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Seminar I

PART 1 - Linear Programming Applications

8.4

Problem Description Stable owner wants to set a nutritional diet for the horses in his
care but maintaining a daily cost of feed to a minimum. Feed mixes are oat, enriched
grain and a mineral product and for each of these mixes there must be a certain
amount of ingredients A, B, C, D, E. So, we are under a minimization linear problem.

Parameters

A, B, C, D, E ingredients required feed mixes Oat, Grain, Mineral

Decision Variables

X1 feed mix of Oat


X2 feed mix of Grain
X3 feed mix of Mineral

Constraints

Daily Requirements for Ingredients

 A: 2 ∗ 𝑥1 + 3 ∗ 𝑥2 + 𝑥3 ≥ 6
 B: 0.5 ∗ 𝑥1 + 𝑥2 + 0.5 ∗ 𝑥3 ≥ 2
 C: 3 ∗ 𝑥1 + 5 ∗ 𝑥2 + 6 ∗ 𝑥3 ≥ 9
 D: 𝑥1 + 1.5 ∗ 𝑥2 + 2 ∗ 𝑥3 ≥ 8
 E: 0.5 ∗ 𝑥1 + 0.5 ∗ 𝑥2 + 1.5 ∗ 𝑥3 ≥ 5

Daily maximum pounds of feed mixes: 𝑥1 + 𝑥2 + 𝑥3 ≤ 6

Objective Function min. 𝑍 = 0.09 ∗ 𝑥1 + 0.14 ∗ 𝑥2 + 0.017 ∗ 𝑥3

Results X1=0, X2=0, X3=6 and our objective function Z=0.102


8.8

Problem Description An automobile rental agency has to decide how many cars should
be leased in each month on each type of lease in order to minimize the cost of leasing
over a six-month period.

Parameters

The six-months period: March, April, May, June, July, August

Decision Variables

X11 number of cars of type 3-months lease in March


X12 number of cars of type 4-months lease in March
X13 number of cars of type 5-months lease in March
X21 number of cars of type 3-months lease in April
X24 number of cars of type 4-months lease in April
X23 number of cars of type 5-months lease in April
X31 number of cars of type 3-months lease in May
X32 number of cars of type 4-months lease in May
X33 number of cars of type 5-months lease in May
X41 number of cars of type 3-months lease in June
X42 number of cars of type 4-months lease in June
X43 number of cars of type 5-months lease in June
X51 number of cars of type 3-months lease in July
X52 number of cars of type 4-months lease in July
X53 number of cars of type 5-months lease in July
X61 number of cars of type 3-months lease in August
X62 number of cars of type 4-months lease in August
X63 number of cars of type 5-months lease in August

Constraints

Demand constraints for:

