
Shift6:
x6+x5+x4+x3+x216
Shift7:
x7+x6+x5+x4+x311
NonnegativityConstraint.Allxt0,t=1,2,..,7

9.

Let,fort=1,2,....,8
xt=#ofnursesreportingtoworkatthebeginingofperiodt,andwhodonot

getovertime
yt=#ofnursesreportingtoworkatthebeginingofperiodt,andwhodoget
overtime

72xt 126yt

i1
then,thecostofwagespaidtoallnurses= i 1
ObjectiveFunction:Min.z=72(x1+x2+x3+x4+x5+x6+x7+x8)
+126(y1+y2+y3+y4+y5+y6+y7+y8)
No.ofNursesondutyduringshiftt=xt+yt+xt1+yt1+yt2

No.ofNursesondutyduringshiftt=xt+yt+xt1+yt1+yt2
Constraints.
Shift1:
x1+y1+x8+y8+y730
Shift2:
x2+y2+x1+y1+y820
Shift3:
x3+y3+x2+y2+y150
Shift4:
x4+y4+x3+y3+y260

26
Shift5:
Shift6:
Shift7:
Shift8:

x5+y5+x4+y4+y370
x6+y6+x5+y5+y460
x7+y7+x6+y6+y550
x8+y8+x7+y7+y640

Contract:

y1+y2+y3+y4+y5+y6+y7+y8.10[(x1+x2+x3+x4+x5+x6
+x7+x8)+(y1+y2+y3+y4+y5+y6+y7+y8)]

NonnegativityConstraint.Allxt,yt0,t=1,2,..,8arenonnegative.

10.

Formulation.
DecisionVariablesaredefinedasfollows:Let
x =thenumberoftonsofwoodtoproduceduringmonth1
1
x =thenumberoftonsofwoodtoproduceduringmonth2
2
x =thenumberoftonsofwoodtoproduceduringmonth3
3
x =thenumberoftonsofwoodtoproduceduringmonth4
4
I =Inventoryintonsofwoodatthebeginningofmonth1
1
I =Inventoryintonsofwoodatthebeginningofmonth2
2
I =Inventoryintonsofwoodatthebeginningofmonth3
3
I =Inventoryintonsofwoodatthebeginningofmonth4
4
S =thenumberoftonsofincreasedproductioninmonth1
1
D =thenumberoftonsofdecreasedproductioninmonth1
1
S =thenumberoftonsofincreasedproductioninmonth2
2
D =thenumberoftonsofdecreasedproductioninmonth2
2
S =thenumberoftonsofincreasedproductioninmonth3
3
D =thenumberoftonsofdecreasedproductioninmonth3
3
S =thenumberoftonsofincreasedproductioninmonth4
4
D =thenumberoftonsofdecreasedproductioninmonth4
4

Objective.

Tominimizetheoveralltotalcost.Lettheoverallcostbedenotedbyz.

Then,

z=totalproductioncost+totalinventorycost+totalcostduetochangeinproduction

Now,
totalcostduetochangeinproduction

27

28

29

30

31
Therefore,wehave
Minimizez=(7400x +7500x +7600x +7650x )+(120I +120I +120I +120I )
1
2
3
4
1
2
3
4
(50S +50S +50S +50S )+(30D +30D +30D +30D )
1
2
3
4
1
2
3
4
Constraints.
1.
BoundaryConditions
InitialandFinalInventoryConstraints.
(InitialInventory)
I1=1000
(EndingInventory)
I51500
2.

ProductionCapacityConstraints.
x 4000,
x24000,
1

x 4000,
3

x 4000
4

3.

InventoryBalanceConstraints.
I +x I =2400
(month1)
1
1
2
I
+x
I
=2200
(month2)
2
2
3
I +x I =2700
(month3)
3
3
4
I
I
+x
=2500
(month4)
4
4 5

4.

ChangeinProductionConstraints. Let
x =productionduringthepreviousmonth
0
=1800(givenintheproblem)

x x +D S =0
1
0
1
1
x x +D S =0
2
1
2
2
x
x
+D S =0
3
2
3
3
x x +D S =0
4
3
4
4

(month1)
(month2)
(month3)
(month4)
5.

NonegativityConstraints. Allvariablesarenonnegative.

