MANAGEMENT SCIENCE

LECTURE 2
Additional Example:
• ABC Electric Coop owns a steam – Turbine power-generating plant. EPA
regulations limit sulfur dioxide discharge to 2000 parts per million per ton of coal
burned and smoke discharge from the plant stacks to 20lb per hour. The coop
receives two grades of pulverized coal, C1 and C2 for use in the steam plant. The
two grades are usually mixed together before burning. For simplicity, it can be
assumed that the amount of sulfur pollutant discharged (in parts per million) is a
weighted average of the proportion of each grade used in the mixture. The
following data are based on consumption of 1 ton per hour of each of the two
coal grades.
Coal grade Sulfur discharge Smoke Discharge Steam generated
in parts per in lb per hour in lb per hour
million
C1 1800 2.1 12,000
C2 2100 0.9 9,000
Determine the Optimum Solution for mixing two coal grades.
GRAPHICAL SOLUTION OF A MINIMIZATION MODEL
Decision Variable
• Example.
X1 = lb of corn in the daily mix
Ozark farms uses at least 800lb of special feed
X2 = lb of soybean in the daily mix
daily. The special feed is a mixture of corn and
Objective Function:
soybean meal with the following composition:
Minimize Z = 0.30x1 + 0.90x2
Lb per lb of feedstuff
Subject to :
Feedstuff Protein Fiber Cost ($/lb)
Corn 0.09 0.02 0.30 x1+x2 ≥ 800
Soybean 0.60 0.06 0.90 0.21x1 – 0.30x2 ≤ 0
meal 0.03x1 - 0.01x2 ≥ 0
X1,x2 ≥ 0
The dietary requirments of the special feed
stipulate at least 30% protein and at most 5% 0.09x1 + 0.6x2 ≥ 0.30 (x1+x2)
fiber. Ozark farms wishes to determine the -0.21x1 + 0.3x2 ≥ 0
daily minimum – cost feed mix. 0.02x1 + 0.06x2 ≤ 0.05 (x1+x2)
0.02x1 + 0.06x2 ≤ 0.05 x1 + 0.05x2
 Graphical Solution Feasible Region
x1 + x2 ≥ 800 At point A
For x1 + x2 = 800 Intersection bet. B
For x1 = 0 x1 + x2 = 800
For x2 = 0
0.21x1 – 0.30 x2 = 0 A
x2 = 800 x1 = 800
x1= 800 – x2
x1 + x2 ≥ 800
For 0.21x1 – 0.30 x2 ≤ 0 0.21x1 – 0.30 x2 = 0 0.21x1 – 0.30 x2 ≤ 0
0.21x1 – 0.30 x2 = 0 0.21(800 – x2) – 0.30x2 = 0
For x1=0 Let x1=100 168 - 0.21x2 – 0.30x2 = 0
0.03x1 – 0.01x2 ≥ 0
x2 = 0 0.21x1 – 0.30 x2= 0 168 - 0.21x2 – 0.30x2 = 0
x2 = 70 X2 = 329.41 x1= 800 – x2
For 0.03x1 – 0.01x2 ≥ 0
x1= 800 – 329.41
For 0.03x1 – 0.01x2 = 0 x1= 470.59
At Point B X1 x2 Min Z =
For x1 = 0 Let x1 = 100
Intersection bet. 24 – 0.03x2 – 0.01x2 = 0 0.30x1+0.90x2
x2 = 0 0.03x1 – 0.01 = 0
0.03x1 – 0.01x2 = 0 X2 = 600 0.30(470.59)+0.90(329
x2 = 300 A 470.59 329.41
x1= 800 – 600 .41) = $437.64
x1 + x2 = 800
x1= 800 – x2 x1= 200 B 200 600 0.30(200)+0.90(600) =
$600
0.03(800 – x2) – 0.01x2 = 0
OPTIMUM SOLUTION
Add’tl Example
Oilco is building a refinery to produce four products: diesel, gasoline ,
lubricants, and jet fuels. The minimum demand ( in bbl/day ) for each of these
products is 14,000 , 30,000 , 10,000 and 8000 respectively. Iran and Dubai are
under contract to ship crude to Oilco. Because of the production quotas specified
by OPEC ( Organization of Petroleum Exporting Countries) the new refinery can
receive at least 40% of its crude from Iran and the remaining amount from Dubai.
Oilco predicts that the demand and crude oil quotas will remain steady over the
next ten years.
The specifications of the two crude oils lead to different product mixes: One
barrel of Iran crude yields 0.2 bbl of diesel , 0.25bbl of gasoline, 0.1bbl of lubricant,
and 0.15bbl of jet fuel. The corresponding yields from Dubai crude are 0.1 , 0.6 ,
0.15, and 0.1 , respectively. Oilco needs to determine the minimum capacity of the
refinery (in bbl/day).
Solution
CRUDE YIELD
in (bbl/day)
Decision Variable
Minimum demand (in
DUB thousands bbl/day) Let
IRAN
AI x1 =in thousands bbl/day produced in Iran
DIESEL 0.2 0.1 14 x2 = in thousands bbl/day produced in Dubai
GASOLIN
E
0.25 0.6 30 Objective Functions
LUBRICA
NT
0.1 0.15 10 Minimize Z = x1 + x2
JET
FUELS
0.15 0.1 8 Subject To:
Cost
X1 ≥ 0.4 (x1 + x2)
the new refinery can receive at least 40% of its crude from Iran
and the remaining amount from Dubai 0.6x1 – 0.4x2 ≥ 0
0.2x1 + 0.1x2 ≥ 14
0.25x1 + 0.6x2 ≥ 30
0.1x1 + 0.15x2 ≥ 10
0.15x1 + 0.1x2 ≥ 8
Non-negativity Constraints x1 , x2 ≥ 0
ACTIVITY NO. 2
• DETERMINE THE OPTIMUM SOLUTION ON OILco. PROBLEM.
• DEADLINE : TODAY October 22, 11:59PM.
• SUBMISSION AT GCLASS CLASSWORKS.
QUESTIONS???