Q4 (2.

3D) The demand for an item over the next four quarters i 300 400 450 & 250 units. Th f t is 300, 400, it The price per unit starts at $20 in the first quarter and is increase b $2 each quarter th i by h t thereafter. Th supplier ft The li can provide no more than 400 units in any quarter. Although we can t k advantage of l Alth h take d t f lower prices i i in early quarters, a storage cost $3.50 is incurred per unit quarter. I addition, th maximum number of it t In dditi the i b f units that can be held over from one quarter to the next cannot exceed 100 d l t t d 100. develop an optimal ti l schedule for purchasing the item to meet the demand. d d
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Solution: Consider Xi = Production in quarter i Ii = End i d inventory f quarter i for Minimize Z= 20X1 +22X2 +24X3 +26X4 + 3.5(I1 +I2 +I3) X1 I1
Demand

X2 I2 400

X3 I3 450

X4

300

250

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Constraints: X1 =300+I1 I2 +X3 =450+I3 450+I Xi 400 i=1 2 3 4 400, i=1,2,3,4 I0 =I4 =0 I1 +X2 =400+I2 I3+X4 =250 Ii 100 i 1 2 3 100, i=1,2,3

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Sec 2.3.3 Investment Q1. (2.2C) Fox Enterprises is considering six projects for posible construction over the next four years. The expected (present value) returns and cash outlays for the projects are given below. Fox can undertake any of the projects partially or completely. A partial undertaking of a project will prorate both the return and outlays proportionately. Formulate the problem as a LPP and determine the optimal project mix that maximizes the total return. Ignore the time value of money.
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Cash outlay ($1000)

Project 1 2 3 4 5 6 Available funds ($1000) Year 1 10.5 8.3 10.2 7.2 12.3 9.2 92 60.0 Year 2 Year 3 Year 4 Return ($1000) 14.4 2.2 2.4 32.40 12.6 9.5 3.1 35.80 14.2 5.6 4.2 17.75 10.5 7.5 5.0 14.80 10.1 8.3 6.3 18.20 7.8 78 6.9 69 5.1 51 12.35 12 35 70.0 35.0 20.0

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Solution: Let xi = Undertaken portion of project i Max z= 32.4x1+35.8x2+17.75x3+14.80x4+18.2x5 +12.35x6 Subject to j 10.5x1+8.3x2+10.2x3+7.2x4+12.3x5+9.2x6 60 14.4x +12.6x +14.2x +10.5x +10.1x +7.8x 14 4x1+12 6x2+14 2x3+10 5x4+10 1x5+7 8x6 70 2.2x1+9.5x2+5.6x3+7.5x4+8.3x5+6.9x6 35 2.4x1+3.1x2+4.2x3+5x4+6.3x5+5.1x6 20 0 xj 1, j=1,26
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Sec. 2.3.5 Blending and Refining Q4. (2.3 E) A refinery manufactures two grades of j jet fuel, F1 & F2 by blending four types of , y g yp gasoline, A, B, C & D. Fuel F1 uses gasolines A, , B, C & D in the ratio 1:1:2:4 and fuel F2 uses the ratio 2:2:1:3. The supply limits for A, B, C & D are , , y p 1000, 1200, 900 & 1500 bbl/day. The costs per bbl for gasolines A, B, C & D are $120, $90, $100 & p $150. Fuels F1 & F2 sell for $200 and $250 per bbl. The minimum demand for F1 & F2 is 200 & y p p 400 bbl/day. Determine the optimal production mix for F1 & F2.
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Solution: Let XAi =bbl of gasoline A i f l i bbl f li in fuel XBi =bbl of gasoline B in fuel i XCi =bbl of gasoline C i f l i bbl f li in fuel XDi =bbl of gasoline D in fuel i, i=1,2 Consider C id YA =XA1 +XA2 F1 =XA1 +XB1 +XC1 +XD1 YB =XB1 +XB2 X F2 =XA2 +XB2 +XC2 +XD2 YC =XC1 +XC2 YD =XD1 +XD2 X
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Max z = 200F1+250F2(120YA+90YB+100YC+150YD )

subject to the constraints XA1 =XB1 XA2 =XB2 YA 1000, F1 200, XA1 =0.5XC1 XA2 =2XC2 YB 1200, F2 400
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XA1 =0.25XD1 XA2 =(2/3)XD2 YD 1500

YC 900,

Q. Electra produces two types of electric

motors, each on a separate assembly li The h bl line. h respective daily capacities of the two lines are 150 and 200 motors. Type I motor uses 2 units of a certain electronic component, and type II motor uses only 1 unit. The supplier of the component can provide 400 pieces a day. The profits per motor of types I and II are $8 and $5 respectively. F d ti l Formulate th l t the problem as a LPP and find the optimal daily production.
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Solution: Let the company produce x1 type I motors and x2 type II motors per day. The objective is to find x1 and x2 so as to Maximize th M i i the profit fit

z = 8 x1 + 5 x2
x1 150 x2 200 2 x1 + x2 400 x1 , x2 0

Subject S bj to the constraints h i

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We shall use graphical method to solve the above problem. Step 1:Determination of the Feasible solution space The non-negativity restrictions tell that the solution space is in the first quadrant. Then we replace each inequality constraint by an equality and then graph the resulting line ( o g (noting that two points will determine a line wo po s w de e e e uniquely).
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Next we note that each constraint line divides the plane into two half-spaces and that th t on one h lf half-space th constraint will b the t i t ill be and on the other it will be . To determine the correct side we choose a reference p point and see on which side it lies. (Normally (0,0) is chosen. If the constraint line passes through (0 0) then we choose (0,0), some other point.) Doing like this we would get the feasible solution space space.
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Step 2:Determination of the optimal solution The determination of the optimal solution requires the direction in which the objective q j function will increase (decrease) in the case of a maximization (minimization) problem We problem. find this by assigning two increasing (decreasing) values f z and th d (d i ) l for d then drawing th i the graphs of the objective function for these two values. The optimum solution occurs at a point beyond which any further increase (decrease) y y ( ) of z will make us leave the feasible space.
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x2

