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CHAPTER 3

LINEAR PROGRAMMING: FORMULATION AND APPLICATIONS

Review Questions
3.1-1 Determine which levels should be chosen of different advertising media to obtain the most
effective advertising mix for the new cereal.
3.1-2 The expected number of exposures.
3.1-3 TV commercials are not being used and that is the primary method of reaching young
children.
3.1-4 They need to check the assumption that fractional solutions are allowed and the assumption
of proportionality.
3.2-1 Each functional constraint in the linear programming model is a resource constraint.
3.2-2 Amount of resource used ≤ Amount of resource available.
3.2-3 1) The amount available of each limited resource.
2) The amount of each resource needed by each activity. Specifically, for each
combination of resource and activity, the amount of resource used per unit of activity
must be estimated.
3) The contribution per unit of each activity to the overall measure of performance.
3.2-4 The four activities in the examples are determining the most profitable mix of production
rates for two new products, purchase quantities for airplanes, capital budgeting, and
choosing the mix of advertising media.
3.2-5 The resources in the examples are available production capacities of different plants,
investment capital available, a maximum on small airplane purchases, cumulative
investment capital available by certain times, financial allocations for advertising and for
planning purposes, and TV commercial spots available for purchase.
3.3-1 For resource-allocation problems, limits are set on the use of various resources, and then
the objective is to make the most effective use of these given resources. For cost-benefit-
tradeoff problems, management takes a more aggressive stance, prescribing what benefits
must be achieved by the activities under consideration, and then the objective is to achieve
all these benefits with minimum cost.
3.3-2 The identifying feature for a cost-benefit-tradeoff problem is that each functional constraint
is a benefit constraint.
3.3-3 Level achieved ≥ Minimum acceptable level.
3.3-4 1) The minimum acceptable level for each benefit (a managerial policy decision).

3-1
2) For each benefit, the contribution of each activity to that benefit (per unit of the
activity).
3) The cost per unit of each activity.
3.3-5 The activities for the two examples are choosing the mix of advertising media and
personnel scheduling.
3.3-6 The benefits for the two examples are increased market share and minimizing total
personnel costs while meeting service requirements.
3.4-1 Mixed problems may contain all three types of functional constraints: resource constraints,
benefit constraints, and fixed-requirement constraints.
3.4-2 Two new goals need to be incorporated into the model. The first is that the advertising
should be seen by at least 5 million young children. The second is that the advertising
should be seen by at least 5 million parents of young children.
3.4-3 Two benefit constraints and a fixed-requirement constraint are included in the new linear
programming model.
3.4-4 Management decided to adopt the new plan because it does a much better job of meeting all
of management’s goals for the campaign.
3.5-1 Transportation problems deal with transporting goods through a distribution network at
minimum cost.
3.5-2 An identifying feature for a transportation problem is that each functional constraint is a
fixed-requirement constraint.
3.5-3 In contrast to the ≤ form for resource constraints and the ≥ form for benefit constraints,
fixed-requirement constraints have an = form.
3.5-4 Factory 1 must ship 12 lathes, Factory 2 must ship 15 lathes, Customer 1 must receive 10
lathes, Customer 2 must receive 8 lathes, and Customer 3 must receive 9 lathes.
3.6-1 Assignment problems involve making assignments.
3.6-2 Pure assignment problems have all fixed-requirement constraints.
3.6-3 The changing cells for a pure asignment problem give a value of 1 when the corresponding
assignment is made, and a value of 0 otherwise.
3.7-1 A linear programming model must accurately reflect the managerial view of the problem.
3.7-2 Large linear programming models generally are formulated by management science teams.
3.7-3 The line of communication between the management science team and the manager is vital.
3.7-4 Model validation is a testing process used on an initial version of a model to identify the
errors and omissions that inevitably occur when constructing large models.
3.7-5 The process of model enrichment involves beginning with a relatively simple version of the
model and then using the experience gained with this model to evolve toward more
elaborate models that more nearly reflect the complexity of the real problem.

3-2
3.7-6 What-if analysis is an important part of a linear programming study because an optimal
solution can only be solved for with respect to one specific version of the model at a time.
Management may have “what-if” questions about how the solution will change given
changes in the model formulation.

Problems
3.1 a)
A B C D E F G H
1 TV Spots Magazine Ads Radio Ads SS Ads
2 Exposures per Ad 1300 600 900 500
3 (thousands)
4 Budget Budget
5 Cost per Ad ($thousands) Spent Available
6 Ad Budget 300 150 200 100 4000 <= 4000
7 Planning Budget 90 30 50 40 1000 <= 1000
8
9 Total Exposures
10 TV Spots Magazine Ads Radio Ads SS Ads (thousands)
11 Number of Ads 0 10 10 5 17,500
12 <= <=
13 Max TV Spots 5 10 Max Radio Spots

Data cells: B2:E2, B6:E7, H6:H7, B13, and D13


Changing cells: B11:E11
Target cell: H11

F
4 Budget H
5 Spent 9 Total Exposures
6 =SUMPRODUCT(B6:E6,$B$11:$E$11) 10 (thousands)
7 =SUMPRODUCT(B7:E7,$B$11:$E$11) 11 =SUMPRODUCT(B2:E2,B11:E11)

b) This is a linear programming model because the decisions are represented by changing
cells that can have any value that satisfy the constraints. Each constraint has an output
cell on the left, a mathematical sign in the middle, and a data cell on the right. The
overall level of performance is represented by the target cell and the objective is to
maximize that cell. Also, the Excel equation for each output cell is expressed as a
SUMPRODUCT function where each term in the sum is the product of a data cell and a
changing cell.
c) Let T = number of commercials on TV
M = number of advertisements in magazines
R = number of commercials on radio
S = number of advertisements in Sunday supplements.
Maximize Exposures (thousands) = 140T + 60M + 90R + 50S
subject to 300T + 150M + 200R + 100S ≤ 4,000 ($thousands)
90T + 30M + 50R + 40S ≤ 1,000 ($thousands)
T ≤ 5 spots
R ≤ 10 spots
and T ≥ 0, M ≥ 0, R ≥ 0, S ≥ 0.

