IE 311 - Operations Research I

Spring 2005

Solved Exercises on LP Modeling

1. [Problem 3 on page 64 in the 3rd edition of the textbook] Leary chemical manufactures three chemicals: A, B, and C. These chemicals are produced via two production processes: 1 and 2. Running process 1 for an hour costs $4 and yields 3 units of A, 1 of B and 1 of C. Running process 2 for an hour costs $1 and produces 1 unit of A and one unit of B. To meet customer demands, at least 10 units of A, 5 of B and 3 units of C must be produced daily. Graphically determine a daily production plan that minimizes the cost of meeting Leary Chemicals daily demands. Answer: Three types of chemicals are produced: A, B, and C. There are two types of processes (machines) available for production.
A

Process1
Process

B C

Process 2
Output (units of chemical) A B C 3 1 1 1 1 0 10 5 3

A B

Cost per hour 4 1 Daily Demand

1 2

A. Decision Variables:

X 1 = Number of hours of process 1 used X 2 = Number of hours of process 2 used

B.

Constraints: For chemical A: For chemical B: For chemical C: Non-negativity constraints:

3 X1 + X 2 10 X1 + X 2 5 X1 3 X1, X 2 0

(I) (II) (III)

C.

Objective function:

Z = Cost of meeting daily demands for chemicals = Cost of operating process 1 and 2
Minimize

Z = 4 X1 + X 2

( I ) X
2

( I I I )

Feasible Region ( I I )
10

B A
3 5

Z
X
1

Point A B

X1
5 3

X2
0 2

Z
(4) (5) + 0 = 20 (4) (3) + 2 = 14 Minimum

Point B is the optimal point. Processes 1 and 2 should be used 3 hours and 2 hours, respectively.

2.

[Problem 6 on page 64 in the 3rd edition of the textbook] Farmer Jane owns 45 acres of land. She is going to plant each with wheat or corn. Each acre planted with wheat yields $200 profit; each with corn yields $300 profit. The labor and fertilizer used for each acre are given in the table below. One hundred workers and 120 tons of fertilizer are available. Use linear programming to determine how Jane maximizes profits from her land. Crop Labor Fertilizer Answer: A. Decision Variables: Wheat 3 worke rs 2 tons Corn 2 workers 4 tons

W = acres of land planted with wheat C = acres of land planted with corn

B. Constraints: 1) Total acres of land used must equal to the land she owns.

C + W = 45

2) Maximum number of workers to be used is 100.

3W + 2C 100

3) Maximum tons of fertilizer is 120 tons.

2W + 4C 120

3) Non-negativity

W ,C 0
C. Objective function: Maximize

Z = 300C + 200W

3.

[Problem 3 on page 73 in the 3rd edition of the textbook] Peg and Al Fundy have a limited food budget, so Peg is trying to feed the family as cheaply as possible. However, she still wants to make sure her fa mily members meet their daily nutritional requirements. Peg can buy two foods. Food 1 sells for $7 per pound and, each pound contains 3 units of vitamin A and 1 units of vitamin C. Food 2 sells for $1 per pound, and each pound contains 1 unit of each vitamin. Each day, the family needs at least 12 units of vitamin A and 6 units of vitamin C. (a) Verify that Peg should purchase 12 units of food 2 each day and thus oversatisfy the vitamin C requirement by 6 units. (b) Al has put his foot down and demanded that Peg fulfill the familys daily nutritional requirement exactly by obtaining precisely 12 units of vitamin A and 6 units of vitamin C. The optimal solution to new problem will involve ingesting less vitamin C, but it will be more expensive. Why? Answer: (a) A. Decision Variables: X 1 = pounds of food 1 purchased

X 2 = pounds of food 2 purchased

B. Constraints: 1) Vitamin A requirement

3 X1 + X 2 12
X1 + X 2 6

2) Vitamin C requirement

3) Non-negativity

X 1, X 2 0

C. Objective function: Minimize

(I) X2 (II)

Z = 7 X1 + X 2

12

Point
Feasible Region
6

( X1,

X2 )

Z
42 24 12

A B C

(6,0) (3,3) (0,12)

B A
4 6

X1

Minimum is 12, so Peg should purchase 12 units of food 2 each day. From second constraint, Thus, vitamin C requirement is over satisfied by 12-6 = 6 units. (b) The new problem becomes: Minimize s.t.

