INDUSTRIAL ENGINEERING DEPARTMENT

INTRODUCTION TO OPERATIONS RESEARCH I

Problem Set I
MODEL FORMULATION
1. The Alambre Corporation makes two types of copper wire: Type 1 (rubber-insulated) and Type 2
(vinyl-insulated). Each product is made by processing copper strands through 3 machines A, B, and C.
The Engineering Department summarizes the manufacturing data as follows:
Product Type
1
2

Copper Usage
(tons/1000 feet)
1.20
1.00

Machine Time Usage (hours/1000 feet)

A
B
C
12.0
10.0
7.5
6.0
10.0
5.5

It is further estimated that A will be available for at most 600 hours per month, B for at most 600
hours, and C for at most 385 hours per month only. The monthly supply of copper is at most 72 tons.
The variable manufacturing costs are P900 per thousand feet of Type 1 and P2000 per thousand feet of
Type 2. (Fixed costs do not figure in the optimization and are not given here.)
The Sales Department estimates that there is a market potential of 40 thousand feet per month of Type
1 and 60 thousand feet of Type 2 also per month. Now, if Type 1 sells for P1800 per thousand feet and
Type 2 for P3000 per thousand feet, formulate this as a linear programming model.
2. The Luzon Timber Corporation cuts raw timber, lauan, and tanguile, into standard size planks. Two
steps are required to make these planks from raw timber: debarking and cutting. Each hundred feet of
lauan takes 1 hour to debark and 1.2 hours to cut. Each hundred feet of tanguile takes 1.5 hours to
debark and 0.6 hours to cut. The bark removing machines can operate up to 600 hours per week but
the cutting machines are limited to 480 hours per week.
Luzon Timber can buy a maximum of 36,000 feet of raw lauan and 32,000 feet of raw tanguile. If the
profit per hundred feet of processed logs is P180 for lauan and P200 for tanguile, how much lauan and
tanguile should be bought and processed by the corporation to maximize total profits? Formulate this
problem as a linear programming model.
3. Mindoro Mines operates two mines: one in Katibo and the other on Itim na Uwak Island. The ore from
the mines is crushed at the site and then graded into high-sulfur ore (ligmite), low-sulfur ore (pyrrite)
and mixed ore. The graded ore is then sold to a cement factory which requires, every year, at least
12000 tons of ligmite, at least 8000 tons of pyrrite ant at least 2400 tons of the mixed ore.
Each day, at a cost of P22,000 per day, the Katibo mine yields 60 tons of ligmite, 20 tons of pyrrite and
30 tons of the mixed ore. In contrast, at the Itim na Uwak Island mine, at a cost of P25,000 per day,
the mine yields 20 tons of ligmite, 20 tons of pyrrite and 120 tons of the mixed ore.
The management of Mindoro Mines wants to determine how many days a year it will operate the 2
mines to fill the demand from the cement plant at minimum cost. Formulate this problem as an LP
model.
4. Plate Glass is manufactured out of a combination of silicon, bitumin and titium. In turn these three
elements are extracted out of two types of sand: brine sand (which costs P150 per ton) and Nasugbu
sand (which costs P100 per ton).

Brine sand is approximately 30% silicon, 20% bitumin and 10% titium. On the other hand, Nasugbu
sand is approximately 10% silicon, 20% bitumin and 40% titium. In a production day at the glass
plant, they need at least 1.5 tons of silicon, at least 2 tons of bitumin and at least 2 tons of titium.
If it costs P300 to process 1 ton of brine sand and P250 to process 1 ton of Nasugbu sand, how much
of each type of sand must the glass factory buy to supply its minimum requirements for the 3 elements?
Formulate this problem as linear programming model.
5. On the average, an experienced salesman for a pharmaceutical company is paid P1000 a week in salary
but generates about P50,000 in sales per week. On the other hand, a rookie salesman is paid P500 a
week and averages P20,000 in sales per week.
A pharmaceutical company wants to expand its operations and checks its sales budget: P8000 for the
weekly payroll (experienced and rookie salesmen combined) and P20,000 for the training program for
rookie. The estimated cost of training is P2500 per rookie (separate from the salary he earns as a
rookie). In addition to these obvious constraints, the company also plans to limit its sales force
(experienced plus rookies) to ten or fewer.
Under these circumstances, determine the optimal number of experienced salesmen and rookies which
will maximize total sales. Formulate this problem as a linear programming model.
6. A regional unit of the University of the Philippines System has only enough academic facilities to admit
at most 1000 freshmen student. Under the Democratization of Admissions Policy of the University of
the Philippines, the unit plans to accept both regular students (admitted under the usual criteria) and
also the so-called XDS students (admitted under modified admissions criteria to improve the socioeconomic mix of the student population.)
It is estimated that 80% of XDS students will need dormitory facilities while only 30% of the regular
students will need it. Only 350 places are available in the old dormitory. Funds for the planned new
dormitory have been appropriated but yet released by the government and so the dormitory constraint is
crucial. Pressure from some alumni groups and the more affluent parents dictates that no more than
one XDS students be admitted for each 5 regular students. On the other hand, a directive from the U.P
Central Administration dictates that at least 50 XDS freshmen must be admitted.
If 80% of the regular students and 70% of the XDS students are expected to earn their degrees in the
regional unit and the object is to maximize the number of expected graduates, how many regular
students and how many XDS students should be admitted by the unit? (Ignore the obvious integer
constraint). Formulate this problem as a linear programming model.

