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Situational Cases on Integer Programming Problem

Case-I
The Otter Creek Winery produces three kinds of table wine a blush, a
white and a red. The winery has 30,000 pounds of grapes available to
produce wine this season. A cask of blush requires 360 pounds of
grapes, a cask of white requires 375 pounds, and a cask of red requires
410 pounds. The winery has enough storage space in its aging room to
store 67 casks of wine. The winery has 2,200 hours of production
capacity, and it requires 14 hours to produce a cask of blush, 10 hours to
produce a cask of white, and 18 hours to produce a cask of red. From
records of previous years sales, the winery knows it will sell at least
twice as much blush as red and at least 1.5 times as much white as blush.
The profit for a cask of blush is $12,100, the profit for a cask of white is
$8,700, and the profit for a cask of red is $10,500. The winery wants to
know the number of casks of each table wine to produce. Formulate and
solve an integer programming model for this problem.
Case II
Corsouth Mortgage Associates is a large home mortgage firm in the
Southeast. It has a pool of permanent and temporary computer operators
who process mortgage accounts, including posting payments and
updating escrow accounts for insurance and taxes. A permanent operator
can process 220 accounts per day, and a temporary operator can process
140 accounts per day. On average, the firm must process and update at
least 6,300 accounts daily. The company has 32 computer workstations
available. Permanent and temporary operators work 8 hours per day. A
permanent operator averages about 0.4 errors per day, whereas a
temporary operator averages 0.9 errors per day. The company wants to

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limit errors to 15 per day. A permanent operator is paid $120 per day,
whereas a temporary operator is paid $75 per day. Corsouth wants to
determine the number of permanent and temporary operators it need to
minimize cost. Formulate and solve an integer programming model for
this problem and compare this solution to the non- integer solution.
In the above problem, Corsouth Mortgage Associates is considering
hiring some hourly, part-time computer operators in addition to its
permanent and temporary operators. A part- time operator can process
12 accounts per hour, averages 0.16 errors per hour, and is paid $4.50
per hour. Corsouth wants to know the number of permanent and
temporary employees it should use, plus the number of part-time hours it
should arrange for. Formulate and solve a mixed integer model for this
problem.