X1 + X 2 = 0 + 12 > 6 .

Z = 7 X1 + X 2 3 X 1 + X 2 = 12 X1 + X 2 = 6 X1 , X 2 0

From the graph, it is obvious that the optimal solution is at point B That is, . which is greater than 12 (i.e. it will be more expensive). 4.

X1 = 3
*

and

X 2 = 3 . Then Z * = 24
*

[Problem 5 on page 76 in the 3rd edition of the textbook] Each day, workers at the Gotham City Police Depart ment work two 6-hour shift chosen from 12 a.m. to 6 a.m., 6 a.m. to 12 p.m., 12 p.m. to 6 p.m., and 6 p.m. to 12 a.m. The number of workers are needed during each shift are shown at table below. Workers whose two shifts are consecutive are paid $12 per hour; workers whose shifts are not consecutive are paid $18 per hour. Formulate an LP that can be used to minimize the cost of meeting the daily work-force demands of the Gotham City Police Department. Shift 12 A.M. to 6 A.M 6 A.M. to 12 P.M. 12 P.M. to 6 P.M. 6 P.M. to 12 A.M. Answer: Let us give numbers to the shifts as below:
Shifts 12P.M.

Workers Needed 15 5 12 6

1 12 A.M. 6 A.M.

3 6P.M.

4 12 A.M.

A. Decision Variables:

X i = # of workers whose two shifts are consecutive and start at shift i (i = 1,2 ,3, 4) X j = # of workers whose two shifts are not consecutive and start at shift j ( j = 1,2 )

B. Constraints: 1) Total # of workers in shift 1 is equal to 15.

X 4 + X 1 + Y1 = 15
2) Total # of workers in shift 2 is equal to 5.

X 1 + X 2 + Y2 = 5
3) Total # of workers in shift 3 is equal to 12.

X 2 + X 3 + Y1 = 12

4) Total # of workers in shift 4 is equal to 6.

X 3 + X 4 + Y2 = 6
5) Non-negativity

Xi 0
C. Objective function: Minimize

for

Y j 0 for

i = 1,2,3, 4 j = 1,2

Z = 12 ( X 1 + X 2 + X 3 + X 4 ) + 18 (Y1 + Y2 )

5.

[Problem 5 on page 91 in the 3rd edition of the textbook] Chandler Oil Company has 5,000 barrels of oil 1 and 10,000 barrels of oil 2. The company sells two products: gasoline and heating oil. Both products are produced by combining oil 1 and oil 2. The quality level of each oil is as follows: oil 1, 10; oil 2, 5. Gasoline must have an average quality level of at least 8 and heating oil, at least 6. Demand for each product must be created by advertising. Each dollar spent advertising gasoline creates 5 barrels of demand and each spent on heating oil creates 10 barrels of demand. Gasoline is sold for $25 per barrel, heating oil for $20. Formulate an LP to help Chandler maximize profit. Assume that no oil of either type can be purchased. Answer: Let us draw the input-output diagram for the production process, and tabulate the given data.
Inputs Outputs Gasoline Oil1 Oil2 Production Process Heatingoil

Oil Type 1 2

On hand Inventory (Barrels) 5,000 10,000

Quality Level 10 5

Product Gasoline Heating oil

Minimum Average Quality Level 8 6

Demand (barrels per $ spent for advertising) 5 10

Sales Price ($ per barrel) 25 20

A. Decision Variables:

X i , j = barrels of oil i used to make product j ( i =1 is oil 1, i = 2 is oil 2, j =1 is gasoline,

j =2 is heating oil)
a j = dollar spent advertising product j ( j = 1,2 )
B. Constraints: 1) The barrels of each oil used to make products must not exceed its on hand inventory level. X1,1 + X1,2 5,000 (for oil type 1)

X 2,1 + X 2 , 2 10,000 (for oil type 2)

2) The minimum average quality level of each product must be satisfied.