7. The Ministry of Human Settlements is planning to construct housing units on an 8000-sq. meter plot.
The plan is to build two types of units: the Pugad ng Lambingan type and the Kandungan ng
Pagsinta type.
The total funding for the project is P12.3 M (loan from the World Bank). Site development and building
costs have been estimated at P75,000 per Lambingan unit and P95,000 per Pagsinta unit. It has also
been estimated that about 25 Lambingan units can be built on each 1000 sq.-meter plot but only 15
Pagsinta units can be built on an area of the same size.
Architectural and environmental considerations limit the total number of units (both types combined) to
at most 155 units. However, the loan agreement itself carries the provision that at least 30 Lambingan
and at least 20 Pagsinta units must be built. Finally, social considerations require that at least 20
Lambingan units must be constructed for each seven Pagsinta.
It is expected that each Lambingan unit will house approximately 7 people while each Pagsinta unit will
house about 5 people. If the objective is for the entire project to house as many people as possible
subject to all the previously stated conditions, how many units of each type must be built? Formulate
this problem as a linear programming model.
8. A manufacturer produces three models (I, II and III) of a certain product. He uses two types of raw
material (A and B), of which 4,000 and 6,000 units are available, respectively. The raw material
requirements per unit of the three models are given below.
Raw Material
A
B

I
2
4

Requirements per Unit of Given Model

II
3
2

III
5
7

The labor time for each unit of Model I is twice that of Model II and three times of Model III. The
entire labor force of the factory can produce the equivalence of 1,500 units of Model I. A market
survey indicates that the minimum demands for the three models are 200, 200, and 150 units,
respectively. However, the ratios of the number of units must be equal to 3:2:5. Assume that the profit
per unit of models I, II, III is Php 30, Php 20, and Php 50, respectively. Formulate an LP model to
determine the number of units of each product that will maximize profit.

9. A businessman has the option of investing his money in two plans. Plan A guarantees that each peso
invested will earn 70 cents a year, hence, and plan B guarantees that each peso invested will earn P2.00
two years hence. In plan B, only investments for periods that are multiple of 2 years are allowed.
How should he invest P100,000 to maximize the earnings at the end of 3 years? Formulate the
problem as a linear programming model.

10. Various grades of gasoline are obtained by blending together certain blending gasoline which are the
direct output of the refinery operation. In an actual refining operation, there are many blending
gasoline, many final-product gasoline (e.g., various grades of aviation and motor gasoline) , and many
characteristics that are considered important in the chemical composition of the various grades of
gasoline (including, for example, octane rating, vapor pressure, sulfur content, and sum content). In
this simplified problem, assume that a refinery has available only two types of blending gasoline,
whose characteristics are shown in the table below.
Characteristics of Blending Gasoline
Octane Rating
Vapor Pressure
Amount Available

Blending gasoline, type 1

Blending gasoline, type 2

104
94

5
9

30,000 barrels
70,000 barrels

The blending gasoline may be mixed to produce two final products, aviation gasoline and motor
gasoline. The characteristics of these final products are shown below.

Aviation gasoline
Motor gasoline

Min.Octane
Rating
102
96

Characteristics of Final-Product Gasoline

Max.Vapor
Maximum
Pressure
Sales
6
20,000 barrels
8
any amount

Selling
Price
P15.10 / bbl.
P12.40 / bbl.

When gasoline is mixed together, the resulting mixture has an octane and a vapor pressure in
proportion to the volume of each gasoline mixed. For example, if 1,000 barrels of blending gasoline 1
were mixed with 1,000 barrels of blending gasoline 2, the resultant would have an octane rating of 99:
(1,000 x 104 + 1,000 x 94 / 2,000 = 99)
and a vapor pressure of 7:
(1,000 x 5 + 1,000 x 9 / 2,000 = 7)
The firm wishes to maximize revenue from the sale of final-product gasoline.

11. The Kleen City Police Department has the following minimum daily personnel requirements:
Period
1
2
3
4
5
6

Time of Day
12 - 4 a.m.
4 - 8 a.m.
8 - 12 a.m.
12 - 4 p.m.
4 - 8 p.m.
8 - 12 p.m..

Police Needed
22
55
88
110
44
33

Each police officer works 8 consecutive hours. The police department has retained consulting services
of an expert, Herr Kohn D Ohuz, to obtain a daily schedule that employs the least number of
policemen, provided that each of the above requirements are met. Formulate the LP model relations to
find an optimum schedule.

