Submitted By ijenkin

Words 331

Pages 2

Words 331

Pages 2

a) What is the formulation for this problem?

b) For the production combination of 800 bags of Lime and 600 bags of Vinegar, which resource is not completely used up and how much is remaining?

c) For the production combination of 800 bags of Lime and 600 bags of Vinegar, which resource is not completely used up and how much is remaining?

d) Discuss: Slack (if any); shadow price, and sensitivity analysis results using the program of your choice. Above problem is a maximization problem as one is trying to maximize the profits by making different bags of chips. It takes salt, flour and herbs to make two different types of chips – Lime and Vinegar. There are constrained amounts of salt, flour and herb and the owner want to maximize his profits. The amount of profit per bag is given as well.

The LP problem thus becomes:

Maximize Profits from the sale of bags of both lime and vinegar chips

Constraints:

1. Salt consumed should not exceed 4,600

2. Flour consumed should not exceed 9,400

3. Herbs consumed should not exceed 2,200

In mathematical terms, let’s say X1 to be the number of Lime bags and X2 to be the number of Vinegar bags.

LP is:

Maximize: 0.48 X1 + 0.59 X2

Subject to:

1.5X1 + 4…...

...LINEAR PROGRAMMING Definition. A mathematical technique for solving constrained maximization and minimization problems when there are many constraints and the objective function to be optimized, as well as the constraints faced, are linear (i.e., can be represented by straight lines) Assumptions. -LP is based on the assumption that the objective function that the organization seeks to optimize (maximize or minimize), as well as the constraints that it faces, are linear and can be represented GRAPHICALLY by straight lines. -Input and output prices are constant -Average and marginal costs are constant and equal (they are linear) -Profit per unit is constant; profit function is linear Applications of Linear Programming 1. Optimal process selection 2. Optimal product mix 3. Satisfying minimum product requirements 4. Long-run capacity planning 5. Other specific applications of linear programming Basic Linear Programming Concepts A. Production Process and Isoquants -where a production process or activity can be represented by a straight line ray from the origin in input space B. Optimal Mix of Production Process Procedure Used in Formulating and Solving Linear Programming Problems The steps followed in solving linear programming problem are: 1. Express the objective function of the problem as an equation and the constraints as inequalities. 2. Graph the inequality constraints and define the feasible region. 3. Graph......

Words: 277 - Pages: 2

...METHODS/ APPROACH This scheduling problem can be solved most expeditiously using linear programming. Let F denote the number of full-time employ- ees. Some number, F1, of them will work one hour of overtime between 5 PM and 6 PM each day and some number, F2, of the full- time employees will work overtime between 6 PM and 7 PM. There will be seven sets of part-time employees who begin their work day at hour j=j␣1,2,...,7,withP1beingthenumberofworkers beginning at 9 AM, P2 at 10 AM, . . . , P7 at 3 PM. Note that because part-time employees must work a minimum of four hours, none can start after 3 PM because the entire operation ends at 7 PM. Similarly, some number of part-time employees, Qj, leave at the end of hour j, j 4, 5, . . . , 9. The workforce requirements for the first two hours, 9 AM and 10 AM, are: F P1 14 F P1 P2 25 At 11 AM half of the full-time employees go to lunch; the remaining half go at noon. For those hours: 0.5F P1 P2 P3 26 0.5F P1 P2 P3 P4 38 Starting at 1 PM, some of the part-time employees begin to leave. For the remainder of the straight-time day: F P1 P2 P3 P4 P5 −Q4 55 F P1 P2 P3 P4 P5 P6 −Q4 −Q5 60 F P1 P2 P3 P4 P5 P6 P7 −Q4 −Q5 −Q6 51 F P1 P2 P3 P4 P5 P6 P7 −Q4 −Q5 −Q6 −Q7 29 For the two......

