PROBLEM:

Grummins Engine produces diesel trucks. New government

emission standards have dictated that the average pollution emissions
of all trucks produced in the next three years cannot exceed 10 grams
per truck. Grummins produces two types of trucks. Each type 1 truck
sells for $20,000, cost $15,000 to manufacture, and emits 15 grams of
pollution. Each type 2 sells for $17,000, cost $14,000 to manufacture,
and emits 5 grams of pollution. Production capacity limits total truck
production during each year to at most 320 trucks. Grummins knows
that the maximum number of ach truck type that can be sold during
each of the next years is given in Table 62. Demand can be met from
previous production or the current years production. It costs $2,000 to
hold 1 truck (of any type) in inventory for one year.
TABLE 62
Year
1
2
3

Type 1
100
200
300

Type 2
200
100
150

Decision variables:
Let:

xij

be the number of diesel trucks to be produced of type i on year j

yij

be the number of diesel trucks to be sold of type i on year j

wij

be the ending inventory at year j of diesel truck type

Objective function:

Max z(profit)=

20,000 y 1 j15 , 000 x1 j+ 17,000 y 2 j

(14,000 x 2 j )
3

j=1

Constraints:
YEARLY PRODUCTION CONSTRAINTS
x 11 + x 21 320
x 12+ x 22 320
x 13+ x 23 320
DIESEL TRUCK TYPE 1 DEMAND CONSTRAINTS
w 11=x 11100
w 12=x 12 +w 11200
w 13=x13 +w 12300
DIESEL TRUCK TYPE 2 DEMAND CONSTRAINTS
w 21=x 21200
w 22=x 22 +w 21100
w 23=x23 +w 22150
POLLUTION CONSTRAINT
x1 j
x2 j
3

10 xij
j=1

j=1 i=1

+5
j=1

15