3-3
3.2 a & c)
A B C D E F
1 Activity 1 Activity 2
2 Contribution per unit $20 $30
3
4 Resource Usage Resource Resource
5 per Unit of Activity Used Available
6 Resource 1 2 1 10 <= 10
7 Resource 2 3 3 20 <= 20
8 Resource 3 2 4 20 <= 20
9
10 Activity 1 Activity 2 Total Contribution
11 Level of Activity 3.333 3.333 $166.67

b)
(x1, x2) Feasible? Total Contribution
(2,2) Yes $100
(3,3) Yes $150
(2,4) Yes $160 Best
(4,2) Yes $140
(3,4) No
(4,3) No

d) Let x1 = level of activity 1


x2 = level of activity 2
Maximize Contribution = $20x1 + $30x2
subject to 2x1 + x2 ≤ 10
3x1 + 3x2 ≤ 20
2x1 + 4x2 ≤ 20
and x1 ≥ 0, x2 ≥ 0.
e) Optimal Solution: (x1, x2) = (3.333, 3.333) and Total Contribution = $166.67.

3-4
3.3 a)
A B C D E F G
1 Activity 1 Activity 2 Activity 3
2 Contribution per unit $50 $40 $70
3
4 Resource Usage Resource Resource
5 per Unit of Activity Used Available
6 Resource A 30 20 0 500 <= 500
7 Resource B 0 10 40 600 <= 600
8 Resource C 20 20 30 783.333 <= 1,000
9
10 Activity 1 Activity 2 Activity 3 Total Contribution
11 Level of Activity 16.667 0 15 $1,883.33

b) Let x1 = level of activity 1


x2 = level of activity 2
x3 = level of activity 3
Maximize Contribution = $50x1 + $40x2 + $70x3
subject to 30x1 + 20x2 ≤ 500
10x2 + 40x3 ≤ 600
20x1 + 20x2 + 30x3 ≤ 1,000
and x1 ≥ 0, x2 ≥ 0, x3 ≥ 0.
3.4 a & c)
A B C D E F G H
1 Activity 1 Activity 2 Activity 3 Activity 4
2 Contribution per unit $11 $9 $8 $9
3
4 Resource Usage Resource Resource
5 per Unit of Activity Used Available
6 Resource P 3 5 -2 4 400 <= 400
7 Resource Q 4 -1 3 2 300 <= 300
8 Resource R 6 3 2 -1 400 <= 400
9 Resource S -2 2 5 3 300 <= 300
10
11 Activity 1 Activity 2 Activity 3 Activity 4 Total Contribution
12 Level of Activity 39.421 41.953 37.071 36.528 $1,436.53

b) Below are five possible guesses (many answers are possible).


(x1, x2, x3, x4) Feasible? P
(30,30,30,30) Yes $1110
(40,40,40,40) No
(35,39,30,40) Yes $1336
(35,39,34,40) Yes $1368
(37,39,35,40) Yes $1398 Best

3.5 a) The activities are the production rates of products 1, 2, and 3. The limited resources are
hours available per week on the milling machine, lathe, and grinder.
b) The decisions to be made are how many of each product should be produced per week.
The constraints on these decisions are the number of hours available per week on the
milling machine, lathe, and grinder as well as the sales potential of product 3. The
overall measure of performance is total profit, which is to be maximized.

3-5
c) milling machine: 9(# units of 1) + 3(# units of 2) + 5(# units of 3) ≤ 500
lathe: 5(# units of 1) + 4(# units of 2) ≤ 350
grinder: 3(# units of 1) + 2(# units of 3) ≤ 150
sales: (# units of 3) ≤ 20
Nonnegativity: (# units of 1) ≥ 0, (# units of 2) ≥ 0, (# units of 3) ≥ 0

Profit = $50(# units of 1) + $20(# units of 2) + $25(# units of 3)


d)
A B C D E F G
1 Product 1 Product 2 Product 3
2 Unit Profit $50 $20 $25
3 Hours Hours
4 Machine Hours Used per Unit of Product Used Available
5 Milling machine 9 3 5 500 <= 500
6 Lathe 5 4 0 350 <= 350
7 Grinder 3 0 2 118.571429 <= 150
8
9 Product 1 Product 2 Product 3 Total Profit
10 Production Rate 26.190 54.762 20 $2,904.76
11 (per week) <=
12 Sales Potential 20

Data cells: B2:D2, B5:D7, G5:G7, and D12


Changing cells: B10:D10
Target cell: G10
Output cells: E5:E7

E
3 Hours
4 Used
5 =SUMPRODUCT(B5:D5,$B$10:$D$10) G
6 =SUMPRODUCT(B6:D6,$B$10:$D$10) 9 Total Profit
7 =SUMPRODUCT(B7:D7,$B$10:$D$10) 10 =SUMPRODUCT(B2:D2,B10:D10)

e) Let x1 = units of product 1 produced per week


x2 = units of product 2 produced per week
x3 = units of product 3 produced per week
Maximize Profit = $50x1 + $20x2 + $25x3
subject to 9x1 3x2 + 5x3 ≤ 500 hours
5x1 + 4x2 ≤ 350 hours
3x1 + 2x3 ≤ 150 hours
x3 ≤ 20
and x1 ≥ 0, x2 ≥ 0, x3 ≥ 0.
3.6 a) The activities are the production quantities of parts A, B, and C. The limited resources
are the hours available on machine 1 and machine 2.

