Introduction To Management Science: Thirteenth Edition, Global Edition

Introduction to Management Science
Thirteenth Edition, Global Edition
Chapter 4
Linear Programming:
Modeling Examples
Copyright © 2019 Pearson Education, Ltd. All Rights Reserved

Learning Objectives
4.1 A Product Mix Example
4.2 A Diet Example
4.3 An Investment Example
4.4 A Marketing Example
4.5 A Transportation Example
4.6 A Blend Example
4.7 A Multiperiod Scheduling Example
4.8 A Data Envelopment Analysis Example

Learning Objective 4.1
• A Product Mix Example

Problem Definition 1
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?

Figure 4.1 Quick-Screen Shirts

Data
Resource requirements for the product mix example.
Blank Processing Time Cost($) Profit ($)

(h r) per dozen
ou 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 (1 of 2)
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  $90 x1  $125 x2  $45 x3  $65 x4

Model Construction (2 of 2)
Model Constraints:
0.10 x1  0.25 x2  0.08 x3  0.21x 4  72 hr
3 x1  3 x2  x3  x 4  1,200 boxes
$36 x1  $48 x2  $25 x3  $35 x 4  $25,000
x1  x2  500 dozen sweatshirts
x3  x4  500 dozen T - shirts

Computer Solution with Excel 1
Exhibit 4.1

Solution with Excel Solver Window 1
Exhibit 4.2

Solution with QM for Windows (1 of 2)
Exhibit 4.3
Model solution is:

x1=175.56 boxes of front-only sweatshirts
x2=57.78 boxes of front and back sweatshirts
x3=500 boxes of front-only t-shirts
Z=$45,522.22 profit
Solution with QM for Windows (2 of 2)
Exhibit 4.4

• A Diet Example

Data and Problem Definition 1
Breakfast Food Calories Fat Cholesterol Iron Calcium Protein Fiber Cost
(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.
Model Construction – Decision Variables
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
Model Summary 1
Minimize Z  0.18 x1  0.22 x2  0.10 x3  0.12 x4  0.10 x5  0.09 x6
 0.40 x7  0.16 x8  0.50 x9  0.07 x10
subject to: 90 x1  110 x2  100 x3  90 x 4  75 x5  35 x 6  65 x7
 100 x8  120 x9  65 x10  420 calories
2 x2  2 x3  2 x 4  5 x5  3 x 6  4 x8  x10  20 g fat
270 x5  8 x6  12 x8  30 mg cholesterol
6 x1  4 x2 2 x3  3 x 4  x5  x7  x10  5 mg iron
20 x1  48 x2  12 x3  8 x 4  30 x5  52 x7  250 x8
 3 x9  26 x10  400 mg of calcium
3 x1  4 x2  5 x3  6 x 4  7 x5  2 x 6  x7
 9 x8  x9  3 x10  20 g protein
5 x1  2 x2  3 x3  4 x 4  x7  3 x10  12
xi  0, for all j
Exhibit 4.5

Exhibit 4.6

• An Investment Example

Model Summary 2 (1 of 2)
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  $0.085 x1  0.05 x2  0.065 x3  0.130 x 4
subject to: x  $14,000
1
x2  x1  x3  x 4  0
x2  x3  $21,000
1.2 x1  x2  x3  1.2 x 4  0
x1  x2  x3  x 4  $70,000
x1, x2 , x3 , x 4  0
where
x1 = amount ($) invested in municipal bonds
x2 = amount ($) invested in certificates of deposit
x3 = amount ($) invested in treasury bills
x4 = amount ($) invested in growth stock fund
Exhibit 4.7

Exhibit 4.8

Sensitivity Report 1
Exhibit 4.9

• A Marketing Example

Data and Problem Definition 2
Blank Exposure Cost
(people/ad or commercial)
Television commercial 20,000 $15,000
Radio commercial 12,000 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
Model Summary 3
Maximize Z  20,000 x1  12,000 x2  9,000 x3
subject to:
15,000 x1  6,000 x2  4,000 x3  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
Solution with Excel 1
Exhibit 4.10

Exhibit 4.11

Integer Solution with Excel (1 of 3)
Exhibit 4.12

Exhibit 4.13

Exhibit 4.14

• A Transportation Example

Problem Definition and Data 1
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:

From Warehouse To Store(A) To Store(B) To Store(C)
1 $16 $18 $11
2 14 12 13
3 13 15 17

Model Summary 4
Minimize Z  $16 x1A  18 x1B  11x1C  14 x2A  12 x2B  13 x2C 
13 x3A  15 x3B  17 x3C
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

Exhibit 4.15

Solution with Solver Window 1
Exhibit 4.16

• A Blend Example

Maximum Barrels
Component Cost/barrel
Available/Day
1 4,500 $12
2 2,700 $10
3 3,500 $14
Grade Component Specifications Selling Price/Barrel

At least 50% of 1
Super $23
Not more than 30% of 2
At least 40% of 1
Premium $20
Not more than 25% of 3
At least 60% of 1
Extra $18
At least 10% of 2

Problem Statement and Variables 1
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).

