A pharmacy has determined that a healthy person should receive 70 units of

proteins, 100 units of carbohydrates and 20 units of fat daily. If the store carries
the six types of health food with their ingredients as shown in the table below,
what blend of foods satisfies the requirements at minimum cost to the
pharmacy? Make a mathematical model for the given problem.
Foods Protein units Carbohydrates units Fat units Cost per unit
A 20 50 4 2
B 30 30 9 3
C 40 20 11 5
D 40 25 10 6
E 45 50 9 8
F 30 20 10 8

optimal solution is arrived with value of variables as :

x1=0.9091,x2=1.8182,x3=0,x4=0,x5=0,x6=0

minimize cost:

z=2x₁+3x₂+5x₃+6x₄+8x₅+8x₆=2x

subject to:

20x₁+30x₂+40x₃+40x₄+45x₅+30x₆ ≥70 : amount of protein

50x₁+30x₂+20x₃+25x₄+50x₅+20x₆ ≥100 : amount of carbohydrate

4x₁+9x₂+11x₃+10x₄+9x₅+10x₆ ≥20 : amount of fat

where x₁, x₂, x₃, x₄, x₅, x₆ are units of 6 foods

solution using Simplex method:

After introducing artificial variables:

Min Z=2x₁+3x₂+5x₃+6x₄+8x₅+8x₆+0S₁+0S₂+0S₃+MA₁+MA₂+MA₃

subject to

20x₁+30x₂+40x₃+40x₄+45x₅+30x₆-S₁+A₁ ≥ 70

50x₁+30x₂+20x₃+25x₄+50x₅+20x₆-S₂+A₂≥ 100

4x₁+9x₂+11x₃+10x₄+9x₅+10x₆-S₃+A₃=20

and x₁,x₂,x₃,x₄,x₅,x₆,A₁,A₂,A₃≥0

Refer to the image for Z

Since all Zj-Cj≤0

Hence, optimal solution is arrived with value of variables as :

x1=0.9091,x2=1.8182,x3=0,x4=0,x5=0,x6=0

Min Z=7.2727

2 The production of the products are given below with the profit as well:

a. Production of Product 1 = 50 units per week

b. Production of Product 2 = 0 units per week

c. Production of Product 3 = 145 units per week

d. Production of Product 4 = 10 units per week

e. Total Profit = $1250 per week

Question #249770

1.     A firm manufactures two products; the net profit on product 1 is Rupees 3 per unit and Rupees 5
per unit on product 2. The manufacturing process is such that each product has to be processed in two
departments D1 and D2. Each unit of product1 requires processing for 1 minute at D1 and 3 minutes
at D2; each unit of product 2 requires processing for 2 minutes at D1 and 2 minutes at D2. Machine
time available per day is 860 minutes at D1 and 1200 minutes at D2. How much of product 1 and 2
should be produced every day so that total profit is maximum. Make the mathematical model for the
given problem.

Expert's answer

Let x1x1 and x2x2 be levels of production of two products, then

z(x1,x2)=3⋅x1+5⋅x2z(x1,x2)=3⋅x1+5⋅x2  is profit function and it should be maximized

so 3⋅x1+5⋅x2→max3⋅x1+5⋅x2→max

For manufacturing  x1x1unis of product 1 and x2x2 units of product 2 we need in

using x1+2⋅x2x1+2⋅x2 minutes on depatment D1 and 3⋅x1+2⋅x23⋅x1+2⋅x2 minutes on department D2

that have availiable machine time 800 and 1200 minutes per day correspondingly therefore we have
two restrictions for the plan

x1+2⋅x2≤800;3⋅x1+2⋅x2≤1200;x1+2⋅x2≤800;3⋅x1+2⋅x2≤1200;
We also must take in account positiveness restrictions:

x1≥0,x2≥0x1≥0,x2≥0

Thus we have math model of production:

3⋅x1+5⋅x2→max3⋅x1+5⋅x2→max

x1+2⋅x2≤800;3⋅x1+2⋅x2≤1200;x1+2⋅x2≤800;3⋅x1+2⋅x2≤1200;

x1≥0,x2≥0x1≥0,x2≥0

Standard form convenient for simplex method is

z->max;

z−3⋅x1−5⋅x2=0;z−3⋅x1−5⋅x2=0;

x1+2⋅x2+1⋅t+0⋅s=800;3⋅x1+2⋅x2+0⋅t+1⋅s=1200;x1,x2,t,s≥0x1+2⋅x2+1⋅t+0⋅s=800;3⋅x1+2⋅x2
+0⋅t+1⋅s=1200;x1,x2,t,s≥0