3-6
b & d)
A B C D E F G
1 Part A Part B Part C
2 Unit Profit $50 $40 $30
3 Hours Hours
4 Processing Time (hours per unit) Used Available
5 Machine 1 0.02 0.03 0.05 40 <= 40
6 Machine 2 0.05 0.02 0.04 40 <= 40
7
8 Part A Part B Part C Total Profit
9 Production 363.636 1090.909 0 $61,818.18

c) Below are three possible guesses (many answers are possible).


(x1, x2, x3) Feasible? P
(500,500,300) No
(350,1000,0) Yes $57,500
(400,1000,0) Yes $60,000 Best
e) Let A = number of part A produced
B = number of part B produced
C = number of part C produced
Maximize Profit = $50A + $40B + $30C
subject to 0.02A + 0.03B + 0.05C ≤ 40 hours
0.05A + 0.02B + 0.04C ≤ 40 hours
and A ≥ 0, B ≥ 0, C ≥ 0.
3.7
A B C D E F G
1 Activity 1 Activity 2 Activity 3
2 Unit Profit 20 40 30
3
4 Resource Usage Resource Resource
5 per Unit of Activity Used Available
6 Resource 1 3 5 4 400 <= 400
7 Resource 2 1 1 1 100 <= 100
8 Resource 3 1 3 2 200 <= 200
9
10 Activity 1 Activity 2 Activity 3 Total Profit
11 Level of Activity 50 50 0 3,000

3-7
3.8 a & c)
A B C D E F
1 Activity 1 Activity 2
2 Unit Cost $60 $50
3 Minimum
4 Benefit Contribution per Level Acceptable
5 Unit of Each Activity Achieved Level
6 Benefit 1 5 3 60 >= 60
7 Benefit 2 2 2 31 >= 30
8 Benefit 3 7 9 126 >= 126
9
10 Activity 1 Activity 2 Total Cost
11 Level of Activity 6.75 8.75 $842.50

b)
(x1, x2) Feasible? C
(7,7) No
(7,8) No
(8,7) No
(8,8) Yes $880 Best
(8,9) Yes $930
(9,8) Yes $940
d) Let x1 = level of activity 1
x2 = level of activity 2
Minimize Cost = $60x1 + $50x2
subject to 5x1 + 3x2 ≥ 60
2x1 + 2x2 ≥ 30
7x1 + 9x2 ≥ 126
and x1 ≥ 0, x2 ≥ 0.
e) Optimal Solution: (x1, x2) = (6.75, 8.75) and Total Cost = $842.50.

3-8
3.9 a & c)
A B C D E F G H
1 Activity 1 Activity 2 Activity 3 Activity 4
2 Unit Cost $400 $600 $500 $300
3 Minimum
4 Benefit Contribution per Level Acceptable
5 Unit of Each Activity Achieved Level
6 Benefit P 2 -1 4 3 80 >= 80
7 Benefit Q 1 4 -1 2 60 >= 60
8 Benefit R 3 5 4 -1 110 >= 110
9
10 Activity 1 Activity 2 Activity 3 Activity 4 Total Cost
11 Level of Activity 32.5 3.75 0 6.25 $17,125

b) Below are five possible guesses (many answers are possible).


(x1, x2, x3, x4) Feasible? C
(32,4,0,6) No
(33,4,0,6) Yes $17,400 Best
(33,5,0,6) No
(33,4,1,6) Yes $17,900
(33,4,1,7) Yes $18,200

3.10 a & d)
A B C D E F G
1 Corn Tankage Alfalfa
2 Unit Cost $0.84 $0.72 $0.60
3 (per kg) Minimum
4 Level Daily
5 Nutritional Contents (per kg) Achieved Requirement
6 Carbohydrates 90 20 40 200 >= 200
7 Protein 30 80 60 180 >= 180
8 Vitamins 10 20 60 157.142857 >= 150
9
10 Corn Tankage Alfalfa Total Cost
11 Diet (kg) 1.143 0 2.429 $2.42

b) (x1, x2, x3) = (1,2,2) is a feasible solution with a daily cost of $3.48. This diet will
provide 210 kg of carbohydrates, 310 kg of protein, and 170 kg of vitamins daily.
c) Answers will vary.
e) Let C = kg of corn to feed each pig
T = kg of tankage to feed each pig
A = kg of alfalfa to feed each pig
Minimize Cost = $0.84C + $0.72T + $0.60A
subject to 90C + 20T + 40A ≥ 200
30C + 80T + 40A ≥ 180
10C + 20T + 60A ≥ 150
and C ≥ 0, T ≥ 0, A ≥ 0.

3-9
3.12 a) The activities are leasing space in each month for a number of months. The benefit is
meeting the space requirements for each month.
b) The decisions to be made are how much space to lease and for how many months. The
constraints on these decisions are the minimum required space. The overall measure of
performance is cost which is to be minimized.
c) Month 1: (M1 1mo lease) + (M1 2mo lease) + (M1 3mo lease) + (M1 4mo lease) + (M1
5 mo lease) ≥ 30,000 square feet.

Month 2: (M1 2mo lease) + M1 3 mo lease) + (M1 4 mo lease) + (M1 5mo lease) +
(M2 1 mo lease) + (M2 2 mo lease) + (M2 3 mo lease) + (M2 4 mo lease) ≥ 20,000
square feet.

Month 3: (M1 3mo lease) + (M1 4mo lease) + (M1 5mo lease) + (M2 2mo lease) + (M2
3mo lease) + (M2 4mo lease) + (M3 1mo lease) + (M3 2mo lease) + (M3 3mo lease) ≥
40,000 square feet.

Month 4: (M1 4mo lease) + (M1 5mo lease) + (M2 3mo lease) + (M2 4mo lease) + (M3
2 mo lease) + (M3 3mo lease) + (M4 1mo lease) + (M4 2mo lease) ≥ 10,000 square
feet.

Month 5: (M1 5mo lease) + (M2 4mo lease) + (M3 3mo lease) + (M4 2 mo lease) +
(M5 1mo lease) ≥ 50,000 square feet.