Problem Statement and Variables 2
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  x2s  x3s
and numeric value on the right.
Multiply both sides by the denominator and collect terms

x1s  0.50( x1s  x2s  x3s )
0.5 x1s  0.5 x2s  0.5 x3s  0

Maximize Z  11x 13x  9x  8x 10x  6 x  6x
1s 2s 3s 1p 2p 3p 1e
 8x  4x
2e 3e
subject to: x  x  x  4,500 bbl.

1s 1p 1e
x  x  x  2,700 bbl.
2s 2p 2e
x  x  x  3,500 bbl.
3s 3p 3e
0.50x  0.50x  0.50 x  0
1s 2s 3s
0.70x  0.30x  0.30x  0
2s 1s 3s
0.60x  0.40x  0.40x  0
1p 2p 3p
0.75x  0.25x  0.25x  0
3p 1p 2p
0.40x  0.60x  0.60x  0
1e 2e 3e
0.90x 0.10x  0.10x  0
2e 1e 3e
x1s  x2s  x3s  3,000 bbl.

x1p  x2 p  x3 p  3,000 bbl. all xij  0
x1e  x2e  x3e  3,000 bbl.

Exhibit 4.17

Exhibit 4.18

Sensitivity Report 2
Exhibit 4.19

• 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
$10
Inventory Holding Cost:
computer per week
Order schedule: Week Computer Orders
1 105
2 170
3 230
4 180
5 150
6 250

Decision Variables
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 6
Minimize Z  $190 (r  r  r  r  r  r )  $260 (o  o
1 2 3 4 5 6 1 2
 o  o  o  o ) 10 (i  i  i  i  i )
3 4 5 6 1 2 3 4 5
subject to: r j  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  i 2  170 week 2
r3  o3  i 2  i 3  230 week 3
r4  o4  i3  i 4  180 week 4
r5  o5  i 4  i 5  150 week 5
r6  o6  i 5  250 week 6
r j , o j , i j  0
Exhibit 4.20

Solution with Solver Window 3 (1 of 3)
Exhibit 4.21

r1=160 computers produced in regular time in week 1

o3=25 computers produced with overtime in week 3
i1=55 computers carried over in inventory in week 1

• A Data Envelopment Analysis Example

Problem Definition 2
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
School Input 1 Input 2 Input 3 Output 1 Output 2 Output 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
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  73 x2  69 x3
subject to:
.06 y1  460 y 2  13.1y 3  1
86 x1  75 x2  71x3  .06 y 1  260 y 2  11.3 y 3
82 x1  72 x2  67 x3  .05 y 1  320 y 2  10.5 y 3
81x1  79 x2  80 x3  .08 y 1  340 y 2  12.0 y 3
81x1  73 x2  69 x3  .06 y 1  460 y 2  13.1y 3
xi , y i  0
Exhibit 4.22

Exhibit 4.23

Example Problem Solution: Problem
Statement and Data
Canned cat food, Meow Chow; dog food, Bow Chow.
• Ingredients/week: 600 lb. horse meat; 800 lb. fish; 1,000 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?
Example Problem Solution: Model
Formulation (1 of 3)
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 )

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:
xfm 1
Meow Chow:  or  xhm  xfm  xcm  0
( xhm  xfm  xcm ) 2
xhb 1
Bow Chow:  or xhb  xfb  xcb  0
( xhb  xfb  xcb ) 2
Can Content : xhm  xfm  xcm  xhb  xfb  xcb  36,000 ounces
Step 4: Model Summary
Maximize Z  $0.05 xhm  $0.05 xfm  $0.05 xcm  $0.06 x hb
0.06 xfb  0.06 xcb
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
Example Problem Solution: Solution with
QM for Windows (1 of 2)
Solution to the Bark’s Pet Food Company problem using

QM for Windows. To determine the number of cans of
each flavor, we must sum the ingredient amounts for each
and divide by 16 ounces (the size of a can).

Example Problem Solution: Solution with
QM for Windows (2 of 2)
xhm  xfm  xcm  0  8,400  8,400  16,800 oz. of Meow Chow
16,800
= 1,050 cans of Meow Chow
16
xhb  xfb  xcb  9,600  4,400  5,200  19,200 oz. of Bow Chow
19,200
= 1,200 cans of Bow Chow
16
Note that there are multiple optimal solutions to this model.

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Introduction to Management Science

Thirteenth Edition, Global Edition

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Blank Processing Time Cost($) Profit ($)

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Model solution is:

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Breakfast to include at least 420 calories, 5 milligrams of iron, 400

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• Budget limit $100,000

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Unit Shipping Costs:

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Grade Component Specifications Selling Price/Barrel

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Decision variables: The quantity of each of the three

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x1s Convert to standard form, a

Multiply both sides by the denominator and collect terms

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subject to: x  x  x  4,500 bbl.

x1s  x2s  x3s  3,000 bbl.

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School Input 1 Input 2 Input 3 Output 1 Output 2 Output 3

Alton .06 $260 11.3 86 75 71

Delancey .06 460 13.1 81 73 69

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