NON LINEAR OPTIMIZATION

NON LINEAR PROBLEM EX 1

• A MANUFACTURING COMPANY PRODUCES TWO PRODUCTS ; A and

B. THE DETAILS ARE GIVEN IN TABLE BELOW :

product QUANTI UNIT UNIT UNIT QUANTI

s TY PRICE VARIAB FIXED TY
DEMAN LE COST PRODU
DED COST CED
A X P1 0.1 X 200 X
=1500-
5 P1
B Y= P2 0.1 Y 300 Y
3800
-=10 P2
Non linear ioptimization

RESOURCES PRODUCT A PRODUCT B

REQUIRED PER UNIT
( INPUT )
ELECTRONIC PARTS 5 6
MANDAYS 1 2

THE SUPPLY OF ELECTRONIC PARTS IS LIMITED TO 600 UNITS PER

DAY WHILE AVAILABLE MANDAYS IS 400. THE DAILY PRODUCTION (
SUPPLY ) IS LIMTED TO 80 UNITS OF PRODUCT A AND 60 UNITS OF
PRODUCT B . HOW MANY UNITS OF EACH TYPE A and B SHOULD
THE COMPANY PRODUCE IN ORDER TO MAXIMIZE TOTAL PROFIT ?
Formulate as a non linear programming problem and solve ?
SOLUTION

MAX TOTAL PROFIT Z = 100 X + 80 Y - 0.3 X ^2 - 0.2 Y ^2

SUBJECT TO CONSTRAINTS :
5 X + 6 Y ≤ 600
X + 2 Y ≤ 160
X ≤ 80
Y ≤ 60
WORKING NOTES :
P 1 = 300 - 0.2 X and P2 = 380 - 0.1 Y ; DEMAND FUNCTIONS ARE REARRANGED I
N THIS MANNER.
TOTAL COST FUNCTIONS ARE :
C1 = 200 X + 0.1 X^ 2 and C2 = 300 Y + 0.1 Y ^2
TOTAL REVENUE FUNCTIONS ARE :
TR = P1 * X + P2 * Y = (300 - 0.2 X ) X + ( 380 - 0.1 Y) Y
TOTAL COST FUNCTIONS ARE : TC = C1 + C2 = ( 200 X + 0.1 X^ 2) + ( 300 Y + 0.1
Y ^2 )
HENCE , TOTAL PROFIT FUNCTION Z = TR - TC given as above .
Thank you!