LP Formulation

Set 2
Problem (From Hillier and Hillier)

Strawberry shake production

Several ingredients can be used in this product.
Ingredient calories from fat Total calories Vitamin Thickener Cost
( per tbsp) (per tbsp) (mg/tbsp) (mg/tbsp) ( c/tbsp)
Strawberry flavoring 1 50 20 3 10
Cream 75 100 0 8 8
Vitamin supplement 0 0 50 1 25
Artificial sweetener 0 120 0 2 15
Thickening agent 30 80 2 25 6
This beverage has the following requirements
Total calories between 380 and 420.
No more than 20% of total calories from fat.
At least 50 mg vitamin.
At least 2 tbsp of strawberry flavoring for each 1 tbsp of artificial
sweetener.
Exactly 15 mg thickeners.
Formulate the problem to minimize costs.
LP-Formulation Ardavan Asef-Vaziri June-2013 2
Decision variables

Decision Variables
X1 : tbsp of strawberry
X2 : tbsp of cream
X3 : tbsp of vitamin
X4 : tbsp of Artificial sweetener
X5 : tbsp of thickening

LP-Formulation Ardavan Asef-Vaziri June-2013 3

Constraints

Objective Function
Min Z = 10X1 + 8X2 + 25 X3 + 15 X4 + 6 X5
Calories
50X1 + 100 X2 + 120 X4 + 80 X5  380
50X1 + 100 X2 + 120 X4 + 80 X5  420
Calories from fat
X1 + 75 X2 + 30 X5  0.2(50X1 + 100 X2 + 120 X4 + 80 X5)
Vitamin
20X1 + 50 X3 + 2 X5  50
Strawberry and sweetener
X1  2 X4
Thickeners
3X1 + 8X2 + X3 + 2 X4 + 2.5 X5 = 15
Non-negativity
X1 , X2 , X3 , X4 , X5  0
LP-Formulation Ardavan Asef-Vaziri June-2013 4
Agricultural planning : narrative

Three farming communities are developing a joint agricultural

production plan for the coming year.
Production capacity of each community is limited by their land
and water.

Community Land (Acres) Water (Acres Feet)

1 400 600
2 600 800
3 300 375

The crops suited for this region include sugar beets, cotton, and
sorghum. These are the three being considered for the next year.

Information regarding the maximum desired production of each

product, water consumption , and net profit are given below
LP-Formulation Ardavan Asef-Vaziri June-2013 5
Agricultural planning : narrative

Crop Max desired Water consumption Net return

(Acres) (Acre feet / Acre) ($/Acre)
1 600 3 1000
2 500 2 750
3 325 1 250

Because of the limited available water, it has been agreed that

every community will plant the same proportion of its available
irritable land. For example, if community 1 plants 200 of its
available 400 acres, then communities 2 and 3 should plant 300
out of 600, and 150 out of 300 acres respectively.
However, any combination of crops may be grown at any
community.
Goal : find the optimal combination of crops in each community,
in order to maximize total return of all communities
LP-Formulation Ardavan Asef-Vaziri June-2013 6
Agricultural planning : decision variables

x11 = Acres allocated to Crop 1 in Community 1

x21 = Acres allocated to Crop 2 in Community 1
x31 = Acres allocated to Crop 3 in Community 1
x12 = Acres allocated to Crop 1 in Community 2
x22 = Acres allocated to Crop 2 in Community 2
x32 = Acres allocated to Crop 3 in Community 2
……………..
xij = Acres allocated to Crop i in Community j
i for crop j for community, we could have switched them
Note that x is volume not portion, we could have had it as
portion

LP-Formulation Ardavan Asef-Vaziri June-2013 7

Agricultural planning : Formulation

Land
x11+x21+x31  400
x12+x22+x32  600
x13+x23+x33  300

Water
3x11+2x21+1x31  600
3x12+2x22+1x32  800
3x13+2x23+1x33  375

LP-Formulation Ardavan Asef-Vaziri June-2013 8

Agricultural planning : Formulation

Crops
x11+ x12 + x13  600
x21 +x22 +x23  500
x31 +x32 +x33  320

Proportionality of land use

x11+x21+x31 x12+x22+x32
400 600
x11+x21+x31 x13+x23+x33
400 300

LP-Formulation Ardavan Asef-Vaziri June-2013 9

Agricultural planning : Formulation

Crops
x11+ x12 + x13  600
x21 +x22 +x23  500
x31 +x32 +x33  320

Proportionality of land use

x11+x21+x31 x12+x22+x32
400 600
x11+x21+x31 x13+x23+x33
400 300

LP-Formulation Ardavan Asef-Vaziri June-2013 10

Agricultural planning : all variables on LHS

Proportionality of land use

600(x11+x21+x31 ) - 400(x12+x22+x32 ) = 0
300(x11+x21+x31 ) - 400(x13+x23+x33 ) = 0