Nonnegativity: (M1 1mo lease) ≥ 0, (M1 2mo lease) ≥ 0, (M1 3 mo lease) ≥ 0, (M1 4
mo lease) ≥ 0, (M1 5mo lease) ≥ 0, (M2 1mo lease) ≥ 0, (M2 2mo lease) ≥ 0, (M2 3 mo
lease) ≥ 0, (M2 4mo lease) ≥ 0, (M3 1mo lease) ≥ 0, (M3 2mo lease) ≥ 0, (M3 3mo
lease) ≥ 0, (M4 1mo lease) ≥ 0, (M4 2mo lease) ≥ 0, (M5 1mo lease) ≥ 0.

Cost = ($650)[(M1 1mo lease) + (M2 1mo lease) + (M3 1mo lease) + (M4 1mo lease) +
(M5 1mo lease)] + ($1,000)[(M1 2mo lease) + (M2 2mo lease) + (M3 2mo lease) +
(M4 2mo lease)] + ($1,350)[(M1 3mo lease) + (M2 3mo lease) + (M3 3mo lease)] +
($1,600)[(M1 4mo lease) + (M2 4mo lease)] + ($1,900)[M1 5mo lease]

3-10
d)
A B C D E F G H I J K L M N O P Q R S
1 Month Covered by Lease? Total Space
2 Month of Lease: 1 1 1 1 1 2 2 2 2 3 3 3 4 4 5 Leased Required
3 Length of Lease: 1 2 3 4 5 1 2 3 4 1 2 3 1 2 1 (sq. ft.) (sq. ft.)
4 Month 1 1 1 1 1 1 30,000 >= 30,000
5 Month 2 1 1 1 1 1 1 1 1 30,000 >= 20,000
6 Month 3 1 1 1 1 1 1 1 1 1 40,000 >= 40,000
7 Month 4 1 1 1 1 1 1 1 1 30,000 >= 10,000
8 Month 5 1 1 1 1 1 50,000 >= 50,000
9
10 Cost of Lease $65 $100 $135 $160 $190 $65 $100 $135 $160 $65 $100 $135 $65 $100 $65
11 (per sq. ft.)
12 Total Cost
13 Lease (sq. ft.) 0 0 0 0 30,000 0 0 0 0 10,000 0 0 0 0 20,000 $7,650,000

Data cells: B4:P8, B10:P10, and S4:S8


Changing cells: B13:P13
Target cell: S13
Output cells: Q4:Q8

Q
1 Total
2 Leased
3 (sq. f t.)
4 =SUMPRODUCT(B4:P4,$B$13:$P$13)
5 =SUMPRODUCT(B5:P5,$B$13:$P$13)
6 =SUMPRODUCT(B6:P6,$B$13:$P$13) S
7 =SUMPRODUCT(B7:P7,$B$13:$P$13) 12 Total Cost
8 =SUMPRODUCT(B8:P8,$B$13:$P$13) 13 =SUMPRODUCT(B10:P10,B13:P13)

e) Let xij = square feet of space leased in month i for a period of j months.
for i = 1, ... , 5 and j = 1, ... , 6-i.
Minimize C = $650(x11 + x21 + x31 + x41 + x51) + $1,000(x12 + x22 + x32 + x42)
+$1,350(x13 + x23 + x33) + $1,600(x14 + x24) + $1,900x15
subject to x11 + x12 + x13 + x14 + x15 ≥ 30,000 square feet
x12 + x13 + x14 + x15 + x21 + x22 + x23 + x24 ≥ 20,000 square feet
x13 + x14 + x15 + x22 + x23 + x24 + x31 + x32 + x33 ≥ 40,000 sq. feet
x14 + x15 + x23 + x24 + x32 + x33 + x41 + x42 ≥ 10,000 square feet
x15 + x24 + x33 + x42 + x51 ≥ 50,000 square feet
and xij ≥ 0, for i = 1, ... , 5 and j = 1 , ... , 6-i.
3.13
A B C D E F G H
1 Activity 1 Activity 2 Activity 3 Activity 4
2 Unit Cost 2 1 -1 3
3 Minimum
4 Benefit Contribution per Level Acceptable
5 Unit of Each Activity Achieved Level
6 Benefit 1 3 2 -2 5 80 >= 80
7 Benefit 2 1 -1 0 1 10 >= 10
8 Benefit 3 1 1 -1 2 32.857 >= 30
9
10 Activity 1 Activity 2 Activity 3 Activity 4 Total Cost
11 Level of Activity 0 4.286 0 14.286 47.14

3-11
3.15 a) This is a distribution-network problem because it deals with the distribution of goods
through a distribution network at minimum cost.
b)
A B C D E F G
1 Shipping Cost Customer 1 Customer 2 Customer 3
2 Factory 1 $600 $800 $700
3 Factory 2 $400 $900 $600
4
5 Total
6 Shipped
7 Units Shipped Customer 1 Customer 2 Customer 3 Out Output
8 Factory 1 0 200 200 400 = 400
9 Factory 2 300 0 200 500 = 500
10 Total To Customer 300 200 400
11 = = = Total Cost
12 Order Size 300 200 400 $540,000

c) Let xij = number of units to ship from Factory i to Customer j (i = 1,2; j = 1, 2, 3)


Minimize Cost = $600x11 + $800x12 + $700x13 + $400x21 + $900x22 + $600x23
subject to x11 + x12 + x13 = 400
x21 + x22 + x23 = 500
x11 + x21 = 300
x12 + x22 = 200
x13 + x23 = 400
and x11 ≥ 0, x12 ≥ 0, x13 ≥ 0, x21 ≥ 0, x22 ≥ 0, x23 ≥ 0.
3.16 a) Requirement 1: The total amount shipped from Mine 1 must be 40 tons.
Requirement 2: The total amount shipped from Mine 2 must be 60 tons.
Requirement 3: The total amount shipped to the Plant must be 100 tons.
Requirement 4: For Storage 1, the amount shipped out = the amount in.
Requirement 5: For Storage 2, the amount shipped out = the amount in.