To solve we use simplex method:

zx1x2tsb1−3−500001!210800032011200z100x1−313x2−5!22t010s001b08001200

zx1x2tsb1−1/205/20200001/211/204000!20−11400z100x1−1/21/2!2x2010t5/21/2−1s001b2000400400

zx1x2tsb1009/4121000013/4−1300010−1/21/2200z100x1001x2010t9/43/4−1/2s1−11/2b2100300200

Answer:

x1=200,x2=300,zmax=2100x1=200,x2=300,zmax=2100

A firm manufactures two products; the net profit on product 1 is Birr 3 per unit and Birr 5 per unit on
product 2. The manufacturing process is such that each product has to be processed in two departments
D1 and D2. Each unit of product1 requires processing for 1 minute at D1 and 3 minutes at D2; each unit
of product 2 requires processing for 2 minutes at D1 and 2 minutes at D2. Machine time available per
day is 860 minutes at D1 and 1200 minutes at D2. How much of product 1 and 2 should be produced
every day so that total profit is maximum. (solve with graphical method)

Expert's answer
Solution:

Let x1x1 and x2x2 be levels of production of two products, then

Z=3x1+5x2Z=3x1+5x2 is profit function and it should be maximized.

Subject to the constraints:

x1+2x2≤860;3x1+2x2≤1200;x1+2x2≤860;3x1+2x2≤1200;

x1≥0,x2≥0x1≥0,x2≥0

Corners points are (0,430), (170,345), (400,0).

At (0,430), Z=3(0)+5(430)=2150Z=3(0)+5(430)=2150

At (170,345), Z=3(170)+5(345)=2235Z=3(170)+5(345)=2235(Maximum)

At (400,0), Z=3(400)+5(0)=1200Z=3(400)+5(0)=1200

Hence, the optimal solution to the given LP problem is : x 1=170,x2=345 and max Z=2235.

1.     A firm manufactures two products; the net profit on product 1 is Rupees 3 per unit and Rupees 5
per unit on product 2. The manufacturing process is such that each product has to be processed in two
departments D1 and D2. Each unit of product1 requires processing for 1 minute at D1 and 3 minutes
at D2; each unit of product 2 requires processing for 2 minutes at D1 and 2 minutes at D2. Machine
time available per day is 860 minutes at D1 and 1200 minutes at D2. How much of product 1 and 2
should be produced every day so that total profit is maximum. Make the mathematical model for the
given problem.

Expert's answer

Let x1x1 and x2x2 be levels of production of two products, then

z(x1,x2)=3⋅x1+5⋅x2z(x1,x2)=3⋅x1+5⋅x2  is profit function and it should be maximized

so 3⋅x1+5⋅x2→max3⋅x1+5⋅x2→max

For manufacturing  x1x1unis of product 1 and x2x2 units of product 2 we need in

using x1+2⋅x2x1+2⋅x2 minutes on depatment D1 and 3⋅x1+2⋅x23⋅x1+2⋅x2 minutes on department D2
that have availiable machine time 800 and 1200 minutes per day correspondingly therefore we have
two restrictions for the plan

x1+2⋅x2≤800;3⋅x1+2⋅x2≤1200;x1+2⋅x2≤800;3⋅x1+2⋅x2≤1200;

We also must take in account positiveness restrictions :

x1≥0,x2≥0x1≥0,x2≥0

Thus we have math model of production:

3⋅x1+5⋅x2→max3⋅x1+5⋅x2→max

x1+2⋅x2≤800;3⋅x1+2⋅x2≤1200;x1+2⋅x2≤800;3⋅x1+2⋅x2≤1200;

x1≥0,x2≥0x1≥0,x2≥0

Standard form convenient for simplex method is

z->max;

z−3⋅x1−5⋅x2=0;z−3⋅x1−5⋅x2=0;

x1+2⋅x2+1⋅t+0⋅s=800;3⋅x1+2⋅x2+0⋅t+1⋅s=1200;x1,x2,t,s≥0x1+2⋅x2+1⋅t+0⋅s=800;3⋅x1+2⋅x2
+0⋅t+1⋅s=1200;x1,x2,t,s≥0

To solve we use simplex method:

zx1x2tsb1−3−500001!210800032011200z100x1−313x2−5!22t010s001b08001200

zx1x2tsb1−1/205/20200001/211/204000!20−11400z100x1−1/21/2!2x2010t5/21/2−1s001b2000400400

zx1x2tsb1009/4121000013/4−1300010−1/21/2200z100x1001x2010t9/43/4−1/2s1−11/2b2100300200

Answer:

x1=200,x2=300,zmax=2100x1=200,x2=300,zmax=2100
4444Applications for Quantitative Techniques in Business Decision Making

by Jim Woodruff

Published on 20 Oct 2018

A small business owner is always making decisions under uncertainty. In the world of business, nothing
is ever done with total confidence that you have made the right decision. Fortunately, numerous
quantitative techniques are available to help organize and assess the risks of various issues.