10 X 1,1 + 5 X 2,1 Total Quality of oil used for gasoline 8 8 2 X 1 ,1 3 X 2 ,1 0 X 1,1 + X 2,1 Total amount of gasoline produced 10 X 1, 2 + 5 X 2, 2 6 4 X 1, 2 X 2 , 2 0 X 1 ,2 + X 2 , 2
3) Production of each product must be equal to the demand created by advertising. X 1 ,1 + X 2 ,1 = 5a1 (for gasoline)

X 1 ,2 + X 2 , 2 = 10a2
4) Non-negativity C. Objective function:

(for heating oil)

X i, j 0

for

i = 1,2 ; j = 1,2

Z = Total sales revenue from gasoline + Total s ales revenue from eating oil Total advertising cost Maximize Z = 25 ( X 1,1 + X 2 ,1 ) + 20 ( X 1, 2 + X 2 , 2 ) a1 a 2
6. [Problem 11 on page 92 in the 3rd edition of the textbook] Eli Daisy produces the drug Rozac from four chemicals. Today they must produce 1,000 lb of drug. The three active ingredients in Rozac are A , B, and C. By weight, at least 8% of Rozac must consist of A, at least 4% of B, and at least 2% of C. The cost per pound of each chemical and the amount of each ingredient in 1 lb of each chemical are given in table below. It is necessary that at least 100 lb of chemical 2 be used. Formulate an LP whose solution would determine the cheapest way of producing todays batch of Rozac. Chemical 1 2 3 4 Answer: A. Decision Variables: Cost per lb $8 $10 $11 $14 A 0.03 0.06 0.10 0.12 B 0.02 0.04 0.03 0.09 C 0.01 0.01 0.04 0.04

A = pounds (lb) of ingredient A used B = pounds of ingredient B used

= pounds of ingredient C used

X i = pounds of chemical i used (i = 1,2,3,4)

B. Constraints: 1) Minimum ingredient A requirement for the drug (in weight)

A (0 .08 )(1,000 )

2) Minimum ingredient B requirement for the drug (in weight)

B (0 .04 )(1,000 )
3) Minimum ingredient C requirement for the drug (in weight)

C (0 .02 )(1,000 )

4) 100 lbs of chemical 2 should be used

X 2 100
5) Chemical content

X 1 = 0.03 A + 0.02 B + 0.01C X 2 = 0.06 A + 0.04 B + 0.01C X 3 = 0.10 A + 0.03 B + 0.04C

X 4 = 0.12 A + 0.09B + 0.04C

6) Non-negativity

A, B, C 0 X i 0 for i = 1,2,3, 4
Z = 8 X 1 + 10X 2 + 11 X 3 + 14X 4

C. Objective function: Minimize

7.

[Problem 5 on page 104 in the 3rd edition of the textbook] During the next two months, General Cars must meet (on time) the following dema nd for trucks and cars: month 1 400 trucks, 800 cars; month 2 300 trucks, 300 cars. During each month, at most 1000 vehicles can be produced. Each truck uses 2 tons of steel, and each car uses 1 ton of steel. During month 1, steel cost $400 per ton; during month 2, steel costs $600 per ton. At most 1500 tons of steel may be purchased at each month (steel may only be used during the month in which it is purchased). At the beginning of month 1, 100 trucks and 200 cars are in inventory. At the end of each month, a holding cost of $150 per vehicle is assessed. Each car gets 20 mpg and each truck gets 10 mpg. During each month, the vehicles produced by the company must average at least 16 mpg. Formulate an LP to meet the demand and mileage requirements at minimum cost (include steel costs and holding costs). Answer: Let us draw the input-output diagram for the production process, and tabulate the given data.

