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LP Problem

The document presents a series of linear programming problems that involve maximizing profits under various constraints related to production processes, resource availability, and investment strategies. Each problem requires the formulation of a linear programming model and the use of graphical methods to find optimal solutions, including identifying extreme points and evaluating constraints. Additionally, it addresses scenarios involving changes in profit contributions and resource constraints, requiring adjustments to the models and solutions.

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0% found this document useful (0 votes)
17 views11 pages

LP Problem

The document presents a series of linear programming problems that involve maximizing profits under various constraints related to production processes, resource availability, and investment strategies. Each problem requires the formulation of a linear programming model and the use of graphical methods to find optimal solutions, including identifying extreme points and evaluating constraints. Additionally, it addresses scenarios involving changes in profit contributions and resource constraints, requiring adjustments to the models and solutions.

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sakib.12008031
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Problems 67

10. For the linear program


Max 2A + 3B
s.t.
1A + 2B … 6
5A + 3B … 15
A, B Ú 0

find the optimal solution using the graphical solution procedure. What is the value of the
objective function at the optimal solution?
11. Solve the following linear program using the graphical solution procedure:
Max 5A + 5B
s.t.
1A … 100
1B … 80
2A + 4B … 400
A, B Ú 0

12. Consider the following linear programming problem:

Max 3A + 3B
s.t.
2A + 4B … 12
6A + 4B … 24
A, B Ú 0

a. Find the optimal solution using the graphical solution procedure.


b. If the objective function is changed to 2A  6B, what will the optimal solution be?
c. How many extreme points are there? What are the values of A and B at each extreme
point?
13. Consider the following linear program:
Max 1A + 2B
s.t.
1A … 5
1B … 4
2A + 2B = 12
A, B Ú 0

a. Show the feasible region.


b. What are the extreme points of the feasible region?
c. Find the optimal solution using the graphical procedure.
14. RMC, Inc., is a small firm that produces a variety of chemical products. In a particular pro-
duction process, three raw materials are blended (mixed together) to produce two prod-
ucts: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of ²⁄₅ ton of
material 1 and ³⁄₅ of material 3. A ton of solvent base is a mixture of ¹⁄₂ ton of material 1,
¹⁄₅ ton of material 2, and ³⁄₁₀ ton of material 3. After deducting relevant costs, the profit con-
tribution is $40 for every ton of fuel additive produced and $30 for every ton of solvent
base produced.
68 Chapter 2 An Introduction to Linear Programming

RMC’s production is constrained by a limited availability of the three raw materials. For
the current production period, RMC has available the following quantities of each raw
material:

Raw Material Amount Available for Production


Material 1 20 tons
Material 2 5 tons
Material 3 21 tons

Assuming that RMC is interested in maximizing the total profit contribution, answer the
following:
a. What is the linear programming model for this problem?
b. Find the optimal solution using the graphical solution procedure. How many tons of
each product should be produced, and what is the projected total profit contribution?
c. Is there any unused material? If so, how much?
d. Are any of the constraints redundant? If so, which ones?
15. Refer to the Par, Inc., problem described in Section 2.1. Suppose that Par’s management
encounters the following situations:
a. The accounting department revises its estimate of the profit contribution for the deluxe
bag to $18 per bag.
b. A new low-cost material is available for the standard bag, and the profit contribution
per standard bag can be increased to $20 per bag. (Assume that the profit contribution
of the deluxe bag is the original $9 value.)
c. New sewing equipment is available that would increase the sewing operation capacity
to 750 hours. (Assume that 10A  9B is the appropriate objective function.) If each of
these situations is encountered separately, what is the optimal solution and the total
profit contribution?
16. Refer to the feasible region for Par, Inc., problem in Figure 2.13.
a. Develop an objective function that will make extreme point 嘷 45 the optimal extreme
point.
b. What is the optimal solution for the objective function you selected in part (a)?
c. What are the values of the slack variables associated with this solution?
17. Write the following linear program in standard form:
Max 5A + 2B
s.t.
1A - 2B … 420
2A + 3B … 610
6A - 1B … 125
A, B Ú 0

18. For the linear program

Max 4A + 1B
s.t.
10A + 2B … 30
3A + 2B … 12
2A + 2B … 10
A, B Ú 0
Problems 69

a. Write this problem in standard form.


b. Solve the problem using the graphical solution procedure.
c. What are the values of the three slack variables at the optimal solution?
19. Given the linear program

Max 3A + 4B
s.t.
- 1A + 2B … 8
1A + 2B … 12
2A + 1B … 16
A, B Ú 0

a. Write the problem in standard form.