3-12
b)
A B C D E F
1 Shipping
2 Cost S1 S2
3 M1 $2,000 $1,700
4 M2 $1,600 $1,100
5 P $400 $800
6
7 Capacity S1 S2
8 M1 30 30
9 M2 50 50
10 P 70 70
11
12 Units Total Shipped
13 Shipped S1 S2 Out of M1,M2 Output
14 M1 30 10 40 = 40
15 M2 10 50 60 = 60
16 Total Into S1,S2 40 60
17 = = Total Shipped
18 Total Out of S1,S2 40 60 Into P Needed
19 P 40 60 100 = 100
20
21 Total Cost
22 Units Shipped ² Capacity $212,000

c) Let xM1S1 = number of units shipped from Mine 1 to Storage 1


xM1S2 = number of units shipped from Mine 1 to Storage 2
xM2S1 = number of units shipped from Mine 2 to Storage 1
xM2S2 = number of units shipped from Mine 2 to Storage 2
xS1P = number of units shipped from Storage 1 to the Plant
xS2P = number of units shipped from Storage 2 to the Plant
Minimize Cost = $2,000xM1S1 + $1,700xM1S2 + $1,600xM2S1 + $1,100xM2S2
+$400xS1P + $800xS2P
subject to xM1S1 + xM1S2 = 40
xM2S1 + xM2S2 = 60
xM1S1 + xM2S1 = xS1P
xM1S2 + xM2S2 = xS2P
xS1P + xS2P = 100
xM1S1 ≤ 30, xM1S2 ≤ 30, xM2S1 ≤ 50, xM2S2 ≤ 50, xS1P ≤ 70, xS2P ≤ 70
and xM1S1 ≥ 0, xM1S2 ≥ 0, xM2S1 ≥ 0, xM2S2 ≥ 0, xS1P ≥ 0, xS2P ≥ 0.
3.17 a) A1 + B1 + R1 = $60,000
A2 + B2 + C2 + R2 = R1
A3 + B3 + R3 = R2 + 1.40A1
A4 + R4 = R3 + 1.40A2 + 1.70B1
A5 + D5 + R5 = R4 + 1.40A3 + 1.70B2

3-13
b) Let At = amount invested in investment A at the beginning of year t.
Bt = amount invested in investment B at the beginning of year t.
Ct = amount invested in investment C at the beginning of year t.
Dt = amount invested in investment D at the beginning of year t.
Rt = amount not invested at the beginninf of year t.
Maximize Return = 1.40A4 + 1.70B3 + 1.90C2 + 1.30D5 + R5
subject to A1 + B1 + R1 = $60,000
A2 + B2 + C2 – R1 + R2 = 0
–1.40A1 + A3 + B3 – R2 + R3 = 0
–1.40A2 + A4 – 1.70B1 – R3 + R4 = 0
–1.40A3 – 1.70B2 + D5 – R4 + R5 = 0
and At ≥ 0, Bt ≥ 0, Ct ≥ 0, Dt ≥ 0, Rt ≥ 0.
c)
A B C D E F G H I J K L M N O P Q R
1 Investment A A A A B B B C D R R R R R Total Available
2 Year 1 2 3 4 1 2 3 2 5 1 2 3 4 5 Invested to Invest
3 Year 1 1 1 1 $60,000 = $60,000
4 Year 2 1 1 1 -1 1 $0 = $0
5 Year 3 -1.4 1 1 -1 1 $0 = $0
6 Year 4 -1.4 1 -1.7 -1 1 $0 = $0
7 Year 5 -1.4 -1.7 1 -1 1 $0 = $0
8
9 Total Return
10 Return in Year 6 1.4 1.7 1.9 1.3 1 $152,880
11
12 Dollars Invested $60,000 $0 $84,000 $0 $0 $0 $0 $0 $117,600 $0 $0 $0 $0 $0

3.18 a) Let xi = percentage of alloy i in the new alloy (i = 1, 2, 3, 4, 5).


(60%)x1 + (25%)x2 + (45%)x3 + (20%)x4 + (50%)x5 = 40%
(10%)x1 + (15%)x2 + (45%)x3 + (50%)x4 + (40%)x5 = 35%
(30%)x1 + (60%)x2 + (10%)x3 + (30%)x4 + (10%)x5 = 25%
x1 + x2 + x3 + x4+ x5 = 100%
b)
A B C D E F G H I
1 Alloy 1 Alloy 2 Alloy 3 Alloy 4 Alloy 5
2 Cost ($/lb.) $22 $20 $25 $24 $27
3 New Alloy Desired
4 Alloy Composition Composition Composition
5 Tin 60% 25% 45% 20% 50% 40% = 40%
6 Zinc 10% 15% 45% 50% 40% 35% = 35%
7 Lead 30% 60% 10% 30% 10% 25% = 25%
8
9 Alloy 1 Alloy 2 Alloy 3 Alloy 4 Alloy 5 Total Blend
10 New Alloy Blend 4.3% 28.3% 67.4% 0.0% 0.0% 100% = 100%
11
12 Total Cost
13 $23.46