600x11+ 600 x21+ 600 x31 - 400x12- 400 x22- 400 x32 = 0
300x11+ 300 x21+ 300 x31 - 400x13- 400 x23- 400 x33 = 0

x11, x21,x31, x12, x22, x32, x13, x23, x33  0

LP-Formulation Ardavan Asef-Vaziri June-2013 11

Controlling air pollution : narrative

This is a good example to show that the statement of a problem

could be complicated. But as soon as we define the correct
decision variables, things become very clear
Two sources of pollution: Open furnace and Blast furnace
Three types of pollutants: Particulate matter, Sulfur oxides, and
hydrocarbons. ( Pollutant1, Pollutant2, Pollutant3). Required
reduction in these 3 pollutants are 60, 150, 125 million pounds
per year. ( These are RHS)
Three pollution reduction techniques: taller smokestacks, Filters,
Better fuels. ( these are indeed our activities). We may
implement a portion of full capacity of each technique.
If we implement full capacity of each technique on each source,
their impact on reduction of each type of pollutant is as
follows

LP-Formulation Ardavan Asef-Vaziri June-2013 12

Controlling air pollution : narrative

Pollutant Taller Filter Better fuel

smokestacks
B.F. O.F B.F. O.F. B.F. O.F.

Particulate 12 9 25 20 17 13
Sulfur 35 42 18 31 56 49
Hydrocarb. 37 53 28 24 29 20

The cost of implementing full capacity of each pollutant

reduction technique on each source of pollution is as follows
Pollutant Taller Filter Better fuel
smokestacks
B.F. O.F B.F. O.F. B.F. O.F.

Cost 12 9 25 20 17 13
LP-Formulation Ardavan Asef-Vaziri June-2013 13
Controlling air pollution : Decision Variables

How many techniques??

How many sources of pollution??

How many constraints do we have in this problem???

How many variables do we have

Technique i source j

LP-Formulation Ardavan Asef-Vaziri June-2013 14

Controlling air pollution : Decision Variables

x11 = Proportion of technique 1 implemented of source 1

x12 = Proportion of technique 1 implemented of source 2

x21 = Proportion of technique 2 implemented of source 1.

x22 = Proportion of technique 2 implemented of source 2

x31 = Proportion of technique 3 implemented of source 1

x32 = Proportion of technique 3 implemented of source 2.

LP-Formulation Ardavan Asef-Vaziri June-2013 15

Controlling air pollution : Formulation

Pollutant Taller Filter Better fuel

smokestacks
B.F. O.F B.F. O.F. B.F. O.F.

Particulate 12 9 25 20 17 13
Sulfur 35 42 18 31 56 49
Hydrocarb. 37 53 28 24 29 20
Min Z= 12x11+9x12+ 25x21+20x22+ 17x31+13x32
Particulate; 12x11+9x12+ 25x21+20x22+ 17x31+13x32  60
Sulfur; 35x11+42x12+ 18x21+31x22+ 56x31+49x32  150
Hydrocarbon; 37x11+53x12+ 28x21+24x22+ 29x31+20x32  125
x11, x12, x21, x22, x31, x32 ????
x11, x12, x21, x22, x31, x32 ????
LP-Formulation Ardavan Asef-Vaziri June-2013 16
SAVE-IT Company : Narrative

A reclamation center collects 4 types of solid waste material,

treat them, then amalgamate them to produce 3 grades of
product. Techno-economical specifications are given below
Grade Specifications Processing Sales price
cost / pound / pound
M1 :  30% of total
A M2 :  40% of total 3 8.5
M3 :  50% of total
M4 : exactly 20%
M1 :  50% of total
B M2 :  10% of total 2.5 7
M4 : exactly 10%
C M1 :  70% of total 2 5.5
LP-Formulation Ardavan Asef-Vaziri June-2013 17
SAVE-IT Company : Narrative

Availability and cost of the solid waste materials M1, M2, M3,
and M4 per week are given below
Material Pounds available / week Treatment cost / pound
M1 3000 3
M2 2000 6
M3 4000 4
M4 1000 5
Due to environmental considerations, a budget of
$30000 / week should be used to treat these material.
Furthermore, for each material, at least half of the pounds
per week available should be collected and treated.

