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Examples Week1 Compress

This document provides examples to illustrate concepts from a quantitative methods textbook. The first example presents a linear programming problem about determining the optimal production levels of two types of televisions. The second example formulates a linear programming model to minimize the daily feed costs for pigs given constraints on calorie, vitamin and toxic ingredient intake.

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Angel Huitrado
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36 views6 pages

Examples Week1 Compress

This document provides examples to illustrate concepts from a quantitative methods textbook. The first example presents a linear programming problem about determining the optimal production levels of two types of televisions. The second example formulates a linear programming model to minimize the daily feed costs for pigs given constraints on calorie, vitamin and toxic ingredient intake.

Uploaded by

Angel Huitrado
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Examples week1

Quantitative Methods for Logistics (ME44205)

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Worked Examples for Chapter 3

Example for Section 3.1


The Apex Television Company has to decide on the number of 27- and 20-inch sets to be
produced at one of its factories. Market research indicates that at most 40 of the 27-inch sets
and 10 of the 20-inch sets can be sold per month. The maximum number of work-hours
available is 500 per month. A 27-inch set requires 20 work-hours and a 20-inch set requires 10
work-hours. Each 27-inch set sold produces a profit of $120 and each 20-inch set produces a
profit of $80. A wholesaler has agreed to purchase all the television sets produced if the
numbers do not exceed the maxima indicated by the market research.

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

The decisions that need to be made are the number of 27-inch and 20-inch TV sets to be
produced per month by the Apex Television Company. Therefore, the decision variables for
the model are

x1 = number of 27-inch TV sets to be produced per month,


x2 = number of 20-inch TV sets to be produced per month.

Also let

Z = total profit per month.

The model now can be formulated in terms of these variables as follows.

The total profit per month is Z = 120 x 1 + 80 x2.

The resource constraints are:

(1) Number of 27-inch sets sold per month: x1  40


(2) Number of 20-inch sets sold per month: x2  10
(3) Work-hours availability: 20 x 1 + 10 x2  500.

Nonnegativity constraints on TV sets produced:

x1  0
x2  0

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With the objective of maximizing the total profit per month, the LP model for this problem is

Maximize Z = 120 x1 + 80 x2,


subject to
x1  40
x2  10
20 x1 + 10 x2  500
and
x1  0, x 2  0.

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

The constraint, x1  40 , has a constraint boundary at x1 = 40. Similarly, the constraint, x2


 10, has a constraint boundary at x2 = 10.
The constraint boundary for the constraint, 20 x1 + 10 x2  500, intercepts the x1-
axis at 20x 1 + 10(0) = 500, so at x1 = 25. Similarly, this constraint boundary intercepts the x2-
axis at 20(0) + 10x2 = 500, so at x2 = 50. This constraint boundary lies well within the
constraint boundary for the first constraint, x1  40, so the first constraint is redundant and
can be ignored.
For a sample value of Z, say, Z = 2,400, the corresponding objective function line, Z =
2,400 = 120 x1 + 80 x2, intercepts the x1-axis at 120 x1 + 80(0) = 2,400, so at x1 = 20. It
intercepts the x2-axis at 120 (0) + 80 x2 = 2,400, so at x2 = 30. The corresponding objective
function lines for other values of Z are parallel to this line. Pushing these lines up as much as
possible while still passing through a point in the feasible region reveals that the optimal
solution is (x1, x2) = (20, 10) with Z = 3,200, as depicted in the following graph.

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Example for Section 3.4
Dwight is an elementary school teacher who also raises pigs for supplemental income. He is
trying to decide what to feed his pigs. He is considering using a combination of pig feeds
available from local suppliers. He would like to feed the pigs at minimum cost while also
making sure each pig receives an adequate supply of calories and vitamins. The cost, calorie
content, and vitamin content of each feed are given in the table below.

Contents Feed Type A Feed Type B


Calories (per pound) 800 1,000
Vitamins (per pound) 140 units 70 units
Cost (per pound) $0.40 $0.80

Each pig requires at least 8,000 calories per day and at least 700 units of vitamins. A further
constraint is that no more than one-third of the diet (by weight) can consist of Feed Type A,
since it contains an ingredient which is toxic if consumed in too large a quantity.

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

Let A and B be the quantity (pounds) of Feed Type A and Feed Type B, respectively, used per
day. Also let Z be the total daily cost of the feed per pig. Then, the daily cost is

Z = $0.4 A + $0.8 B.

The constraints on the minimum daily requirements of calories and vitamins are

(1) Calories requirement: 800 A + 1000 B  8,000.


(2) Vitamins requirement: 140 A + 70 B  700.

Also, Dwight needs to avoid using too much of Feed Type A because of the toxic ingredient in
it. The toxic constraint is
A  1/3 (A+B),
which reduces to 2/3 A - 1/3 B ≤ 0.

Nonnegativity constraints: A  0, B  0.

The resulting linear programming model for this problem is

Minimize Z = 0.4 A + $0.8 B,


subject to
800 A + 1000 B  8000
140 A + 70 B  700
2/3 A - 1/3 B  0
and
A  0, B  0.

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(b) Use the graphical method to solve this model. What is the resulting daily cost per pig?

As shown below, the optimal solution is (A, B) = (20/7, 40/7). The resulting daily cost per pig
is Z = 40/7 = $5.71.

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Another Example for Section 3.4
The Fagersta Steelworks currently is working two mines to obtain its iron ore. This iron ore is
shipped to either of two storage facilities. When needed, it then is shipped on to the
company’s steel plant. The diagram below depicts this distribution network, where M1 and
M2 are the two mines, S1 and S2 are the two storage facilities, and P is the steel plant. The
diagram also shows the monthly amounts produced at the mines and needed at the plant, as
well as the shipping cost and the maximum amount that can be shipped per month through
each shipping lane.

40 tons $2,000/ton S1 $400/ton


produced M1 30 tons max. 70 tons max.
$1,700/ton
30 tons max.
100 tons
P
needed
$1,600/ton
50 tons max. $800/ton
70 tons max.
60 tons M2 $1,100/ton S2
produced 50 tons max.

Management now wants to determine the most economic plan for shipping the iron ore from
the mines through the distribution network to the steel plant.

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

The decision variables are defined as follows:

xm1-s1 : number of units (tons) shipped from Mine 1 to Storage Facility 1,


xm1-s2 : number of units (tons) shipped from Mine 1 to Storage Facility 2,
xm2-s1 : number of units (tons) shipped from Mine 2 to Storage Facility 1,
xm2-s2 : number of units (tons) shipped from Mine 1 to Storage Facility 2,
xs1 -p : number of units (tons) shipped from Storage Facility 1 to the Plant,
xs2 -p : number of units (tons) shipped from Storage Facility 2 to the Plant.

The total shipping cost is:

Z = 2000 xm1-s1 + 1700 xm1-s2 + 1600 xm2-s1 + 1100 xm2-s2 + 400 xs1-p + 800 xs2-p

The constraints we need to consider are:

(1) Supply constraint on M1 and M2:

xm1-s1 + x m1-s2 = 40
xm2-s1 + x m2-s2 = 60

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