steel for trucks

steel for cars

steel for trucks

steel for cars

100 trucks Month 1 200 cars

trucks in inventory Month 2 cars in inventory

trucks in inventory cars in inventory

400 trucks

800 cars

300 trucks

300 cars

CUSTOMER

CUSTOMER

Vehicle Truck Car Max # of vehicles that can be produced Steel cost ($/ton) Max amount of steel that can be purchased (ton) Inventory holding cost ($/vehicle)

Monthly Demand Month 1 Month 2 400 300 800 300 1,000 1,000 400 600 1,500 1,500 150 150

Steel Re quirement (ton/vehicle) 2 1

Inventory on hand 100 200

A. Decision Variables:

S i = Steel bought during month i (i = 1,2 ) T i = trucks produced during month i (i = 1,2 ) IT i = trucks in inventory at the end of month i (i = 1,2 ) IC i = cars in inventory at the end of month i (i = 1,2)

B. Constraints: 1) Maximum amount of steel that can be purchased in each month is limited

S1 1,500 S 2 1,500
2) Steel used to produce vehicles in each month must be less than the amount of steel purchased in each month

2T1 + C1 S1 2T2 + C 2 S 2
3) Maximum number of vehicles produced in each month must be less than 1,000

T1 + C 1 1,000 T2 + C 2 1,000
4) Inventory balance constraints For trucks

For cars

100 + T1 = 400 + IT1 IT1 + T1 = 300 + IT2 200 + C1 = 800 + IC1 IC 2 + C 2 = 300 + IC 2

T1 IT1 = 300 IT1 + T2 + IT2 = 300 C1 IC1 = 600 IC 2 + C 2 IC 2 = 300

5) Average mpg

20C1 + 10T1 16 C1 + T1 20C 2 + 10T2 16 C 2 + T2

4C1 6T1 0

4C 2 6T2 0

C. Objective function: Z = Total Cost = Cost of steel + Inventory holding costs Minimize

Z = 400S1 + 600S 2 + 150IT1 + 150IT 2 + 150IC1 + 150IC 2

8.

rd [Problem 44 on page 119 in the 3 edition of the textbook] A paper recycling plant process box board, tissue, paper, newsprint, and book paper in to pulp that can be used to produce three grades of recycled paper (grades 1, 2, and 3). The prices per ton and pulp contents of the four inputs are shown in below table. Two methods, de-inking and asphalt dispersion, can be used to produce the four inputs into pulp. It costs $20 to de-ink a ton of any input. The process of de-inking removes 10% of the inputs pulp, leaving 90% of the original pulp. It costs $15 to apply asphalt dispersion to a ton of material. The asphalt dispersion removes 20% of the inputs pulp. At most 3,000 tons of input can be run through the asphalt dispersion process or de-inking process. Grade 1 paper can only be produced with newsprint or book paper pulp; grade 2 paper, only with book paper, tissue paper, or box board pulp; and grade 3 paper, only with newsprint, tissue paper, or box board pulp. To meet its current demands, company needs 500 tons of pulp for grade 1 paper, 500 tons of pulp for grade 2 paper, and 600 tons of pulp for grade 3 paper. Formulate an LP to minimize the cost of meeting the demands for pulp. Answer: Let us tabulate the given data.

