MAQUERA, KRICEL-MAE M.

BSCHE-5

LINEAR PROGRAMMING PROBLEMS

3.1-9. The Primo Insurance Company is introducing two new product lines: special risk
insurance and mortgages. The expected profit is $5 per unit on special risk assistance and $2
per unit on mortgages. Management wishes to establish sales quotas for the new product lines
to maximize total expected profit. The work requirements are as follows:

Work-hours per unit Work-hours

Department
Special Risk Mortgage Available
Underwriting 3 2 2400
Administration 0 1 800
Claims 2 0 1200
Profit per unit 5 2

a. Formulate a linear programming model for this problem

b. Use the graphical method to solve this problem.
c. Verify the exact value of your optimal solution from part (b) by solving algebraically for
the simultaneous solution of the relevant two equations.

Solution:

a. Linear Programming Model

Let x1  no. of units on special risk insurance

x 2  no. of units on mortgages

Maximize:

P  5x1  2x 2

Constraints:

3x 1  2x 2  2400
x 2  800
2x 1  1200
x1 , x 2  0
b. Graphical Solution

According to the graphical solution presented, the optimal solution is

PX1 , X 2   P 600, 300 

The optimal solution for the variables indicate that the Primo Insurance Company
should make
X1 = 600 units on special risk insurance
X2 = 300 units on mortgages
Substituting the optimal solution, the maximum expected profit will be
P  5x 1  2x 2
P  5600   2300 
P  $ 3600
c. Algebraic Solution
Let
Line 1 3x 1  2x 2  2400
Line 2 x 2  800
Line 3 2x 1  1200
Line 4 x1  0
Line 5 x2  0
To get the four corner points, solve for the intersections of the lines

For line 1 and 2 (pt. 1):

Line 1 3x 1  2x 2  2400 eq. 1
Line 2 x 2  800 eq. 2
Substituting eq. 2 to 1,

3x 1  2800   2400
x 1  266.67
x 2  800

For line 1 and 3 (pt. 2):

Line 1 3x 1  2x 2  2400 eq. 1
Line 3 2x 1  1200 eq. 3
Substituting eq. 3 to 1,

3600   2x 2  2400
x 2  300
x 1  600

For line 2 and 4 (pt. 3):

Line 2 x 2  800 eq. 2
Line 4 x1  0 eq. 4

For line 3 and 5 (pt. 4):

Line 3 2x 1  1200 eq. 3
x 1  600
Line 5 x2  0 eq. 4

Solving the profit P at the four corner points,

At P1 (266.67, 800)
P  5x 1  2x 2
P  5266.67   2800 
P  $ 2933.35

At P2 (600, 300)
 P  5x 1  2x 2
P  5600   2300 
P  $ 3600

At P3 (0, 800)
P  5x 1  2x 2
P  50  2800 
P  $1600

At P4 (600,0)
P  5x 1  2x 2
P  5600   20
P  $ 3000

Therefore, the maximum profit is at P2 (600, 300)

P  5x 1  2x 2
P  5600   2300 
P  $ 3600
3.1-11 The Omega Manufacturing Company has discontinued the production of a certain
unprofitable product line. This act created considerable excess production capacity.
Management is considering devoting this excess capacity to one or more of three products; call
them product 1, 2, and 3. The available capacity on the machines that might limit output is
summarized in the following table:

Machine type Available time (machine hours per week)

Milling machine 500
Lathe 350
Grinder 150

The number of machine hours required for each unit of the respective product is

Machine type Product 1 Product 2 Product 3

Milling machine 9 3 5
Lathe 5 4 0
Grinder 3 0 2

The sales department indicates that the sales potential for products 1 and 2 exceeds the
maximum production rate and that the sales potential for product 3 is 20 units per week. The
unit profit would be $50, $20 and $25, respectively, on products 1, 2, and 3. The objective is
to determine how much of each product Omega should produce to maximize profit.

a. Formulate a linear programming model for this program.

b. Use a computer to solve this model by the simplex method.
Solution:

a. Formulating the linear programming model

Objective function:

Z  50 x1  20 x2  25x3 , Maximize

where:

x1  product 1
x 2  product 2
x3  product 3
 Constraints:

9 x1  3x 2  5 x3  500
5 x1  4 x 2  350
3x1  2 x3  150
x3  20
x1 , x 2 , x3  0

b. Using Simplex Method

3.2-4. Use the graphical method find all optimal all solution for the following model:

Maximize: Z  500 x1  300 x2

Subject to
15 x1  5 x2  300
10 x1  6 x2  240
8 x1  12 x2  450

and

x1  0, x 2  0

Solution:

Using the graphical method to maximize Z  500 x1  300 x2 ,

The variables for the optimal solution are x1 , x 2   15,15 and 2.49,35.83 . Getting their

optimal solutions, Z  500 x1  300 x2

For x1 , x 2   15,15 :

Z  500 x1  300 x 2
Z  500  15  300  15
Z  12000
And for x1 , x 2   2.49,35.83 :
Z  500 x1  300 x 2
Z  500  2.49   300  35.83
Z  11994
Note that both optimal solutions are approximately equal to each other, Z  12000 .
3.4-6. Use the graphical method to solve this problem:
Minimize Z  3x1  2 x 2 ,

Subject to
x1  2 x 2  12
2 x1  3x 2  12
2 x1  x 2  8

and
x1  0, x2  0

Solution:
Using the graphical method to minimize Z  3x1  2 x 2 ,

Constraints x1 x2 Inequalities Constants

C1 1 2 <= 12
C2 2 3 = 12
C3 2 1 >= 8
The variables for the optimal solution are x1 , x 2   3,2 . Hence, the optimal solution is
Z  3x1  2 x 2
Z  3  3  2  2
Z  13

Checking it using Simplex Method in Excel,

Objective
Variables Constraints Inequality Constants
Function
13 x1 3 7 <= 12
x2 2 12 = 12
8 >= 8
3 >= 0
2 >= 0

Microsoft Excel 16.0 Sensitivity Report

Worksheet: [Book1]Sheet1
Report Created: 11/03/2019 9:57:45 PM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$L$2 x1 3 0 3 1E+30 1.666666667
$L$3 x2 2 0 2 2.5 1E+30

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$M$2 Constraints 7 0 12 1E+30 5
$M$3 Constraints 12 0.25 12 6.666666667 4
$M$4 Constraints 8 1.25 8 4 4
$M$5 Constraints 3 0 0 3 1E+30
$M$6 Constraints 2 0 0 2 1E+30

The same results are observed to that of the graphical method. Hence, it can be said that the
optimal solution obtained in the graphical method is accurate.
3.4-8. Consider the following model:
Minimize Z  40 x1  50 x 2 ,
subject to
2 x1  3x 2  30
x1  x 2  12
2 x1  x 2  20

and
x1  0, x 2  0 .

(a) Use the graphical method to solve this model.

(b) How does the optimal solution change if the objective function is changed to
Z  40 x1  70 x 2 ? (You may find it helpful to use the Graphical Analysis and Sensitivity

Analysis procedure.)
(c) How does the optimal solution change if the third functional constraint is changed to
2 x1  x 2  15 ? (You may find it helpful to use the Graphical Analysis and Sensitivity

Analysis procedure.)

Solution:

(a) Using graphical method:

Minimize: Z  40 x1  50 x 2
Constraints:
x1 x2 ≥ 0

1 2 3 ≥ 30
2 1 1 ≥ 12
3 2 1 ≥ 20
The variables for the optimal solution are x1 , x 2   7.5,5 . Hence, the optimal solution is
Z  40 x1  50 x 2
Z  40  7.5  50  5
Z  550

(b) Changing the objective function to Z  40 x1  70 x 2 ,

using graphical method:

Minimize: Z  40 x1  70 x 2
Constraints:
x1 x2 ≥ 0

1 2 3 ≥ 30
2 1 1 ≥ 12
3 2 1 ≥ 20
The variables for the optimal solution are x1 , x 2   15,0 . Hence,
Z  40 x1  70 x 2
Z  40  15  70  0
Z  600
It can be observed optimal solution Z increased.

