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Assignment 2

7-31
Consider the following LP problem:
Maximize profit = 5X + 6Y
subject to
= 2X + Y 120
= 2X + 3Y 240
X, Y 0
a) What is the optimal solution to this problem? Solve it graphically.
b) If a technical breakthrough occurred that raised the profit per unit of X to $8,
would this affect the optimal solution?
c) Instead of an increase in the profit coefficient X to $8, suppose that profit was
overestimated and should only have been $3. Does this change the optimal
solution?

Answer
Maximize profit = 5X +6Y
Subject to
2X + Y < = 120
2X + 3Y < = 240
X, Y>=0

a)What is the optimal solution to this problem? Solve it graphically.

From the graph, corner points are (0, 80), (30, 60) and (60,0)
Profit P = 5X + 6Y
P (0, 80) = 5(0) + 6(80) = 480
P (30, 60) = 5(30) + 6(60) = 510
P (60, 0) = 5(60) + 6(0) = 300
Maximum profit is at X = 30 and Y = 60.
Maximum profit is 510.

b) If a technical breakthrough occurred that raised the profit per unit of X to $8, would
this affect the optimal solution?
Profit P = 8X + 6Y
P(0,80) = 5(0) + 6(80) = 480
P(30,60) = 8(30) + 6(60) = 600
P(60,0) = 8(60) + 6(0) = 480
Maximum profit is at X = 30 and Y = 60.
Maximum profit is 600 no change in optimal solution. Optimal solution occurs at X = 30
and Y = 60.

c) Instead of an increase in the profit coefficient X to $ 8, suppose that profit was


overestimated and should only have been $ 3. Does this change the optimal solution?
Profit P = 3X + 6Y
P(0,80) = 3(0) + 6(80) = 480
P(30,60) = 3(30) + 6(60) = 450
P(60,0) = 3(60) + 6(0) = 180
Maximum profit is at X = 0 and Y = 80.
Maximum profit is 480, yes, optimal solution will be changed.
Optimal solution will be at X = 0 and Y = 80.

7-16
A candidate for mayor in a small town has allocated $40,000 for
last-minute advertising in the days preceding the election. Two
types of ads will be used: radio and television. Each radio ad
costs $200 and reaches an estimated 3,000 people. Each
television ad costs $500 and reaches an estimated 7,000 people.
In planning the advertising campaign, the campaign manager
would like to reach as many people as possible, but she has
stipulated that at least 10 ads of each type must be used. Also,
the number of radio ads must be at least as great as the number
of television ads. How many ads of each type should be used?
How many people will this reach?

X1 = number of radio ads placed


X2 = number of TV ads placed
Maximize audience: 3000 X1 + 7000 X2
Subject to (Constraints): 200 X1 + 500 X2 40000 (budget constraint)
X1 10 (at least 10 radio ads purchased)
X2 10 (at least 10 television ads purchased)
X1 X2 (# of radio ads # television ads)
X1, X2 0 (non-negativity constraints)

As for solution purposes, the fourth constraint will be:


X1 X2 0
Optimal Solution: X1 = 175 X2=10
Exposure= 595,000 people

10-18
An air conditioning manufacturer produces room air conditioners at plants in Houston,
Phoenix, and Memphis. These are sent to regional distributors in Dallas, Atlanta, and
Denver. The shipping cost: vary and the company would like to find the least-cost way
to meet the demands at each of the distribution centres. Dallas needs to receive 800 air
conditioners per month, Atlanta needs 600, and Denver needs 200. Houston has 850 air
conditioners available each month. Phoenix has 650 and Memphis has 300. The shipping
cost per unit from Houston to Dallas is $8, to Atlanta is $12 and to Denver is $10. The
cost per unit from Phoenix to Dallas is $10, to Atlanta is $14 and to Denver is $9. The
cost per unit from Memphis to Dallas is $11, to Atlanta is $8, and to Denver is $12. How
many units should be shipped from each plant to each regional distribution centre?
What is the total cost for this?

x11+ x12+ x13 750 (Houston capacity)


x21+ x22+ x23 550 (Phoenix capacity)
x31+ x32+ x33 300 (Memphis capacity)
x11+ x21+ x31 800 (Dallas demand)
x12+ x22+ x32 600 (Atlanta demand)
x13+ x23+ x33 200 (Denver demand)

To

Dallas

Atlanta

Dummy
Warehouse

Denver

From
8

12

1
0

14

1
2

Houston
800
Phoenix

50
10

550
11

800

650

50
8

Memphis
X

850

300

X
600

200

1600
(need
demand)

Total cost =800(8) + 50(12) + 550(14) + 50(9) +150 (12) + 150(0)

1800
(supply)

=$ 16,950
Total cost is $ 16,950

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