3-14
c) Let xi = percentage of alloy i in the new alloy (i = 1, 2, 3, 4, 5).
Minimize Cost = $22x1 + $20x2 + $25x3 + $24x4 + $27x5
subject to (60%)x1 + (25%)x2 + (45%)x3 + (20%)x4 + (50%)x5 = 40%
(10%)x1 + (15%)x2 + (45%)x3 + (50%)x4 + (40%)x5 = 35%
(30%)x1+ (60%)x2 + (10%)x3 + (30%)x4 + (10%)x5 = 25%
and x1 ≥ 0, x2 ≥ 0, x3 ≥ 0, x4 ≥ 0, x5 ≥ 0.
3.19 a)
A B C D E F G H I J K
1 Large Medium Small
2 Unit Profit $420 $360 $300
3
4 Space Required 20 15 12
5 (sq.ft. per unit)
6 Total Space Space
7 Production Large Medium Small Produced Capacity Required Available
8 Plant 1 516.67 177.78 0 694.4 <= 750 13,000 <= 13,000
9 Plant 2 0 666.67 166.67 833.3 <= 900 12,000 <= 12,000
10 Plant 3 0 0 416.67 416.7 <= 450 5,000 <= 5,000
11 Total Produced 516.67 844.44 583.33
12 <= <= <= Total Profit
13 Sales Forecast 900 1200 750 $696,000
14
15 Percentage of Plant 1 Capacity 93% = 93% Percentage of Plant 2 Capacity
16 Percentage of Plant 1 Capacity 93% = 93% Percentage of Plant 3 Capacity

b) Let xij = number of units produced at plant i of product j (i = 1, 2, 3; j = L, M, S).


Maximize Profit = $420(x1L + x2L + x3L) + $360(x1M + x2M + x3M) + $300(x1S + x2S + x3S)
subject to x1L + x1M + x1S ≤ 750
x2L + x2M + x2S ≤ 900
x3L + x3M + x3S ≤ 450
20x1L + 15x1M + 12x1S ≤ 13,000 square feet
20x2L + 15x2M + 12x2S ≤ 12,000 square feet
20x3L + 15x3M + 12x3S ≤ 5,000 square feet
x1L + x2L + x3L ≤ 900
x1M + x2M + x3M ≤ 1,200
x1S + x2S + x3S ≤ 750
(x1L + x1M + x1S) / 750 = (x2L + x2M + x2S) / 900
(x1L + x1M + x1S) / 750 = (x3L + x3M + x3S) / 450
and x1L ≥ 0, x1M ≥ 0, x1S ≥ 0, x2L ≥ 0, x2M ≥ 0, x2S ≥ 0, x3L ≥ 0, x3M ≥ 0, x3S ≥ 0.

3-15
3.21 a)
A B C D E F G
1 Men's Women's Children's
2 Gross Profit $8 $10 $6
3 (per glove)
4 Full Time Part Time
5 Labor Cost (per hour) $13 $10
6 Hours worked per week 40 20
7 Labor Cost (per week) $520 $200
8
9 Resource Usage Resource Resource
10 per Unit of Activity Used Available
11 Material (sq. ft.) 2 1.5 1 5000 <= 5000
12 Labor (minutes) 30 45 40 75000 <= 75,000
13
14 Men's Women's Children's
15 Production (per week) 2500 0 0
16 Gross Profit $20,000
17 Full Time Part Time Labor Cost $15,500
18 Employees 25 12.5 Net Profit $4,500
19 >=
20 Minimum Full Time 20
21 2
22 Full Time 25 >= 25 Times Part-Time

b) Let M =number of men’s gloves to produce per week,


W = number of women’s gloves to produce per week,
C = number of children’s gloves to produce per week,
F = number of full-time workers to employ,
PT = number of part-time workers to employ.
Maximize Profit = $8M + $10W + $6C – $13(40)F – $10(20)PT
subject to 2M + 1.5W + C ≤ 5,000 square feet
30M + 45W + 40C ≤ 40(60)F + 20(60)PT hours
F ≥ 20
F ≥ 2PT
and M ≥ 0, W ≥ 0, C ≥ 0, F ≥ 0, PT ≥ 0.
3.22
A B C D E F G H I J
1 Hours Av ailable
2 Wage Rate Monday Tuesday Wednesday Thursday Friday
3 K.C. $10.00 6 0 6 0 6
4 D.H. $10.10 0 6 0 6 0
5 H.B. $9.90 4 8 4 0 4
6 S.C. $9.80 5 5 5 0 5
7 K.S. $10.80 3 0 3 8 0
8 N.K. $11.30 0 0 0 6 2
9
10 Hours
11 Hours Worked Monday Tuesday Wednesday Thursday Friday Worked Output
12 K.C. 4 0 2 0 3 9 >= 8
13 D.H. 0 2 0 6 0 8 >= 8
14 H.B. 4 7 4 0 4 19 >= 8
15 S.C. 5 5 5 0 5 20 >= 8
16 K.S. 1 0 3 3 0 7 >= 7
17 N.K. 0 0 0 5 2 7 >= 7
18 Hours Worked 14 14 14 14 14
19 = = = = = Total Cost
20 Hours Needed 14 14 14 14 14 $710
21
22 Hours Worked <= Hours Available

3-16
3.23 a) Resource Constraints:
Calories must be no more than 420.
No more than 20% of total calories from fat.

Benefit Constraints:
Calories must be at least 380
There must be at least 50 mg of vitamin content.
There must be at least 2 times as much strawberry flavoring as sweetener.

Fixed-Requirement Constraints:
There must be 15 mg of thickeners.
b)
A B C D E F G H I J K
1 Strawberry Cream Vitamin Sweetener Thickener
2 Unit Cost $0.10 $0.08 $0.25 $0.15 $0.06
3 (per tbsp)
4 Level
5 Nutritional Contents (per tbsp) Achieved Minimum Maximum
6 Total Calories 50 100 0 120 80 380 >= 380 <= 420
7 Vitamin Content (mg) 20 0 50 0 2 64.167 >= 50
8 Thickeners (mg) 3 8 1 2 25 15 = 15
9 Calories from Fat 1 75 0 0 30 23.521 <= 76
10 20%
11 Strawberry Cream Vitamin Sweetener Thickener Total Cost of Total Calories
12 Contents (tbsp) 3.208 0.271 0 1.604 0 $0.58
13 >=
14 3.208 2 times Sweetener

c) Let S = Tablespoons of strawberry flavoring,


CR = Tablespoons of cream,
V = Tablespoons of vitamin supplement,
A = Tablespoons of artificial sweetener,
T = Tablespoons of thickening agent,
Minimize C = $0.10S + $0.08CR + $0.25V + $0.15A + $0.06T
subject to 50S + 100CR + 120A + 80T ≥ 380 calories
50S + 100CR + 120A + 80T ≤ 420 calories
S + 75CR + 30T ≤ 0.2(50S + 100C + 120A + 80T)
20S + 50V + 2T ≥ 50 mg Vitamins
S ≥ 2A
3S + 8CR + V + 2A + 25T = 15 mg Thickeners
and S ≥ 0, CR ≥ 0, V ≥ 0, A ≥ 0, T ≥ 0.

