Applications and Solutions of Linear Programming SESSION 1

4. . 7. Utilize Excel to solve a variety of linear programming problems. Explain at least two applications of linear programming. Make managerial conclusions based on computer (Excel) output. 2. Set up constraints that have unique structures. Interpret the Excel output of linear programming problems. Formulate linear programming problems with different objectives. 3.Learning Objectives After completing this chapter. you should be able to: 1. 6. 5. Translate statements into constraint formulas.

and proportionality) – • Linear programming problems may include: – Different types of decision variables definitions . certainty. divisibility.Elements of Linear Programming • Issues in formulating problems – Degree of simplification of the real-world problem Violation of the assumptions of linear programming (additivity.

Profit from A is 40 per unit and B is 35 per unit. The labour hrs reqd are 4 and 3 respectively. Solve using LPP for max profit. . The limit to labour hrs is 96 and raw material is 60 kg.Simple problem Lp • A company needs to make 2 products A and B. and raw material reqd is 2 and 3 kg respectively.

Management wants to determine how many units of each product to produce so as to maximize profit.Product Mix Problem • 1. one unit of frame parts and . For each unit of product 1. The World Light Company produces two light fixtures (products 1 and 2) that require both metal frame parts and electrical components.

and 400 units of coffee tables. recliner. respectively. There are an aggregate of 800 machine hours . 150 units of love seats. 100 units of recliners. Each unit of a sofa. love seats. love seat. recliners. and one coffee table is $73. one love seat is $105. The sales forecasts indicate that the potential sales volume is limited to 200 units of sofas. The profit contribution from selling one sofa is $120.000. including sofas.Example 4-1 Product-Mix Problem The Style and Comfort Furniture Manufacturing Company wishes to determine its production schedule for the next quarter. The company produces four types of furniture. and $150. one recliner is $150. The quarterly production budget is set at $180. $500. and coffee tables. and coffee table costs $400. $300.

Table 4–1 Per Unit Machine and Labor Hour Required for Each Product .

There must be at least 30 love seats manufactured. 1.Policy constraints At least 40 percent of all production costs must be incurred for the sofas. At least 25 percent of all production costs must be allocated to the recliners. 2. . 3.

x2. recliners and coffee tables produced respectively.) Constraints: • 400x1+300x2+500x3+150x4<=1800 00 (budget) X1 x2 <=200(sales volume) <=150 x3 <=100 .Style and Comfort Furniture Example • x1. of sofas.love seats.x4 : no.x3.

5x4>=0 .Continued) Policy constraint • 400x1>=.25(400 x1+300x2+500x3+150x4) Solving: -100x1-75x2+375x3-37.40(400x1+300x2+500x3+ 150x4) Solving: 240x1-120x2-200x3-60x4 >=0 • 500x3>=.

Exhibit 4-1 Input Screen for the Style and Comfort Furniture Company Problem .

Exhibit 4–2 Solver Dialog Box Exhibit 4–3 Add Constraint Dialog Box .

Target cell shows the overall performance measure (i. . and right-hand-side constraints). Data cells simply show the data of the problem (constraint coefficients..e. objective function coefficients.Exhibit 4–4 Completed Solver Dialog Box There are three types of Solver cells: 1. 2. the maximum profit or the minimum cost). 3. Output cell shows the output or quantity of the decision variables based on the changing cells.

Exhibit 4-5 Solver Options Dialog Box .

Exhibit 4–7 Output Screen for the Style and Comfort Furniture Company Problem .

Table 4–2 Cost per Ounce and Dietary Requirements for Diet Problem .

15. 30 cents for banana juice. and 40 cents for pineapple . respectively. How many quarts of each must be mixed together to achieve one gallon (four quarts) that has a sugar content of at least 17 percent to minimize cost? The cost per quart is 20 cents for orange juice. banana. and pineapple—is 10. and 20 percent.4-3 Blending Problem Formulate the appropriate model for the following blending problem: The sugar content of three juices— orange.

Example 4-2 Diet Problem .

4-3 Blending Problem Solution Variable definitions O = quantity of orange juice in quarts B = quantity of banana juice in quarts P = quantity of pineapple juice in quarts .