Solving Examples of

Linear Programming
Models
Chapter 4
(p128 – 198)
Introduction
• This chapter covers more complex examples of
model formulation
• Steps:
1. Identify decision variables
2. Formulate the objective function
3. Develop the model constraints
• Remember: graphical analysis can only be done
when there are only 2 decision variables
4.1. A Product Mix Example
• World Series

• Super Bowl

• Final Four
... A Product Mix Example
•Decision
  variables
• - sweatshirts, front printing
• - sweatshirts, front & back printing
• - T-shirts, front printing
• - T-shirts, front & back printing
... A Product Mix Example
•Objective
  function
• The company’s objective function is to maximize
profit
• Maximize
... A Product Mix Example
•Model
  constraints
• Time: 72 hours

• Shipping capacity: 1200 standard-size boxes

• Box of sweatshirts = 3 x standard-size box (T-shirts)

• Cost budget: $25 000

• The last 2 constraints reflect the available blank

sweatshirts and T-shirts the company has in storage:
... A Product Mix Example
•  
Model summary
• Maximize
subject to
… A Product Mix Example
•  
Solution analysis
• - 175,56 boxes of sweatshirts (front printing)
• - 57,78 boxes of sweatshirts (front & back printing)
• - 500 boxes of T-shirts (front printing)
• - $45 522,22 profit
4.2. A Diet Example
Breakfast Calories Fat Cholesterol Iron Calcium Protein Fiber Cost
food (g) (mg) (mg) (mg) (g) (g) ($)
1. Bran cereal (cup) 90 0 0 6 20 3 5 0,18

2. Dry cereal (cup) 110 2 0 4 48 4 2 0,22

3. Oatmeal (cup) 100 2 0 2 12 5 3 0,10

4. Oat bran (cup) 90 2 0 3 8 6 4 0,12

5. Egg 75 5 270 1 30 7 0 0,10

6. Bacon (slice) 35 3 8 0 0 2 0 0,09

7. Orange 65 0 0 1 52 1 1 0,40

8. Milk – 2% (cup) 100 4 12 0 25 9 0 0,16

9. Orange juice 120 0 0 0 3 1 0 0,50

(cup)
10. Wheat toast 65 1 0 1 26 3 3 0,07
(slice)
… A Diet Example
•  
Decision variables
• - cups of bran cereal
• - cups of dry cereal
• - cups of oatmeal
• - cups of oat bran
• - eggs
• - slices of bacon
• - oranges
• - cups of milk
• - cups of orange juice
• - slices of wheat toast
… A Diet Example
•  
Model summary
• Minimize
• Subject to
 4.3. An Investment Example
Kathleen Allen, an individual investor, has R70 000 to divide among several
investments. The alternative investments are municipal bonds with an 8,5%
annual return, certificates of deposit with a 5% return, treasury bills with a
6,5% return, and a growth stock fund with a 13% annual return. The
investments are all evaluated after one year. However, each investment
alternative has a different perceived risk to the investor; thus, it is advisable to
diversify. Kathleen wants to know how much to invest in each alternative in
order to maximize the return.
The following guidelines have been established for diversifying the
investments and lessening the risk perceived by the investor:
1. No more than 20% of the total investment should be in municipal bonds.
2. The amount invested in certificates of deposit should not exceed the amount
invested in the other three alternatives.
3. At least 30% of the investment should be in treasury bills and certificates of
deposit.
4. To be safe, more should be invested in CDs and treasury bills than in municipal
bonds and the growth stock funds, by a ratio of at least 1,2 to 1.
Kathleen wants to invest the entire R70 000.
 ... An Investment Example
•  Maximise
• subject to

• where
• - amount invested in municipal bonds
• - amount invested in certificate of deposit
• - amount invested in treasury bills
4.4. A Marketing Example
Exposure Cost
(people/ad or commercial) (R)
Television commercial 20 000 15 000
Radio commercial 12 000 6 000
Newspaper ad 9 000 4 000
… A Marketing Example
 4.5. A Transportation Example
• Table 1 Table 2
Warehouse Supply (sets) Store Demand
1. Cincinnati 300 A. New York 150
2. Atlanta 200 B. Dallas 250
3. Pittsburgh 200 C. Detroit 200
TOTAL 700 TOTAL 600

• Table 3
From To Store:
Warehouse A B C

1 16 18 11
2 14 12 13
3 13 15 17
... A Transportation Example
••  The model consists of 9 decision variables,
representing the number of television sets
transported from each of the three warehouses to
each of the three stores:
• - number of televisions shipped from warehouse to
store
• where
and

* A variable is referred to as a double-subscripted variable

... A Transportation Example
4.6. A Blend Example
Maximum barrels Cost/barrel
• Table 1 Component available/day ($)
1 4 500 12
2 2 700 10
3 3 500 14

Component Selling price/barrel

• Table 2 Grade specifications ($)
Super At least 50% of 1 23
Not more than 30% of 2
Premium At least 40% of 1 20
Not more than 25% of 3
Extra At least 60% of 1 18
At least 10% of 2
… A Blend Example
••  The decision variables are the quantity of each of the
three components used in each grade of oil
• 9 decision variables
• - barrels of component used in motor oil grade per day
• where and
• s – super
• p – premium
• e – extra
… A Blend Example
4.7. A Multiperiod Scheduling
Example

Week Computer orders

1 105
2 170
3 230
4 180
5 150
6 250
… A Multiperiod Scheduling
Example
… A Multiperiod Scheduling
Example
… A Multiperiod Scheduling
Example