3-17
3.24 a) Resource Constraints:
Calories must be no more than 600.
No more than 30% of total calories from fat.

Benefit Constraints:
Calories must be at least 400
There must be at least 60 mg of vitamin C.
There must be at least 12 g of protein.
There must be at least 2 times as much peanut butter as jelly.
There must be at least 1 cup of liquid

Fixed-Requirement Constraints:
There must be 2 slices of bread.
b)
A B C D E F G H I J K L
1 Peanut Strawberry Graham
2 Bread Butter Jelly Cracker Milk Juice
3 (slice) (tbsp.) (tbsp.) (tbsp.) (cup) (cup)
4 Unit Cost $0.05 $0.04 $0.07 $0.08 $0.15 $0.35
5 Level
6 Nutritional Contents Achieved Minimum Maximum
7 Total Calories 70 100 50 60 150 100 400 >= 400 <= 600
8 Vitamin C (mg) 0 0 3 0 2 120 60 >= 60
9 Protein (g) 3 4 0 1 8 1 13.949 >= 12
10 Calories from Fat 10 75 0 20 70 0 120 <= 120
11 30%
12 Peanut Strawberry Graham of Total Calories
13 Bread Butter Jelly Cracker Milk Juice
14 (slice) (tbsp.) (tbsp.) (tbsp.) (cup) (cup) Total Cost
15 Contents (tbsp) 2 0.575 0.287 1.039 0.516 0.484 $0.47
16 =
17 2
18
19 Peanut Butter 0.575 >= 0.575 2 Times Strawberry Jelly
20 Total Liquid 1 >= 1

c) Let B = slices of bread,


P= Tablespoons of peanut butter,
S = Tablespoons of strawberry jelly,
G = graham crackers,
M = cups of milk,
J = cups of juice.
Minimize C = $0.05B + $0.04P + $0.07S + $0.08G + $0.15M + $0.35J
subject to 70B + 100P + 50S + 60G + 150M + 100J ≥ 400 calories
70B + 100P + 50S + 60G + 150M + 100J ≤ 600 calories
10B + 75P + 20G + 70M
≤ 0.3(70B + 100P + 50S + 60G + 150M + 100J)
3S + 2M + 120J ≥ 60mg Vitamin C
3B + 4P + G + 8M + J ≥ 12mg Protein
B = 2 slices
P ≥ 2S
M + J ≥ 1 cup
and B ≥ 0, P ≥ 0, S ≥ 0, G ≥ 0, M ≥ 0, J ≥ 0.

3-18
6.3 a)
Unit Cost ($)
Destination (Retail Outlet)
1 2 3 4 Supply
1 500 600 400 200 10
Source 2 200 900 100 300 20
(Plant) 3 300 400 200 100 20
4 200 100 300 200 10
Demand 20 10 10 20

b)
A B C D E F G H I
1 Unit Cost Retail Outlet
2 1 2 3 4
3 1 $500 $600 $400 $200
4 Plant 2 $200 $900 $100 $300
5 3 $300 $400 $200 $100
6 4 $200 $100 $300 $200
7
8
9 Shipments Retail Outlet
10 1 2 3 4 Total Shipped Supply
11 1 0 0 0 10 10 = 10
12 Plant 2 20 0 0 0 20 = 20
13 3 0 0 10 10 20 = 20
14 4 0 10 0 0 10 = 10
15 Total Received 20 10 10 20
16 = = = = Total Cost
17 Demand 20 10 10 20 $10,000

3.25
A B C D E F G H I
1 Unit Cost Retail Outlet
2 1 2 3 4
3 1 $500 $600 $400 $200
4 Plant 2 $200 $900 $100 $300
5 3 $300 $400 $200 $100
6 4 $200 $100 $300 $200
7
8
9 Shipments Retail Outlet
10 1 2 3 4 Total Shipped Supply
11 1 0 0 0 10 10 = 10
12 Plant 2 20 0 0 0 20 = 20
13 3 0 0 10 10 20 = 20
14 4 0 10 0 0 10 = 10
15 Total Received 20 10 10 20
16 = = = = Total Cost
17 Demand 20 10 10 20 $10,000

3-19
3.26
A B C D E F G H I
1 Distance (miles) Distribution Center
2 1 2 3 4
3 1 800 1,300 400 700
4 Plant 2 1,100 1,400 600 1,000
5 3 600 1,200 800 900
6
7 Fixed Cost $100
8 Cost per Mile $0.50
9
10
11 Unit Cost Distribution Center
12 1 2 3 4
13 1 $500 $750 $300 $450
14 Plant 2 $650 $800 $400 $600
15 3 $400 $700 $500 $550
16
17
18 Shipments Distribution Center
19 1 2 3 4 Total Shipped Supply
20 1 0 0 2 10 12 = 12
21 Plant 2 0 9 8 0 17 = 17
22 3 10 1 0 0 11 = 11
23 Total Received 10 10 10 10
24 = = = = Total Cost
25 Demand 10 10 10 10 $20,200

