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EXERCISES IN LINEAR PROGRAMMING USING EXCEL

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Quantitative Methods in Management
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February 21, 2020
Exercise 1
At a certain refinery, the refining process requires the production of at least two
gallons of gasoline for each gallon of fuel oil. To meet the anticipated demands of
winter, at least three million gallons a day will need to be produced. The demand for
gasoline, on the other hand, is not more than 6.4 million gallons a day. If gasoline is
selling for $1.90 per gallon and fuel oil sells for $1.50/gal, how much of each should
be produced in order to maximize revenue?
Solution:
Let x1 = gallons of gasoline produced and x2 = gallons of fuel oil produced
Maximize: Z=1.9x1 +1.5x2

Subject to Constraints

x1 ≤6,400,00

x2 ≥3,000,000

x1 ≥2x2

x1 , x2 ≥0

Objective
Function Variable Solution Constraints Constant
16960000 X1 6400000 6400000 6400000
X2 3200000 3200000 3000000
6400000 6400000
6400000 0
3200000 0
 Graph:

Sensitivity Analysis:

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$2 X1 Solution 6400000 0 1.9 1E+30 2.65
X2
$C$3 Solution 3200000 0 1.5 1E+30 1.5
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
X1
$D$2 Constraints 6400000 2.65 6400000 1E+30 400000
X2
$D$3 Constraints 3200000 0 3000000 200000 1E+30
$D$4 Constraints 6400000 -0.75 0 400000 1E+30
$D$5 Constraints 6400000 0 0 6400000 1E+30
$D$6 Constraints 3200000 0 0 3200000 1E+30

Conclusion:
Exercise 2
A calculator company produces a scientific calculator and a graphing calculator. Long
term projections indicate an expected demand of at least 100 scientific and 80
graphing calculators each day. Because of limitations on production capacity, no
more than 200 scientific and 170 graphing calculators can be made daily. To satisfy a
shipping contract, a total of at least 200 calculators much be shipped each day.
If each scientific calculator sold results in a $2 loss, bit each graphing calculator
produces a $5 profit, how many of each type should be made daily to maximize net
profits?
Solution:
Let x1 = number of scientific calculators produced and x2 = number of graphing
calculators produced
Maximize: Z=-2x1 +5x2

Subject to Constraints

x1 +x2 ≥ 200

x1 ≥100

x1 ≤200

x2 ≥80

x2 ≤170

x1 , x2 ≥0

Objective
Function Variable Solution Constraints Constant
650 X1 100 270 200
X2 170 100 100
100 200
170 80
170 170
100 0
170 0
Graph:

Sensitivity Analysis:

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$8 X1 Solution 100 0 -2 2 1E+30
$C$9 X2 Solution 170 0 5 1E+30 5
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$D$10 Constraints 100 0 200 1E+30 100
$D$11 Constraints 170 0 80 90 1E+30
$D$12 Constraints 170 5 170 1E+30 70
$D$13 Constraints 100 0 0 100 1E+30
$D$14 Constraints 170 0 0 170 1E+30
X1
$D$8 Constraints 270 0 200 70 1E+30
X2
$D$9 Constraints 100 -2 100 100 70

Conclusion:
Exercise 3
You need to buy some filing cabinets. You know that Cabinet X costs $10 per unit,
requires six square feet of floor space, and holds eight cubic feet of files. Cabinet Y
costs $20 per unit, requires eight square feet of floor space, and holds twelve cubic
feet of files. You have been given $140 for this purchase, though you don’t have to
spend that much. The office has room for no more than 72 square feet of cabinets.
How many of which model should you buy, in order to maximize storage volume?
Solution:
Let x1 = number of X cabinets purchased and x2 = number of Y cabinets purchased
Maximize: Z=8x1 +12x2

Subject to Constraints

10x1 +20x2 ≤ 140

6x1 +8x2 ≤ 72

x1 , x2 ≥0

Objective
Function Variable Solution Constraints Constant
100 X1 8 140 140
X2 3 72 72
8 0
3 0

Graph:
Sensitivity Analysis:

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$17 X1 Solution 8 0 8 1 2
X2
$C$18 Solution 3 0 12 4 1.333333333
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
X1
$D$17 Constraints 140 0.2 140 40 20
X2
$D$18 Constraints 72 1 72 12 16
$D$19 Constraints 8 0 0 8 1E+30
$D$20 Constraints 3 0 0 3 1E+30

Conclusion:
Exercise 4
In order to ensure optimal health (and thus accurate test results), a lab technician
needs to the rabbits a daily diet containing a minimum of 24 grams (g) of fat, 36 g of
carbohydrates, and 4 g of protein. But the rabbits should be fed no more than five
ounces of a food a day.
Rather than order rabbit food that is custom-blended, it is cheaper to order Food X
and Food Y, and blend them for an optimal mix. Food X contains 8 g of fat, 12 g of
carbohydrates, and 2 g of protein per ounce, and costs $0.20 per ounce. Food Y
contains 12 g of fat, 12 g of carbohydrates, and 1 g of protein per ounce. Food Y
contains 12 g of fat, 12 g of carbohydrates, and 1 g of protein per ounce, at a cost of
$0.30 per ounce. What is the optimal blend?
Solution:
Let x1 = number of ounces of food X and x2 = number of ounces of food Y
Maximize: Z=0.20x1 +0.30x2

Subject to Constraints

8x1 +12x2 ≥ 24

12x1 +12x2 ≥ 36

2x1 +x2 ≥ 4

x1 +x2 ≤ 5

x1 , x2 ≥0

Objective
Function Variable Solution Constraints Constant
0.6 X1 3 24 24
X2 0 36 36
6 4
3 5
3 0
0 0
Graph:

Sensitivity Analysis:

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$24 X1 Solution 3 0 0.2 0.1 0.2
X2
$C$25 Solution 0 0 0.3 1E+30 0.1
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
X1
$D$24 Constraints 24 0 24 0 1E+30
X2
$D$25 Constraints 36 0.016666667 36 24 0
$D$26 Constraints 6 0 4 2 1E+30
$D$27 Constraints 3 0 5 1E+30 2
$D$28 Constraints 3 0 0 3 1E+30
$D$29 Constraints 0 0.1 0 2 0

Conclusion: