2 Linear Programming - Model Examples

Linear Programming:
Modeling Examples
Chapter 4
Copyright © 2016 Pearson Education, Ltd. 4-1

Chapter Topics
◼ A Product Mix Example

◼ A Diet Example
◼ An Investment Example
◼ A Marketing Example
◼ A Transportation Example
◼ A Blend Example
◼ A Multiperiod Scheduling Example
◼ A Data Envelopment Analysis Example

A Product Mix Example
Problem Definition (1 of 6)
Four-product T-shirt/sweatshirt manufacturing company.
■ Must complete production within 72 hours
■ Truck capacity = 1,200 standard sized boxes.
■ Standard size box holds12 T-shirts.
■ One-dozen sweatshirts box is three times size of standard box.
■ $25,000 available for a production run.
■ 500 dozen blank T-shirts and sweatshirts in stock.
■ How many dozens (boxes) of each type of shirt to produce?

A Product Mix Example (2 of 6)
Figure 4.1 Quick-

Screen Shirts

Data (3 of 6)
Resource requirements for the product mix example.
Processing Cost Profit
Time (hr) ($) ($)
Per dozen per dozen per dozen
Sweatshirt - F 0.10 $36 $90
Sweatshirt – B/F 0.25 48 125
T-shirt - F 0.08 25 45
T-shirt - B/F 0.21 35 65

Model Construction (4 of 6)
Decision Variables:
x1 = sweatshirts, front printing
x2 = sweatshirts, back and front printing
x3 = T-shirts, front printing
x4 = T-shirts, back and front printing
Objective Function:
Maximize Z = $90x1 + $125x2 + $45x3 + $65x4
Model Constraints:
0.10x1 + 0.25x2+ 0.08x3 + 0.21x4  72 hr
3x1 + 3x2 + x3 + x4  1,200 boxes
$36x1 + $48x2 + $25x3 + $35x4  $25,000
x1 + x2  500 dozen sweatshirts
x3 + x4  500 dozen T-shirts
Computer Solution with Excel (5 of 6)
Objective function Click on “Data” tab
to access Solver
=D7*B14+E7*B15+F7*B16+G7*B17
=J7-H7
These cells have no

effect; added for
“cosmetic” purposes.
Model formulation
=F11*B16+G11*B17
included on all Excel
files on Companion
Exhibit 4.1 Web site

Solution with Excel Solver Window (6 of 6)
Includes all five

constraints.
Exhibit 4.2
A Diet Example
Data and Problem Definition (1 of 5)
Breakfast Food Fat Cholesterol Iron Calcium Protein Fiber Cost
Cal (g) (mg) (mg) (mg) (g) (g) ($)
1. Bran cereal (cup) 90 0 0 6 20 3 5 0.18
2. Dry cereal (cup) 110 2 0 4 48 4 2 0.22
3. Oatmeal (cup) 100 2 0 2 12 5 3 0.10
4. Oat bran (cup) 90 2 0 3 8 6 4 0.12
5. Egg 75 5 270 1 30 7 0 0.10
6. Bacon (slice) 35 3 8 0 0 2 0 0.09
7. Orange 65 0 0 1 52 1 1 0.40
8. Milk-2% (cup) 100 4 12 0 250 9 0 0.16
9. Orange juice (cup) 120 0 0 0 3 1 0 0.50
10. Wheat toast (slice) 65 1 0 1 26 3 3 0.07
Breakfast to include at least 420 calories, 5 milligrams of iron,