12.

A manufacturer of soap and detergents has three plants located in Cebu, Batangas, and Iloilo.
Major warehouses are located at Baguio, Bicol, Bacolod, Ilocos and Pangasinan. Sales requirements
for the next year at each warehouse are given in the table below.

Warehouse Location
Baguio
Bicol
Bacolod
Ilocos
Pangasinan

Warehouse Requirements
Annual Sales (Thousands of cases)
50
10
60
30
20

Total
170
There is some concern in the company about which factory should supply each warehouse. Factory
capacity at each location is limited. Cebu has an annual capacity of 100,000 cases, Batangas has a
capacity of 60,000 cases, and Iloilo has a capacity of 50,000 cases.
The cost of shipping soap from each factory to each warehouse is given in the table below. The
company wishes to determine a shipping schedule which will minimize overall company transportation
costs.
To
Cost of Shipping 1,000 cases of soap
From
Baguio
Bicol
Bacolod
Ilocos
Pangasinan
Cebu
P120
P150
P80
P250
P180
Batangas
210
220
150
100
110
Iloilio
150
170
150
240
200

13. The Metropolitan Package Delivery Service is studying the allocation of trucks on its four different
delivery routes for this year. The following table indicates the maximum number of packages
estimated to be delivered on each route and the income received from delivery.
Route
Number of Packages
Income / Package
1
250
P1.20
2
175
2.00
3
360
1.50
4
425
0.90
The service concern has three types of trucks. The following table shows the number of packages
which can be accommodated in a years time by a truck allocated to each of the routes; it also shows
the maximum number of each truck type which can be made available for use on all routes.
Type of Truck
Route
T1
T2
T3
1
15
24
96
2
18
36
78
3
12
31
84
4
16
29
84
Total trucks
21
17
8
available
The annual operating cost for a truck allocated to each route is as follows:
Type of Truck
Route
T1
T2
T3
1
P18
P18
P21
2
24
22
24
3
20
19
26
4
24
21
23
Set up the linear programming model which will find the maximum total annual profit solution.

14. Production / Inventory Planning. Computon, a manufacturer of pocket calculators, forecasts demand
for its model T1 calculator to be 1,500 units for period 1 (January - June) and 2,100 units for period 2
(July - December). The calculator requires a special integrated circuit or ship for the central
processor module. Computon manufactures chip in-house but also has a subcontractor available for
supplying this special unit. The cost to manufacture the chip in-house is P45.00. Subcontracting
costs (including shipping) are currently P52.50 for period 1 but are expected to increase to P62.50 for
period 2. The inventory holding cost to keep a single chip in inventory for one is P19.00 (a somewhat
high figure owing primarily to risk of obsolescence). Computons manufacturing capacity is 1,700
chips per period. Computons sub-contractor can provide 200 chips in period 1 and 300 chips in

period 2. How should Computon plan its inventory, production, and procurement for the coming
year?

15. Your best friend is asking you to help him with his problem. He is planning to get married on June 1,
1990. He has promised this girl a house and lot as wedding gift. Toward this objective, he wants to
raise as much cash as is possible, using as seed money his personal savings of P100,000. Presently,
he is considering five different investment projects with varying returns rates, availability and
maturation rates.
Investment Plan A will be available for a total of 5 times on June 1 of each year from 1983 to 1987.
Each peso invested in Plan A will earn P0.40 exactly 2 years later.
Investment Plan B will be available for a total of 5 times, on June 1 of each year from 1984 to 1988.
Each peso placed in Plan B earns P0.70 exactly 3 years later.
Investment Plan C will be available only once in June 1, 1984. Each peso placed in Plan C will earn
P2.00 exactly 6 years later on June 1, 1990.
Investment Plan D will be available only once on June 1, 1984. Each peso placed in Plan D will earn
P2.20 exactly 6 years later on June 1, 1990.
Any amount may be placed or invested but no withdrawals are allowed before maturation.
Any amount which is not placed or invested may be put into a one-year time deposit to earn 16%
annual interest.
Formulate the LP model for this problem to maximize the cash available on June 1, 1990.

16. The PANAY UBO Drug Company produces two types of cough syrup (Type Y and Type Z) from
three different drugs (A, B, and C). The company purchases drugs A, B, and C for P10, P12 and P14
per gallon respectively. The selling prices of syrups Y and Z are P25 and P30 per gallon respectively.
Syrup Y must be at least 60% drug A. Syrup Y must also contain at least twice as much of drug A as
of drug B. Syrup Z must contain exactly the same amount of drug B as of drug C. In addition, the
amount of drug A in syrup Z must be 30% or less. Trade restrictions prevent the company from
purchasing more than 150 gallons of any drug or more than 300 gallons of all drugs. The company
wishes to maximize contribution to profit. Demand is excellent. Formulate the LP model for this
problem.

