Example-1: Maximization

Ace Rubber Company manufactures two types of tires: Model P (the premium) and Model R (the regular). Model P
sells for $95 per tire and costs $85 per tire to make. Model R sells for $50 per tire and costs $42 per tire to make. To
make one Model P tire, it requires two hours on Machine A and four hours on Machine B. On the other hand, to
make one Model R tire, it takes nine hours on Machine A and three hours on Machine B. Production scheduling
indicates that during the coming week Machine A will be available for at most 36 hours and Machine B for at most 42
hours.
a. How many of each tire should the company make in the coming week in order to maximize its profit?
b. What is the maximum profit?
 Maximization

Example-1: Given,
Model-P Model-R
Selling Price = $ 95 Selling Price = $ 50
Cost = $ 85 Cost = $ 42
Objective: Profit = $ 10 Profit =$8

2 hours with Machine-A 9 hours with Machine-A

Machine runs to
+ +
prepare Tires:
4 hours with Machin-B 3 hours with Machin-B

Constraints: 36 hours maximum run for Machine-A

42 hours maximum run for Machine-B

Find: 1) How many of each tire to make to achieve maximum profit?

2) What is the maximum profit?
Answer:
Step-1: Assign variables to each unknown.

Let, x = No of Model-P tires to be made

y = No of Model-R tires to be made

Step-2: Write the objective function (mathematical expression of objective)

Here, objective = profit = θ
So, θ = Profit from Model-P + Profit from Model-R
θ = $10x + $8y

Step-3: Mathematical expression of limited recourses or constraints.

Here, weekly machine run hours are the constraints.
Model-P Model-R
Machine-A: 2x + 9y ≤ 36 (1)
Machine-B: 4x + 3y ≤ 42 (2)

Moreover, both x and y must be non-negative (tires cant be negative).

x≥0 (3)
y≥0 (4)
Step-4: Draw the solution space based on constraints inequalities.
Machine –A: (1) Put, x = 0, y = 4. Coordinate (0,4)
y = 0, x = 18. Coordinate (18,0)
Machine –B: (2) Put, x = 0, y = 14. Coordinate (0,14)
y = 0, x = 21/2. Coordinate (21/2,0)
From (3) & (4) coordinate (0,0)

Do the (0,0) test for inequalities to find the solution space:

From (1), 0 < 36, True. So, solution space is towards the origin.
From (2), 0 < 42, True. So, solution space is towards the origin.

y (R tires)
Machine-B So, Corners for the solution space
(0,14) are: (0,0), (0,4), (?,?) and (21/2,0).

(?,?)
(9,2)
Machine-A
(0,4)

(0,0) (18,0) x (P tires)

(21/2,0)
Step-5: Find the coordinate of the cross section(s) which are Corner(s).
Solve (1) & (2) 4x + 18y = 72
Elimination method: (1)*2 – (2)
4x + 3y = 42

15y = 30
y=2
Putting y = 2 in (1): 2x + 18 = 36
2x = 18
x=9
So, cross section’s coordinate is (9,2).

Step-6: Evaluate the objective function at each corner of the solution space.

For (0,0): θ =0
For (0,4): θ = 32 θ = $10x + $8y
For (21/2,0): θ = 105
For (9,2): θ = 106

Step-7: Results.
Maximum profit = $106.
Maximum profit obtained when company makes nine (9) Model-P and two (2) Model-R tires.
Example-2: Minimization
Pure Gasoline Company operates two refineries with different production capacities. Refinery A can produce 4,000
gallons per day of Super Unleaded gasoline, 2,000 gallons per day of Regular Unleaded gasoline and 1,000 gallons per
day of Diesel Fuel. On the other hand, Refinery B can produce 1,000 gallons per day of Super Unleaded, 3,000 gallon
per day of Regular Unleaded and 4,000 gallons per day of Diesel Fuel. The company has made a contact with an
automobile manufacturer to provide 24,000 gallons of Super Unleaded, 42,000 gallons of Regular Unleaded and
36,000 gallons of Diesel Fuel. The cost of running Refinery A is $1,500 per day and Refinery B is $2,400 per day.
a. Determine the number of days the company should operate each refinery in order to meet the terms of the
contract most economically?
b. What is the minimum cost?
 Minimization
Example-2:
Given, Refinery-A Refinery-B

Capacity: SU Gasoline 4,000 Gallons/day 1,000 Gallons/day

RU || 2,000 || 3,000 ||
DF || 1,000 || 4,000 ||

Costs: $1,500/day $2,400/day

Constraints: To provide: SU: 24,000 Gallons

RU: 42,000 ||
DF: 36,000 ||

Find: 1) Number of days to run Refinery-A and Refinery-B to meet the target most economically (minimum cost).
2) What is the minimum cost?
Answer:
Step-1: Assign variables to each unknown.

Let, x = No of Refinery-A to operates

y = No of Refinery-B to operates

Step-2: Write the objective function (mathematical expression of objective)

Here, objective = cost = θ
So, θ = Cost for Refinery-A + Cost for Refinery-B
θ = $1,500x + $2,400y

Step-3: Mathematical expression of limited recourses or constraints.

Here, production capacities are the constraints.
Refinery-A Refinery-B
SU: 4,000x + 1,000y ≥ 24,000 (1)
RU: 2,000x + 3,000y ≥ 42,000 (2)
DF: 1,000x + 4,000y ≥ 36,000 (3)
Moreover, both x and y must be non-negative (days cant be negative).
x≥0 (4)
y≥0 (5)
Step-4: Draw the solution space based on constraints inequalities.
SU: (1) Put, x = 0, y = 24. Coordinate (0,24)
y = 0, x = 6. Coordinate (6,0)
RU: (2) Put, x = 0, y = 14. Coordinate (0,14)
y = 0, x = 21. Coordinate (21,0)
RU: (3) Put, x = 0, y = 9. Coordinate (0,9)
y = 0, x = 36. Coordinate (36,0)
From (4) & (5) coordinate (0,0).
Do the (0,0) test for inequalities to find the solution space:
From (1), 0 > 24,000, False. So, solution space is opposite to the origin.
From (2), 0 > 42,000, False. So, solution space is opposite to the origin.
From (2), 0 > 36,000, False. So, solution space is opposite to the origin.
SU
y (Refinery-B)
(0,24) So, Corners for the solution space are:
RU
(?,?)
(0,24), (?,?), (?,?) and (36,0).
(3,12)
(0,14) (?,?) DF
(12,6)
(0,9)

(0,0) (6,0) (21,0) (36,0) x (Refinery-A)

Step-5: Find the coordinate of the cross section(s) which are Corner(s).

Solve (1) & (2) 4,000x + 1,000y = 24,000

Elimination method: (1) – (2) *2
4,000x + 6,000y = 84,000

-5,000y = - 60,000
y = 12
Putting y = 12 in (1): x = 3
So, cross section’s coordinate is (3,12).

Solve (2) & (3) 2,000x + 3,000y = 42,000

Elimination method: (2) – (3) *2
2,000x + 8,000y = 72,000

-5000y = - 30,000
y=6
Putting y = 2 in (2): x = 12
So, cross section’s coordinate is (12,6).
Step-6: Evaluate the objective function at each corner of the solution space.

For (0,24): θ = 57,600

For (3,12): θ = 33,300 θ = $1,500x + $2,400y
For (12,6): θ = 32,400
For (36,0): θ = 54,000

Step-7: Results.
Minimum cost = $32,400.
Minimum cost obtained when Refinery-A operates 12 days and Refinery-B operates 6 days.
Thanks