Checking it in Excel using Simplex Method,

Objective
Variables Constraints Inequality Constants
Function
600 x1 15 30 >= 30
x2 0 15 >= 12
30 >= 20
15 >= 0
0 >= 0

Microsoft Excel 16.0 Sensitivity Report

Worksheet: [Book1]Sheet1
Report Created: 11/03/2019 9:03:33 PM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$11 x1 15 0 40 6.666666667 40
$C$12 x2 0 0 70 1E+30 10

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$D$11 Constraints 30 20 30 1E+30 6
$D$12 Constraints 15 0 12 3 1E+30
$D$13 Constraints 30 0 20 10 1E+30
$D$14 Constraints 15 0 0 15 1E+30
$D$15 Constraints 0 10 0 5 0

The same results are observed to that of the graphical method. Hence, it can be said that the
optimal solution obtained in the graphical method is accurate.

(c) Changing the third functional constraint to 2 x1  x 2  15 ,

using graphical method:
 Minimize: Z  40 x1  50 x 2
Constraints:
x1 x2 ≥ 0

1 2 3 ≥ 30
2 1 1 ≥ 12
3 2 1 ≥ 15

The variables for the optimal solution are x1 , x 2   6,6 . Hence,
Z  40 x1  70 x 2
Z  40  6  70  6
Z  540
It can be observed optimal solution Z decreased.

Checking it in Excel using Simplex Method,

Objective
Variables Constraints Inequality Constants
Function
540 x1 6 30 >= 30
x2 6 12 >= 12
18 >= 15
6 >= 0
6 >= 0
 Microsoft Excel 16.0 Sensitivity Report
Worksheet: [Book1]Sheet1
Report Created: 11/03/2019 9:22:50 PM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$20 x1 6 0 40 10 6.666666667
$C$21 x2 6 0 50 10 10

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$D$20 Constraints 30 10 30 3 6
$D$21 Constraints 12 20 12 3 0.75
$D$22 Constraints 18 0 15 3 1E+30
$D$23 Constraints 6 0 0 6 1E+30
$D$24 Constraints 6 0 0 6 1E+30

The same results are observed to that of the graphical method. Hence, it can be said that the
optimal solution obtained in the graphical method is accurate.
3.4-11. Larry Edison is the director of the Computer Center for the Buckly College. He now
needs to schedule the staffing of the center. It is open from 8 am until midnight. Larry has
monitored the usage of the center at various times of the day, and determined that the following
number of computer consultants are required:

Time of the Day Minimum Number of Consultants Required

to be on Duty
8 am – Noon 4
Noon – 4 pm 8
4 pm – 8 pm 10
8 pm – Midnight 6

Two types of computer consultants can be hired: full-time and part-time. The full-time
consultants work for 8 hours a day in any time of the following shifts: morning (8am – 4pm),
afternoon (noon- 8pm) and evening (4pm – midnight). Full-time consultants are paid $40 per
hour.

Part-time consultants can be hired to work of any of the 4 shifts listed in the above table.
Part-time consultants are paid $30 per hour.

An additional requirement is that during every time period, there must be at least 2-full-
time consultants on duty for every for every part-time consultant on duty.

Larry would like to determine how many full-time and how many part-time workers should
work each shift to meet the above requirements at minimum possible cost.

a. Formulate a linear programming model for this problem

b. Solve this model by the simplex method

Solutions:

a. Linear Programming model

Let ft1 = number of full-time consultants working the morning shift (8 a.m.-4 p.m.)

ft2 = number of full-time consultants working the afternoon shift (Noon-8 p.m.)

ft3 = number of full-time consultants working the evening shift (4 p.m.-midnight)

 pt 1 = number of part-time consultants working the first shift (8 a.m.-noon)

pt 2 = number of part-time consultants working the second shift (Noon-4 p.m.)

pt 3 = number of part-time consultants working the third shift (4 p.m.-8 p.m.)

