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Optimizing Profit - Linear Programming Project

Background Information:
Linear Programming is a technique used for optimization of a real-world situation. Examples of
optimization include maximizing the number of items that can be manufactured or minimizing
the cost of production. The equation that represents the quantity to be optimized is called the
objective function, since the objective of the process is to optimize the value. In this project the
objective is to maximize the profit of a small busines~.

The objective is subject to limitations or constraints that are represented by inequalities.

Limitations on the number of items that can be produced, the number of hours that workers
are available. and the amount of land a farmer has for crops are examples of constraints that
can be represented using inequalities. Manufacturing: an infinite number of items is not a
realistic goal. In this project some of the constraints will be based on budget.

Graphing the system of inequalities given by the constraints provides a visual representation
of the possible solutions to the problem. If the graph is a closed region, it can be shown that
1.1 1c vaiues tilat optimize the objective function will occur at one of the "comers" of the region.

The Problem:
In this project your group will solve the following problem:
A small business produces collars and leashes for dogs. The monthly costs and budget have
been calculated. The cost of materials for each collar is $3.00 and the cost of materials for
each leash is $4.00. The cost of labor will amount to $13.00 for each collar and $6.00 for
each leash. The business does not wish to spend more than $240 on materials and $496 on
labor each month. In addition, they want to _oroduce at least 50 items oer month but no mo~
than 100 items per month. The profit from each collar will be $9.50, and the orofit from eacb
leash will be $10.25. How many of each item should be made to obtain the maximum profit?

":fodeline the Problem:

Let x be the number of dog collars that are made and y be the number of leashes that are made.
I. Write down a linear inequality that models how the materials costs will be keot within

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2. Write down a linear inea.ulity that models how the labor costs will be k.ept within

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3. Rccall lJiat the business wants to oroducc at least 50 items each month. Wntc oown 1
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 4. The business wants to oroduce no more than 100 items each month. Write down a
linear inequality to model this constraint.

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5. There are two more constraints that must be met. These relate to the fact that it is
impossible to manufacture a negative number of items. Write the two inequalities that
model these constraints:

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6. Next, write down the function for the profit that will be earned by selling the dog
collars and leashes. This is the Objective Function for the problem.

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You now have six linear inequalities and an objective function. These together describe the
situation. This combined set of inequalities and objective function make up what is known
mathematically as a linear proa=ramming problem. Write all of the inequalities and the
objective function together below, one equation or inequality per line. This is typically
written as a list of constraints. with the objective function last.

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 7. To solve this problem, you v,ilf nee.d to graph the intrnectioo of all six inequalities
oa one common ..c.y-plane. Do this on the grid below. Have the bottom left be the
on.em. wnn me oonzomal axtS reoresenum? x and the vertical axis representm~ y.
Label the axes with appropriate numbers and verbal desc;riptioos. and laoc1 vou-
lincs with their equation. You may use your own graph paper or graphme sonwa.~
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'fhc shaded region in the above graph is called the feasible rc&1on . Any (.t, y >pomt in the
·c~1on correaponaH w a po~1ble number of collars and leashes that will meet all the
'Wuircmeni. o(rhc ~rohlcm. llowcvcr, the values that will max1m1zc the profit will occur
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8. Your region should have four comers. Find the coordinates of these comers bv
solving the appropriate system of linear equations. Be sure to s/tow your work and
label the (x, y) coordinates of the comen in your graph.

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9. To find which number of collars and leashes will maximize the orofit evaluate the
objective function P for each of the vertices you found. Show your worlt.

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I0. Write a sentence describinl! how manv of each item should be manufactured to
produce the highest profit. Include the amount of the profit that will be earned.

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11 . Your group 's response to this problem needs to be typed and included in the project
file. Give three examples of optimization problems that are important to everyday
life. Include a clear description of the problem. identify several constraints. and
identify the quantity to be optimized. If you use a source, cite: it.