za 14 MANAGEMENT SCIENCE: A QUANTITATIVE APPROACH TO UeciaIUre Maximization of Profit (Graphical Method) : ant table and an ordinary ¢, Jenny Furniture Shop produces two types of oe fon ena srichentar ainsi he ah ot The table, whether elegant or ordinary, passes throug] fe requires 8 hours of assem department and finishing department. Each elegant tabl le a fe th th asberibty ee and 4 hours of finishing tasks. Each ordinary table requires 6 how spd the shop Pee and 2 hours in the finishing department. Every production peri See ho of assembly time and 200 hours of finishing time. The elegant table cor 0 the company’s profit, while the ordinary table has a profit of P500. Required. Using the graphical method of linear programming, determine the number of unj;, needed to be produced to maximize profits. Answer. The constraint in this case is the availability of working hours in the assembly and finishing departments, Applying the steps, the number of units to be produced to maximize Profits is determined as follows: Step 1 Use letters to represent the unknown variables in the problem. Let x = number of elegant tables to be produced y = number of ordinary tables to be produced Step2 ‘| If necessary, prepare a simple matrix to facilitate the formulation of the constraints, Hours Required per Unit : x y Available Hours Assembly department 8 6 480 Finishing department 4 2 200 Profit 700 500 Step3 Formulate the objective function and the constraints j iti : s in equaliti i iti hi number of hours in the assembly and finishing ay Hote etuales Tespectively, the < shall be used departments may not exceed 480 and 200 hours: to express the constraints, Max profit: P = P70 + P500y 8x + 6y < 489 4x + 2y < 200 x%y20 Subject to:aA Charnes 2 | Lneas Procrwnns: Gama Meno 13 AR Step 4 Graph the constraints. In order to do this, the inequality must first be converted to an equality to determine the intercept. For the first constraint: 8x + 6y $ 480, the equation will be: 8x + by = 480 The intercept of this equation is determined as follows: Ifx = 0, then y is 80, which is computed If y = 0, then x is 60, which is computed as follows: as follows 0 + by = 480 & + 0 = 480 y = 80 x = 60 For the second constraint: 4x + 2y $200, the equation will be: 4x + 2y = 200 The intercept of this equation is determined as follows: If x =00, then y is 100, which is computed Ify =0, then x is 50, which is computed as follows: as follows: 0 + 2y = 200 ax + 0 = 200 y = 100 x = 50 | Insummary, the equation and the intercepts are: For equation 8x + 6y = 480, the intercepts or vertices are (0, 80) and (60, 0). For equation 4x + 2y = 200, the intercepts or vertices are (0, 100) and (50, 0).BE 14 Mowsrnanr Seance: A Questa Araoncn 10 Deaton Maze ates. Figure 2:1 presents the graph of the coordin: 100 0 10 20 30 40 50 60 70 80 90 100 Figure 2.1 ‘The graph shows that the two lines intersect. Hence, there is a need to solve for th. coordinates of the point of intersection. By elimination process, the coordinates are determine«! as follows: 480 200 & + by 4x + 2y Multiply the second equation by 2, then deduct the second equation from the first ‘o eliminate x. Afterward, solve for the value of y as follows: &x + by = 480 Bx + dy. = 400 2y 80 y = 40 Substitute the value of y, either to the first or second equation, to solve for the value of ‘Substituting the value of y to the first equation, the value of x is determined as follows: & + by = 480 & + 6(40) = 480 x = 30 Thus, the coordinates of the point of intersection are (30, 40).GOO A I LE EE ETE za Currie? | nus Procennmc: GurmcuMenco 15 FR Sep 51 Determine the feasible region. There are five coordinates: (0, 100), (0, 80), (60, 0), (50, 0), and (G0, 40). At this time, one can hardly identify where the feasible region is by simply looking at the graph. Will the feasible region be bounded by the following vertices? 1. 