Central | Mindanao | University

BA42: Quantitative Techniques in Business

Topic: Linear Programming (Graphical Method)

Problem 1: YVP Companies Inc. produces two brands of cat food called Kitty-C and Kitty-D.
Contributions from Kitty-C is P50.00 per pack while Kitty-D yields a contribution of P60.00 per pack. Both
products are blended from two basic ingredients—a protein source and a carbohydrate source product
require the following ingredients:

Brands Protein Carbohydrate

Kitty-C 4 kg 3 kg
Kitty-D 2 kg 1 kg
For the week only 700 kg. of protein source and 500 kg. of carbohydrate source are available. How many
bags of each of the two brands must be produced to maximize the profit?

Step 1. Presentation of decision variables

Let X= Kitty-C Let Y= Kitty-D Available Source

Protein 4 2 700
Carbohydrates 3 1 500
Contribution 50 60

Step 2. Formulation of objective function

Profit max = 50x + 60y
Step 3. Constraints
4x + 2y ≤ 700
3x + 1y ≤ 500
x ≥ 0, y ≥ 0
Step 4. Solutions
Equations x y
0 350
4x + 2y = 700
175 0
0 500
3x + 1y = 500
166.67 0
Step 5. Plotting of linear constraints to the graph and Identification of ‘feasible region’

Equations x y
0 350
4x + 2y = 700
175 0
0 500
3x + 1y = 500
166.67 0
 (0, 350)

(150, 50) *
Feasible region
(166.67, 0)

*Solution for the unknown coordinate:

Step 6. Optimal solution (present all identified solution)

Objective Function: Profit max = 50x + 60y

Coordinates x y Profit (Derived from substitution of x, and y values to the objective function

1 0 350 50 (0) + 60 (350) = 21,000

2 150 50 50 (150) + 60 (50) = 10,500
3 166.67 0 50 (166.67) + 60 (0) = 8,333.50

Step 7. Recommendation
To maximize the profit, YVP Companies Inc. must produce zero (0) bag of Kitty-C brand and must
produce 350 bags of Kitty-D brand since the unique point of (0, 350) generates more profit of
P21,000.00 than the other points.
Problem 2: A sugarcane farmer is purchasing fertilizer containing three nutrients: N (Nitrogen), P
(Phosphorus) and K (Potassium). The minimum needs are 1,600 pounds (lb.) of Nitrogen (N), 2,000 lb. of
Phosphorous (P), and 800 lb. of Potassium (K). There are two popular brands of fertilizers on the market:
Fast Grow and Easy Grow. Fast Grow, costing Php 40.00 a bag, contains 30 lb. of N, 50 lb. of P, and 10
lb. of K. Easy Grow, costing Php 30.00 a bag, contains 20 lb. of N, P, and K. If the grower wishes to
minimize costs while still maintaining the nutrients required, how many bags of each brand should the
sugarcane farmer bought?

Step 1. Presentation of decision variables

Let X= Fast Grow Let Y= Easy Grow Minimum Needs

Nitrogen (N) 30 20 1,600
Phosphorous (P) 50 20 2,000
Potassium (K) 10 20 800
Cost 40 30

Step 2. Formulation of objective function

Cost min = 40x + 30y
Step 3. Constraints
30x + 20y ≥ 1,600
50x + 20y ≥ 2,000
10x + 20y ≥ 800
x ≥ 0, y ≥ 0

Step 4. Solutions

Equations x y
0 80
30x + 20y = 1 ,600
53.33 0
0 100
50x + 20y = 2,000
40 0
0 40
10x + 20y = 800
80 0
Step 5. Plotting of linear constraints to the graph and Identification of ‘feasible region’

(0, 100)

(20, 50) *

(40, 20) *

(80, 0)

*Solution for the unknown coordinate:

Step 6. Optimal solution (present all identified solution)
Objective Function: Cost min = 40x + 30y

Coordinates x y Cost (Derived from substitution of x, and y values to the objective function

1 0 100 40 (0) + 30 (100) = 3,000

2 20 50 40 (20) + 30 (50) = 2,300
3 40 20 40 (40) + 30 (20) = 2,200
4 80 0 40 (80) + 30 (0) = 3,200

Step 7. Recommendation
To minimize the cost while still maintaining the nutrients required, a sugarcane farmer must
purchase 40 bags of ‘fast grow’ fertilizer and 20 bags of ‘easy grow’ fertilizer