400 milligrams of calcium, 20 grams of protein, 12 grams of
fiber, and must have no more than 20 grams of fat and 30
milligrams of cholesterol.
A Diet Example
Model Construction – Decision Variables (2 of 5)
x1 = cups of bran cereal

x2 = cups of dry cereal
x3 = cups of oatmeal
x4 = cups of oat bran
x5 = eggs
x6 = slices of bacon
x7 = oranges
x8 = cups of milk
x9 = cups of orange juice
x10 = slices of wheat toast
A Diet Example
Model Summary (3 of 5)
Minimize Z = 0.18x1 + 0.22x2 + 0.10x3 + 0.12x4 + 0.10x5 + 0.09x6
+ 0.40x7 + 0.16x8 + 0.50x9 + 0.07x10
subject to:
90x1 + 110x2 + 100x3 + 90x4 + 75x5 + 35x6 + 65x7
+ 100x8 + 120x9 + 65x10  420 calories
2x2 + 2x3 + 2x4 + 5x5 + 3x6 + 4x8 + x10  20 g fat
270x5 + 8x6 + 12x8  30 mg cholesterol
6x1 + 4x2 + 2x3 + 3x4+ x5 + x7 + x10  5 mg iron
20x1 + 48x2 + 12x3 + 8x4+ 30x5 + 52x7 + 250x8
+ 3x9 + 26x10  400 mg of calcium
3x1 + 4x2 + 5x3 + 6x4 + 7x5 + 2x6 + x7
+ 9x8+ x9 + 3x10  20 g protein
5x1 + 2x2 + 3x3 + 4x4+ x7 + 3x10  12
xi  0, for all j
A Diet Example
=SUMPRODUCT(C5:C14,F5:F14)
or
=C5*F5+C6*F6+C7*F7+C8*F8+
C9*F9+C10*F10+C11*F11+C12*
F12+C13*F13+C14*F14
Constraint value,
420, typed in cell F17
=SUMPRODUCT(C5:C14,E5:E14)
Decision or
variable, =C5*E5+C6*E6+C7*E7+C8*E8+
C5:C14 C9*E9+C10*E10+C11*E11+C12*
E12+C13*E13+C14*E14
Exhibit 4.5
A Diet Example
Decision variables;
“servings” in
column C
Constraint for “calories” in column F;

SUMPRODUCT (C5:C14,F5:F14)<420
Exhibit 4.6
An Investment Example
An investor has $70,000 to divide among several instruments. Municipal
bonds have an 8.5% return, CD’s a 5% return, t-bills a 6.5% return, and
growth stock 13%.
The following guidelines have been established:

1. No more than 20% in municipal bonds
2. Investment in CDs should not exceed the other three alternatives
3. At least 30% invested in treasury bills and CDs
4. More should be invested in CDs and treasury bills than in municipal
bonds and growth stocks by a ratio of 1.2 to 1
5. All $70,000 should be invested.

Maximize Z = $0.085x1 + 0.05x2 + 0.065 x3+ 0.130x4
subject to:
x1  $14,000
x2 - x1 - x3- x4  0
x2 + x3  $21,000
-1.2x1 + x2 + x3 - 1.2 x4  0
x1 + x2 + x3 + x4 = $70,000
x1, x2, x3, x4  0
where
x1 = amount ($) invested in municipal bonds
x2 = amount ($) invested in certificates of deposit
x3 = amount ($) invested in treasury bills
x4 = amount ($) invested in growth stock fund

Objective function, Z,
for total return
First guideline,
=D6*B13
Total investment requirement,

=D10*B13+E10*B14+F10*B15+G10*B16
Exhibit 4.7

Guideline constraints
Exhibit 4.8

Sensitivity Report (4 of 4)
Shadow price for the

amount available to invest
Exhibit 4.9
A Marketing Example
Data and Problem Definition (1 of 7)
Exposure
(people/ad or Cost
commercial)
Television Commercial 20,000 $15,000
Radio Commercial 2,000 6,000

Newspaper Ad 9,000 4,000
▪ Budget limit $100,000

▪ Television time for four commercials
▪ Radio time for 10 commercials
▪ Newspaper space for 7 ads
▪ Resources for no more than 15 commercials and/or ads

A Marketing Example
Maximize Z = 20,000x1 + 12,000x2 + 9,000x3
subject to:
15,000x1 + 6,000x 2+ 4,000x3  100,000
x1  4
x2  10
x3  7
x1 + x2 + x3  15
x1, x2, x3  0
where
x1 = number of television commercials
x2 = number of radio commercials
x3 = number of newspaper ads