 In overall:
𝑥13 + 𝑥23 + 𝑥33 + 𝑥43 + 𝑥53 +𝑥63
𝑥11 + 𝑥12 + 𝑥13 + 𝑥21 + 𝑥22 + 𝑥23 + 𝑥31 + 𝑥32 + 𝑥33 + 𝑥41 + 𝑥42 + 𝑥43 + 𝑥51 + 𝑥52 + 𝑥53 + 𝑥61 + 𝑥62 + 𝑥63
≥ 0.5 ∗ (𝑥11 + 𝑥12 + 𝑥13 + 𝑥21 + 𝑥22 + 𝑥23 + 𝑥31 + 𝑥32 + 𝑥33 + 𝑥41 + 𝑥42 + 𝑥43 + 𝑥51 + 𝑥52 + 𝑥53
+ 𝑥61 + 𝑥62 + 𝑥63
 March: 𝑥11 + 𝑥12 + 𝑥13 ≥ 30
 April: 𝑥11 + 𝑥12 + 𝑥13 + 𝑥21 + 𝑥22 + 𝑥23 ≥ 130
 May: 𝑥11 + 𝑥12 + 𝑥13 + 𝑥21 + 𝑥22 + 𝑥23 + 𝑥31 + 𝑥32 + 𝑥33 ≥ 300
 June: 𝑥12 + 𝑥13 + 𝑥21 + 𝑥22 + 𝑥23 + 𝑥31 + 𝑥32 + 𝑥33 + 𝑥41 + 𝑥42 + 𝑥43 ≥ 460
 July: 𝑥13 +𝑥22 + 𝑥23 + 𝑥31 + 𝑥32 + 𝑥33 + 𝑥41 + 𝑥42 + 𝑥43 + 𝑥51 + 𝑥52 + 𝑥53 ≥
470
 August: 𝑥23 + 𝑥32 + 𝑥33 + 𝑥41 + 𝑥42 + 𝑥43 + 𝑥51 + 𝑥52 + 𝑥53 + 𝑥61 + 𝑥62 +
𝑥63 ≥ 440
Objective Function min. 𝑍 = 1260(𝑥11 + 𝑥21 + 𝑥31 + 𝑥41 ) + 840𝑥51 + 420𝑥61 +
1600(𝑥12 + 𝑥22 + 𝑥32 ) + 1200𝑥42 + 800𝑥52 + 400𝑥62 + 1850(𝑥13 + 𝑥23 ) +
1480𝑥33 + 1110𝑥43 + 740𝑥53 + 370𝑥63

Results

X13=30, X23=100, X33=170, X43=160, X53=10, and our objective function Z=677100. The
remaining decision variables are 0.

8.9

Problem Description Given the previous problem, the automobile rental agency has
decided to perhaps the previous strategy is not the appropriate one since the agency
may still be obligated to additional months on some leases. Now it has to minimize the
cost of leasing taking into account that it should not have additional months to pay
after August.

Parameters

The six-months period: March, April, May, June, July, August

Decision Variables

X11 number of cars of type 3-months lease in March


X12 number of cars of type 4-months lease in March
X13 number of cars of type 5-months lease in March
X21 number of cars of type 3-months lease in April
X24 number of cars of type 4-months lease in April
X23 number of cars of type 5-months lease in April
X31 number of cars of type 3-months lease in May
X32 number of cars of type 4-months lease in May
X41 number of cars of type 3-months lease in June

Since we have to avoid having extra months paid after August, we removed those
decision variables that caused additional months to be paid in all types of leases.

Constraints

Demand constraints for:

 In overall:
𝑥13 + 𝑥23 + 𝑥33 + 𝑥43 + 𝑥53 +𝑥63
𝑥11 + 𝑥12 + 𝑥13 + 𝑥21 + 𝑥22 + 𝑥23 + 𝑥31 + 𝑥32 + 𝑥33 + 𝑥41 + 𝑥42 + 𝑥43 + 𝑥51 + 𝑥52 + 𝑥53 + 𝑥61 + 𝑥62 + 𝑥63

≥ 0.5 ∗ (𝑥11 + 𝑥12 + 𝑥13 + 𝑥21 + 𝑥22 + 𝑥23 + 𝑥31 + 𝑥32 + 𝑥33 + 𝑥41 + 𝑥42 + 𝑥43 + 𝑥51 + 𝑥52
+ 𝑥53 + 𝑥61 + 𝑥62 + 𝑥63

 March: 𝑥11 + 𝑥12 + 𝑥13 ≥ 30


 April: 𝑥11 + 𝑥12 + 𝑥13 + 𝑥21 + 𝑥22 + 𝑥23 ≥ 130
 May: 𝑥11 + 𝑥12 + 𝑥13 + 𝑥21 + 𝑥22 + 𝑥23 + 𝑥31 + 𝑥32 ≥ 300
 June: 𝑥12 + 𝑥13 + 𝑥21 + 𝑥22 + 𝑥23 + 𝑥31 + 𝑥32 + 𝑥41 ≥ 460
 July: 𝑥13 +𝑥22 + 𝑥23 + 𝑥31 + 𝑥32 + 𝑥41 ≥ 470
 August: 𝑥23 + 𝑥32 + 𝑥41 ≥ 440

Objective Function

Function 𝑍 = 1260 ∗ (𝑥11 + 𝑥21 + 𝑥31 + 𝑥41 ) + 1600 ∗ (𝑥12 + 𝑥22 + 𝑥32 ) +
1850 ∗ (𝑥13 + 𝑥23 )

Results

X13=30, X23=440 and our objective function Z=869500. The rest of the decision
variables are 0.

