TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES
Problem Solving Exercises in IE 003 Operations Research (1ST Semester, SY2019-2020)
Name of the Student : Bunagan, Diana C.
Program/Year Level : Chemical Engineering, 5th Year
PROBLEM SOLVING EXERCISE IN LINEAR PROGRAMMING
The MixNuts Company produces two products: (1) Almond Nuts, and (2) Salted Peanuts.
The production process for each product is similar in that both require a certain number of hours
of manufacturing work and a certain number of labor-hours in the packaging department.
Almonds takes 4 hours of manufacturing work and 2 hours in the packaging. Each Salted
Peanuts requires 3 hours of manufacturing work and 1 hour in packaging. During the
current manufacturing period, 240 hours of manufacturing hour are available, and 100
hours of packaging time are available. Each Almond sold yields a profit of Php7.00; each
Salted Peanuts produced can be sold for a Php5.00 profit. MixNut's problem is to determine the
best possible combination of Almonds and Salted Peanuts to manufacture to reach the
maximum profit. This product-mix situation can be formulated as a linear programming
problem, show the linear model.
Instructions: Formulate the problem. Explain the following: Decision variables, objective
function, constraints, and non-negativity.
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LP PROBLEM FORMULATION
The MixNuts Company wants to maximize the company profit. First thing to do, is to be able to
know what quantities does the manager control? or what can he manipulate to influence the
profit? These quantities can be expressed by letting X1 = number of almond nuts to be produce
in the given amount of manufacturing time and packaging time. And X2 = number of Salted
peanuts to be produce in the given amount of manufacturing time and packaging time. X1 & X2
would be the decision variables.
The sum of the number of the two peanuts times each certain profit would be the
The objective function which can be expressed as:
Maximize Z = 7X1 + 5X2
There are constraints which unable the company to maximize its profits, these constraints are
labor-hour (ManPower) and manufacturing work (Method). This can be written mathematically
as follows
4X1 + 3X2 <= 240
2X1 + 1X2 <= 100
As X1 is intended for almond nuts and 4 hours was the stated time for manufacturing work hence
4 would be coefficient of X1, same goes for X2 which is for salted nuts, and has 3 hours of
manufacturing work which is equal or less than to 240 constraints because it’s the only available
time for manufacturing work.
As for 2XI and 1X2, it was described as the no. of hours of almonds to be pack and number of
hours of salted peanuts to be pack with only 100 hours available time for packing two products.
Finally, for non-negativity; X1, X2 >= 0
To tabulate
X1 X2 Constraints
Objective function 7 5
Manufacturing work 4 3 240
Packaging Work 2 1 100
Using Lindo
Profit = Maximize Z = 7X1 + 5X2
As you can see x1 is 30 & x2 is 40 hence Z value = 7(30)+ 5(40) = Php 410.00 as also results via
Lindo software.
Conclusion:
To optimize the manpower (Labor-hour) and method (manufacturing) the available, the company
can produce 30 almond nuts and 40 Salted Peanuts. The combination can give an optimal profit
of 410 pesos.
2. Each comedy commercial is seen by 7 million high-income women and 2 million high-income
men. Each football game is seen by 2 million high-income women and 12 million high-income
men. A 1-minute comedy ad costs $50,000 and a 1-minute football ad costs $100,000. Dorian
Auto would like for commercials to be seen by at least 28 million high-income women and 24
million high-income men. Use LP to determine hoe Dorian Auto can meet its advertising
requirements at minimum cost.
LP formulation
Decision Variables :
X1 and X2
Objective Function
Min Z = 50X1 + 100X2
Subject to:
7M + 2M >= 28 M
2M + 12M >=24 M
Using Lindo
THE TOTAL INVESTMENT COST IS $320,000 AND THE INVESTMENT FOR COMEDY
COMMERCIAL IS 3.6 AND 1.4 FOR FOOTBALL GAME.
HONOR AND PLEDGE
“I AFFIRM THAT I SHALL NOT GIVE OR RECEIVE ANY UNAUTHORIZED HELP ON
THIS ACTIVITY, AND THAT ALL WORK SHALL BE MY OWN.”