Quantitative models give managers a better grasp of the problems so that they can make the best
decisions based on the information available. Quantitative techniques are used by managers in
practically all aspects of a business.

Project Management

Quantitative methods have found wide applications in project management. These techniques are used
for optimizing the allocation of manpower, machines, materials, money and time. Projects are scheduled
with quantitative methods and synchronized with delivery of material and workforce.

Production Planning and Scheduling

Determining the size and location of new production facilities is a complex issue. Quantitative
techniques aid in evaluating multiple proposals for costs, timing, location and availability of
transportation. Product mix and scheduling get analyzed to meet customer demands and maximize
profits.

Purchasing and Inventory

Predicting the amount of demand for a product is always dicey. Quantitative techniques offer guidance
on how much raw material to purchase, levels of inventory to keep and costs to ship and store finished
products.

Marketing

Marketing campaigns get evaluated with large amounts of data. Marketers apply quantitative methods
to set budgets, allocate media purchases, adjust product mix and adapt to customers' preferences.

Surveys produce data about viewers' responses to advertisements. How many people saw the ads, and
how many purchased the products. All of this information is evaluated to get the return on investment
of dollars in an advertising campaign.

Finance
Financial managers rely heavily on quantitative techniques. They evaluate investments with discounted
cash flow models and return on capital calculations. Products get analyzed for profit contribution and
cost of production. Workers are scrutinized for productivity standards and hiring or firing to meet
changing workloads.

Predicting cash flow is always a critical concern for managers, and quantitative measurements help
them to predict cash surpluses and shortfalls. They use probabilities and statistics to prepare annual
profit plans.

Research and Development

Risking funds on research and development is always a best-guess scenario. The outcomes are never
certain. So, managers look to mathematical projections about the probability of success and eventual
profitability of products to make investment decisions.

Agriculture

Operations research techniques have long been employed by farmers. They utilize decision trees and
make assumptions about weather forecasts to decide which crops to plant. If forecasters predict cold
weather, is it more profitable to plant corn or wheat? What happens if the weather is warm? These are
all probabilities that farmers use to plan their crop rotations.

A variety of quantitative methods of analysis are finding more applications in business as managers learn
how to use these techniques to provide more insight into problems and aid in daily decision-making

answered • expert verified

A firm manufactures two products; the net profit on product 1 is Rupees 3 per unit and Rupees 5 per
unit on product 2. The manufacturing process is such that each product has to be processed in two
departments D1 and D2. Each unit of product1 requires processing for 1 minute at D1 and 3 minutes
at D2; each unit of product 2 requires processing for 2 minutes at D1 and 2 minutes at D2. Machine
time available per day is 860 minutes at D1 and 1200 minutes at D2. How much of product 1 and 2
should be produced every day so that total profit is maximum. Make the mathematical model for the
given problem.

To answer this question we need to make use of Linear Programming

The solution is:

x = 170 units

y = 345 units

z(max) = 2235 rupees

To solve a linear programming problem, we need to formulate the model  

The Objective Function

Let´s call x the number of product 1 manufactured

and y the number of product 2 manufactured

Then the Objective Function is:

z = 3× x + 5×y    to be maximize

The set of constraints are:

                              D1           D2

                            ( min. )     ( min. )

Product  1 (x)          1               3

Product 2 (y)          2              2            

Availability            860        1200

First constraint:

Time available in D1:  860 minutes

1×x  +  2×y  ≤ 860

Second constraint:

Time available in D2: 1200 minutes

3×x  +  2×y  ≤ 1200

General constraint:   x ≥ 0  ;  y ≥ 0   integers ( we will assume only complete products at the end of the
period no fractions )

Then the model is:

z = 3× x + 5×y    to be maximize

Subject to:  

1×x  +  2×y  ≤ 860

3×x  +  2×y  ≤ 1200

x ≥0   y ≥ 0   integers

With the help of AtoZmath we get the solution:

x = 170 units

y = 345 units

z(max) = 2235 rupies