17. The Bulok na Kahoy Lumber Company has two processes to convert lumber into plywood. Process
X1 utilizes 1 board foot of lumber and produces 0.6 board foot of grade A plywood, 0.3 board foot of
grade B plywood, and 0.1 board foot of scrap. Process X 2 utilizes 1 board foot of lumber and
produces 0.4 board foot of grade A plywood, 0.4 board foot of grade B plywood, and 0.2 board foot
of scrap. The only direct cost associated with these processes is the cost of lumber, which is P1 per
board foot. The company has two more processes to convert plywood into boxes. Process X 3
produces 1 big box and requires 8 board feet of grade A plywood and 5 board feet of grade B
plywood. Process X4 produces 1 little box and requires 2 board feet of grade A plywood and 3
board feet of grade B plywood. Process X3 contributes P30 to profit and process X4 contributes P10
to profit. (Note: This assumes that the cost of lumber has been charged to processes X 1 and X2. The
company would like to maximize net profit, but it realizes that only 100,000 board feet of lumber are
available during the next period. The company can sell all of the little boxes it can produce, but it
must limit production of big boxes to 5000 or less. The objective is to maximize profit contribution.

Formulate the linear programming model for this problem. DO NOT attempt to solve the model.

18. A large business firm is currently planning how to best spend its advertising budget of P100,000 for
the coming month. Three alternatives are being considered:

1. Buy a 15-second spot on television at a cost of P15,000; this would reach an estimated 50,000
persons.

2. Place an ad in the major daily at a cost of P4,000; this would reach an estimated 15,000
persons.
3. Buy a 30-second spot on one of the local radio stations at a cost of P7,000; this would reach
an estimated 20,000 persons.
The company would like to reach the largest possible audience, but is concerned about 2 specific
target groups: males between 30-45 years old, and females who are over 20.
The following data was gathered by the companys marketing research group:

Males, age : 30-45

Females, over 20

Exposure per Ad
Newspaper
5,000
3,000

TV
15,000
15,000

Radio
6,000
5,000

Formulate the LP model to determine the advertising mix if the company would like to reach at least
70,000 of the male target group and 50,000 of the female target group

19. A cargo airplane has two compartments, the front and the rear. The loading capacities in weight and
spatial dimensions are as follows:
Front
Rear

Weight Limit
20,000 lb.
25,000 lb.

Space Limit
15,000 ft.3
20,000 ft.3

The following cargoes are available for transport, and the place may carry all or any part of each
commodity:
Commodity
1
2

Amount (lb.)
30,000
15,000

ft.3 / lb.
1
2

Revenue / lb.
$1.00
$1.50

The carrier company wants to accept the commodities in such proportions as to maximize the total
revenue, subject of course to weight and space limitations.

20. Pastry Monster specializes in cookies and cakes. Profit per dozen of cookies is P5.00 and the profit
per cake if P25. It takes one-quarter of an oven-hour to bake a dozen cookies and 1 oven-hour to bake
a cake. There are 40 oven-hours available in a week. Aside from the time needed to bake the cookies
and cakes, it also takes time to prepare the cookies and cakes for baking. The time required to prepare
a cake for baking is 10 times that needed to prepare a dozen cookies for baking. If the entire labor
force of Pastry Monster were to concentrate on cakes alone, they will be able to prepare the equivalent
of 200 cakes per week for baking. Sales of cookies are not expected to exceed 250 dozens in a week.
Formulate the linear programming model for Pastry Monster.

21. Quality Lumber Company has to fill the following orders:

Lumber Dimensions
1 in. x 2 in. x 8 ft.
1 in. x 4 in. x 8 ft.
2 in. x 2 in. x 8 ft.

Quantity to be Shipped
1000
800
500

All these orders have to be filled by cutting the standard-size lumber, whose dimensions are 2 in. x 4
in. x 8 ft. The company wants to minimize the total number of pieces of the standard-size lumber
used to satisfy the orders.

22. The maintenance division of Speedy Taxi Company needs the following quantities of automobile
generators for the next three months :
Month
1
2
3

Generator Requirement
100
150
200

It can purchase a new generator for P400 or have a used generator rebuilt by an outside firm for
P250. In the latter case the outside firm picks up the used generators at the beginning of the month
and returns the rebuilt generators at the beginning of the following month. The taxi company has 120
used generators in stock, but the used generators will not have any salvage value at the end of three
months. If possible, the company wants to avoid storing any used generators. How can the taxi
company minimize the total cost of meeting the generator requirements for the three-month period?