Solution.x =1800,x =1800,x =2700,x =4000;I =1000,I =400,I =0,I =0,I =1500,
1
2
3
4
1
2
3
4
5
S =0,S =0,S =900,S =1300;D =0,D =0,D =0,D =0,OFV=78,218,000.
1
2
3
4
1
2
3
4
Theoptimalproductionplancanbesummarizedasfollows.
Month
_______________________________________________________
1

________________________________________________________________________________
BeginningInventory

1000

400

AmountProduced

1800

1800

2700

4000

EndingInventory

400

1500

32
_________________________________________________________________________________

11.

DecisionVariablesaredefinedasfollows:Let
x1=thenumberoftonsofwoodtoproduceduringperiod1
x2=thenumberoftonsofwoodtoproduceduringperiod2
x3=thenumberoftonsofwoodtoproduceduringperiod3
x4=thenumberoftonsofwoodtoproduceduringperiod4
I1=Inventoryintonsofwoodatthebeginningofperiod1
I2=Inventoryintonsofwoodatthebeginningofperiod2
I3=Inventoryintonsofwoodatthebeginningofperiod3
I4=Inventoryintonsofwoodatthebeginningofperiod4

33

S1=thenumberoftonsofincreasedproductioninperiod1
D1=thenumberoftonsofdecreasedproductioninperiod1
S2=thenumberoftonsofincreasedproductioninperiod2
D2=thenumberoftonsofdecreasedproductioninperiod2
S3=thenumberoftonsofincreasedproductioninperiod3
D3=thenumberoftonsofdecreasedproductioninperiod3
S4=thenumberoftonsofincreasedproductioninperiod4
D4=thenumberoftonsofdecreasedproductioninperiod4
Objective.Tominimizetheoveralltotalcost.Lettheoverallcostbedenotedbyz.
Then, z = totalproductioncost+totalinventorycost + total costduetochangein
production
Now,totalcostduetochangeinproduction

34

35

36

37

38
Therefore,wehave
Maximizez=(100x1+120x2+90x3+110x4)+(5I1+6I2+4.5I3+5.5I4)
(12S1+12S2+12S3+2S4)+(3D1+3D2+3D3+3D4)
Constraints.
1.
BoundaryConditions.
InitialandFinalInventoryConstraints.

2.

4.

(InitialInventory)

I1=500,000

(EndingInventory)

I5

400,000,

I5100,000

InventoryBalanceConstraints.
I1+x1I2=2,500,000
(quarter1)
(quarter1)

I2+x2I3=4,000,000

(quarter1)

I3+x3I4=3,000,000

(quarter1)

I4+x4I5=4,500,000

ChangeinProductionConstraints.

Let

x0=productionduringthepreviousperiod
Therefore,

x0=3,000,000

(quarter1)

x x +D S =0
1
0
1
1
x x +D S =0
2
1
2
2
x x +D S =0
3
2
3
3
x x +D S =0
4
3
4
4

(quarter2)
(quarter3)
(quarter4)
5.

NonegativityConstraints.Allvariablesarenonnegative.

39

7.

40

CITY

CITY 1

max. 200 tons/day

Upto 500 tons per day

500 TONS /DAY


X11 30 Miles

INCIN. 1

$90/ton
X12

$108/ton

Y11 5 Miles
$15/ton

L. Fill 1

8 Miles
Y12

$27/ton

Y21

$24/ton

5Miles
$15/ton
X21
36 Miles
CITY 2

$126/ton
X22 42 Miles

9 Miles

INCIN. 2

$18/ton
Y22

400 TONS /DAY


DECISIONVARIABLES:

L. Fill 2

6 Miles

upto 500 tons / day

max. 200 tons/day

xij=AmountofwasteshippedfromcityitoIncin.j,i,j=1,2
yjk=AmountofwasteshippedfromcityitoIncin.j,j,k=1,2

Constraints:
City1 x11+x12=500
Incin.1

City2:x21+x22=400

x11+x21500

CityandIncinerator

Incin.2:

x12+x22400

.2(x11+x21)=y11+y12,
.2(x12+x22)=y21+y22

Landfill1.y11+y21200,Landfill2.y12+y22200
Nonnegative:alvariables>=0
TotalCost:z=TotalCostofTransportation+TotalCostofIncineration
=[90x11+15x12+108x21+126x22+15y11+24y12+27y21+18y22]

41
+[40(x11+x21)+30(x12+x22)]

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