A Marketing Example
Solution with Excel (3 of 7)
Exhibit 4.10
Objective function
=F6*D6+F7*D7+F8*D8
or
=SUMPRODUCT(D6:D8,F6:F8)
A Marketing Example
Includes all five

constraints
Exhibit 4.11
A Marketing Example
Integer Solution with Excel (5 of 7)
Decision variables
Click on “int” for

integer.
Exhibit 4.12
A Marketing Example
Integer restriction
Exhibit 4.13
A Marketing Example
Integer solution Better solution—17,000

more total exposures—than
rounded-down solution
Exhibit 4.14
A Transportation Example
Problem Definition and Data (1 of 3)
Warehouse supply of Retail store demand
Television Sets: for television sets:
1 - Cincinnati 300 A - New York 150
2 - Atlanta 200 B - Dallas 250
3 - Pittsburgh 200 C - Detroit 200
Total 700 Total 600
Unit Shipping Costs:
To Store
From Warehouse
A B C
1 $16 $18 $11
2 14 12 13
3 13 15 17
Minimize Z = $16x1A + 18x1B + 11x1C + 14x2A + 12x2B + 13x2C +
13x3A + 15x3B + 17x3C
subject to:
x1A + x1B+ x1C  300
x2A+ x2B + x2C  200
x3A+ x3B + x3C  200
x1A + x2A + x3A = 150
x1B + x2B + x3B = 250
x1C + x2C + x3C = 200
All xij  0

=C5+D5+E5
=C5+C6+C7
Exhibit 4.15
Solution with Solver Window (4 of 4)
Decision variables
Demand constraints
Supply constraints
Exhibit 4.16
A Blend Example

A Blend Example
Problem Statement and Variables (2 of 7)
Determine the optimal mix of the three components in each grade of

motor oil that will maximize profit. Company wants to produce at
least 3,000 barrels of each grade of motor oil.
Decision variables: The quantity of each of the three components

used in each grade of gasoline (9 decision variables); xij = barrels of
component i used in motor oil grade j per day, where i = 1, 2, 3 and j =
s (super), p (premium), and e (extra).

A Blend Example
Problem Statement and Variables (3 of 7)
Blend specification constraint for super, which must

contain 50% of component 1.
x1s Convert to standard form, a

 0.50 linear function on the left side
x1s + x2 s + x3 s
and numeric value on the right.
Multiply both sides by the

denominator and collect terms
x1s  0.50( x1s + x2 s + x3 s )
0.5 x1s − 0.5 x2 s − 0.5 x3 s  0
A Blend Example
Maximize Z = 11x1s + 13x2s + 9x3s + 8x1p + 10x2p + 6x3p + 6x1e
+ 8x2e + 4x3e
subject to:
x1s + x1p + x1e  4,500 bbl.
x2s + x2p + x2e  2,700 bbl.
x3s + x3p + x3e  3,500 bbl.
0.50x1s - 0.50x2s - 0.50x3s  0
0.70x2s - 0.30x1s - 0.30x3s  0
0.60x1p - 0.40x2p - 0.40x3p  0
0.75x3p - 0.25x1p - 0.25x2p  0
0.40x1e- 0.60x2e- - 0.60x3e  0
0.90x2e - 0.10x1e - 0.10x3e  0
x1s + x2s + x3s  3,000 bbl.
x1p+ x2p + x3p  3,000 bbl. all xij  0
x1e+ x2e + x3e  3,000 bbl.
A Blend Example
=B7+B10+B13
=B7+B8+B9 =0.5*B7-0.5*B8-0.5*B9
Decision variables - B7:B15
Exhibit 4.17
A Blend Example
Exhibit 4.18

A Blend Example
Sensitivity Report (7 of 7)
Exhibit 4.19
The shadow price for The upper limit for the sensitivity range
component 1 is $20. for component 1 is 4500+1700=6200.
A Multiperiod Scheduling Example
Production Capacity: 160 computers per week
50 more computers with overtime
Assembly Costs: $190 per computer regular time;
$260 per computer overtime
Inventory Holding Cost: $10/computer per week
Order schedule:
Week Computer Orders
1 105
2 170
3 230
4 180
5 150
6 250