b. Solve the problem using the graphical solution procedure.
c. What are the values of the three slack variables at the optimal solution?
20. For the linear program

Max 3A + 2B
s.t.
A + B Ú 4
3A + 4B … 24
A Ú 2
A - B … 0
A, B Ú 0

a. Write the problem in standard form.


b. Solve the problem.
c. What are the values of the slack and surplus variables at the optimal solution?
21. Consider the following linear program:

Max 2A + 3B
s.t.
5A + 5B … 400 Constraint 1
-1A + 1B … 10 Constraint 2
1A + 3B Ú 90 Constraint 3
A, B Ú 0

Figure 2.22 shows a graph of the constraint lines.


a. Place a number (1, 2, or 3) next to each constraint line to identify which constraint it
represents.
b. Shade in the feasible region on the graph.
c. Identify the optimal extreme point. What is the optimal solution?
d. Which constraints are binding? Explain.
e. How much slack or surplus is associated with the nonbinding constraint?
22. Reiser Sports Products wants to determine the number of All-Pro (A) and College (C)
footballs to produce in order to maximize profit over the next four-week planning
horizon. Constraints affecting the production quantities are the production capacities
in three departments: cutting and dyeing; sewing; and inspection and packaging. For
70 Chapter 2 An Introduction to Linear Programming

FIGURE 2.22 GRAPH OF THE CONSTRAINT LINES FOR EXERCISE 21

90

80

70

60

50

40

30

20

10

A
0 10 20 30 40 50 60 70 80 90 100

the four-week planning period, 340 hours of cutting and dyeing time, 420 hours of
sewing time, and 200 hours of inspection and packaging time are available. All-Pro
footballs provide a profit of $5 per unit and College footballs provide a profit of $4 per
unit. The linear programming model with production times expressed in minutes is as
follows:

Max 5A + 4C
s.t.
12A + 6C … 20,400 Cutting and dyeing
9A + 15C … 25,200 Sewing
6A + 6C … 12,000 Inspection and packaging
A, C Ú 0

A portion of the graphical solution to the Reiser problem is shown in Figure 2.23.
a. Shade the feasible region for this problem.
b. Determine the coordinates of each extreme point and the corresponding profit. Which
extreme point generates the highest profit?
c. Draw the profit line corresponding to a profit of $4000. Move the profit line as far
from the origin as you can in order to determine which extreme point will provide the
optimal solution. Compare your answer with the approach you used in part (b).
d. Which constraints are binding? Explain.
e. Suppose that the values of the objective function coefficients are $4 for each
All-Pro model produced and $5 for each College model. Use the graphical solution
procedure to determine the new optimal solution and the corresponding value of
profit.
Problems 71

FIGURE 2.23 PORTION OF THE GRAPHICAL SOLUTION FOR EXERCISE 22

3500

3000

Number of College Footballs


2500

2000

1500

1000

500

A
0 500 1000 1500 2000 2500 3000
Number of All-Pro Footballs

23. Embassy Motorcycles (EM) manufacturers two lightweight motorcycles designed for
easy handling and safety. The EZ-Rider model has a new engine and a low profile that
make it easy to balance. The Lady-Sport model is slightly larger, uses a more traditional
engine, and is specifically designed to appeal to women riders. Embassy produces the en-
gines for both models at its Des Moines, Iowa, plant. Each EZ-Rider engine requires
6 hours of manufacturing time and each Lady-Sport engine requires 3 hours of manufac-
turing time. The Des Moines plant has 2100 hours of engine manufacturing time avail-
able for the next production period. Embassy’s motorcycle frame supplier can supply as
many EZ-Rider frames as needed. However, the Lady-Sport frame is more complex and
the supplier can only provide up to 280 Lady-Sport frames for the next production period.
Final assembly and testing requires 2 hours for each EZ-Rider model and 2.5 hours for
each Lady-Sport model. A maximum of 1000 hours of assembly and testing time are
available for the next production period. The company’s accounting department projects
a profit contribution of $2400 for each EZ-Rider produced and $1800 for each Lady-
Sport produced.
a. Formulate a linear programming model that can be used to determine the number of
units of each model that should be produced in order to maximize the total contribu-
tion to profit.
b. Solve the problem graphically. What is the optimal solution?
c. Which constraints are binding?
72 Chapter 2 An Introduction to Linear Programming

24. Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a regular
model and a catcher’s model. The firm has 900 hours of production time available in
its cutting and sewing department, 300 hours available in its finishing department, and
100 hours available in its packaging and shipping department. The production time
requirements and the profit contribution per glove are given in the following table:

Production Time (hours)