Item Box board Tissue paper Newsprint Book paper

Cost $5 $6 $8 $10

Pulp content 15% 20% 30% 40% Method of Pulp Production De-inking Asphalt Dispersion 20 15 90 80 3,000 3,000

Cost($/tons of input) % of input that is converted in to pulp Max amount of input that can be processed

Pulp type can be used Product Grade 1 Grade 2 Grade 3 Box board X X Tissue Paper Newsprint X X X Book Paper X X

Required amount of pulp for satisfying demand 500 500 600

A. Decision Variables:

I i = tons of input (raw material) i

newsprint; i = 4, book paper)

purchased ( i = 1, box board;

i = 2, tissue paper; i = 3,

Di = tons of input i sent through de- inking Ai = tons of input i sent through asphalt dispersion Pi = tons of type i pulp produced U i , j = tons of type i pulp used for grade j paper ( j = 1, grade 1 paper; j = 2, grade 2 paper; j = 3, grade 3 paper)

B.

Constraints: 1) Tons of each input sent through de- inking and asphalt dispersion processes can not exceed the purchased amount

D1 + A1 I 1 D2 + A2 I 2 D3 + A3 I 3 D4 + A4 I 4 (Total amount of book paper processed <= amount of book paper purchased)
2) Total amount of each pulp type must equal to its corresponding amount of purchase

(0.15)( 0.90) D1 + ( 0.15)(0.80) A1 = P1

(Amount of box board pulp obtained by de- inking + amount of box board obtained by asphalt dispersion = total amount of box board pulp)

(0.20)(0.90) D 2 + (0.20)( 0.80) A2 = P2 (0.30)( 0.90 ) D3 + (0.30)( 0.80 ) A3 = P3 (0.40)(0.90) D 4 + (0.40)( 0.80) A4 = P4
3) Maximum amount of input that can be processed by each method of pulp production is limited.

D1 + D 2 + D3 + D 4 3,000

For de- inking For asphalt dispersion

A1 + A2 + A3 + A4 3,000
4) Inventory balance constraints

U 1, 2 + U 1 ,3 P 1

For box board pulp For tissue paper pulp For newsprint pulp For book print pulp

(Total amount of box board pulp used for product 2 and 3)

U 2, 2 + U 2, 3 P2 U 3,1 + U 3, 3 P3
U 4 ,1 + U 4 , 2 P4 U 3,1 + U 4,1 500

5) Demand for each product (paper type) must be satisfied For grade 1 paper For grade 2 paper For grade 3 paper

U 1, 2 + U 2 , 2 + U 4 , 2 500

U 1, 3 + U 2, 3 + U 3, 3 500
6) All variables are non negative

I i , Di , Ai , Pi 0 for i = 1,2 ,3, 4 U i , j 0 for i = 1,2 ,3, 4 ; j = 1,2,3

C. Objective function: Minimize

Z = 5I 1 + 6I 2 + 8I 3 + 10 I 4 + 20 D1 + 20 D 2 + 20 D 3 + 20 D4 + 15 A1 + 15 A2 + 15 A3 + 15 A4

9.

[Problem 3 on page 110 in the 3rd edition of the textbook] The IRS has determined that during each of the next twelve months they will need the number of super computers given in table below. To meet these requirements the IRS rents supercomputers for a period of one, two, or three months. It costs $100 to rent a supercomputer for one month, $180 for two months, and $250 for three mo nths. At the beginning of month 1 the IRS has no supercomputers. Determine the rental plan that meets the next twelve months requirements at minimum cost. Note: you may assume that fractional rentals are okay. Thus if your solution says rent 140.6 computers for one month you can round this up or down without having much effect on total cost. Month Requirement 1 800 2 1,000 3 600 4 500 5 1,200 6 400 7 800 8 600 9 400 10 500 11 800 12 600

Answer: A. Decision Variables: B. Constraints:

X m , p = the # of supercomputers rented at the beginning of month m for p number of periods