23. Love Bug Company has announced the introduction of two new exciting perfumes Allure and
Revenge. These are to be blended from two major sources, which the company has coded as Aphrody
and Olympus. Three processes can be used to convert Aphrody and Olympus into Allure and
Revenge. Process A utilizes 6 gallons of Aphrody and 4 gallons Olympus to produce 4 gallons of
Allure and 6 gallons of Revenge. Process B utilizes 3 gallons of Aphrody and 7 gallons of Olympus
to produce 5 gallons each of Allure and Revenge. Process C utilizes 5 gallons each of Aphrody and
Olympus to produce 3 gallons of Allure and 7 gallons of Revenge. Each gallon of Aphrody and
Olympus costs P180 and P120, respectively. The quantity supplied for Aphrody and Olympus is
limited to 2,000 and 1,600 gallons, respectively, per month.
Assuming that Love Bug can sell all the perfume that it can produce, what amount of Aphrody and
Olympus should be mixed for each of the three processes to maximize profit contribution? Allure
sells for P400 and Revenge for P300.

24. A ship has three cargo holds: forward, aft, and center. The capacity limits are:
Forward
Center
Aft

2000 tons
3000 tons
1500 tons

100,000 cubic feet

150,000 cubic feet
45,000 cubic feet

The following cargoes are offered; the ship owners may accept all or any part of each commodity:
Commodity

Amount, tons

Volume per ton,

Profit per ton,

A
B
C

cubic feet
60
50
25

6,000
4,000
2,000

Pesos
6
8
5

In order to preserve the trim of the ship, the weight in each hold must be proportional to the capacity
in tons. How should the cargo be distributed so as to maximize profit?

25. Rainbow Paints, Inc. Mixes four types of raw paint to form three finishes: hard, luster and regular.
Although there is some flexibility in the mix of each finish, quality standards do specify a minimum or
maximum percentage (by weight) of certain raw paints allowed for that particular finish. Paint and
finish data are given below:
PAINT DATA
Raw Paint
1
2
3
4

Finish
Hard
Luster
Regular

Gallons Available
9,000
12,000
20,000
15,000

FINISH DATA
Specifications
Not less than 25% of 1
Not more than 40% of 2
Not less than 20% of 3
Not more than 45% of 4
Not less than 15% of 3
Not more than 30% of 2
Not less than 25% of 2
Not more than 60% of 4

Cost per Gallon (Pesos)

110
70
100
50

Selling Price per Gallon

P180
P150
P160

26. A machine tool company conducts a job-training program for machinists. Trained machinists are used
as teachers in the program at a rate of one for every ten trainees. The training program lasts for one
month. From past experience it has been found that out of ten trainees hired, only seven complete the
program successfully (the unsuccessful trainees are released).
Trained machinists are also needed for machining and the companys requirements for the next three
months are as follows:
January
February
March

100
150
200

In addition, the company requires 250 trained machinists by April. There are 130 trained machinists
available at the beginning of the year. Payroll costs per month are:

Each trainee
Each trained machinist (machining/teaching)
Each trained machinist idle
(union contract forbids firing trained machinists)

P400
700
500

Set up the linear programming model that will produce the minimum hiring and training schedule.

27. The strategic bomber command receives instructions to interrupt the enemys tank production. The
enemy has four key plants located in separate cities, and destruction of any one plant will effectively
halt the production of tanks. There is an acute shortage of fuel, which limits the supply to 48,000
gallons for this particular mission. Any bomber sent to any particular city must have at least enough
fuel for the round trip plus a reserve of 100 gallons.
The number of bombers available to the commander and their descriptions are listed in the following
table.
Bomber Type
1
2

Description
Heavy
Medium

Miles per Gallon

2
3

Number Available
48
32

Information about the location of the plants and their vulnerability to attack by a medium bomber and
a heavy bomber is given below:
Plant

Distance from base,

miles

1
2
3
4

450
480
540
600

Probability of
destruction by a
heavy bomber
0.10
0.20
0.15
0.25

Probability of
destruction by a
medium bomber
0.08
0.16
0.12
0.20

Assume independence. Further assume that no change is inflicted on a plant by a bomber that fails to
destroy it. Formulate a linear programming model for this problem.

28. A speculator operates a silo with a capacity of 5,000 bushels for storing corn. At the beginning of
month 1, the silo contains 2,000 bushels. Estimates of the selling and purchase prices of corn during
the next four months are given in the figure below.
Selling and Purchase Price Data
Month
1
2
3
4

Purchase Price per 1000

Bushels ($)
40
50
70
70

Selling Price per 1000

Bushels ($)
35
50
60
70

Corn sold during any given months is removed from the silo at the beginning of that month. Thus,
2,000 bushels are available for sale in month 1. Corn bought during any given month is put into the
silo during the middle of that month, but it cannot be sold until the following month. Given the above

sales and purchase prices, and the assumptions on storage costs presented in part a , the speculator
wishes to know how much corn to buy and sell each month so as to maximize total profits shortly
after the beginning of the fourth month (which means after any sale that may occur in that month).
To aid in defining the assumptions on storage cost let
At = bushels in the silo immediately after the quantity sold in period t is removed (t=1, 2, 3, 4 )
Bt = bushels in the silo immediately after the quantity purchased in period t is out into the silo (t=1, 2,
3)

a.