A Multi-Period Scheduling Example
Decision Variables (2 of 5)
Decision Variables:
rj = regular production of computers in week j
(j = 1, 2, …, 6)
oj = overtime production of computers in week j
(j = 1, 2, …, 6)
ij = extra computers carried over as inventory in week j
(j = 1, 2, …, 5)

Model summary:
Minimize Z = $190(r1 + r2 + r3 + r4 + r5 + r6) + $260(o1+o2
+o3 +o4+o5+o6) + 10(i1 + i2 + i3 + i4 + i5)
subject to:
rj  160 computers in week j (j = 1, 2, 3, 4, 5, 6)
oj  150 computers in week j (j = 1, 2, 3, 4, 5, 6)
r1 + o1 - i1 = 105 week 1
r2 + o2 + i1 - i2 = 170 week 2
r3 + o3 + i2 - i3 = 230 week 3
r4 + o4 + i3 - i4 = 180 week 4
r5 + o5 + i4 - i5 = 150 week 5
r6 + o6 + i5 = 250 week 6
rj, oj, ij  0
Copyright © 2016 Pearson Education, Ltd.

Exhibit 4.20 4-40
Exhibit 4.21
A Data Envelopment Analysis (DEA) Example
Problem Definition (1 of 5)
DEA compares a number of service units of the same type based on

their inputs (resources) and outputs. The result indicates if a
particular unit is less productive, or efficient, than other units.
Elementary school comparison:
Input 1 = teacher to student ratio
Input 2 = supplementary funds/student
Input 3 = average educational level of parents
Output 1 = average reading SOL score

Output 2 = average math SOL score
Output 3 = average history SOL score

Problem Data Summary (2 of 5)
Inputs Outputs
School 1 2 3 1 2 3
Alton .06 $260 11.3 86 75 71
Beeks .05 320 10.5 82 72 67
Carey .08 340 12.0 81 79 80
Delancey
.06 460 13.1 81 73 69

Decision Variables and Model Summary (3 of 5)
Decision Variables:
xi = a price per unit of each output where i = 1, 2, 3
yi = a price per unit of each input where i = 1, 2, 3
Model Summary:
Maximize Z = 81x1 + 73x2 + 69x3
subject to:
.06 y1 + 460y2 + 13.1y3 = 1
86x1 + 75x2 + 71x3 .06y1 + 260y2 + 11.3y3
82x1 + 72x2 + 67x3  .05y1 + 320y2 + 10.5y3
81x1 + 79x2 + 80x3  .08y1 + 340y2 + 12.0y3
81x1 + 73x2 + 69x3  .06y1 + 460y2 + 13.1y3
xi, yi  0

=E8*D12+F8*D13+G8*D14
=B5*B12+C5*B13+D5*B14
Value of outputs, also in cell H8
Exhibit 4.22
Scaling constraint
Constraint for
outputs < inputs
Exhibit 4.23
Example Problem Solution
Problem Statement and Data (1 of 5)
Canned cat food, Meow Chow; dog food, Bow Chow.
■ Ingredients/week: 600 lb. horse meat; 800 lb. fish; 1000 lb. cereal.
■ Recipe requirement: Meow Chow at least half fish
Bow Chow at least half horse meat.
■ 2,250 sixteen-ounce cans available each week.
■ Profit /can: Meow Chow $0.80
Bow Chow $0.96.
How many cans of Bow Chow and Meow Chow should be

produced each week in order to maximize profit?