X 1 ,1 + X 1, 2 + X 1, 3 800 X 1 ,3 + ( X 2 , 2 + X 2, 3 ) + ( X 3,1 + X 3 , 2 + X 3 ,3 ) 600

( X 1, 2 + X 1,3 ) + ( X 2 ,1 + X 2 , 2 + X 2 , 3 ) 1,000

X 2, 3 + ( X 3, 2 + X 3,3 ) + ( X 4,1 + X 4, 2 + X 4,3 ) 500

X 3 ,3 + ( X 4 , 2 + X 4, 3 ) + ( X 5 ,1 + X 5 , 2 + X 5 ,3 ) 1,200 X 4 , 3 + ( X 5 , 2 + X 5 , 3 ) + ( X 6,1 + X 6 , 2 + X 6 , 3 ) 400 X 5 , 3 + ( X 6 , 2 + X 6 , 3 ) + ( X 7 ,1 + X 7 ,2 + X 7 , 3 ) 800

X 6, 3 + ( X 7, 2 + X 7,3 ) + ( X 8,1 + X 8, 2 + X 8,3 ) 600

X 7 , 3 + ( X 8 , 2 + X 8 ,3 ) + ( X 9 ,1 + X 9 ,2 + X 9 ,3 ) 400 X 8 ,3 + ( X 9 ,2 + X 9 ,3 ) + ( X 10 ,1 + X 10 , 2 + X 10 ,3 ) 500 X 9, 3 + ( X 10 , 2 + X 10 ,3 ) + ( X 11,1 + X 11, 2 ) 800 ( X 10, 3 ) + ( X 11, 2 ) + ( X 12 ,1 ) 600
C. Objective function: Minimize

Z = 100( X 1,1 + X 2,1 + X 3,1 + X 4,1 + X 5,1 + X 6 ,1 + X 7 ,1 + X 8,1 + X 9,1 + X 10,1 + X 11,1 + X 12 ,1 ) + 180( X 1,2 + X 2,2 + X 3,2 + X 4 ,2 + X 5,2 + X 6 ,2 + X 7, 2 + X 8, 2 + X 9 ,2 + X 10 ,2 + X 11,2 ) + 250( X 1,3 + X 2,3 + X 3,3 + X 4 ,3 + X 5,3 + X 6,3 + X 7,3 + X 8 ,3 + X 9,3 + X 10 ,3 )

10. [Problem 48 on page 120 in the 3rd edition of the textbook] Bank 24 is open 24 hours per day. Tellers work two consecutive 6hour shifts and are paid $10 per hour. The possible shifts are as follows: midnight 6 a.m., 6 a.m. noon, noon 6 p.m., 6 p.m. midnight. During each shift, the following numbers of customers enter the bank: midnight 6 a.m.,100; 6 a.m. noon, 200; noon 6 p.m., 300; 6 p.m. midnight, 200. Each teller can serve up to 50 customers per shift. To model customer a cost for customer impatience, we assume that any customer who is present at the end of a shift costs the bank $5. We assume that by midnight of each day, all customers must be served, so each days midnight 6a.m. shift begins with zero customers in the bank. Formulate an LP that can be used to minimize the sum of the banks labor and customer impatience costs. Answer:
# of customers entering the bank in shift (i)

Shift ( i ) 1 2 3 4

Period midnight 6 A.M. 6 A.M. noon noon 6 P.M. 6 P.M. midnight

# of customers left unserved in shift (i -1)

# of customers unserved and to be served in shift (i+1)

# of customers served in shift ( i )

A. Decision Variables:

X i = # of tellers beginning work on shift i Yi = # of customers unserved in shift i and to be served in the next shift

100

200

300

200

Y1

Y2

Y3

50(X1+X4 )

50(X1+X2 )

50(X 2+X3 )

50(X3 +X4 )