pt 4 = number of part-time consultants working the fourth shift (8 p.m.-midnight)

Minimize

C  (40  8)  ( ft1  ft2  ft3 )  (30  4)  ( pt1  pt 2  pt 3  pt 4 )

Constraints

ft1  pt1  4
ft1  ft2  pt2  8
ft2  ft3  pt3  10
ft3  pt4  6
ft1  2 pt1
ft1  ft2  2 pt2
ft2  ft3  2 pt3
ft3  2 pt4
ft1 , ft2 , ft3 , pt1 , pt2 , pt3 , pt4  0

b. Simplex Model
Total cost Variables Constraints Inequalities Constants
4106.667 Full-time 1 (8am-4pm) 2.666667 4 >= 4
Full-time 2(noon -
2.666667 8 >= 8
8pm)
Full-time 3(4pm-
4 10 >= 10
midnight)
part-time 1(8am-noon) 1.333333 6 >= 6
part-time 2(noon-4pm) 2.666667 0 >= 0
part-time 3(4pm-8pm) 3.333333 0 >= 0
part-time 4(8pm-
2 0 >= 0
midnight)
0 >= 0
2.666666667 >= 0
2.666666667 >= 0
4 >= 0
1.333333333 >= 0
2.666666667 >= 0
 3.333333333 >= 0
2 >= 0

Microsoft Excel 16.0 Sensitivity Report

Worksheet: [Book1]Sheet1
Report Created: 11/03/2019 10:40:44 PM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$L$10 ft1 2.666666667 0 320 0 80
$L$11 ft2 2.666666667 0 320 80 0
$L$12 ft3 4 0 320 1E+30 80
$L$13 pt1 1.333333333 0 120 80 0
$L$14 pt2 2.666666667 0 120 80 520
$L$15 pt3 3.333333333 0 120 0 360
$L$16 pt4 2 0 120 80 520

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$M$10 Constraints 4 120 4 0 1.333333333
$M$11 Constraints 8 173.3333333 8 2 0
$M$12 Constraints 10 120 10 0 2
$M$13 Constraints 6 173.3333333 6 2 0
$M$14 Constraints 0 0 0 0 1E+30
$M$15 Constraints 0 26.66666667 0 4 0
$M$16 Constraints 0 0 0 0 4
$M$17 Constraints 0 26.66666667 0 4 0
$M$18 Constraints 2.666666667 0 0 2.666666667 1E+30
$M$19 Constraints 2.666666667 0 0 2.666666667 1E+30
$M$20 Constraints 4 0 0 4 1E+30
$M$21 Constraints 1.333333333 0 0 1.333333333 1E+30
$M$22 Constraints 2.666666667 0 0 2.666666667 1E+30
$M$23 Constraints 3.333333333 0 0 3.333333333 1E+30
$M$24 Constraints 2 0 0 2 1E+30

The optimal solution has fractional components: 2.666667, 2.666667, 4, 1.333333, 2.666667,
3.333333, and 2. If the number of consultants have to be integer, then the problem is an integer
programming problem and the solution is (3,3,4,1,3,3,2) with cost
3.4-12. The Medequip Company produces precision medical diagnostic equipment at two
factories. Three medical centers have placed orders for this month’s production output. The
table below shows what the cost would be for shipping each unit from each factory to each of
these customers. Also shown are the number of units that will be produced at each factory and
the number of units ordered by each customer.

Unit Shipping Cost

From/To Customer 1 Customer 2 Customer 3 Output
Factory 1 $600 $800 $700 400 units
Factory 2 $400 $900 $600 500 units
Order Size 300 units 200 units 400 units

A decision now needs to be made about the shipping plan for how many units to ship from each
factory to each customer.

(a) Formulate a linear programming model for this problem.

(b) Solve this model by the simplex method.

From Factory 1, ship 200 units to Customer 2 and 200 units to Customer 3. From Factory 2,
ship 300 units to Customer 1 and 200 units to Customer 3

Solution:

a. Linear programming model

Let xij denote the number of units that are shipped from ith factory to the jth consumer.
Where i varies from 1 to 2 and j varies from 1 to 3.

