QMT710 Operations Research

Topic 2: Linear Programming

Example 2.1

ABC Inc. produces two types of chandelier: Design 1 and Design 2. For the next production
cycle, the critical resources are labor hours, crystals and switches. The following table
outlines usage factors and unit profit for each design:

Design 1 Design 2

Switch 1 unit 1 unit

Labor 9 hours 6 hours
Crystal 12 pieces 16 pieces
Unit Profit RM350 RM300

There are 200 switches, 1566 hours of labor, and 2880 pieces of crystals available.

Formulate an LP model to determine the quantity of each design of chandelier to produce in

order to maximize total profit.

Example 2.1

Let X1= units of Design 1 chandelier

X2= units of Design 2 chandelier

Maximize total profit= 350X1 + 300X2

subject to
X1 + X2 200 (switch)
9X1 + 6X2 1566 (labour hours)
12X1 + 16X2 2880 (crystal)
X1, X2 0

Optimal production level:

X1 =122 units of Design 1,

X2 =78 units of Design 2

What is the quantity of the switch used at the optimal production level?

Switches : X1 + X2 =122 +78 =200 switches ; the switches are fully utilized

Labor hours: 9X1 + 6X2 =9(122) + 6(78) = 1566; labor hrs are fully utilized

Crystals: 12X1 + 16X2 =12(122) + 16(78) = 2712; not fully utilized

Leftover units = slack quantity = 2880-2712 =168 units

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Example 2.2
Two-Crude Petroleum runs a small refinery on the Texas coast. The refinery distills crude
petroleum from two sources, Saudi Arabia and Venezuela, into three main products:
gasoline, jet fuel, and lubricants.

The two crudes differ in chemical composition and thus yioeld different product mixes. Each
barrel of Saudi crude yields 0.3 barrel of gasoline, 0.4 barrel of jet fuel, and 0.2 barrel of
lubricants. On the other hand, each barrel of Venezuelan crude yields 0.4 barrel of gasoline,
0.2 barrel of jet fuel, and 0.3 barrel of lubricants. The remaining 10% of each barrel is lost to
refining.

The crudes also differ in cost and availability. Two-Crude can purchase up to 9000 barrels
per day from Saudi Arabia at $20 per barrel. Up to 6000 barrels per day of Venezuela
petroleum are also available at the lower cost of $15 per barrel because of the shorter
transportation distance.

Two-Crudes contract with independent distributors requires it to produce 2000 barrels per
day of gasoline, 1500 barrels per day of jet fuel, and 500 barrels per day of lubricants.
Formulate a linear programming model for Two-Crude Petroleum to fulfill the requirement
most efficiently.

Example 2.2

Let X1= barrels of Saudi crude refined per day

X2= barrels of Venezuela crude refined per day

Minimize total cost = 20X1 + 15X2

subject to
0.3X1+0.4X2 2000 (gasoline)
0.4X1+0.2X2 1500 (jet fuel)
0.2X1+0.3X2 500 (lubricants)
X1 9000 (Saudi crude oil to purchase)
X2 6000 (Venezuela crude oil to purchase)
X1, X2 0

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Exercises
1. Wyndor Glass Company is a glass manufacturer which uses three production plants to
assemble its products. Aluminum frames and hardware are made in Plant 1, while
wood frames are made in Plant 2. Plant 3 is used to produce glass and assemble
products.

Due to declining earnings, top management has decided to revamp the companys
product line. Unprofitable products are being discontinued, releasing production
capacity to launch two new products with large sales potentials.
Product 1: An 8-foot glass door with aluminum framing.
Product 2: A 4 x 6 foot double-hung wood-framed window.

The profit from one batch of Product 1 is $3000, whereas the profit from one batch of
product 2 is $5,000. Each product requires different number of hours in the three plants
and there are certain limited production hours available at each plant. The production
data are as follows:

Production Time per Batch Production Time Available

Plant Product 1 Product 2 per Week (hours)
1 1 0 4
2 0 2 12
3 3 2 18

The management of the company wishes to determine the quantity of each product to
be produced in order to maximize profits.

a) Formulate a linear programming model for Wyndor Glass Company.

b) Solve the problem by graph

2. Use Excel Solver to solve Problem 1 (refer to textbook, Section 3.5).

3. Solve the following linear programs by graphing.

a) Maximize 40x1 + 30x2 b) Maximize Z = 5x1 + 6x2

s.t. s.t.
x1 - x2 3
0.4x1 + 0.5x2 20 5x1 + 4x2 35
0.2x2 5 x1 , x2 0
0.6x1 + 0.3x2 21
x1 , x2 0

c) Minimize Z = X + 2Y d) Maximize Z = 3X1 + 5X2

s.t. s.t.
X + 3Y 90 X1 5
8X + 2Y 160 X2 10
3X + 2Y 120 X1 + 2X2 10
Y 70 X1 , X2 0
X,Y0

3
Example 2.1

Let X1= units of Design 1 chandelier

X2= units of Design 2 chandelier

Maximize total profit= 350X1 + 300X2

subject to
X1 + X2 200 (switch)
9X1 + 6X2 1566 (labour hours)
12X1 + 16X2 2880 (crystal)
X1, X2 0

Example 2.2

Let X1= barrels of Saudi crude refined per day

X2= barrels of Venezuela crude refined per day

Minimize total cost = 20X1 + 15X2

subject to
0.3X1+0.4X2 2000 (gasoline)
0.4X1+0.2X2 1500 (jet fuel)
0.2X1+0.3X2 500 (lubricants)
X1 9000 (Saudi)
X2 6000 (Venezuela)
X1 0, X2 0