B. Constraints:

50 X 1 + 50 X 4 + Y1 = 100 50 X 1 + 50 X 2 + Y2 = 200 + Y1
50 X 2 + 50 X 3 + Y3 = 300 + Y2 50 X 3 + 50 X 4 = 100 + Y3

Xi 0

and

Yi 0

for

i = 1,2,3, 4

C. Objective function: Minimize

Z = 60 X 1 + 60 X 2 + 60 X 3 + 60 X 4 + 5Y1 + 5Y2 + 5Y3

11. Linear programming models are used by many Wall Street firms to select a desirable bond portfolio. The following is a simplified version of such model. Solodrex is considering investing in four bonds: $1,000,000 is available for investment. The expected annual return, the worst-case annual return on each bond, and the duration of each bond are given in the following table. Bond Expected return Worst-case return Duration 1 13% 6% 3 2 8% 8% 4 3 12% 10% 7 4 14% 9% 9 The duration of a bond is measure of the bonds sensitivity to interest rates. Solodex wants to maximize the expected return from its bond investments, subject to the following restrictions: 1. The worst-case return of the bond portfolio must be at least 8%. 2. The average duration of the portfolio must be at most 6. For example a portfolio that invested $ 600,000 in bond 1 and $400,000 in bond 4 would have an average duration of [(600,000) (3) + (400,000) (9)] / 1,000,000 = 5.4. 3. Because of the diversification requirements, at most 40% of the total amount invested can be invested in a single bond. Formulate an LP model to help Solodex tom achieve its objective. Answer: A. Decision Variables: B. Constraints: 1)

X i = the amount of money invested in bond i , for (i = 1,2,3,4)

0.06 X 1 + 0.08 X 2 + 0.1X 3 + 0.09 X 4 (0.08)(1,000 ,000 )

3X1 + 4 X 2 + 7X 3 + 9 X4 6 1,000 ,000

2)

3)

X 1 ( 0.40)(1,000,000) X 2 (0.40)(1,000,000) X 3 (0.40 )(1,000 ,000 ) X 4 (0.40)(1,000,000)

4)

X i 0 for i = 1,2 ,3, 4

C. Objective function: Maximize

Z = 0.13 X 1 + 0.08 X 2 + 0.12 X 3 + 0.14 X 4

12. An automobile company is planning its fall advertising campaign to unveil the new models for the coming year. The marketing department has assembled the following data. Viewers/spot (in millions) All viewers Youth 6 2.5 4 1.5 2.5 1 1 0.4

Medium TV-Prime time TV-Nonprime time Radio Newspapers and magazines

Cost/spot $100,000 $78,000 $40,000 $20,000

The company would like to limit their TV advertising expenses to $3 million and buy at least five prime time spots and at least four nonprime time spots. They would like to buy a minimum of 6 radio advertising units, and at least 9 advertising units in newspaper and magazines. They also want make sure that their message reaches at least 30 million youth viewers. It is required to devise an advertising campaign costing no more than $12 million that reaches as many viewers as possible, subject to these constraints. Ignoring any integer requirements of the variables, formulate this as a Linear Programming model. Answer: A. Decision Variables:

X 1 = # of prime time TV spots X 2 = # of nonprime time TV spots X 3 = # of radio advertising units X 4 = # of newspapers and magazines advertising units

B. Constraints: 1) TV advertising cost must be less than 3 million

100,000X 1 + 78,000X 2 3,000,000

2) Minimum required number of each advertising units

X1 5 X2 4 X3 6 X4 9
3) Total # of youth viewers must be greater than 30 million

2.5 X 1 + 1.5 X 2 + X 3 + 0.4 X 4 30

4) Total advertising campaign budget limit

100 ,000 X 1 + 78,000 X 2 + 40,000 X 3 + 20,000 X 4 12,000 ,000 X i 0 for i = 1,2 ,3, 4