Maximize:

Z  600 x11  800 x12  700 x13  400 x21  900x22  600x23
 Constraints:

x11  x12  x13  400

x21  x22  x23  500

x11  x21  300

x12  x22  200

x13  x23  400

x11  0

x12  0

x13  0

x21  0

x22  0

x23  0

b. Using simplex method

Objective
Variables Constraints Inequality Constants
Function
610000 x11 300 400 = 400
x12 0 500 = 500
x13 100 300 = 300
x21 0 200 = 200
x22 200 400 = 400
x23 300 300 >= 0
0 >= 0
100 >= 0
0 >= 0
200 >= 0
300 >= 0
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [Book1]Sheet1
Report Created: 12/03/2019 8:45:52 AM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$T$10 x11 300 0 600 1E+30 100
$T$11 x12 0 0 800 200 1E+30
$T$12 x13 100 0 700 100 200
$T$13 x21 0 0 400 100 1E+30
$T$14 x22 200 0 900 1E+30 200
$T$15 x23 300 0 600 200 100

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
x11
$U$10 Constraints 400 0 400 0 1E+30
x12
$U$11 Constraints 500 -100 500 100 0
x13
$U$12 Constraints 300 600 300 0 300
x21
$U$13 Constraints 200 1000 200 0 100
x22
$U$14 Constraints 400 700 400 0 100
x23
$U$15 Constraints 300 0 0 300 1E+30
$U$16 >= Constraints 0 -200 0 100 0
$U$17 >= Constraints 100 0 0 100 1E+30
$U$18 >= Constraints 0 -100 0 300 0
$U$19 >= Constraints 200 0 0 200 1E+30
$U$20 >= Constraints 300 0 0 300 1E+30
3.4-14 The Metalco Company desires to blend a new alloy of 40 percent tin, 35 percent zinc,
and 25 percent lead from several available alloys having the following properties:

Alloy
Property 1 2 3 4 5
Percentage of tin 60 25 45 20 50
Percentage of zinc 10 15 45 50 40
Percentage of Lead 30 60 10 30 10
Cost ($/lb) 77 70 88 84 94

The objective is to determine the proportions of these alloys that should be blended to produce
the new alloy at a minimum cost. (a) Formulate a linear programming model for this problem.
C (b) Solve this model by the simplex method.

Solution:

Minimize: 40 x  35 y  25 z  m

Subject to/Constraints: 60 x  10 y  30 z  77

25 x  15 y  60 z  70

45 x  45 y  10 z  88

20 x  50 y  30 z  84

50 x  40 y  10 z  94

By the use of QM software application, we obtain the minimum cost for the new alloy, 1%,
0.98% and 0.51% of tin, zinc and lead should be blended to obtain minimum cost of $86.75.
3.4-17. Joyce and Marvin run a day care for preschoolers. They are trying to decide what to
feed the children for lunches. They would like to keep their costs down, but also need to meet
the nutritional requirements of the children. They have already decided to go with peanut butter
and jelly sandwiches, and some combination of graham crackers, milk, and orange juice. The
nutritional content of each food choice and its cost are given in the table below.

Calories Total Vitamin C

Food Item Protein (g) Cost
from fat calories (mg)
Bread (1 slice) 10 70 0 3 5
Peanut butter (1 tbsp) 75 100 0 4 4
Strawberry jelly (1 tbsp) 0 50 3 0 7
Graham cracker (1 cracker) 20 60 0 1 8
Milk (1 cup) 70 150 2 8 15
Juice (1 cup) 0 100 200 1 35

The nutritional requirements are as follows. Each child should receive between 400 and
600 calories. No more than 30 percent of the total calories should come from fat. Each child
should consume at least 60 milligrams (mg) of vitamin C and 12 grams (g) of protein.
Furthermore, for practical reasons, each child needs exactly 2 slices of bread (to make the
sandwich), at least twice as much peanut butter as jelly, and at least 1 cup of liquid (milk and/or
juice).

Joyce and Marvin would like to select the food choices for each child which minimize cost
while meeting the above requirements.