Words: 993 - Pages: 4

...What is Linear Technology Current Payout Policy? Linear Technology (LT) is like many firms where it used a combination of dividend payments and share / stock repurchases to distribute cash to its shareholders. With a cash dividend, cash is paid directly to shareholders while, with a stock repurchase, a firm uses its cash to buy back its own shares from the market which in turn reduces the number of outstanding shares (Titman and Keown et al., 2011). LT wanted to be able to attract different dividend clienteles of investors which have the both income goals and growth goals (Baker and Wagonfeld, 2004). As stated in the article provided, LT is a developer and manufacturer of analog semiconductors and in 1992 it initiated dividends (Baker and Wagonfeld, 2004). The firm’s Chief Financial Officer, Paul Coghlan, described this decision as being based on the fact that LT was very well positioned within the industry and that the firm had promising expectations for its business within its flourishing market (Baker and Wagonfeld, 2004). He also highlighted that LT had positive cash flows ever since its IPO and so by paying dividends to its shareholders they would send a stable and confident message of appeal to potential investors in a relatively risky market (Baker and Wagonfeld, 2004). The firm primarily set their quarterly dividend at a relatively low price of US$0.0625 per share and, with a Net Income of US$36.4 million in its 1993 Fiscal Year, only US$5.3 million was paid as......

Words: 4560 - Pages: 19

...The development of linear programming has been ranked among the most important scientific advances of the mid 20th century. Its impact since the 1950’s has been extraordinary. Today it is a standard tool used by some companies (around 56%) of even moderate size. Linear programming uses a mathematical model to describe the problem of concern. Linear programming involves the planning of activities to obtain an optimal result, i.e., a result that reaches the specified goal best (according to the mathematical model) among all feasible alternatives. Linear Programming as seen by various reports by many companies has saved them thousands to even millions of dollars. Since this is true why isn’t everyone using Linear Programming? Maybe the reason is because there has never been an in-depth experiment focusing on certain companies that do or do not use linear programming. My main argument is that linear programming is one of the most optimal ways of resource allocation and making the most money for any company today. I used (in conjunction with another field supporter – My Dad) the survey method to ask 28 companies that were in Delaware, New Jersey, and Pennsylvania whether they were linear programming users. In addition, I wanted to examine the effect of the use of linear programming across three different but key decision support areas of the participating companies to include (1) Planning (2) Forecasting and (3) Resource Allocation. The companies were selected randomly from the......

Words: 326 - Pages: 2

...1. INTRODUCTION Linear programming, an operations research technique is widely used in finding solutions to complex managerial decision problems. The introduction of linear programming (LP) has produced remarkable benefits in a number of industries. The early experimental applications of LP techniques in the petroleum industry as a refinery management tool had such profound effects that LP is now standard in almost every aspect of that industry. The first application of LP in the textile industry was designed to produce optimal plant efficiency, that is, allocate plant resources to production problems so as to achieve the highest practical return. The purpose of this study is to demonstrate the application of LP model in the blending (mixing) of cotton to produce Acrylic yarn in case of Arbaminch Textile factory. Because the cotton blending process involves complex quality control, it is particularly responsive to LP techniques. In view of today’s technology, the process of cotton fiber selection should undergo an inevitable transition from the traditional pure art to a sound scientific technique. In order to achieve this transition, fiber selection should be integrated into a cotton fiber mixing program that attempts to optimize cotton fiber use with respect to cost and quality of end product. I attempted to examine the practical aspect of linear programming for optimization of cost of producing cotton blended yarn in Arbaminch textile factory without impinging the......

Words: 2964 - Pages: 12

...MAT 540 Week 8 Assignment 1 Linear Programming Case Study Click below link for Answer http://workbank247.com/q/mat-540-week-8-assignment-1-linear-programming-cas/4119 Click the link above to submit your assignment. Students, please view the "Submit a Clickable Rubric Assignment" in the Student Center. Instructors, training on how to grade is within the Instructor Center. Assignment 1. Linear Programming Case Study Your instructor will assign a linear programming project for this assignment according to the following specifications. It will be a problem with at least three (3) constraints and at least two (2) decision variables. The problem will be bounded and feasible. It will also have a single optimum solution (in other words, it won’t have alternate optimal solutions). The problem will also include a component that involves sensitivity analysis and the use of the shadow price. You will be turning in two (2) deliverables, a short writeup of the project and the spreadsheet showing your work. Writeup. Your writeup should introduce your solution to the project by describing the problem. Correctly identify what type of problem this is. For example, you should note if the problem is a maximization or minimization problem, as well as identify the resources that constrain the solution. Identify each variable and explain the criteria involved in setting up the model. This should be encapsulated in one (1) or two (2) succinct paragraphs. After the introductory paragraph,...