Assume that the storage cost in period t ( t = 1, 2, 3 ) is

$0.005 (At + Bt ) / 2
Define the decision variables and formulate an LP model for this problem.

29. One of the interesting social experiments in the Mediterranean region is the system of kibbutzim, or
communal farming communities in Israel. It is common for groups of kibbutzim to join together to
share common technical services and to coordinate their production.
Overall planning for the Southern Confederation of Kibbutzim, one such group of three kibbutzim, is
done in its Coordinating Technical Office. This office currently is planning agricultural production for
the coming year.
The agricultural output of each kibbutzim is limited by both the amount of available irrigable land and
by the quantity of water allocated for irrigation by the Water Commissioner (a national government
official). These data are given in Table 1.
Table 1. Resources data for Southern Confederation of Kibbutzim
Kibbutzim

Usable Land
(acres)
400
600
300

1
2
3

Water Allocation
(acre feet)
600
800
375

The crops suited for this region include sugar beets, cotton and sorghum and are the only ones being
considered for the upcoming season. These crops differ primarily in their expected net return per acre
and their consumption of water. In addition, the Ministry of Agriculture has set a maximum quota for
the total acreage that can be devoted to each of these crops by the Southern Confederation of
Kibbutzim, as shown in Table 2.
Table 2. Crop data for Southern Confederation of Kibbutzim
Crop

Maximum quota
(acres)

Water Consumption
(Acre feet / acre )

Sugar beets
Cotton
Sorghum

600
500
325

3
2
1

Net
Return
(Dollars / acre)
400
300
100

The three kibbutzim belonging to the Southern Confederation have agreed that every kibbutzim will
plant the same proportion of its available irrigable land. However, any combination of the crops may
be grown at any of the kibbutzim. The job facing the Coordinating Technical Office is to plan how
many acres to devote to each crop at the respective kibbutzim while satisfying the above restrictions.
Formulate the linear programming model for this problem.
30. Sue and Al have formed a partnership. They are planning to operate a small lumber mill producing
sheets of plywood and pressboard. They have decided to split up the work in such a way that their
total profit is maximized. The profit per sheet of plywood is P5, while each sheet of pressboard brings
P8 a sheet profit. If Sue works a full day on plywood, she can produce 12 sheets, whereas Al can
produce 10 sheets per day. If they produce only pressboard, Sue can complete 10 sheets and Al can
complete 9 sheets in a days time. Formulate the objective function and constraints for solving this
problem with linear programming. Do not solve the problem, however.

31. The Mangus Electrical Products (MEPCO) produces large electric transformers for the electrical
industry. The company had orders (shown below) for the next six months. The cost of manufacturing
a transformer is expected to vary somewhat over the next few months due to expected changes in
materials costs and in labor rates. The company can produce up to 50 units per month on regular time
and up to an additional 20 units per month using overtime. The costs for both regular and overtime
production are shown below:
Month
Orders (units) .............................
Cost per unit at regular time
(in thousands)
Cost per unit at overtime
(in thousands)

Jan.
58
P180
P200

Feb.
36
170

Mar.
34
170

April
69
185

May
72
190

June
43
190

190

190

210

220

220

The cost of carrying an unsold transformer in stock is P5000 per month. The company has 15
transformers in stock on January 1, and wishes to have no less than 5 in stock on June 30.
Formulate a linear programming problem to determine the optimal production schedule for MEPCO.
32. A companys products are enjoying a sellers market; hence, the company can sell as many units of the
products as it can produce. Furthermore, the amount the company can produce is small, relative to
the overall market so the amount produced has no effect on market prices. The capacity constraints,
together with cost and price data, are given below:
Selling Price
(P per unit)
Product
1
2

14
11

Cost of Production
(P per unit)
10
8
Available hours per quarter

Reqd Hrs. per Unit

in Department
A
B
C
0.5
0.3
0.2
0.3
0.4
0.1
500
400
200

The available company funds during the production period amount to P30,000.

A bank loans up to P20,000 per quarter at an interest rate of 5 percent (0.05) per quarter provided the
companys acid (quick) test ratio is at least 3 to 1 while the loan is outstanding. The acid-test ratio is
given by the ratio of 1) cash on hand plus accounts receivable to 2) accounts payable.
As depicted below, payments for labor and materials are made at the end of the production period (one
quarter); hence, any needed credit is obtained at that point in time. Finally, sales revenue is received
and outstanding liabilities (accounts payable) are paid off at the end of the next period.
Production Period
Next Period
Time
-------------------------------------------------------------------------------------------------cost incurred ---------------------------Accounts receivable collected
and
and
credit granted
Accounts payable liquidated
Formulate this problem as a linear programming model.
33. Case 3: The Tireless Rent-a-Car Company operates a fleet of rental cars in Metro Manila. The
company has forecast its demand for rental cars for the next six months as shown below:
Month
Cars needed

