Name: Laurence R.

Delos Reyes Course: Management Science

Program and Section: BSA 2A Topic: Linear Programming

ACTIVITY PROBLEM # 1
A calculator company produces a scientific calculator and a graphing calculator. Longterm
projections indicate an expected demand of at least 100 scientific and 80 graphing calculators
each day. Because of limitations on production capacity, no more than 200 scientific and 170
graphing calculators can be made daily. To satisfy a shipping contract, a total of at least 200
calculators much be shipped each day.
If each scientific calculator sold results in a Php 20 loss, but each graphing calculator produces a
Php 50 profit, how many of each type should be made daily to maximize net profits?

ANSWER:
Step 1.
To maximize net earnings, the company needs to know how many scientific and graphic
calculators should be produced each day. As a result, there are two choice variables: x, which
represents scientific calculator units, and y, which represents graphing calculator units.
Step 2.
The company wants to maximize their net profits. Per unit of scientific calculator has Php -20
and the graphing calculator has Php 50 net profit per unit. If the company produce x units of
scientific calculator and y units of graphing calculator. Consequently, the next objective function
results.
Max 200x + 170y
Step 3.
The company has their limitation in producing both scientific and graphing calculator. They are
only able to produce 170 graphing calculators and 200 scientific calculators.
Using the provided formula, (-20x+50y), We can identify the company’s max profit since the
company want to maximize their net profit.
(100,100) -20(100) + 50(100) = 3,000
(120,180) -20(120) + 50(80) = 1,200
(100, 170) -20(100) + 50(170) = 6,500
(200,80) -20(200) + 50(80) = 0
(200, 170) -20(200) + 50(170) = 4,500
ACTIVITY PROBLEM #2
At a certain refinery, the refining process requires the production of at least two gallons of
gasoline for each gallon of fuel oil. To meet the anticipated demands of winter, at least three
million gallons of fuel oil a day will need to be produced. The demand for gasoline, on the other
hand, is not more than 6.4 million gallons a day.
If gasoline is selling for Php 1.90 per gallon and fuel oil sells for Php 1.50/gal, how much of each
should be produced in order to maximize revenue?

ANSWER
Step 1.
To maximize profits, the refinery seeks to determine how much fuel oil and gasoline should be
produced. So, there are 2 decision variables: x: the number of gallons of gasoline, y: the number
of gallons of fuel oil.
Step 2.
They want to maximize the total revenue. Fuel oil and gasoline both yield profits of Php 1.50 and
Php 1.90 per gallon, respectively. Therefore, the total profit is 1.90x + 1.50y if we produce x
gallons of gasoline and y gallons of fuel oil. This leads to the following objective function:
Max 6.4million x + 3.2million y
Step 3.
For every gallon of fuel oil, there are two gallons of gasoline, so x>2y. The demand for gas is
x6,400,000. To optimize revenue, intersecting units must be built for gasoline and fuel oil. 6.4
million for gasoline and 3.2 million for fuel oil total revenue, respectively.