ENTIRE PROGRAM

3.1-11.* The manufacturing company Omega discontinued production of a

certain unprofitable product line. This measure created considerable excess
production capacity. Management wants to dedicate this capacity to one or
more of three products, called 1, 2 and 3. The following table summarizes the
available capacity of each machine that can limit production:

TIME AVAILABLE
TYPE OF MACHINE
(IN MACHINE-HOURS PER WEEK)
Milling machine 500
Lathe 350
Grinding machine 150

The number of machine-hours required to produce each unit of the respective

products is as follows

productivity coefficient (in machine-hours per unit)

TYPE OF MACHINE PRODUCT 1 PRODUCT 2 PRODUCT 3

Milling machine 9 3 5
Lathe 5 4 0
Grinding machine 3 0 3

The sales department indicates that potential sales of products 1 and 2 exceed
the maximum production rate and that potential sales of product 3 are 20 units
per week. The unit profit would be $50, $20 and $25, for products 1, 2 and 3,
respectively. The objective is to determine how many of each type of product
the company must produce to maximize profit.

a) Formulate a linear programming model for this problem.

SOLUTION

1. Variable declaration
X1 = Quantity of product 1 to be manufactured per week

X2 = Quantity of product 2 to be produced per week

X3 = Quantity of product 3 to be produced per week

2. Target function

Max Z = 50X1 + 20X2 + 25X3

3. Restrictions

Milling machine: 9X1 + 3X2 + 5X3 <= 500 (1)

Lathe: 5X1 + 4X2 + 0X3 <= 350 (2)
Grinding machine: 3X1 + 0X2 + 3X3 <= 150 (3)
Sales Department: X3 = 20 (4)
X1, X2. X3 >= 0 (5)

LINGO PROGRAM

VARIABLES:
X1 = Quantity of product 1 to be manufactured per week
X2 = Quantity of product 2 to be manufactured per week
X3 = Quantity of product 3 to be produced weekly;

!OBJECTIVE FUNCTION;
MAX = 50*X1 + 20*X2 + 25*X3

RESTRICTIONS;

!MILLING MACHINE; 9*X1 + 3*X2 + 5*X3 <= 500;

!LATHE; 5*X1 + 4*X2 + 0*X3 <= 350;
!GRINDING MACHINE; 3*X1 + 0*X2 + 3*X3 <= 150;
!SALES; X3 = 20;
@GIN(X1);