A Simple Minimization Problem

M&D Chemicals produces two products that are sold as raw materials to companies
manufacturing bath soaps and laundry detergents. Based on an analysis of current inventory
levels and potential demand for the coming month, M&D’s management specified that the
combined production for products A and B must total at least 350 gallons. Separately, a major
customer’s order for at least 125 gallons of product A must also be satisfied. Product A requires
2 hours of processing time per gallon and product B requires 1 hour of processing time per
gallon. For the coming month, 600 hours of processing time are available. M&D’s objective is to
satisfy these requirements at a minimum total production cost. Production costs are $2 per gallon
for product A and $3 per gallon for product B.

Problem Formulation

Let
A = number of gallons of product A
B = number of gallons of product B

Objective in Terms of the Decision Variables: Min 2A + 3B

Constraint 1: Combined production for products A and B must total at least 350 gallons
A + B ≥ 350

Constraint 2: Customer’s order for 125 gallons of product A must also be satisfied
A ≥ 125

Constraint 3: Hours of processing time needed ≤ Hours of processing time available

2A + B ≤ 600
Non Negativity Constraints:
A, B ≥ 0

Mathematical Model

Min 2A + 3B
s.to.
A + B ≥ 350 Total Production
A ≥ 125 Demand for Product A
2A + B ≤ 600 Processing Time
A, B ≥ 0
 Model Solution
Total Production Constraint
A + B = 350
Put A = 0, B = 350; Point is (0,350)
Put B = 0, A = 350; Point is (350,0)

Demand for Product A Constraint

A = 125
Straight line at point (125,0)

Processing Time Constraint

2A + B = 600
Put A = 0, B = 600; Point is (0,600)
Put B = 0, A = 600/2 = 300; Point is (300,0)

P
(125,350)

R
(125,225)

Q
(250,100)

Objective Function is 2A + 3B

At Point P (125,350) = Value of Objective Function is 2*125 + 3*350 = 1300

At Point Q (250,100) = Value of Objective Function is 2*250 + 3*100 = 800 Min
At Point R (125,225) = Value of Objective Function is 2*125 + 3*225 = 925
So, optimal solution is to produce 250 gallons of product A and 100 gallons of product B, to
entail a min cost of Rs. 800

Standard Form of the Problem

Min 2A + 3B+ 0S1 + 0S2 + 0S3

s.t.
A + B – S1 = 350 Total Production
A – S2 = 125 Demand for Product A
2A + B + S3 = 600 Processing Time
A, B, S1, S2, S3 ≥ 0