8.11

Problem Description A retail has a budget of 17000$ to spend on advertising, in-store


displays and in on-hand wallpaper inventory. It also has to decide which mark-up set in
order to maximize its demand function.

Parameters

Advertising, in-store displays and in on-hand wallpaper inventory are the factors in
which the retail allocates its budget. It also has to care about its mark-up.

Decision Variables

X1 dollars spent on advertising


X2 dollars spent on in-store displays
X3 dollars spent on on-hand wallpaper inventory
X4 % of mark-up

Constraints

Budget constraints:

 Overall: 𝑥1 + 𝑥2 + 𝑥3 + 𝑥4 = 17000
 On advertising: 3000 ≤ 𝑥1 ≤ 17000
 On in-store displays and in on-hand wallpaper inventory: 𝑥2 −0.5 ∗ 𝑥3 ≥ 0

Mark-up: 0.25 ≤ 𝑥4 ≤ 0.45

Objective Function max. 𝑍 = 20𝑥1 + 6.8𝑥2 + 12𝑥3 − 65000𝑥4

Results X1=17000, X2=0, X3=0, X4=0.2 and our objective function Z=327000
8.23

Problem Description An airline wants to reduce the cost of fuel purchases by taking
advantage of lower fuel costs in certain cities. However, it must be careful of having
extra fuel on the plain because it adds weight to the plain and, therefore, raises the
cost of arriving to places.

Parameters

Cities: Atlanta, Los Angeles, Houston, New Orleans

Decision Variables

X1 gallons purchased in Atlanta


X2 gallons purchased in Los Angeles
X3 gallons purchased in Houston
X4 gallons purchased in New Orleans
XA fuel remained from Atlanta
XL fuel remained from Los Angeles
XH fuel remained from Houston
XN fuel remained from New Orleans

Constraints

Atlanta to Los Angeles: 24 ≤ 𝑥1 + 𝑥𝐴 ≤ 36 and 0.95𝑥1 + 0.95𝑥𝐴 = 10.8

Los Angeles to Houston: 15 ≤ 𝑥2 + 𝑥𝐿 ≤ 23 and 0.95𝑥2 + 0.95𝑥𝐿 = 6.25

Houston to New Orleans: 9 ≤ 𝑥3 + 𝑥𝐻 ≤ 17 and 0.95𝑥3 + 0.95𝑥𝐻 = 2.55

New Orleans to Atlanta: 11 ≤ 𝑥4 + 𝑥𝑁 ≤ 20 and 0.95𝑥4 + 0.95𝑥𝑁 = 4.45

Objective Function

min. 𝑍 = 4.15(𝑥1 +𝑥𝐴 ) + 4.25(𝑥2 + 𝑥𝐿 ) + 4.1(𝑥3 + 𝑥𝐻 ) + 4.18(𝑥4 +𝑥𝑁 )

Results x1=24, x2=15, x3=9, x4=11, xA=0, xL=0, xH=0, xN=0, Z=246,23
PART 2 – New England Confectionery Company

Part A

EXERCISE 1

1a - Mayflower

Problem Description Mr Miller wants to achieve an optimal mix of various candies into
each of the six boxes.

Parameters

Ingredients to make the candy mixes: nuts, fruits, caramels, marshmallows.

