Management Science

Activity #1 Maximization Model

Beaver Creek Pottery Company is a small crafts operation run by a Native American tribal
council. The company employs skilled artisans to produce clay bowls and mugs with
authentic Native American designs and colors. The two (2) primary resources used by the
company are special pottery clay and skilled labor. Given these limited resources, the
company desires to know how many bowls and mugs to produce each day to maximize
profit. This is generally referred to as a product mix problem type.
The two (2) products have the following resource requirements for production and profit
per item produced.
The amount of labor is limited to 60 hours per day.
For each bowl produced, 1 hour of labor is required and each mug requires 2 hours of
labor.
The amount of clay available for production each day is 180 pounds

Resource
Requirements
Product Labor (hr./unit) Clay (lb./unit) Profit ($/unit)
Bowl 1 4 40
Mug 2 3 50
X1- Number of Bowls to produce
X2 – Number of Mugs to produce
The complete linear programming model for this problem can now be summarized as
follows:
To maximize total profit:
Maximize 𝑍 = $40X1 + $50X2
Subject to
1X1 + 2X2 ≤ 60
4X1 + 3X2 ≤ 180
X1, X2 ≥ 0
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Solution:

First Constraint:
1X1 + 2X2 ≤ 60
X1 X2
0 30
60 0

Second Constraint:
4X1 + 3X2 ≤ 180
X1 X2
0 60
45 0

Finding the intersection of 2 lines

1X1 + 2X2 ≤ 60 4X1 + 3X2 ≤ 180

4 (X1 + 2X2 = 60)

1X1 + 2X2 ≤ 60
= 4X1 + 8X2 = 240
1X1+ 2(12) = 60
Less: 4X1 – 3X2 = 180
X1+ 24 = 60
5X2 = 60
5 X1 = 60-24
X2= 12 X1= 36

Corner Points (X1& X2) Corresponding values of Z

Maximize 𝑍 = $40X1 + $50X2
0,0 40(0) + 50(0) = 0
A. 0,30 40(0) + 50(30) = 1,500
B. 36,12 40(36) + 50(12) = 2,040
C. 45,0 40(45) + 50(0) = 1,800

Minimization
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A farmer is preparing to plant a crop in the spring and needs to fertilize a field. There are
two (2) brands of fertilizer to choose from, Super-gro and Crop-quick. Each brand yields a
specific amount of nitrogen and phosphate per bag, as follows:

Chemical Contribution
Brand Nitrogen Phosphate
(lb./bag) (lb./bag)
Super-gro 2 4
Crop-quick 4 3
$6X1 = 𝑐𝑜𝑠𝑡 𝑜f 𝑏𝑎𝑔𝑠 𝑜f 𝑆𝑢𝑝𝑒𝑟 − 𝑔𝑟𝑜

$3X2 = 𝑐𝑜𝑠𝑡 of 𝑏𝑎𝑔𝑠 𝑜f 𝐶𝑟𝑜𝑝 − 𝑞ui𝑐𝑘

The farmer’s field requires at least 48 pounds of nitrogen and at least 72 pounds of
phosphate. Super-gro costs $6 per bag, and Crop-quick costs $3. The farmer wants to know
how many bags each brand to purchase to minimize the total cost of fertilizing.

Minimize 𝑍 = $6X1 + 3X2

𝑠𝑢𝑏j𝑒𝑐𝑡 𝑡𝑜

2X1 + 4X2 ≥ 48 𝑙𝑏. Of Nitrogen

4X1 + 3X2 ≥ 72 𝑙𝑏. Of phosphate

X1, X2≥ 0

Solution:
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First Constraints:

2X1 + 4X2 ≥ 48 𝑙𝑏.

X1 X2
0 12
24 0

Second Constraints:

4X1 + 3X2 ≥ 72 𝑙𝑏.

X1 X2
0 24
18 0

Finding the intersection of 2 lines

2 (2X1 + 4X2 = 48) 2X1 + 4 (4.8) = 48

4X1 + 3X2 = 72 2X1 + 19.2 = 48
4X1 + 8X2 = 96 2X1 = 48 – 19.2
Less: 4X1 – 3X2 = 72 2X1= 28.8
5X2 = 24 2
5 X1= 14.4
X2= 4.8

Minimize 𝑍 = $6X1 + 3X2

Optimal Solution Z = 6 (14.4) + 3 (4.8)
Z = 86.4 + 14.4
Z = 100.8