Oct.
380

Nov.
360

Dec.
300

Jan.
360

Feb.
330

Mar.
340

The Company obtains its cars by leasing them form an automobile manufacturer. Three leasing plans
are available, involving leases of three, four, or five months duration. Cars are leased beginning on
the first day of a month, and are returned to the manufacturer on the last day of the month at the end
of the lease period. The costs for the three types of leases are shown in the following table.
Type of Lease
Three-month
Four-month
Five-month
Total Lease Cost
P11,400
P13,600
P15,000
Cost per month
3,800
3,400
3,000
The costs include lease payments to the manufacturer and standard maintenance and repair expenses.
A lease may be taken out in any month. The manufacturer has certain restrictions: at least 60 percent
of the cars leased must be on five-month lease, and no more than 20 percent can be on the three-month
lease.
On September 30, the fleet consists of 300 cars. For 100 of these, the lease expires at the end of
October; the lease on an additional 100 expires at the end of November; and the lease for the
remaining 100 expires at the end of December. Premier would like to have between 300 and 350 cars
remaining in the fleet at the end of March (after returning leased cars that are due to be returned that
month).
Tireless would like to minimize its leasing costs. Formulate a linear programming model to solve this
fleet planning problem.
34. The management of a coal-fired electric power generation plant is studying the plants operational setup in order to comply with the latest emission standards under the air pollution control laws. For the
plant in question, maximum emission rates are:
- Maximum sulfur oxide emission: 3000 parts per million (PPM)
- Maximum particulate emission (smoke): 12 kg./hr.

Coal is brought to the plant by railroad and dumped into stockpiles near the plant. From there it is
carried by a conveyor belt to the pulverizer unit, where it is pulverized and fed directly into the
combustion chamber at the desired rate. The heat produced in the combustion chamber is used to
male steam to drive the turbines.
Two types of coal re used at the plant: Grade A which is hard and clean -- burning coal with low
sulfur content -- fairly expensive though -- and Grade B which is cheap, relatively soft and smoky coal
with a high sulfur content.

COAL
(emission/ton)
A
B

EMISSION OF POLLUTANTS
SULFUR OXIDES IN FLUE GAS
1800 PPM
3800 PPM

PARTICULATE
0.5 kg
1.0 kg

The thermal value in terms of steam produced is higher for Coal A than for Coal B, namely 24,000
pounds per ton for A against 20,000 pounds per ton for B. Since Coal A is hard coal, the pulverizer
unit can handle, at most, 16 tons of Coal A per hour, whereas it can pulverize up to 24 tons of Coal B
per hour. The conveyor leading system has a capacity of 20 tons per hour regardless of which coal is
loaded.
One of the several questions management wants to have answered is: Given the constraints on
emission of pollutants and given the grades of coal available, what is the maximum possible output of
electricity of the plant? The answer will enable management to determine the margin of safety
available to meet peak demands for power.
Formulate the linear programming model for this problem.
35. There are many factors that are being considered in the agricultural crop production business such as
availability of farm inputs, water and labor supply, product demand, land suitability etc. Thus, what
crop to plant on a newly-acquired agricultural land is always the first question the decision maker
asks. Consider this typical case.
A project has an area of 2500 hectares located in the province of Pangasinan where rainfall pattern
belongs to type 1 (very distinct wet and dry season). Land classification data form bureau of soils
reveals that the soul in the project area is mostly of dual land class (fitted for rice and other crops).
There is plenty of water supply during wet season but during the dry season there is considerable
shortage of water available to the project site. Few years after, however, water supply will not be a
problem for the dry season since an on-going major irrigation project is expected to be completed in
three years time.
The area is under lease contract for 5 year and the agriculturist wants to maximize profit within this
lease period. Recognizing the scarcity of irrigation water during the dry season, he plans to grow
profitable crops requiring less irrigation water than rice such as corn, sorghum and peanuts. During
the wet season, he has not other option but to grow only rice because the other corps could not be
grown profitably during such period.
A study of farm input supply in the area shows that there will be limited amounts of fertilizer,
insecticides and labor supply available for the next five years. Market demand for peanut is also

limited to 1500 tons per year increasing at the rate of 10% per year. Peanut yield is 3 tons/hectare. he
table below illustrates a summary of the supply of farm inputs and crop requirement for the next 5
years of dry season.
The average income per hectare planted to rice, sorghum,. peanut, and corn are known to be P5000,
P5500, P4800, and P4200, respectively.

TABLE 1
SUPPLY AND REQUIREMENT OF FARM INPUTS
(DRY SEASON)
INPUT

SUPPLY

REQUIREMENT

Water supply

First three years - 2500 liters/sec

(LPS). No water shortage for 4th
and 5th year

Rice = 1.5 LPS/HA.

Sorghum = 0.7 LPS/HA.
Peanut = 0.6 LPS/HA.
Corn = 0.8 LPS/HA.

Fertilizer

16,000 bags for the first year, and

increasing at the rate of 10%/yr.

Insecticides

4,000 liter for the first year, and

increasing at the rate of 10%/yr.