Cutting Packaging
Model and Sewing Finishing and Shipping Profit/Glove
Regular model 1 ¹⁄₂ ¹⁄₈ $5
Catcher’s model ³⁄₂ ¹⁄₃ ¹⁄₄ $8

Assuming that the company is interested in maximizing the total profit contribution, an-
swer the following:
a. What is the linear programming model for this problem?
b. Find the optimal solution using the graphical solution procedure. How many gloves of
each model should Kelson manufacture?
c. What is the total profit contribution Kelson can earn with the given production
quantities?
d. How many hours of production time will be scheduled in each department?
e. What is the slack time in each department?
25. George Johnson recently inherited a large sum of money; he wants to use a portion of this
money to set up a trust fund for his two children. The trust fund has two investment op-
tions: (1) a bond fund and (2) a stock fund. The projected returns over the life of the in-
vestments are 6% for the bond fund and 10% for the stock fund. Whatever portion of the
inheritance he finally decides to commit to the trust fund, he wants to invest at least 30%
of that amount in the bond fund. In addition, he wants to select a mix that will enable him
to obtain a total return of at least 7.5%.
a. Formulate a linear programming model that can be used to determine the percentage
that should be allocated to each of the possible investment alternatives.
b. Solve the problem using the graphical solution procedure.
26. The Sea Wharf Restaurant would like to determine the best way to allocate a monthly ad-
vertising budget of $1000 between newspaper advertising and radio advertising. Manage-
ment decided that at least 25% of the budget must be spent on each type of media, and that
the amount of money spent on local newspaper advertising must be at least twice the
amount spent on radio advertising. A marketing consultant developed an index that mea-
sures audience exposure per dollar of advertising on a scale from 0 to 100, with higher val-
ues implying greater audience exposure. If the value of the index for local newspaper
advertising is 50 and the value of the index for spot radio advertising is 80, how should the
restaurant allocate its advertising budget in order to maximize the value of total audience
exposure?
a. Formulate a linear programming model that can be used to determine how the restau-
rant should allocate its advertising budget in order to maximize the value of total au-
dience exposure.
b. Solve the problem using the graphical solution procedure.
27. Blair & Rosen, Inc. (B&R), is a brokerage firm that specializes in investment portfolios
designed to meet the specific risk tolerances of its clients. A client who contacted B&R
this past week has a maximum of $50,000 to invest. B&R’s investment advisor decides to
recommend a portfolio consisting of two investment funds: an Internet fund and a Blue
Problems 73

Chip fund. The Internet fund has a projected annual return of 12%, whereas the Blue Chip
fund has a projected annual return of 9%. The investment advisor requires that at most
$35,000 of the client’s funds should be invested in the Internet fund. B&R services include
a risk rating for each investment alternative. The Internet fund, which is the more risky of
the two investment alternatives, has a risk rating of 6 per thousand dollars invested. The
Blue Chip fund has a risk rating of 4 per thousand dollars invested. For example, if
$10,000 is invested in each of the two investment funds, B&R’s risk rating for the portfo-
lio would be 6(10)  4(10)  100. Finally, B&R developed a questionnaire to measure
each client’s risk tolerance. Based on the responses, each client is classified as a conserva-
tive, moderate, or aggressive investor. Suppose that the questionnaire results classified the
current client as a moderate investor. B&R recommends that a client who is a moderate in-
vestor limit his or her portfolio to a maximum risk rating of 240.
a. What is the recommended investment portfolio for this client? What is the annual re-
turn for the portfolio?
b. Suppose that a second client with $50,000 to invest has been classified as an aggressive
investor. B&R recommends that the maximum portfolio risk rating for an aggressive
investor is 320. What is the recommended investment portfolio for this aggressive in-
vestor? Discuss what happens to the portfolio under the aggressive investor strategy.
c. Suppose that a third client with $50,000 to invest has been classified as a conserva-
tive investor. B&R recommends that the maximum portfolio risk rating for a conser-
vative investor is 160. Develop the recommended investment portfolio for the
conservative investor. Discuss the interpretation of the slack variable for the total
investment fund constraint.
28. Tom’s, Inc., produces various Mexican food products and sells them to Western Foods, a
chain of grocery stores located in Texas and New Mexico. Tom’s, Inc., makes two salsa
products: Western Foods Salsa and Mexico City Salsa. Essentially, the two products have
different blends of whole tomatoes, tomato sauce, and tomato paste. The Western Foods
Salsa is a blend of 50% whole tomatoes, 30% tomato sauce, and 20% tomato paste. The
Mexico City Salsa, which has a thicker and chunkier consistency, consists of 70% whole
tomatoes, 10% tomato sauce, and 20% tomato paste. Each jar of salsa produced weighs
10 ounces. For the current production period, Tom’s, Inc., can purchase up to 280 pounds
of whole tomatoes, 130 pounds of tomato sauce, and 100 pounds of tomato paste; the price
per pound for these ingredients is $0.96, $0.64, and $0.56, respectively. The cost of the
spices and the other ingredients is approximately $0.10 per jar. Tom’s, Inc., buys empty
glass jars for $0.02 each, and labeling and filling costs are estimated to be $0.03 for each
jar of salsa produced. Tom’s contract with Western Foods results in sales revenue of $1.64
for each jar of Western Foods Salsa and $1.93 for each jar of Mexico City Salsa.
a. Develop a linear programming model that will enable Tom’s to determine the mix of
salsa products that will maximize the total profit contribution.
b. Find the optimal solution.
29. AutoIgnite produces electronic ignition systems for automobiles at a plant in Cleveland,
Ohio. Each ignition system is assembled from two components produced at AutoIgnite’s
plants in Buffalo, New York, and Dayton, Ohio. The Buffalo plant can produce 2000 units
of component 1, 1000 units of component 2, or any combination of the two components
each day. For instance, 60% of Buffalo’s production time could be used to produce compo-
nent 1 and 40% of Buffalo’s production time could be used to produce component 2; in this
case, the Buffalo plant would be able to produce 0.6(2000)  1200 units of component 1
each day and 0.4(1000)  400 units of component 2 each day. The Dayton plant can pro-
duce 600 units of component 1, 1400 units of component 2, or any combination of the two
components each day. At the end of each day, the component production at Buffalo and
Dayton is sent to Cleveland for assembly of the ignition systems on the following workday.
74 Chapter 2 An Introduction to Linear Programming