5) Non negativity constraints

C. Objective function:

Z = the number of all viewers Maximize Z = 6 X 1 + 4 X 2 + 2.5 X 3 + X 4

13. A farm family owns 125 acres of land and has $40,000 in found available for investment. Its members can produce a total of 3,500 person-hours worth of labor during the winter months (mid-September to mid-May) and 4,000 person-hours during the summer. If any of these person-hours are not needed to farmer family, younger members of family will use their capacity to work on a neighboring farm for $5/hour during the winter months and $6/hours during the summer. Cash income may be obtained from three crops and two types of livestock: diary cows and lying hens. No investment founds are needed for corps. However, each cow will require an investment outlay of $1,200, and each hen will cost $9. Each cow will require 1.5 acres of land, 100 person-hours of work during the winter months, and other 50 person-hours during the summer. Each cow will produce a net annual cash income of $1,000 for the family. The corresponding figures for each hen are: no acreage, 0.6 person-hours during the winter, 0.3 more person-hours during the summer, and an annual net cash income of $5. The chicken house can accommodate a maximu m of 3,000 hens, and the size of the barn limits the herd to a maximum 32 cows. Estimated person-hours and income per acre planted in each of the three corps are as folows Crop Winter person-hours Summer person-hours Net annual cash income ($) Soybeans 20 50 600 Corn 35 75 900 Oats 10 40 450

The family wishes to determine how much acreage should be planted in each of the corps and how many cows and hens should be kept to maximize its net cash income. Formulate the Linear Programming model for this problem. Answer: A. Decision Variables: LS = Amount of acres allocated for soybean production

L c = Amount of acres allocated for corn production L o = Amount of acres allocated for oat production
= # of cows purchased H = # of hens purchased W = Excess person-hours in the winter S = Excess person-hours in the summer B. Constraints: 1) Total land allocated for crop production and cows limited by the available land of 125 acres

LS + Lc + Lo + 1.5C 125
2) Total cost of purchasing cows and hens must be less than $40,000

1,200 C + 9 H 40 ,000

3) Limitations on the size of barn and chicken house

C 32

H 3,000

4) Labor limitations

20 LS + 35 L c + 10 L o + 100 C + 0.6 H + W = 3,500 For winters 50 L S + 75 Lc + 40 Lo + 150 C + 0.9H + S = 4,000 For summers

4) Non negativity constraints

LS , Lc , Lo , C, H ,W , S 0
C. Objective function:

Z = total of crop income, income from animals, and income from neighbor farm Maximize Z = 600 L S + 900 Lc + 450 Lo + 1,000 C + 5H + 5W + 6S

14. An investor has money-making activities A and B available at the beginning of each of the next five years (call them years 1 to 5). Each dollar invested in A at the beginning of a year returns $1.40 (a profit of $0.40) two years later (in time for immediate reinvestment). Each dollar invested in B at the beginning of a year returns $1.70 three years later. In addition, money-making activities C and D will each be available at one time in the future. Each dollar invested in C at the beginning of year 2 returns $1.90 at the end of year 5. Each dollar invested in D at the beginning of year 5 returns $1.30 at the end of year 5. The investor begins with $60,000 and wishes to know which plan maximizes the amount of money that can be accumulated by the beginning of year 6. Formulate an LP model for this problem. Answer: A. Decision Variables:

At = Amount of money invested to A in year t (t = 1,2,3,4) Bt = Amount of money invested to B in year t (t = 1, 2,3) C 2 = Amount of money invested to C in year 2 D5 = Amount of money invested to C in year 2

Rt = Amount of money not invested in year t (t = 1,2,3,4)

B. Constraints: 1) Equalities of years Year 2 (Amount of money invested in year 2 +amount of money not invested in year 2 = amount of money left from year 1) A3 + B3 + R3 = 1.4 A1 + R 2 Year 3

A1 + B1 + R1 = 60,000 A2 + B2 + R2 = R1

Year 1

A4 + R 4 = 1.4 A2 + 1.7B1 + R3 Year 4 D5 = 1.4 A3 + 1.7 B 2 + R4 Year 5

4) Non negativity constraints At 0 for t = 1, 2,3,4

Bt 0 for t = 1,2 ,3 C2 0 D5 0 Rt 0 for t = 1, 2,3,4

C. Objective function:

Z = Amount of money accumulated by the beginning of year 6

Maximize

Z = 1.9C2 + 1.7 B3 + 1.4 A4 + 1.3D5