Labor

5,100 man-days for the first year

and increasing at the rate of 3%/yr.

Rice = 8 bags/HA.
Sorghum = 6 bags/HA.
Peanut = 6 bags/ HA.
Corn = 6 bags/HA.
Rice = 1 liter/HA.
Sorghum = 2 liters/HA.
Peanut = 1.5 liters/HA.
Corn = 1.5 liters/HA.
Rice = 2 man-days/HA.
Sorghum = 3 man-days/HA.
Peanut = 3 man-days/HA.
Corn = 2 man-days/HA.

36. A company manufacturing dining room furniture plans to discontinue production of its line of
sideboards as they are often not required by purchasers, and to concentrate on making chairs and
tables. This decision will leave excess manpower capacity in the two major sections of the factory Joinery and Polishing. Up till now the company has particular, there must be at least four chairs made
for every table. Marketing advice now indicates that chairs in excess of 4 per table are often required
and that spare chairs up to a total chair output or 300 per week could be sold. Sixty tables per week
is thought to be the maximum output of tables which could be sold.
The present cost structure is given in Table 2. The total overhead costs will remain fixed at P500 per
week, although in Table 2 they are distributed to the products in proportion to labor costs. Fifteen men
are employed in Joinery; ten in Polishing. All work a 40-hour week at P1.00 per hour.
TABLE 2
Present Cost Structure for Example 2.6
Chairs
Tables
Sideboards
Per week
Per unit Per Week
Per unit
Per week Per unit
P
P, c
P
P,c
P
P,c
Production
160 units
40 units
40 units

Labor
Joinery
240
1.50
200
5.00
160
Polishing 160
1.00
80
2.00
160
Materials
640
4.00
320
8.00
640
Overheads
200
1.25
140
3.50
160
Total costs
1240
7.75
740
18.50
1120
Revenue
1600
10.00
840
21.00
1200
Profit
360
2.25
100
2.50
80
Formulate the problem as one in linear programming
37. A solvent producer manufactures a product with the following requirements:
combustion point
specific weight
content
content

4.00
4.00
16.00
4.00
28.00
30.00
2.00

260o
1.00
8% by volume
4% by volume

The product may be made from three possible ingredients. A, B and C which cost 20 cents, 19 cents
and 25 cents per liter, respectively. These ingredients have the following characteristics which can be
assumed to combine linearly:
A
B
C
combustion point
260o
250o
270o
specific weight
0.93
1.08
0.96
content (% by vol.)
7
6
9
content (% by vol.)
3
5
4
The manufacturer would like to make the product (subject to the above requirement) at minimum cost.
Formulate the problem as a linear programming model.
38. A company manufactures a mechanical device which consists of four parts, each of which can be
produced in three different departments. Table 3 shows the production rates (per hour) for the four
parts in each of the four departments. The departments (1,2,3) have limited capacities of 240, 320,
and 170 hours, respectively.
TABLE 3
Department
1
2
3

Part 1
8
13
21

Production rate (no. / hour)

Part 2
Part 3
12
7
11
8
9
12

Part 4
5
14
15

The company wants to determine the number of hours of each department which should be assigned to
each part in order to maximize the number of complete mechanical devices.
Formulate the problem as a linear programming model.
39. A company has three grades of inspectors (grade 1, grade 2 and grade 3) who are to be assigned to
perform a quality control test on batteries. The company requires that at least 1,200 batteries be
inspected in a 7-hour day. The wage, accuracy and inspection rates are shown in the Table 8.
TABLE 8
______
Inspector

Wage per hour

Accuracy

Inspection rate per hour

Grade 1
P12
98%
10
Grade 2
P9
95%
8
Grade 3
P7
90%
6
______
Each inspection error made costs the company P4. There are 9 Grade 1, 13 Grade 2 and 12 Grade 3
inspectors available for the job. The company wants to determine the number of inspectors of each
grade it should employ to carry out the testing at minimum cost.
Formulate the problem as one in linear programming.
40. A solvent producer manufactures a product with the following requirements:
boiling point
300o
freezing point
20o
specific weight
0.85
The product may be made form two possible ingredients, A and B, which cost 40 cents and 50 cents
per liter, respectively. These ingredients have the following characteristics which can be assumed to
combine linearly:
Characteristic
A
B
boiling point
280o 310o
freezing point
17o
22o
specific weight
0.80
0.82
The manufacturer would like to make the product at minimum cost.
Formulate the problem as one in linear programming.
41. A company manufactures a car looking system which consists of three components, each of which can
be made in three different departments. The Table 9 shows the production rate (per day) for the three
components in each of the three departments. The departments (1,2,3) have limited capacities of 120,
140, and 110 days, respectively.
TABLE 9
Production rate (no./day)
Department
comp.1 comp. 2 comp. 3
1
4
5
9
2
7
4
8
3
8
6
7
The company wants to make as many car locking systems as possible. Formulate the problem as a
linear programming model.