Q3.1 Linear Programming Product Output A company produces 3 different products, A, B, and C.

. All products require time in up to 5 different processing departments. The amount of time each product requires with each department is listed in the table below: A company Process #1 Process #2 Process #3 Process #4 Process #5 2 hrs 3 hrs 10 hrs 1 hrs 4 hr uct B 8 hr 6 hrs 7 hrs 5 hr 3 hrs Prod Product C 0 9 1 3 2 hrs hrs hr hrs hrs Available 1,100 hrs 1,140 hrs 1,120 hrs 1,170 hrs 1,150 hrs

Suppose product A sells for $125/unit, product B sells for $175/unit, and product C sells for $100/unit. And suppose that all products have a guaranteed buyer (i.e., no matter how many are produced it will be sold for the asking price), and that you must produce at least 10 of each product. 1. What is the formula for the objective function? (2 points) 2. Please list all constraints (2 points) 3. What is the maximum revenue to be generated for this configuration? (8 points) 4. How many each product should be produced that maximizes revenue? (8 points)

Solution Let X1 units of product A, X2 units of product B and X3 units of product C to produce. 1. The revenue from X1 units of product A, X2 units of product B and X3 units of product C is 125X1+175X2+100X3. Therefore, the objective function is, maximize Z = 125X1+175X2+100X3. 2. The other constraints are given as 2X1+8X2+0X3 1100 3X1+6X2+9X3 1140 10X1+7X2+X3 1120 X1+5X2+3X3 1170 4X1+3X2+2X3 1150 X1 10, X2 10, X3 10, Xi, i =1,2,3 integers. 3. This problem can be solved using excel solver and the output is given below
Integer Programming Variables Constraints X1 X2 X3 14 134 32 1100 1134 1110 780

2X1+8X2+0X3 3X1+6X2+9X3 10X1+7X2+X3 X1+5X2+3X3

4X1+3X2+2X3
Objective functions Z

522 28400

The maximum revenue that can be generated is Z= $28400 4. To get the above maximum revenue we must produce X1 = 14, X2 = 134, X3 = 32. That is produce 14 units of Product A, 134 units of product B and 32 units of product C.
Q3.2 Linear Programming Product Output Suppose your company sells 4 different kinds of products, Axes, Barometers, Cherry Pickers, and Door Hinges, where each Ax sells for $15, each Barometer sells for $18, each Cherry Picker sells for $12, and each Door Hinge sells for $11. Further, suppose to make these products, each must be processed on 2 different machines in your factory and each takes a different amount of time on the two machines. Specifically, to make one Ax requires 3 hours on machine #1 and 4 hours on machine #2. To make one Barometer requires 6 hours on machine #1 and 5 hours on machine #2. To make one Cherry Picker requires 1 hour on machine #1 and 3 hours on machine #2. And to make one Door Hinge requires 1 hour on machine #1 and 1.5 hours on machine #2. Also, suppose there can be no more than a total of 525 hours of processing time on machine number 1 and no more than a total of 750 hours of processing time on machine number 2. Finally, one cannot make more than 100 of any one product. 1. What is the formula for the objective function (2 points) 2. Please list all 6 constraints (2 points) 3. What is the maximum revenue to be generated for this configuration? (8 points) 4. How many each product should be produced that maximizes revenue? (8 points)

Solution Let X1 units of Axes, X2 units of Barometers and X3 units Cherry Pickers and X4 units of Door Hinge to produce. 1. X1 units of Axes, X2 units of Barometers and X3 units Cherry Pickers and X4 units of Door Hinge is 15X1+18X2+12X3+11X4. Therefore, the objective function is, maximize Z = 15X1+18X2+12X3+11X4. 2. The other constraints are given as 3X1+6X2+X3+X4 525 4X1+5X2+3X3+1.5X4 750 X1 100, X2 100, X3 100, X4 100 X1 0, X2 0, X3 0, X4 0, integers

3. This problem can be solved using excel solver and the output is given below
Integer Programming Variables X1 X2 X3 X4 75 0 100 100 425 750 3425

Constraints Objective functions

3X1+6X2+X3+X4 4X1+5X2+3X3+1.5X4
Z

The Maximum Revenue can be obtained = $3425 4. The following are the optimal solution is given below Number of Axes = 75 Number of Barometers = 0 Number of Cherry Pickers = 100 Number of Door Hinge = 100