AOR- (2018-20)

11/10/18

INSTITUTE OF QUALITY & TECHNOLOGY MANAGEMENT

Faculty of Engineering & Technology
University of the Punjab, Lahore
Class: M.S Industrial Engg. & Management Task# 01
st
Semester: 1 Subject: AOR
Marks: 20 Session: 2018-20
Name:________________________________________ Roll #:________________

Note: Perform below listed Tasks:

a. Formulate into LP model
b. Plot and label the constraints
c. Shade the feasible region
d. Identify and label the optimal solution through:
1. ISO-Profit line approach
2. Extreme point approach
e. Identify the Special case of LP model
f. Solve these through Graphical & Simplex Method by using following software:
1: TORA 2: Excel Solver

Q# 01: Blue Ridge Hot Tubs manufactures and sells two models of hot tubs: the Aqua-Spa and
the Hydro-Lux. Howie buys prefabricated fiber glass hot tub shells from a local supplier and
adds the pump and tubing to the shells to create his hot tubs. Howie installs the same type of
pump into both hot tubs. He will have only 200 pumps available during his next production
cycle. From a manufacturing standpoint, the main difference between the two models of hot
tubs is the amount of tubing and labor required. Each Aqua-Spa requires 9 hours of labor and
12 feet of tubing. Each Hydro-Lux requires 6 hours of labor and 16 feet of tubing. Howie expects
to have 1,566 productions labor hours and 2,880 feet of tubing available during the next
production cycle. Howie earns a profit of $350 on each Aqua-Spa he sells and $300 on each
Hydro-Lux he sells. He is confident that he can sell all the hot tubs he produces. The question is,
how many Aqua-Spas and Hydro-Luxes should Howie produce if he wants to maximize his
profits during the next production cycle?

Solution:
Decision variables: X1,X2
Objective function: Max: Z= 350 X1 + 300 X2
Subject to Constraints:
X1 + X2 <= 200
9X1 + 6X2 <= 1566
12X1+ 16X2 <= 2800
X1,X2>=0

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Q# 02: The marketing manager for Unilever needs to decide how many TV spots and magazine
ads to run during the next quarter. Each TV spot costs $5,000 and is expected to increase sales
by 300,000 cans. Each magazine ad costs $2,000 and is expected to increase sales by 500,000
cans. A total of $100,000 may be spent on TV and magazine ads; however, Unilever wants to
spend no more than $70,000 on TV spots and no more than $50,000 on magazine ads. Unilever
earns a profit of $0.05 on each can it sells.
Solution:
Decision Variables: X1= TV spots, X2= Magazine ads
Objective function:
300,000(0.05)X1+ 500,000(0.05)X2
$15,000X1+$25,000X2
Subject to the Constraints:
$5000X1+$2000X2<=$100,000
$5000X1 <=$70000
$2000X2<=$50,000

Q#03: Mine Drill Refining extracts minerals from ore mined at two different sites in Baluchistan.
Each ton of ore type 1 contains 20% copper, 20% zinc and 15% magnesium. Each ton of ore
type 2 contains 30% copper, 25% zinc and 10% magnesium. Ore type 1 costs $90 per ton and
ore type 2 costs $120 per ton. Mine Drill would like to buy enough ore to extract at least 8 tons
of copper, 6 tons of zinc, and 5 tons of magnesium in the least costly manner.
Solution:
Z=90X1+120X2
Subject to constraint:
0.2X1+0.3X2>=8
0.2X1+0.25X2>=6
0.15X1+0.10X2>=5
X1,X2>=0

Q# 04: A juice company has its products viz. canned apple and bottled juice with profit margin
Rs.4 and Rs.2 respectively per unit. The following table shows the labor, equipment, and
ingredients to produce each product per unit.
Canned Apple Bottled Juice Total

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Labor 2.0 3.0 12.0

Equipment 3.2 1.0 8.0
Ingredients 2.4 2.0 9.0

SOLUTION:

Z=4X1+2X2
Subject to constraint:
2X1+3X2<=12
3.2X1+1X2<=8
2.4X1+2X2<=9
X1,X2>=0

Q# 05: A bed mart company is in the business of manufacturing beds and pillows. The company
has 40 hours for assembly and 32 hours for finishing work per day. Manufacturing of a bed
requires 4 hours for assembly and 2 hours in finishing. Similarly a pillow requires 2 hours for
assembly and 4 hours for finishing. Profitability analysis indicates that every bed would
contribute Rs.80, while a pillow contribution is Rs.55 respectively.
Solution:
Decision variables: X1=Beds, X2=Pillow
Objective function: Maximization Z=80X1+55X2
Subject to constraints: 4X1+2X2<=40 (assembly hours)
2X1+4X2<=32(finishing hours)
X1,X2>=0 (non-negativity constraint)
Solution:
Q# 06: Maximize 1170x1 + 1110x2
Subject to:
9x1 + 5x2 ≥ 500
7x1 + 9x2 ≥ 300
5x1 + 3x2 ≤ 1500
7x1 + 9x2 ≤ 1900
2x1 + 4x2 ≤ 1000
x1, x2 ≥ 0
 Find graphically the feasible region and the optimal solution.

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Q# 07: A company owns two flour mills viz. A and B, which have different production capacities
for high, medium and low quality flour. The company has entered a contract to supply flour to a
firm every month with at least 8, 12 and 24 quintals of high, medium and low quality
respectively. It costs the company Rs.2000 and Rs.1500 per day to run mill A and B respectively.
On a day, Mill A produces 6, 2 and 4 quintals of high, medium and low quality flour, Mill B
produces 2, 4 and 12 quintals of high, medium and low quality flour respectively.
 How many days per month should each mill be operated in order to meet the contract
order most economically.
Solution:
Decision Variables: X1,X2
Objective function: minimize=Z=2000X1+1500X2
Subject to constraints: 6X1+2X2>=8 (high quality)
2X1+4X2>=12 (medium quality)
4X1+12X2>=24 (low quality)
X1,X2>=0
Q# 08: A Company purchasing scrap material has two types of scarp materials available. The
first type has 30% of material X, 20% of material Y and 50% of material Z by weight. The second
type has 40% of material X, 10% of material Y and 30% of material Z. The costs of the two
scraps are Rs.120 and Rs.160 per kg respectively. The company requires at least 240 kg of
material X, 100 kg of material Y and 290 kg of material Z.
 Find the optimum quantities of the two scraps to be purchased so that the company
requirements of the three materials are satisfied at a minimum cost.
Solution: Decision variables: X1=TYPE1 SCRAP, X2=TYPE2 SCRAP
Objective function: minimize=Z=120X1+160X2
Subject to constraints:
0.30X1+0.40X2>=240 kg (material X)
0.20X1+0.10X2>=100 kg (material Y)

0.50X1+0.30X2>=290 kg (material Z)

X1,X2>=0 (non-negativity constraint)

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Q# 09: Minimize 200x1 + 300x2

Subject to:
0.4x1 + 0.6x2 ≥ 240
0.2x1 + 0.2x2 ≤ 80
0.4x1 + 0.3x2 ≥ 180
x1, x2 ≥ 0

100

80

60

40

20

0
0 20 40 60 80 100

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