a. Formulate a linear programming model that can be used to develop a daily production
schedule for the Buffalo and Dayton plants that will maximize daily production of
ignition systems at Cleveland.
b. Find the optimal solution.
30. A financial advisor at Diehl Investments identified two companies that are likely candi-
dates for a takeover in the near future. Eastern Cable is a leading manufacturer of flexible
cable systems used in the construction industry, and ComSwitch is a new firm specializing
in digital switching systems. Eastern Cable is currently trading for $40 per share, and
ComSwitch is currently trading for $25 per share. If the takeovers occur, the financial ad-
visor estimates that the price of Eastern Cable will go to $55 per share and ComSwitch
will go to $43 per share. At this point in time, the financial advisor has identified Com-
Switch as the higher risk alternative. Assume that a client indicated a willingness to invest
a maximum of $50,000 in the two companies. The client wants to invest at least $15,000
in Eastern Cable and at least $10,000 in ComSwitch. Because of the higher risk associated
with ComSwitch, the financial advisor has recommended that at most $25,000 should be
invested in ComSwitch.
a. Formulate a linear programming model that can be used to determine the number of
shares of Eastern Cable and the number of shares of ComSwitch that will meet the in-
vestment constraints and maximize the total return for the investment.
b. Graph the feasible region.
c. Determine the coordinates of each extreme point.
d. Find the optimal solution.
31. Consider the following linear program:

Min 3A + 4B
s.t.
1A + 3B Ú 6
1A + 1B Ú 4
A, B Ú 0

Identify the feasible region and find the optimal solution using the graphical solution pro-
cedure. What is the value of the objective function?
32. Identify the three extreme-point solutions for the M&D Chemicals problem (see Section 2.5).
Identify the value of the objective function and the values of the slack and surplus variables
at each extreme point.
33. Consider the following linear programming problem:

Min A + 2B
s.t.
A + 4B … 21
2A + B Ú 7
3A + 1.5B … 21
-2A + 6B Ú 0
A, B Ú 0

a. Find the optimal solution using the graphical solution procedure and the value of the
objective function.
b. Determine the amount of slack or surplus for each constraint.
c. Suppose the objective function is changed to max 5A + 2B. Find the optimal solution
and the value of the objective function.
Problems 75

34. Consider the following linear program:

Min 2A + 2B
s.t.
1A + 3B … 12
3A + 1B Ú 13
1A - 1B = 3
A, B Ú 0

a. Show the feasible region.


b. What are the extreme points of the feasible region?
c. Find the optimal solution using the graphical solution procedure.
35. For the linear program

Min 6A + 4B
s.t.
2A + 1B Ú 12
1A + 1B Ú 10
1B … 4
A, B Ú 0

a. Write the problem in standard form.