Words: 363 - Pages: 2

...LINEAR PROGRAMMING II 1 Linear Programming II: Minimization © 2006 Samuel L. Baker Assignment 11 is on page 16. Introduction A minimization problem minimizes the value of the objective function rather than maximizing it. Minimization problems generally involve finding the least-cost way to meet a set of requirements. Classic example -- feeding farm animals. Animals need: 14 units of nutrient A, 12 units of nutrient B, and 18 units of nutrient C. Learning Objective 1: Recognize problems that linear programming can handle. Linear programming lets you optimize an objective function subject to some constraints. The objective function and constraints are all linear. Two feed grains are available, X and Y. A bag of X has 2 units of A, 1 unit of B, and 1 unit of C. A bag of Y has 1 unit of A, 1 unit of B, and 3 units of C. A bag of X costs $2. A bag of Y costs $4. Minimize the cost of meeting the nutrient requirements. To solve, express the problem in equation form: Cost = 2X + 4Y objective function to be minimized Constraints: 2X + 1Y $ 14 nutrient A requirement 1X + 1Y $ 12 nutrient B requirement 1X + 3Y $ 18 nutrient C requirement 8 8 Read vertically to see how much of each nutrient is in each grain. X $ 0, Y $ 0 non-negativity Learning objective 2: Know the elements of a linear programming problem -- what you need to calculate a solution. The elements are (1) an objective function that shows the cost or profit depending on what choices you make, (2) constraint......

Words: 4295 - Pages: 18

...Math 428 Operation Research Linear Programming Project This project is mainly to report on our analysis of the mathematical model established by the three-month production plan from the bicycle manufacturer. It includes what suggestions we’ve had for the client, details on how the model was set up and also how future change influences the results. Firstly, we’ll explain how and why the model was set up in this way: Our goal is to help the company minimize their cost on the production and the inventory. Let x4m be the amount of mountain bikes produced in April Let x5m be the amount of mountain bikes produced in May Let x6m be the amount of mountain bikes produced in June Let x4r be the amount of road bikes produced in April Let x5r be the amount of road bikes produced in May Let x6r be the amount of road bikes produced in June Since each mountain bike frame costs $200 and each road bike costs $250, then the total production cost would be 200x4m+x5m+x6m+250(x4r+x5r+x6r). The carried-over inventory costs $10 for each bike frame. We got 150 in store before the three-month production plan and it costs 150∙10=$1500. Then for each month, we have 50+x4m+100+x4r-1300 for the carryover from April to May; 50+x4m+100+x4r-1300+x5m+x5r-1700 for the carryover from May to June. Hence these carryovers are going to cost $10 for each as well. Put everything together and simplies it we have the objective function: Minimize Z=220x4m+210x5m+200x6m+270x4r+260x5r+250x6r-38500 For...

Words: 1070 - Pages: 5

...Merton Trucks Case Note Abstract We discuss Merton Trucks [Dhe90a] as a case to introduce linear programming in the MBA program. This case adapted from Sherman Motor Company case, was used to introduce Linear Programming formulations as well as duality. Refer to the teaching note [Dhe90b]. Our approach differs from the approach suggested by Dhebar [Dhe90b]. First, our audience consists pre-dominantly of engineers with not too much work experience. As a result, handling math and algebra is relatively easy. Explaining the algebraic formulation, graphical approach and using the Excel solver do not consume that much time. Second, because this case is used during the ﬁrst week of the MBA program, students are still unfamiliar with the case methodology and we spend signiﬁcant time in understanding case facts. The circular logic used in allocating ﬁxed costs based on the product mix that in turn is used in deciding the product mix takes some time to understand. Third, because of the participant background, they have difﬁculty in translating the model to the speciﬁc business situation and interpreting the trade-offs involved in various what-if analyses that are prompted by the case questions. We return to the case when we teach duality. After explaining duality, we analyze the case to show how some of the questions and what-if analyses can be simpliﬁed using duality. This note is based on our experiences with teaching three large batches of students in our MBA programs. 1 1......

