Professional Documents
Culture Documents
Chapter 03
Chapter 03
LINEAR PROGRAMING
FORMULATION & APPLICATION
1. Advertising-Mix Problem
3. Cost-Benefit-Trade-Off Problems
4. Mixed Problems
• Background
–Television commercials
–Advertisements in magazines.
Costs
Expected number of
1,300,000 600,000 500,000
exposures
1. Resource constraint
S ≥ 0, L ≥ 0
S, L are integers.
Activities
SUMPRODUCT
resource used per unit of activity (resource used per unit,
changing cells) <=
Total Profit
Level of Activity changing cells SUMPRODUCT(profit per unit, changing cells)
Activities
SUMPRODUCT
benefit achieved per unit of activity (benefit per unit,
changing cells) >=
Total Cost
Level of Activity changing cells SUMPRODUCT(cost per unit, changing cells)
and
TV ≥ 0, M ≥ 0, SS ≥ 0.
SUMPRODUCT
resource used per unit of activity (resource used per unit,
changing cells) <=
Constraints
Benefit Benefit
Achieved Needed
• Quantity constraint
From Output
12 lathe F1
produced $900/lathe
$800/lathe
C2 8 lathes
needed
$800/lathe $900/lathe
15 lathes F2
produced
$700/lathe
C3 9 lathes
needed
Ian 47 45 32 51 12
Joan 39 56 36 43 13
Sean 32 51 25 46 15
2
3 Task
4 Required Time Word Hourly
5 (Hours) Processing Graphics Packets Registrations Wage
6 Ann 35 41 27 40 $14
7 Assignee Ian 47 45 32 51 $12
8 Joan 39 56 36 43 $13
9 Sean 32 51 25 46 $15
10
11
12 Task
13 Word
14 Cost Processing Graphics Packets Registrations
15 Ann $490 $574 $378 $560
16 Assignee Ian $564 $540 $384 $612
17 Joan $507 $728 $468 $559
18 Sean $480 $765 $375 $690
19
20
21 Task
22 Word Total
23 Assignment Processing Graphics Packets Registrations Assignments Supply
24 Ann 0 0 1 0 1 = 1
25 Assignee Ian 0 1 0 0 1 = 1
26 Joan 0 0 0 1 1 = 1
27 Sean 1 0 0 0 1 = 1
28 Total Assigned 1 1 1 1
29 = = = = Total Cost
30 Demand 1 1 1 1 $1,957
1. 6 teams: all teams have 30 minutes to analyze and solve the managerial problem (1
assigned case study).
- Components of LP model
4. Each team’s member must have 1 role (oral/writing presentation, answering, questions,
…).
5. All works must be sent to me via email by the end of the class.
© The McGraw-Hill Companies, Inc., 2013 3.49
QUIZ 2 (INDIVIDUAL WORK)
Cutting Stock Problem
Each of the accessories includes a rod made out of stainless steel. However, many different
lengths are needed: 12, 18, 24, 40, and 60 inches. Decora purchases 60-inch rods from an
outside supplier and then cuts the rods as needed for their products.
For example, a 60-inch rod could be used to make a 40-inch and an 18-inch rod (with 2
inches of waste), or five 12-inch rods (with no waste).
For the next production period, Decora needs twenty-five 12-inch rods, fifty-two 18-inch
rods, forty-five 24-inch rods, thirty 40-inch rods, and twelve 60-inch rods.
What is the fewest number of 60-inch rods that can be purchased to meet their production
needs? Formulate and solve an integer programming model in a spreadsheet
The management of Heart Start now has asked their top management scientist
(you) to address the following two questions.