LP-Formulation Ardavan Asef-Vaziri June-2013 18

SAVE-IT Company : Narrative

1. Mixture Specifications
2. Availability of material
3. At least half of the material treated
4. Spend all the treatment budget
5. Maximize profit Z

LP-Formulation Ardavan Asef-Vaziri June-2013 19

Capital budgeting : Narrative representation

We are an investor, and there are 3 investment projects offered to

the public.
We may invest in any portion of one or more projects.
Investment requirements of each project in each year ( in millions
of dollars) is given below. The Net Present Value (NPV) of total
cash flow is also given.
Year Project 1 Project 2 Project 3
0 40 80 90
1 60 80 60
2 90 80 20
3 10 70 60
NPV 45 70 50
LP-Formulation Ardavan Asef-Vaziri June-2013 20
Capital budgeting : Narrative representation

If we invest in 5% of project 1, then we need to invest 2, 3, 4.5, and

0.5 million dollars in years 0, 1, 2, 3 respectively. The NPV of our
investment would be also equal to 5% of the NPV of this project,
i.e. 2.25 million dollars.

Year Project 1 5% of Project 1

0 40 2
1 60 3
2 90 4.5
3 10 .5
NPV 45 2.25

LP-Formulation Ardavan Asef-Vaziri June-2013 21

Capital budgeting : Narrative representation

Based on our budget forecasts,

Our total available money to invest in year 0 is 25M.
Our total available money to invest in years 0 and 1 is 45M
Our total available money to invest in years 0, 1, 2 is 65M
Our total available money to invest in years 0, 1, 2, 3 is 80M
To clarify, in year 0 we can not invest more than 25M.
In year 1 we can invest 45M minus what we have invested in year
0.
The same is true for years 2 and 3.
The objective is to maximize the NPV of our investments

LP-Formulation Ardavan Asef-Vaziri June-2013 22

Capital budgeting : Formulation

x1 = proportion of project 1 invested by us.

x2 = proportion of project 2 invested by us.
x3 = proportion of project 3 invested by us.
Maximize NPV Z = 45x1 + 70 x2 + 50 x3
subject to
Year 0 : 40 x1 + 80 x2 + 90 x3  25
Year 1 : Investment in year 0 + Investment in year 1  45

LP-Formulation Ardavan Asef-Vaziri June-2013 23

Capital budgeting : Formulation

Investment in year 0 = 40 x1 + 80 x2 + 90 x3
Investment in year 1 = 60 x1 + 80 x2 + 60 x3

Year 1 : 60 x1 + 80 x2 + 60 x3 + 40 x1 + 80 x2 + 90 x3  45
Year 1 : 100x1 + 160 x2 + 150 x3  45

Year 2 : 90x1 + 80x2 + 20 x3 + 100x1 + 160 x2 + 150 x3  65

Year 2 : 190x1 + 240x2 + 170 x3  65

Year 3 : 10x1 + 70x2 + 60 x3 + 190x1 + 240x2 + 170 x3  80

Year 3 : 200x1 + 310x2 + 230 x3  80

x1 , x2, x3  0.
LP-Formulation Ardavan Asef-Vaziri June-2013 24
Personnel scheduling problem : Narrative
representation
An airline reservations office is open to take reservations by
telephone 24 hours per day, Monday through Friday.The
number of reservation officers needed for each time period is
shown below.
Period Requirement
12am-4am 11
4am-8am 15
8am-12pm 31
12pm-4pm 17
4pm-8pm 25
8pm-12am 19

The union contract requires all employees to work 8

consecutive hours. Therefore, we have shifts of 12am-8am,
4am-12pm, 8am-4pm, 12pm-8pm, 4pm-12am, 8pm-4am. Hire
the minimum number of reservation agents needed to cover all
requirements.
LP-Formulation Ardavan Asef-Vaziri June-2013 25
Personnel scheduling problem : Narrative
representation
The union contract requires all employees to work 8
consecutive hours.
We have shifts of
12am-8am, 4am-12pm, 8am-4pm, 12pm-8pm, 4pm-12am, 8pm-
4am.
Hire the minimum number of reservation agents needed to
cover all requirements.
If there were not restrictions of 8 hrs sifts, then we could hire as
required, for example 11 workers for 4 hors and 15 workers for
4 hours.

LP-Formulation Ardavan Asef-Vaziri June-2013 26

Personnel scheduling problem : Pictorial
representation
Period Shift
1 2 3 4 5 6
11
12 am to 4 am

4 am to 8 am 15

8 am to 12 pm 31

12 pm to 4 pm 17

4 pm to 8 pm 25

8 pm to 12 am 19

LP-Formulation Ardavan Asef-Vaziri June-2013 27

Personnel scheduling problem : Decision variables

x1 = Number of officers in 12 am to 8 am shift

x2 = Number of officers in 4 am to 12 pm shift
x3 = Number of officers in 8 am to 4 pm shift
x4 = Number of officers in 12 pm to 8 pm shift
x5 = Number of officers in 4 pm to 12 am shift
x6 = Number of officers in 8 pm to 4 am shift

LP-Formulation Ardavan Asef-Vaziri June-2013 28

Personnel problem : constraints and objective
function
Min Z = x1+ x2+ x3+ x4+ x5+ x6
12 am - 4 am : x1 +x6  11
4 am - 8 am : x1 +x2  15
8 am - 12 pm : +x2 + x3  31
12 pm - 4 pm : +x3 + x4  17
4 pm - 8 pm : +x4 + x5  25
8 pm - 12 am : +x5 + x6  19

x1 , x2, x3, x4, x5, x6  0.