3.27
A B C D E F G H I
1 Unit Profit Customer
2 1 2 3 4
3 1 $800 $700 $500 $200
4 Plant 2 $500 $200 $100 $300
5 3 $600 $400 $300 $500
6
7
8 Shipments Customer
9 1 2 3 4 Total Shipped Supply
10 1 0 60 0 0 60 = 60
11 Plant 2 40 0 0 40 80 = 80
12 3 0 0 20 20 40 = 40
13 Total Received 40 60 20 60
14 = = >= Total Cost
15 Commitment 40 60 20 $90,000

3-20
3.28
A B C D E F G H
1 Unit Cost Distribution Center
2 1 2 3
3 Plant A $800 $700 $400
4 B $600 $800 $500
5
6
7 Shipments Distribution Center
8 1 2 3 Total Shipped Supply
9 Plant A 0 20 20 40 <= 50
10 B 20 0 0 20 <= 50
11 Total Received 20 20 20
12 = = = Total Cost
13 Demand 20 20 20 $34,000

3.29
A B C D E F G H
1 Unit Cost Distribution Center
2 1 2 3
3 Plant A $800 $700 $400
4 B $600 $800 $500
5
6
7 Shipments Distribution Center
8 1 2 3 Total Shipped Supply
9 Plant A 0 10 30 40 <= 50
10 B 20 0 0 20 <= 50
11
12 10 10 10
13 <= <= <= Total
14 Total Received 20 10 30 60 = 60
15 <= <= <=
16 Demand 30 30 30 Total Cost
17 $31,000

3-21
3.30
A B C D E F G H
1 Unit Cost Job
2 1 2 3
3 A $5 $7 $4
4 Person B $3 $6 $5
5 C $2 $3 $4
6
7
8 Assignments Job Total
9 1 2 3 Assignments Supply
10 A 0 0 1 1 = 1
11 Person B 1 0 0 1 = 1
12 C 0 1 0 1 = 1
13 Total Assigned 1 1 1
14 = = = Total Cost
15 Demand 1 1 1 $10

3.31 a) This problem fits as an assignment problem with ships as assignees and ports as
assignments.
b)
A B C D E F G H I
1 Unit Cost Port
2 1 2 3 4
3 1 $500 $400 $600 $700
4 Ship 2 $600 $600 $700 $500
5 3 $700 $500 $700 $600
6 4 $500 $400 $600 $600
7
8
9 Assignments Port Total
10 1 2 3 4 Assignments Supply
11 1 0 1 0 0 1 = 1
12 Ship 2 0 0 0 1 1 = 1
13 3 0 0 1 0 1 = 1
14 4 1 0 0 0 1 = 1
15 Total Assigned 1 1 1 1
16 = = = = Total Cost
17 Demand 1 1 1 1 $2,100

3-22
3.32
A B C D E F G H
1 Unit Cost Distribution Center
2 1 2 3
3 Plant A $800 $700 $400
4 B $600 $800 $500
5
6 Demand 10 20 30
7
8 Cost of Assignment Distribution Center
9 1 2 3
10 Plant A $8,000 $14,000 $12,000
11 B $6,000 $16,000 $15,000
12
13 Shipments Distribution Center
14 1 2 3 Total Assignments Supply
15 Plant A 0 1 1 2 <= 2
16 B 1 0 0 1 <= 2
17 Total Assigned 1 1 1
18 = = = Total Cost
19 Demand 1 1 1 $32,000

3.33 a) Let T = the number of tow bars to produce


S = the number of stabilizer bars to produce
Maximize Profit = $130T + $150S
subject to 3.2T + 2.4S ≤ 16 hours
2T + 3S ≤ 15 hours
and T ≥ 0, S ≥ 0
T, S are integers.
b)
A B C D E F
1 Tow Bars Stabilizer Bars
2 Unit Profit $130 $150
3 Hours Hours
4 Hours Used Per Unit Produced Used Available
5 Machine 1 3.2 2.4 12 <= 16
6 Machine 2 2 3 15 <= 15
7
8 Tow Bars Stabilizer Bars Total Profit
9 Units Produced 0 5 $750

3-23
3.34 a)
A B C D E F
1 Model A Model B
2 (high speed) (lower speed)
3 Unit Cost $6,000 $4,000
4
5 Total Capacity
6 Copies per Day Capacity Needed
7 Capacity 20,000 10,000 80,000 >= 75,000
8
9 Model A Model B
10 (high speed) (lower speed) Total Total Cost
11 Purchase 2 4 6 $28,000
12 >= >=
13 1 Min Needed 6

b) Let A = the number of Model A (high-speed) copiers to buy


B = the number of Model B (lower-speed) copiers to buy
Minimize Cost = $6,000A + $4,000B
subject to A + B ≥ 6 copiers
A ≥ 1 copier
20,000A + 10,000B ≥ 75,000 copies/day
and A ≥ 0, B ≥ 0
A, B are integers.
3.35 a)
A B C D E F G
1 Long-Range Medium-Range Short-Range
2 Jets Jets Jets
3 Annual Profit ($million) 4.2 3 2.3
4 Resource Resource
5 Resource Used Per Unit Produced Used Available
6 Budget 67 50 35 1498 <= 1500
7 Maintenance Capacity 1.667 1.333 1 39.333 <= 40
8 Pilot Crews 1 1 1 30 <= 30
9
10 Long-Range Medium-Range Short-Range Total Annual
11 Jets Jets Jets Profit ($million)
12 Purchase 14 0 16 95.6

b) Let L = the number of long-range jets to purchase


M = the number of medium-range jets to purchase
S = the number of short-range jets to purchase
Maximize Annual Profit ($millions) = 4.2L + 3M + 2.3S
subject to 67L + 50M + 35S ≤ 1,500 ($million)
(5/3)L + (4/3)M + S ≤ 40 (maintenance capacity)
L + M + S ≤ 30 (pilot crews)
and L ≥ 0, M ≥ 0, S ≥ 0

3-24