Graphical solution
Maximize z=8x1+5x2 Subject to the constraints
Optimum =1800 at (100,200)

2x1+x2 400 x1 150 x2 200 x1,x2 0

x1
15

(0,200)

z=1200 z=1000 z=400 (150,0)

( (150,100) )

z=1800

z=1700

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Q. Minimize z = 2x1 + 3x2 Subject to x1 + 3 x2 15 2 x1 + 2 x2 20 3 x1 + 2 x2 24 x1, x2 0

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Graphical Solution

(0,12)
z = 26 z = 30 z= 36 z = 39 z = 42

( ,6) (4,6)

z = 22.5

Minimum at (7.5,2.5)
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(15,0)
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Note: Corner point feasible solution: A corner point feasible solution is a solution that lies at the corner point of the feasible solution space.

Q. Maximize z = 2x1 + x2 Subject to x1 + x2 40 4 x1 + x2 100 x1, x2 0 Optimum = 60 at (20, 20) (20

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(0,40) (0 40)

z maximum at (20,20)

(25,0)
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Q Q. Maximize z = 2x1 + x2 Subject to

x2 10 2 x1 + 5 x2 60 x1 + x2 18 3 x1 + x2 44 x1 , x2 0

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z is maximum at (13, 5) Max z = 31

z = 28 (5,10) (10,8) z = 20 (13,5) z = 10 z = 31 z=4 (14.6,0) [4] [3]

( (0,10) )

[ ] [1]

[2]
21

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Exceptional Cases Usually a LPP will have a unique optimal solution. B there are problems where there l i But h bl h h may be no solution, may have alternative optimum solutions and unbounded solutions. We graphically explain these cases g p y p in the following slides. We note that the (unique) optimum solution occurs at one of the corners of the set of all feasible points.
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Alternative optimal solutions Consider the LPP Maximize z = 10 x1 + 5 x2 Subject to the constraints
x1 150 x2 200 2 x1 + x2 400 x1 , x2 0
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x2

Graphical solution Maximize z=10x1+5x2 Subject to the constraints 2x1+x2 400

(100,200) z maximum u =2000 at ( (150,100) )

(0,200) z=600 z=1500 z=1000 z=400

x1

150 x2 200

z=2000

x1,x2 0
x1
24

(150,0)
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Thus we see that the objective function z is maximum at the corner (150,200) and ( ) also has an alternative optimum solution at the corner (100,200). It may also be noted that z is maximum at each point of the line segment joining them Thus the problem them. has an infinite number of (finite) optimum solutions. Thi h l ti This happens when th objective h the bj ti function is parallel to one of the constraint equations.
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Q. Maximize z = 5x1 + 7 x2 Subject to 2 x1 x2 -1 - x1 + 2 x2 -1 x1, x2 0 No feasible solution

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Q. Maximize z = x1 + x2 Subject to - x1 + 3 x2 30 - 3 x1 + x2 30 x1, x2 0 unbounded solution

z=20 z=70

z 50 z=50

z=30

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Section 7.1

Let x = (x1, x2) and y = (y1, y2) be two points in the x1 x2 plane. A point t = ( 1, t2) on the li h l Any i (t h line segment joining them is of the form t1 = (1 - ) x1 + y1 t2 = (1 - ) x2 + y2 for some : 0 1 o so e = 0 corresponds the left endpoint x = 1 corresponds the right endpoint y
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More generally, let x=(x1, x2, , xn) and y=(y1, y2, , yn) be two points in the ndimensional space Vn. The line segment joining x and y is the set of all points of the form t = (1 - ) x + y for all : y, 0 1 in the sense that the ith coordinate of t namely ti i given b di t f t, l is i by ti = (1 - ) xi + yi for all i = 1, 2, n.

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Convex sets A subset S in the n-space Vn is called convex if x, y belong to S implies the line segment joining them also lies in S. g j g

convex subset

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NOT convex

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In Vn, the half spaces x=(x1, x2, , xn) | a1x1+a2x2 + + anxn b x=(x1, x2, , xn) | a1x1+a2x2 + + anxn b ( , and the hyperplane hyperplane x=(x1, x2, , xn) | a1x1+a2x2 + + anxn = b + are all convex.
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Theorem: The intersection of any number of convex sets is a convex set. Corollary: The set of all feasible solutions of an LPP i a convex subset. f is b t Extreme Points (Vertices=corners) Let S be a convex set. A point t in S is e co ve se . po s called an extreme point of S if it is not strictly between two distinct points of S S.
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In other words, whenever x, y are two points in S, we cannot find a : 0 < < 1 such that t = (1 - ) x + y Extreme point

Extreme point

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Every point on the boundary is an Extreme b d i E point

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Existence of extreme points Theorem: Let S be a nonempty, closed, p y, , convex set that is either bounded from above or bounded from below Then S has below. at least one extreme point.

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Extreme Points and LPP Suppose the set SF of all feasible solutions of a LPP is nonempty and bounded. (We already know it is closed and convex.) y ) Then the optimum solution of the LPP occurs at a corner (=extreme point) of SF. ( extreme

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