Words: 2007 - Pages: 9

...Linear programming solution examples Linear programming example 1997 UG exam A company makes two products (X and Y) using two machines (A and B). Each unit of X that is produced requires 50 minutes processing time on machine A and 30 minutes processing time on machine B. Each unit of Y that is produced requires 24 minutes processing time on machine A and 33 minutes processing time on machine B. At the start of the current week there are 30 units of X and 90 units of Y in stock. Available processing time on machine A is forecast to be 40 hours and on machine B is forecast to be 35 hours. The demand for X in the current week is forecast to be 75 units and for Y is forecast to be 95 units. Company policy is to maximise the combined sum of the units of X and the units of Y in stock at the end of the week. * Formulate the problem of deciding how much of each product to make in the current week as a linear program. * Solve this linear program graphically. Solution Let * x be the number of units of X produced in the current week * y be the number of units of Y produced in the current week then the constraints are: # 50x + 24y = 45 so production of X >= demand (75) - initial stock (30), which ensures we meet demand # y >= 95 - 90 # i.e. y >= 5 so production of Y >= demand (95) - initial stock (90), which ensures we meet demand The objective is: maximise (x+30-75) + (y+90-95) = (x+y-50) i.e. to maximise the number of units left in......

Words: 336 - Pages: 2

...Linear Programming (LP) Linear programming, simply put, is the most widely used mathematical programming technique. It has a long history dating back to the 1930s. The Russian mathematical economist Leonid Kantorovich published an important article about linear programming in 1939. George Stigler published his famous diet problem in 1945 (“The Cost of Subsistence”). Of course, no one could actually solve these problems until George Dantzig developed the simplex method, which was published in 1951. Within a few years, a variety of American businesses recognized that they could save millions of dollars a year using linear programming models. And in the 1950s, that was a lot of money. In his book Methods of Mathematical Economics (Springer-Verlag, 1980), Joel Franklin talks about some of the uses of linear programming (LP). In fact, about half of his book is devoted to LP and its extensions. Today, we will analyze one of the examples provided in that book. The example comes from a 1972 article published in the Monthly Review of the Federal Reserve Bank of Richmond. Alfred Broaddus, the author, was trying to explain to bankers how Bankers Trust Company used linear programming models in investment management. His example was simple and effective. The bank has up to 100 million dollars to invest, a portion of which can go into loans (L), and a portion of which can go into securities (S). Loans earn 10%, securities 5%. The bank is required to keep 25% of its......

Words: 2832 - Pages: 12

...in equation (1) =0, then 8x1 + 6(0) = 1920 X1=1920/8 X1=240 (240, 0) If x1 in equation (2) =0, then 3(0) + 6x2 = 1440 6x2 = 1440 X2 = 1440/6 X2 = 240 (0, 240) If x2 in equation (2) = 0, then 3x1 + 6(0) = 1440 3x1 = 1440 X1 = 1440/3 X1= 480 (480, 0) If x1 in equation (3) =0, then 3(0) + 2x2 = 720 2x2 =720 X2=720/2 X2=360 (0, 360) If x2 in equation (3) =0, then 3x1 + 2(0) =720 3x1 = 720 X1 =720 3 X1 = 240 (240, 0) If x1 in equation (4) = 0, then X2=288 (0, 288) If x2 in equation (4) = 0, then X1 = 288 (288, 0) Due to the multiple constraints, it is difficult to obtain the optimal solution from the graph. Therefore, the simultaneous equation would be used to the solve linear programming model. Using simultaneous equation, 8x1 + 6x2 = 1920 ounces…………………………. (1) 3x1 + 6x2 = 1440 ounces…………………………. (2) 3x1 + 2x2 = 720 ounces…………………………… (3) X1 + x2 =288 jars………………………………….. (4) Using the substitution method, from equation (1); X1=1920 - 6x2 …………………………………….. (5) 8 Placing equation (5) into equation (2) 3 1920 - 6x2 + 6x2 =1440 Multiplying through by 8, we get 8 1920 -6x2 3*8 8 + 6x2*8 = 1440*8 3 1920 – 6x2 + 48x2 = 11520 5760 – 18x2 + 48x2 = 11520 -18x2 + 48x2 = 11520 – 5760 30x2 = 5760 x2 = 5760 30 X2 = 192......