(a) Formulate a linear programming model for this problem.

(b) Solve this model by the simplex method.

Solution:

a. Linear Programming model

Let C = cost
X1 = slices of bread
X2 = tablespoons of peanut butter
X3 = tablespoons of strawberry jelly
 X4 = graham crackers
X5 = cups of milk
X6 = cups of juice.

Objective function (minimize):

C  5 X 1  4 X 2  7 X 3  8 X 4  15 X 5  35 X 6

Constraints:
70 X 1  100 X 2  50 X 3  60 X 4  150 X 5  100 X 6  400
70 X 1  100 X 2  50 X 3  60 X 4  150 X 5  100 X 6  600
10 X 1  75 X 2  20 X 4  70 X 5  0.370 X 1  100 X 2  50 X 3  60 X 4  150 X 5  100 X 6 
3 X 3  2 X 5  120 X 6  60
3 X 1  4 X 2  X 4  8 X 5  X 6  12
X1  2
X 2  2X 3
X5  X6 1
X1, X 2 , X 3 , X 4 , X 5 , X 6  0

b. Using QM for Windows

3.5-2. You are given the following data for a linear programming problem where the objective
is to maximize the profit from allocating three resources to two nonnegative activities.

Resource Usage per unit of

Resource each activity Amount of Resource Available
Activity 1 Activity 2
1 2 1 10
2 3 3 20
3 2 4 20
Contribution per unit $20 $30

Contribution per unit = profit per unit of the activity.

(a) Formulate a linear programming model for this problem.

(b) Use the graphical method to solve this model.
(c) Display the model on an Excel spreadsheet.
(d) Use the spreadsheet to check the following solutions: (x1, x2) = (2, 2), (3, 3), (2, 4), (4, 2),
(3, 4), (4, 3). Which of these solutions are feasible? Which of these feasible solutions has
the best value of the objective function?
(e) Use the Excel Solver to solve the model by the simplex method.
Solutions:
(a) Formulating the linear programming model,
Let
x1  Activity 1
x1  Activity 2

Objective function: maximize Z  20 x1  30 x 2

Subject to constraints:
2 x1  x 2  10
2 x1  3x 2  20
2 x1  4 x 2  20
x1 , x 2  0
(b) Using the graphical method

14
13
12 Resource 1
11
Resource 2
10
9 Resource 3
8
X2

7
6
5 (3.3333,3.3333)
4
3
2
1
0
0 1 2
X1

Basing on the figure above the variables x1 , x 2   3.3333,3.3333  , and the optimal profit for
unit of activity is
Z  20 x1  30 x 2
Z  20  3.3333   30  3.3333 
Z  $166 .665
(c) On Excel Spreadsheet,

Profit Variables Constraints Inequality Constants

166.6667 Activity 1 3.333333 10 <= 10
Activity 2 3.333333 16.66667 <= 20
20 <= 20
3.333333 >= 0
3.333333 >= 0
(d) Using spreadsheet, the feasible solutions are determined.

Activity 1 (x1) Activity 2 (x2) Profit Feasibility

2 2 100 feasible
3 3 150 feasible
2 4 160 optimal
4 2 140 feasible
3 4 180 not feasible
4 3 170 not feasible

The feasible solution that has the best value of the objective function is x1 , x 2   2,4 . It has a
profit of $160, which has the highest value among those found in the feasible region.

(e) Using Simplex Method, the following results are obtained

Microsoft Excel 16.0 Sensitivity Report

Worksheet: [Book1]Sheet1
Report Created: 12/03/2019 7:11:45 AM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$T$2 x1 3.333333333 0 20 40 5
$T$3 x2 3.333333333 0 30 10 20

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$U$2 Constraints 10 3.333333333 10 10 5
$U$3 Constraints 16.66666667 0 20 1E+30 3.333333333
$U$4 Constraints 20 6.666666667 20 5 10
$U$5 Constraints 3.333333333 0 0 3.333333333 1E+30
$U$6 Constraints 3.333333333 0 0 3.333333333 1E+30