A SIMPLE MAXIMIZATION PROBLEM

PREPARED BY:
LIQUIGAN, OSHWALD
MADERAZO, ABEGAIL
 Par, Inc., is a small manufacturer of golf equipment and supplies whose
management has decided to move into the market for medium- and high-
priced golf bags. Par Inc.’s distributor is enthusiastic about the new product
line and has agreed to buy all the golf bags Par Inc., produces over the next
three months.

After a thorough investigation of the steps involved in manufacturing a

golf bag, management determined that each golf bag produced will require
the following operations:

1. Cutting and dyeing the material

2. Sewing
3. Finishing (inserting umbrella holder, club separators, etc.)
4. Inspection and packaging
The director of manufacturing analyzed each of the operations and
concluded that if the company produces a medium-priced standard
model each bag will require 7/10 hour in the cutting and dyeing
department, ½ hour in the sewing department, 1 hour in the finishing
department, and 1/10 hour in the inspection and packaging
department. The more expensive deluxe model will require 1 hour for
cutting and dyeing, ⅚ hour for sewing, ⅔ hour for finishing, and ¼
hour for inspection and packaging.
TABLE 2.1 PRODUCTION REQUIREMENTS PER GOLF BAG

Production Time (hours)

Department
Standard Bag Deluxe Bag

Cutting and Dyeing 7/10 1

Sewing ½ 5/6

Finishing 1 2/3
Inspection and
1/10 ¼
Packaging
Par Inc.’s production is constrained by a limited number of hours available in
each department. After studying departmental workload projections, the
director of manufacturing estimates that 630 hours for cutting and dyeing, 600
hours for sewing, 708 hours for finishing, and 135 hours for inspection and
packaging will be available for the production of golf bags during the next
three months.

The Accounting department analyzed the production data, assigned

all relevant variable costs, and arrived at prices for both bags that will result in
a profit contribution of $10 for every standard bag and $9 for every deluxe
bag produced. Let us now develop a mathematical model of tha Par Inc.,
problem that can be used to determine the number of standard bags & the
number of deluxe bags to produce in order to maximize total profit
contribution.
PROBLEM FORMULATION

Problem formulation, or modelling, is the process of translating the verbal

statement of a problem into a mathematical statement. Formulating models is
an art that can only be mastered with practice and experience. Even though
every problem has some unique features, most problems also have common
features.

Understand the Problem Thoroughly. We selected the Par, Inc., to

introduce linear programming because it is easy to understand. However,
more complex problems will require much more thinking in order to identify
the items that need to be included in the model
Describe the Objective. The objective is to maximize the total
contribution to profit.

Describe each Constraint. Four constraints relate to the number of hours

of manufacturing time available; they restrict the number of standard bags
and the number of deluxe bags that can be produced.

● Constraint 1: Numbers of hours of cutting & dyeing time used must

be less than or equal to the number of hours of cutting & dyeing time
available.
● Constraint 2: Number of hours of sewing time used must be less
than or equal to the number of hours of sewing time available.
 ● Constraint 3: Numbers of hours of finishing time used must be less than or
equal to the number of hours of finishing time available

● Constraint 4: Numbers of hours of inspection & packaging time used must be

less than or equal to the number of hours of inspection & packaging time
available.

Define the Decision Variables. The controllable inputs for Par, Inc., are;
a. The number of standard bags produced and;
b. The number of deluxe bags produced

Let, S= no. of standard bags

D= no. of deluxe bags

In linear programming technology, S & D are referred to as the decision variables.

Write the Objective in terms of the Decision Variables. Par Inc.’s profit
contribution comes from 2(two) sources;
a. The profit contribution made by producing S standard bags.
b. The profit contribution made by producing D deluxe bags

If Par, Inc., makes $10 for every standard bag, the company will make
$10S if standard bags are produced. Also, if Par, Inc., makes $9 for every deluxe
bag, the company will make $9D if deluxe bag are produced.

Thus we have,

Total Profit Contribution= 10S + 9D

Maximize total profit contribution is a function of the decision variables S & D, we
refer to 10S + 9D as the objective function.

we write Par, Inc.’s objective as follows;

Max 10S + 9D

Write the constraints in terms of the decision variables

Constraint 1:
Every standard bag Par, In., produces will use 7/10 hr cutting and dyeing time;
therefore, the total number of hours of cutting and dyeing time used in the
manufacture of S standard bags is 7/10S. In addition, because every deluxe
bag produced uses 1 hr of cutting & dyeing time.

Thus, the total cutting and dyeing time required for the production of S
(standard bags) & D (deluxe bags) is given by

Total hours of cutting & dyeing time used= 7/10S + 1D

The director of manufacturing stated that Par, Inc., has at most 630 hrs of
cutting & dyeing time available
Constraint 2:

From table 2.1, we see that every standard bag manufactured will require ½
hour for sewing, & every deluxe bag will require ⅚ hr for sewing. Because 600
hrs. of sewing time are available, it follows that
Constraint 3:

Every standard bag manufactured will require 1hr for finishing, and every deluxe
bag will require ⅔ hour for finishing. With 708 hrs. of finishing time available, it
follows that

1S + ⅔D ≤ 708

Constraint 4:
Constraint 4:

(Hours of inspection and (Hours of inspection and

packaging time used) ≤ packaging time available)

Every standard bag manufactured will require 1/10 hour for

inspection and packaging, and every deluxe bag will require ¼ hour for
inspection and packaging. Because 135 hours of inspection and
packaging time are available, it follows that:

1/10 S + ¼ D ≤ 135
 We have now specified the mathematical relationships for the constraints
associated with the four departments. Have we forgotten any other constraints?
Can Par, Inc., produce a negative numbers of standard or deluxe bags? Clearly,
the answer is no. Thus, to prevent the decision variables S and D from having
negative values, two constraints must be added.

S≥0 D≥0
These constraints ensure that the solution to the problem will contain non
negative values for the decision variables and are thus referred to as non-
negativity constraints. Non-negativity constraints are a general feature of all linear
programming problems and may be written in the abbreviated form:

S,D ≥ 0
 MATHEMATICAL MODEL
Max 10S + 9D
Subject to (s.t.)

7/10 S + 1D ≤ 630 Cutting and Dyeing

½ S + 4/6 D ≤ 600 Sewing

1S + ⅔ D ≤ 708 Finishing

1/10 S + ¼ D ≤ 135 Inspection and Packaging

S,D ≥ 0
 Mathematical functions in which each variable appears in a separate term
and is raised to the first power are called linear functions. The objective
function (10S + 9D) is linear because each decision variable appears in a
separate term and has an exponent 1.The amount of production time required in
the cutting and dyeing department (7/10 S + 1D) is also a linear function of the
decision variables for the same reason. Similarly, the functions on the left-hand
side of all constraint inequalities (the constraint functions) are linear functions.
Thus, the mathematical formulation of this problem is referred to as a liner
program.

Linear programming has nothing to do with computer programming. The

use of the word programming here means “choosing a course of action.” Linear
programming involves choosing a course of action when the mathematical
model of the problem contains only linear functions.
THANK YOU!
&
GOD BLESS!