Words: 431 - Pages: 2

...MAT 540 Assignment 1 Linear Programming Case Study http://homeworkfy.com/downloads/mat-540-assignment-1-linear-programming-case-study/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Homeworkfy@gmail.com Visit our Site for More Tutorials: (http://homeworkfy.com/ ) You are to solve Problem 30 in Chapter 4 on page 158 of your textbook. It’s about publishing three weekly magazines. You can use QM for Windows to perform a sensitivity analysis for Objective function coefficients and the RHS values of the constraints. Be sure give the shadow price/dual values for an extra hr of production time or an extra lb of paper. Be sure to follow instructions written for Assignment 1, Linear Programming Case Study. Assignment 1. Linear Programming Case Study Your instructor will assign a linear programming project for this assignment according to the following specifications. It will be a problem with at least three (3) constraints and at least two (2) decision variables. The problem will be bounded and feasible. It will also have a single optimum solution (in other words, it won’t have alternate optimal solutions). The problem will also include a component that involves sensitivity analysis and the use of the shadow price. You will be turning in two (2) deliverables, a short writeup of the project and the spreadsheet showing your work. Writeup. Your writeup should introduce your solution to the project by describing the problem....

Words: 590 - Pages: 3

...MAT 540 ASSIGNMENT 1 LINEAR PROGRAMMING CASE STUDY To purchase this visit following link: http://coursehomework.com/product/mat-540-assignment-1-linear-programming-case-study/ Contact us at: HELP@COURSEHOMEWORK.COM MAT 540 ASSIGNMENT 1 LINEAR PROGRAMMING CASE STUDY Your instructor will assign a linear programming project for this assignment according to the following specifications. It will be a problem with at least three (3) constraints and at least two (2) decision variables. The problem will be bounded and feasible. It will also have a single optimum solution (in other words, it won’t have alternate optimal solutions). The problem will also include a component that involves sensitivity analysis and the use of the shadow price. You will be turning in two (2) deliverables, a short writeup of the project and the spreadsheet showing your work. Writeup. Your writeup should introduce your solution to the project by describing the problem. Correctly identify what type of problem this is. For example, you should note if the problem is a maximization or minimization problem, as well as identify the resources that constrain the solution. Identify each variable and explain the criteria involved in setting up the model. This should be encapsulated in one (1) or two (2) succinct paragraphs. After the introductory paragraph, write out the L.P. model for the problem. Include the objective function and all constraints, including any non-negativity constraints. Then, you......

Words: 1301 - Pages: 6

...The Central Police Department had recently been criticized in the local media for not responding to police calls in the downtown area rapidly enough. In several recent cases, alarms had sounded for break-ins, but by the time the police car arrived, the perpetrators had left, and in one instance a store owner had been shot. Sergeant Davies had been assigned by the chief to find a way to determine the optimal patrol area (dimensions) for their cars that would minimize the average time it took to respond to a call in the downtown area. Sergeant Davies solicited help from Ms. Maris, an analyst in the operations area for the police department. Together they began to work through the problem. Sergeant Davies noted to Ms. Maris that normal patrol sectors are laid out in rectangles, with each rectangle including a number of city blocks. For illustrative purposes he defined the dimensions of the sector as x in the horizontal direction and as y in the vertical direction. He explained to Ms. Maris that cars traveled in straight lines either horizontally or vertically and turned at right angles. Travel in a horizontal direction must be accompanied by travel in a vertical direction, and the total distance traveled is the sum of the horizontal and vertical segments. He further noted that past research on police patrolling in urban areas had shown that the average distance traveled by a patrol car responding to a call in either direction was one third of the dimensions of the sector, or......

Words: 575 - Pages: 3