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Module 1. Hygens - Bunagan - IE 003 Problem Solving LP

The MixNuts Company produces almonds and salted peanuts and wants to determine the optimal production mix to maximize profits given constraints on available manufacturing hours and packaging hours. The problem is formulated as a linear program with decision variables X1 for number of almonds and X2 for number of peanuts. The objective is to maximize total profit of 7X1 + 5X2. Constraints are that production requires 4X1 + 3X2 hours of manufacturing, which is less than or equal to the 240 available hours, and packaging requires 2X1 + 1X2 hours, which is less than or equal to the 100 available hours. The optimal solution is to produce 30 almonds and 40 peanuts for a maximum

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Diana Bunagan
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198 views3 pages

Module 1. Hygens - Bunagan - IE 003 Problem Solving LP

The MixNuts Company produces almonds and salted peanuts and wants to determine the optimal production mix to maximize profits given constraints on available manufacturing hours and packaging hours. The problem is formulated as a linear program with decision variables X1 for number of almonds and X2 for number of peanuts. The objective is to maximize total profit of 7X1 + 5X2. Constraints are that production requires 4X1 + 3X2 hours of manufacturing, which is less than or equal to the 240 available hours, and packaging requires 2X1 + 1X2 hours, which is less than or equal to the 100 available hours. The optimal solution is to produce 30 almonds and 40 peanuts for a maximum

Uploaded by

Diana Bunagan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES

Problem Solving Exercises in IE 003 Operations Research (1st Semester SY2019-2020)

Name of the Student : Bunagan, Diana C.


Program/Year Level : Chemical Engineering, 5th Year

MODULE 1. HYGENS | PROBLEM SOLVING EXERCISE IN LINEAR


PROGRAMMING

The MixNuts Company produces two products: (1) Almond Nuts, and (2) Salted Peanuts.
The production process for each product is similar in that both require a certain number of hours
of manufacturing work and a certain number of labor-hours in the packaging department.
Almonds takes 4 hours of manufacturing work and 2 hours in the packaging. Each Salted
Peanuts requires 3 hours of manufacturing work and 1 hour in packaging. During the
current manufacturing period, 240 hours of manufacturing hour are available, and 100
hours of packaging time are available. Each Almond sold yields a profit of Php7.00; each
Salted Peanuts produced can be sold for a Php5.00 profit. MixNut's problem is to determine the
best possible combination of Almonds and Salted Peanuts to manufacture to reach the
maximum profit. This product-mix situation can be formulated as a linear programming
problem, show the linear model.

Instructions: Formulate the problem. Explain the following: Decision variables, objective
function, constraints, and non-negativity.

______________________________________________________________________________

LP PROBLEM FORMULATION

The MixNuts Company wants to maximize the company profit. First thing to do, is to be able to
know what quantities does the manager control? or what can he manipulate to influence the
profit? These quantities can be expressed by letting X1 = number of almond nuts to be produce
in the given amount of manufacturing time and packaging time. And X2 = number of Salted
peanuts to be produce in the given amount of manufacturing time and packaging time. X1 & X2
would be the decision variables.

The sum of the number of the two peanuts times each certain profit would be the

The objective function which can be expressed as:

Maximize Z = 7X1 + 5X2

There are constraints which unable the company to maximize its profits, these constraints are
labor-hour (ManPower) and manufacturing work (Method). This can be written mathematically
as follows
4X1 + 3X2 <= 240

2X1 + 1X2 <= 100

As X1 is intended for almond nuts and 4 hours was the stated time for manufacturing work hence
4 would be coefficient of X1, same goes for X2 which is for salted nuts, and has 3 hours of
manufacturing work which is equal or less than to 240 constraints because it’s the only available
time for manufacturing work.

As for 2XI and 1X2, it was described as the no. of hours of almonds to be pack and number of
hours of salted peanuts to be pack with only 100 hours available time for packing two products.

Finally for non-negativity; X1,X2 >= 0

To tabulate

X1 X2 Constraints
Objective function 7 5
Manufacturing work 4 3 240

Packaging Work 2 1 100

Using Excel

Profit = Maximize Z = 7X1 + 5X2

Z value = 7(30)+ 5(40) = Php 410.00


Conclusion:

To optimize the manpower (Labor-hour) and method (manufacturing) the available, the company
can produce 30 almond nuts and 40 Salted Peanuts. The combination can give an optimal profit
of 410 pesos.

HONOR AND PLEDGE

“I AFFIRM THAT I SHALL NOT GIVE OR RECEIVE ANY UNAUTHORIZED HELP ON


THIS ACTIVITY, AND THAT ALL WORK SHALL BE MY OWN.”

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