0, 100), 0, 80), and (30, 40) 2. (60,0), (60, 0), and (30, 40) 3. (0, 100), (80, 40), and (60, 0) 4, (Q,80), (80, 40), and (60, 0) 5. (0,80), (30, 40), and (50, 0) It is highly emphasized that the feasible region is the area where the constraints are satisfied. Thus, the coordinates at the vertices, inclu ing that of the intersection point, shall be tested individually against all the constraints. To test these, the values of the coordinates are simply substituted to the constraints, If the coordinates violate one of the constraints, such coordinates will not form part of the feasible region. The coordinates in the graph are as follows: (0, 100), (0, 8), (60, 0) (50,0), ana (30, 40) Theconstraintsare: &x + 6y < 480 4x + dy s 200 Coordinates (0, 100) First constraint: 8x + 6y < 480 8(0) + 6(100) < 480 600 < 480 As computed, the coordinates (0, 100) violate the first constraint since 600 is not lower than 480. In such a case, there is no need for the coordinates (0, 100) to be tested against the second constraint. Hence, the coordinates (0, 100) will not form part of the feasible region. Coordinates (0, 80) Firstconstraint: 8 + 6y $480 8(0) + 6(80) < 480 480 < 480 The coordinates (0, 80) do not violate the first constraint since 480 is equal to 480. These coordinates are then tested against the second constraint as follows: Second constraint: 4x + 2y << 200 4(0) + 2(80) < 200 160 < 200Manns B 16 Maxicevent Scence: A Quanmarve ArrROAGH 10 DEESION ‘Mia he coordinates (0, 80) as well. As they shall form part ofthe feasitje reat f On, is i t! The second limitation is not violated PY a (0, 80) do not violate any of the two cons! Coordinates (60, 0) ix -< 480 960) + 60) S$ 480 480 << 480 First constraint: The coordinates (60, 0) do not violate the first constraint since 480 is equal to 4g9 i they shall be tested against the second constraint as follows: Second constraint 4x + 2y $ 200 460) + 20) < 200 Oi, 240 < 200 This time, the second constraint is not satisfied. Hence, the coordinates (60, 0) will ng part of the feasible region. Coordinates (50, 0) Firstconstraint’ 8 + 6y < 480 8660) + 600) < 480 400 < 480 The first limitation is not violated by the coordinates (50, 0) since 400 is lower than {9 It shall, however, be tested against the second limitation. Second constraint: 4x + 2y < 200 460. + 20) 200 “ 200s 200 The second limitation is not violated by the coordinates (50, 0). Thus, these coordinates! be included as part of the feasible region. Coordinates (30, 40) First constraint: 8 + 6y << 489 8@0) + 640) < 480 480 Ss 480 The first constraint is not violated. The coordinates z inst the se” constraint as follows: 0,40) shall be tested against Second constraint: 4x + ay << 999 | 460) + 240) < 209 | 200 < 200Ny ‘Charren 2 | Lavear Procaawmns: Gramwical Meron 17 Since the coordinates (30, 40) do not violate any of the constraints, they shall be included in the feasible region. At this point, the feasible region is bounded by the following vertices: (0, 80), (60, 0), and (30, 40). The shaded portion in Figure 2.2 is the feasible region. Any coordinate located within such a region does not violate any of the constraints. 0 10 20 30 49 50 60 70 80 90 100 Figure 2.2 Step 6 i Determine the optimum solution. The two methods for finding the optimum solution are the isoprofit or isocost line solution method and corner point solution method. In the first method, a series of parallel lines will be drawn in the feasible region until the highest profit or lowest cost is found. The second method is based on the mathematical theory behind linear programming in which the optimum solution lies at one of the corner points of the feasible region. This book illustrates the second method. Substituting the coordinates (0, 80), (50, 0), and (30, 40) in the vertices comprising the feasible region, the maximum profit is determined as follows: Vertices. Maxprofit = P700x + P500y (0,80) = 7000) + 50080) P40,000.00 (60, 0) =. 70060) + — 500(0) 35,000.00 G0, 40) = 70080) + 50040) = 41,000.00 Sep7 Formulate the decision based on the highest profit or lowest cost. The optimum solution, therefore, is to produce 30 units of elegant tables and 40 units of ordinary tables to realize a Profit of 41,000.00.