LP-Formulation Ardavan Asef-Vaziri June-2013 29

Personnel scheduling problem : excel solution

LP-Formulation Ardavan Asef-Vaziri June-2013 30

Aggregate Production Planning : Narrative

PM Computer Services assembles its own brand of computers.

Production capacity in regular time is 160 computer / week
Production capacity in over time is 50 computer / week
Assembly and inspection cost / computer is $190 in regular
time and $260 in over time.
Customer orders are as follows
Week 1 2 3 4 5 6
Orders 105 170 230 180 150 250
It costs $10 / computer / week to produce a computer in one
week and hold it in inventory for another week.
The Goal is to satisfy customer orders at minimum cost.

LP-Formulation Ardavan Asef-Vaziri June-2013 31

Refresh

We need to lease warehouse space. The estimated required

space ( in 1000 sq ft) is given below.
Month 1 2 3 4 5
Space required 30 20 40 10 50

If the leasing cost was fixed the best strategy was to lease as
needed. But this is not the case
Leasing period (months) 1 2 3 4 5
Cost per sq-feet leased 65 100 135 160 190
Now it may be more economical to lease for more than one
month and take advantage of the lower rates for longer periods.

Find the optimal leasing strategy to minimize leasing costs.

LP-Formulation Ardavan Asef-Vaziri June-2013 32

 Decision Variables

Xij spaced leased in month i and kept until month j months.

i = 1, 2, 3, 4, 5. j= i, i+1, …, 5

Min z = 65X11 +100 X12 +135 X13 +160 X14+190 X15

+ 65X22+100 X23 +135 X24 +160 X25
+ 65X33+100 X34 +135 X35
+ 65X44+100 X45
+ 65X55

LP-Formulation Ardavan Asef-Vaziri June-2013 33

Constraints

X11 + X12 + X13 + X14+ X15  30,000

X12 + X13 + X14+ X15 + X22+ X23 + X24 + X25  20,000

X13 + X14+ X15 + X23 + X24 + X25 + X33+ X34 + X35  40,000

X14+ X15 + X24 + X25 + X34 + X35 + X44+ X45 10,000

X15 + X25 + X35 + X45 + X55  50,000

X11 , X12 , X13 , X14 , X15 , X22 , X23 , X24 , X25 , X33 , X34 , X35
X44 , X45 , X55  0

LP-Formulation Ardavan Asef-Vaziri June-2013 34

excel; Format 1

x11 x12 x13 x14 x15 x22 x23 x24 x25 x33 x34 x35 x44 x45 x55
1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 30 >= 30
0 1 1 1 1 1 1 1 1 0 0 0 0 0 0 30 >= 20
0 0 1 1 1 0 1 1 1 1 1 1 0 0 0 40 >= 40
0 0 0 1 1 0 0 1 1 0 1 1 1 1 0 30 >= 10
0 0 0 0 1 0 0 0 1 0 0 1 0 1 1 50 >= 50

65 100 135 160 190 65 100 135 160 65 100 135 65 100 65

LP-Formulation Ardavan Asef-Vaziri June-2013 35

excel; Format 2

x11 x12 x13 x14 x15

x22 x23 x24 x25
x33 x34 x35
x44 x45
x55

0 0 0 0 30 30 >= 30
0 0 0 0 0 30 >= 20
0 0 10 0 0 40 >= 40
0 0 0 0 0 30 >= 10
0 0 0 0 20 50 >= 50

65 100 135 160 190

100000 65 100 135 160
100000 100000 65 100 135
100000 100000 100000 65 100
100000 100000 100000 100000 65
7650

LP-Formulation Ardavan Asef-Vaziri June-2013 36

excel; Best Format (Ctrl)

x11 x12 x13 x14 x15

x22 x23 x24 x25
x33 x34 x35
x44 x45
x55

0 0 0 0 30 30 >= 30
0 0 0 0 30 >= 20
10 0 0 40 >= 40
0 0 30 >= 10
20 50 >= 50

65 100 135 160 190

65 100 135 160
65 100 135
65 100
65
7650

LP-Formulation Ardavan Asef-Vaziri June-2013 37