International University – VNUHCM Deterministic Models in Operation Research

School of Industrial Engineering and Management Year: 2021-2022

HOMEWORK 1 - FORMULATING LPP &

SOLVING LPP USING GRAPHICAL SOLUTION
(due date: one week)

Instruction: Please finish all questions IN WRITING and scan to pdf to submit before the due hour.
This is individual work, to be submitted on Blackboard.

Q1.
Consider the following equation of a line: 60x1 + 40x2 = 600
(a) Find the slope-intercept form of this equation.
(b) Use this form to identify the slope and the intercept with the x 2 axis for this line.
(c) Use the information from part (b) to draw a graph of this line.

Q2.
The Omega Manufacturing Company has discontinued the production of a certain unprofitable
product line. This act created considerable excess production capacity. Management is considering
devoting this excess capacity to one or more of three products; call them products 1, 2, and 3. The
available capacity on the machines that might limit output and the number of machine hours required
for each unit of the respective products are summarized in the following table:

Available time Productivity Coefficient (Machine Hours per Unit)

Machine Type (Machine Hours
per Week) Product 1 Product 2 Product 3

Milling Machine 500 9 3 5

Lathe 350 5 4 0

Grinder 150 3 0 2
The sales department indicates that the sales potential for products 1 and 2 exceeds the maximum
production rate and that the sales potential for product 3 is 20 units per week. The unit profit would
be $50, $20, and $25, respectively, on products 1, 2, and 3. The objective is to determine how much
of each product Omega should produce to maximize profit.
(a) Formulate a linear programming model for this problem.
(b) Determine the feasible region.
Q3.
International University – VNUHCM Deterministic Models in Operation Research
School of Industrial Engineering and Management Year: 2021-2022

The Primo Insurance Company is introducing two new product lines: special risk insurance and
mortgages. The expected profit is $5 per unit on special risk insurance and $2 per unit on mortgages.
Management wishes to establish sales quotas for the new product lines to maximize total expected
profit. The work requirements are as follows:

Department Work-Hours per Unit Work-Hours

Available
Special Risk Mortgage

Underwriting 3 2 2400

Administration 0 1 800

Claims 2 0 1200

(a) Formulate a linear programming model for this problem.

(b) Use the graphical method to solve this model.

Q4.
Consider the following model:
Minimize Z = 40x1 + 50x2,

subject to 2x1 + 3x2 ≥ 30

x1 + x2 ≥ 12

2x1 + x2 ≥ 20
x1 and x2 are non-negative
Use the graphical method to solve this model.

Q5.

The Weigelt Corporation has three branch plants with excess production capacity. Fortunately,
the corporation has a new product ready to begin production, and all three plants have this
capability, so some of the excess capacity can be used in this way. This product can be made in
three sizes--large, medium, and small--that yield a net unit profit of $420, $360, and $300,
respectively. Plants 1, 2, and 3 have the excess capacity to produce 750, 900, and 450 units per
day of this product, respectively, regardless of the size or combination of sizes involved.
The amount of available in-process storage space also imposes a limitation on the
production rates of the new product. Plants 1, 2, and 3 have 13,000, 12,000, and 5,000 square
feet, respectively, of in-process storage space available for a day's production of this product.
Each unit of the large, medium, and small sizes produced per day requires 20, 15, and 12 square
feet, respectively.
International University – VNUHCM Deterministic Models in Operation Research
School of Industrial Engineering and Management Year: 2021-2022

Sales forecasts indicate that if available, 900, 1,200, and 750 units of the large, medium,
and small sizes, respectively, would be sold per day.
At each plant, some employees will need to be laid off unless most of the plant’s excess
production capacity can be used to produce the new product. To avoid layoffs if possible,
management has decided that the plants should use the same percentage of their excess capacity
to produce the new product.
Management wishes to know how much of each of the sizes should be produced by each
of the plants to maximize profit.
Formulate a linear programming model for this problem.

(Reference: Chapter 3 - Introduction to Operations 3Research by Hillier and Lieberman, 9th ed.)