b. Solve the problem using the graphical solution procedure.
c. What are the values of the slack and surplus variables?
36. As part of a quality improvement initiative, Consolidated Electronics employees complete
a three-day training program on teaming and a two-day training program on problem solv-
ing. The manager of quality improvement has requested that at least 8 training programs
on teaming and at least 10 training programs on problem solving be offered during the
next six months. In addition, senior-level management has specified that at least 25 train-
ing programs must be offered during this period. Consolidated Electronics uses a consul-
tant to teach the training programs. During the next quarter, the consultant has 84 days of
training time available. Each training program on teaming costs $10,000 and each training
program on problem solving costs $8000.
a. Formulate a linear programming model that can be used to determine the number of
training programs on teaming and the number of training programs on problem solv-
ing that should be offered in order to minimize total cost.
b. Graph the feasible region.
c. Determine the coordinates of each extreme point.
d. Solve for the minimum cost solution.
37. The New England Cheese Company produces two cheese spreads by blending mild
cheddar cheese with extra sharp cheddar cheese. The cheese spreads are packaged in
12-ounce containers, which are then sold to distributors throughout the Northeast. The
Regular blend contains 80% mild cheddar and 20% extra sharp, and the Zesty blend
contains 60% mild cheddar and 40% extra sharp. This year, a local dairy cooperative
offered to provide up to 8100 pounds of mild cheddar cheese for $1.20 per pound and
up to 3000 pounds of extra sharp cheddar cheese for $1.40 per pound. The cost to blend
and package the cheese spreads, excluding the cost of the cheese, is $0.20 per con-
tainer. If each container of Regular is sold for $1.95 and each container of Zesty is sold
for $2.20, how many containers of Regular and Zesty should New England Cheese
produce?
76 Chapter 2 An Introduction to Linear Programming

38. Applied Technology, Inc. (ATI), produces bicycle frames using two fiberglass materials
that improve the strength-to-weight ratio of the frames. The cost of the standard grade
material is $7.50 per yard and the cost of the professional grade material is $9.00 per yard.
The standard and professional grade materials contain different amounts of fiberglass,
carbon fiber, and Kevlar as shown in the following table:

Standard Grade Professional Grade


Fiberglass 84% 58%
Carbon fiber 10% 30%
Kevlar 6% 12%

ATI signed a contract with a bicycle manufacturer to produce a new frame with a carbon
fiber content of at least 20% and a Kevlar content of not greater than 10%. To meet the re-
quired weight specification, a total of 30 yards of material must be used for each frame.
a. Formulate a linear program to determine the number of yards of each grade of fiber-
glass material that ATI should use in each frame in order to minimize total cost. De-
fine the decision variables and indicate the purpose of each constraint.
b. Use the graphical solution procedure to determine the feasible region. What are the
coordinates of the extreme points?
c. Compute the total cost at each extreme point. What is the optimal solution?
d. The distributor of the fiberglass material is currently overstocked with the professional
grade material. To reduce inventory, the distributor offered ATI the opportunity to pur-
chase the professional grade for $8 per yard. Will the optimal solution change?
e. Suppose that the distributor further lowers the price of the professional grade material
to $7.40 per yard. Will the optimal solution change? What effect would an even lower
price for the professional grade material have on the optimal solution? Explain.
39. Innis Investments manages funds for a number of companies and wealthy clients. The in-
vestment strategy is tailored to each client’s needs. For a new client, Innis has been autho-
rized to invest up to $1.2 million in two investment funds: a stock fund and a money
market fund. Each unit of the stock fund costs $50 and provides an annual rate of return of
10%; each unit of the money market fund costs $100 and provides an annual rate of return
of 4%.
The client wants to minimize risk subject to the requirement that the annual income
from the investment be at least $60,000. According to Innis’s risk measurement system,
each unit invested in the stock fund has a risk index of 8, and each unit invested in the
money market fund has a risk index of 3; the higher risk index associated with the stock
fund simply indicates that it is the riskier investment. Innis’s client also specified that at
least $300,000 be invested in the money market fund.
a. Determine how many units of each fund Innis should purchase for the client to mini-
mize the total risk index for the portfolio.
b. How much annual income will this investment strategy generate?
c. Suppose the client desires to maximize annual return. How should the funds be
invested?
40. Photo Chemicals produces two types of photographic developing fluids. Both products
cost Photo Chemicals $1 per gallon to produce. Based on an analysis of current inventory
levels and outstanding orders for the next month, Photo Chemicals’ management specified
that at least 30 gallons of product 1 and at least 20 gallons of product 2 must be produced
during the next two weeks. Management also stated that an existing inventory of highly
perishable raw material required in the production of both fluids must be used within the

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