Report 4

Optimization Model
Sharisse Gomez, Alyssa Onorario, Abegail Romas
Department of Mathematics, Physics, and Computer Science
University of the Philippines Mindanao
June 2021

In this report, the goal is to formulate a model to solve an optimization problem. This consists
of four main parts: 1) Problem Overview, 2) Model Formulation, 3) Solution and Analysis, and 4)
Discussion.

1 Problem Overview
The employees of Dunder Mifflin Scranton are selling handmade bobble head figures and scented
candles to raise funds for rabies awareness.
From their calculations, each bobble head figure makes a profit of $3 and every scented candle
makes a profit of $2. There are two significant stages involved in making these items: pre-production
and production. A bobble head figure requires 1 hour of pre-production and 2 hours of production.
A scented candle requires 1 hour of pre-production and 1 hour of production.
Each week, the employees can obtain all the needed raw materials but the pre-production hours
must not be greater than 80 and the production hours must not be greater than 100. The demand
for bobble head figures is unlimited but at most 40 scented candles can be bought each week. Now,
the goal of the Dunder Mifflin Scranton employees is to maximize their weekly profit.

2 Model Formulation
2.1 Variables
From the optimization problem, two decision variables are identified. These are defined as follows.
• x - the number of bobble head figures produced per week
• y - the number of scented candles produced per week

2.2 Constraints
The following are the constraints established by the problem.
• There can only be at most 80 pre-production hours.

• There can only be at most 100 production hours.

• At most 40 scented candles can be sold each week.

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2.3 Assumptions
• The values of x and y are always positive, i.e., x, y > 0.
• The decision variables, x and y, can assume both fractional and integer values.

2.4 Formulating the model

The objective is to maximize the weekly profit. Hence, the objective function will be given by

max z (1)

where z is the profit function.

As stated in the problem, each bobble head figure, denoted by x, makes a profit of $3, and each
scented candle, denoted by y, makes a profit of $2. Therefore, the profit function can be expressed
as
z = f (x, y)
= 3x + 2y

Thus, Equation (1) can also be written as

max z = 3x + 2y (2)

Next, from Section 2.2, the constraints can be written as

2x + y ≤ 100
x + y ≤ 80
y ≤ 40

Thus, we obtain the optimization model

max 3x + 2y
s.t. 2x + y ≤ 100
x + y ≤ 80 (3)
y ≤ 40
x, y > 0

3 Solution and Analysis

3.1 Solution
The formulated model satisfies the properties for a linear program because the exponent of the
decision variables in the constraints and objective function is only 1. There is also no existing
term in the objective function that is a product of decision variables, and the coefficients of the
decision variables are constant. Lastly, from the assumptions in Section 2.3, the decision variables
can assume fractional and integer values. Therefore, the Graphical Solution and the Corner-point
method can be used to solve the problem. The online graphing calculator GeoGebra was used for
creating the graphs.
Before graphing, the corresponding equations, the coordinates of x-intercept, and coordinates
of y-intercept for the inequalities are first established. These are shown in Figure 1 below.

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 Figure 1: Table for graphical solution

Next, the x and y intercepts from Figure 1 are plotted first on the graph as shown below in
Figure 2.

Figure 2: Plotting the x and y intercepts on the graph

Then, the lines 2x + y = 100 and x + y = 80 can be plotted as shown in Figure 3. Since it was
assumed that x, y > 0, the graph will only be on the first quadrant.

Figure 3: Graphing the lines 2x + y = 100 and x + y = 80

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 Finally, the line y = 40 can also be graphed, and the points where all the lines intersect are
plotted as shown in Figure 4.

Figure 4: Graphing y = 40 and plotting the points of intersection

Now that the convex set for the constraints have been graphed, the feasible region can now be
determined. In Figure 5 below, the region shaded with purple is the feasible region, which is given
by the polygon EGBH. All the points in this region will satisfy the linear inequalities defining the
constraints. However, the problem is finding the optimal solution. To obtain this, the corner-point
method will be demonstrated.

Figure 5: The feasible region

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 Figure 6: Performing the corner-point method to find the optimal solution

Listed in Figure 6 above are the coordinates of the points on the corners of the feasible region.
These points are used to evaluate the values of the objective function z = 3x + 2y, and the results
are compared to determine the maximum value.
Observe that among points B, G, E, and H, the values of the coordinates of point H result to
the largest value of z which is 170. Therefore, the optimal solution lies in point H, where x = 30
and y = 40. This means that the Dunder Mifflin Scranton employees must make 30 bobble head
figures and 40 scented candles per week to earn a maximum weekly profit of $170.

3.2 Analysis
The optimal solution found to generate the maximum weekly profit is to make 30 bobble head
figures (x) and 40 scented candles (y). To test whether this solution is valid, consider the constraints
established in the problem.
The first constraint is 2x + y ≤ 100. Substituting x = 30 and y = 40 to the inequality gives

2(30) + 40 ≤ 100
60 + 40 ≤ 100
100 ≤ 100

which is true.
The second constraint is x + y ≤ 80. Substituting x = 30 and y = 40 to the inequality gives

30 + 40 ≤ 80
70 ≤ 80

which is also true.

Finally, the last constraints are y ≤ 40 and x, y > 0. Notice that these are true for the solution
since y = 40 and both x and y are greater than zero. Therefore, the solution is correct.
Looking at the model, it has its own strengths and weaknesses. For the strengths, the model
is consistent with the assumptions that are appropriate for the problem. It is reasonable for the
number of bobble head figures and the number of scented candles to be always positive since these
are countable quantities. The model also has sufficient constraints that serve as guide in finding the
solution. However, for the weakness, it is not appropriate for many situations given the constraints.
Nevertheless, the model can be modified to suit changes in the problem.

4 Discussion
In this report, the problem was to maximize the weekly profit of the Dunder Mifflin Scranton
employees who are selling bobble head figures and scented candles. After the decision variables,
constraints, and assumptions were established, the optimization model was formulated and it was
given by

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 max 3x + 2y
s.t. 2x + y ≤ 100
x + y ≤ 80
y ≤ 40
x, y > 0

Since this is a linear program, it was solved using the Graphical Solution and Corner-point
method. A feasible region was determined, and this region defines all the possible values of weekly
profit that the Dunder Mifflin Scranton employees could generate. The goal was to find the optimal
solution, that is, the values of the decision variables that would generate the maximum amount of
profit. If this optimal solution exists, it must occur among the extreme points of the convex set
formed by the set of constraints. So, the objective function z = 3x + 2y was evaluated using the
values of the corner points of the feasible region. Among the four corner points, the point H(30, 40)
resulted to the largest value of the objective function. Thus, the optimal solution lies in point H,
and this means that the Dunder Mifflin Scranton employees must make 30 bobble head figures and
40 scented candles per week to earn a maximum weekly profit of $170.

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References
[1] GeoGebra - Dynamic Mathematics for Everyone (2021, June 8). Graphing Calculator. GeoGebra.
https://www.geogebra.org/graphing?lang=en