Model Formulation (2 of 5)
Step 1: Define the Decision Variables

xij = ounces of ingredient i in pet food j per week,
where i = h (horse meat), f (fish) and c (cereal),
and j = m (Meow chow) and b (Bow Chow).
Step 2: Formulate the Objective Function

Maximize Z = $0.05(xhm + xfm + xcm) + 0.06(xhb + xfb + xcb)

Model Formulation (3 of 5)
Step 3: Formulate the Model Constraints
Amount of each ingredient available each week:
xhm + xhb  9,600 ounces of horse meat
xfm + xfb  12,800 ounces of fish
xcm + xcb  16,000 ounces of cereal additive
Recipe requirements:
Meow Chow: xfm/(xhm + xfm + xcm)  1/2 or - xhm + xfm- xcm  0
Bow Chow: xhb/(xhb + xfb + xcb)  1/2 or xhb- xfb - xcb  0
Can Content: xhm + xfm + xcm + xhb + xfb+ xcb  36,000 ounces

Step 4: Model Summary

Maximize Z = $0.05xhm + $0.05xfm + $0.05xcm + $0.06xhb
+ 0.06xfb + 0.06xcb
subject to:
xhm + xhb  9,600 ounces of horse meat
xfm + xfb  12,800 ounces of fish
xcm + xcb  16,000 ounces of cereal additive
- xhm + xfm- xcm  0
xhb- xfb - xcb  0
xhm + xfm + xcm + xhb + xfb+ xcb  36,000 ounces
xij  0

2 Linear Programming - Model Examples

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Linear Programming:

Copyright © 2016 Pearson Education, Ltd. 4-1

◼ A Product Mix Example

Copyright © 2016 Pearson Education, Ltd. 4-2

Copyright © 2016 Pearson Education, Ltd. 4-3

Figure 4.1 Quick-

Copyright © 2016 Pearson Education, Ltd. 4-4

Copyright © 2016 Pearson Education, Ltd. 4-5

These cells have no

Copyright © 2016 Pearson Education, Ltd. 4-7

Includes all five

Breakfast to include at least 420 calories, 5 milligrams of iron,

x1 = cups of bran cereal

Constraint for “calories” in column F;

The following guidelines have been established:

Copyright © 2016 Pearson Education, Ltd. 4-14

Copyright © 2016 Pearson Education, Ltd. 4-15

Total investment requirement,

Copyright © 2016 Pearson Education, Ltd. 4-16

Copyright © 2016 Pearson Education, Ltd. 4-17

Shadow price for the

Radio Commercial 2,000 6,000

▪ Budget limit $100,000

Copyright © 2016 Pearson Education, Ltd. 4-19

Copyright © 2016 Pearson Education, Ltd. 4-20

Includes all five

Click on “int” for

Integer solution Better solution—17,000

Copyright © 2016 Pearson Education, Ltd. 4-27

Copyright © 2016 Pearson Education, Ltd. 4-30

Determine the optimal mix of the three components in each grade of

Decision variables: The quantity of each of the three components

Copyright © 2016 Pearson Education, Ltd. 4-31

Blend specification constraint for super, which must

x1s Convert to standard form, a

Multiply both sides by the

Copyright © 2016 Pearson Education, Ltd. 4-35

Copyright © 2016 Pearson Education, Ltd. 4-37

Copyright © 2016 Pearson Education, Ltd. 4-38

Copyright © 2016 Pearson Education, Ltd.

DEA compares a number of service units of the same type based on

Output 1 = average reading SOL score

Copyright © 2016 Pearson Education, Ltd. 4-42

Alton .06 $260 11.3 86 75 71

Beeks .05 320 10.5 82 72 67

Carey .08 340 12.0 81 79 80

Copyright © 2016 Pearson Education, Ltd. 4-43

Copyright © 2016 Pearson Education, Ltd. 4-44

Value of outputs, also in cell H8

How many cans of Bow Chow and Meow Chow should be

Copyright © 2016 Pearson Education, Ltd. 4-47

Step 1: Define the Decision Variables

Step 2: Formulate the Objective Function

Copyright © 2016 Pearson Education, Ltd. 4-48

Bow Chow: xhb/(xhb + xfb + xcb)  1/2 or xhb- xfb - xcb  0

Copyright © 2016 Pearson Education, Ltd. 4-49

Step 4: Model Summary

Copyright © 2016 Pearson Education, Ltd. 4-50

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