Decision Variables

Xc % of cream candies
Xf % of fudge candies

Constraints 𝑥𝑐 ≤ 0.4 and 𝑥𝑓 ≤ 0.9, 1𝑥𝑐 + 1𝑥𝑓 = 1600

Nuts: 0.1𝑥𝑐 + 0.15𝑥𝑓 ≥ 0.13

Fruits: 0.06𝑥𝑐 + 0.04𝑥𝑓 ≥ 0.045


Caramel: 0.1𝑥𝑐 ≤ 0.05

Marshmallow: 0.02𝑥𝑐 + 0.04𝑥𝑓 ≤ 0.03

Objective Function min. 𝑍 = 0.14𝑥𝑐 + 0.09𝑥𝑓

Results xc=0.4, xf=0.55, Z=0.1055

1b - Salem

Problem Description Mr Miller wants to achieve an optimal mix of various candies into
each of the six boxes.

Parameters

Ingredients to make the candy mixes: nuts, fruits, caramels, marshmallows.

Decision Variables

Xt % of toffee candies
Xf % of fudge candies
Constraints 𝑥𝑡 ≤ 0.7 and 𝑥𝑓 ≤ 0.9, 1𝑥𝑡 + 1𝑥𝑓 = 1600

Nuts: 0.15𝑥𝑓 + 0.14𝑥𝑓 ≥ 0.1475

Fruits: 0.04𝑥𝑓

Caramel: 0.08𝑥𝑡

Marshmallow: 0.04𝑥𝑓 ≥ 0.02

Objective Function min. 𝑍 = 0.09𝑥𝑓 +0.08𝑥𝑡

Results xt=0.9, xf= 0.089, Z=0.088

EXERCISE 2

2a - Cherry

Problem Description Mr Miller wants to figure out how many candies of each theme
confectionary should make in order to maximize profits.

Parameters

Inputs required to make the candy themes: cherries, mixing, labor, molds, minimum
pieces

Decision Variables

Xcn number of cherry nougat


Xbc number of burgundy cherry

Constraints

Cherries: 2𝑥𝑐𝑛 + 𝑥𝑏𝑐 ≤ 500

Mixing: 0.5𝑥𝑐𝑛 + 𝑥𝑏𝑐 ≤ 400

Labor: 0.5𝑥𝑐𝑛 + 1.5𝑥𝑏𝑐 ≤ 600

Molds: 𝑥𝑐𝑛 + 𝑥𝑏𝑐 ≤ 550

Minimum Pieces: 100𝑥𝑐𝑛 + 100𝑥𝑏𝑐 ≥ 0

Objective Function max. 𝑍 = 0.08𝑥𝑐𝑛 +0.11𝑥𝑏𝑐

Results xh=300, xw=250, Z=51.5


2b - Nuts

Problem Description Mr Miller wants to figure out how many candies of each theme
confectionary should make in order to maximize profits.

Parameters

Inputs required to make the candy themes: cherries, hazelnuts, mixing, labor, molds,
minimum pieces

Decision Variables

Xh number of hazelnuts
Xw number of walnuts

Constraints

Cherries: 2𝑥ℎ ≤ 1000

Hazelnuts: 𝑥𝑤 ≤ 500

Mixing: 0.2𝑥ℎ + 0.3𝑥𝑤 ≤ 400

Labor: 0.6 + 0.8𝑥𝑤 ≤ 600

Molds: 𝑥ℎ + 𝑥𝑤 ≤ 550

Minimum Pieces: 300𝑥ℎ + 200𝑥𝑤 ≥ 0

Objective Function max. 𝑍 = 0.06𝑥ℎ +0.07𝑥𝑤

Results xh=0, xw=550, Z=38.5

EXERCISE 3
“That can’t be right. You’ve left out the chocolate, sugar and vanilla, to name a few
ingredients”

What Mr. McGregor could say is that the mixtures that he inherited from his
grandfather did not take into account these ingredients, so he’s only improving from
the already existing ingredients that have always been considered when making the
candy.
EXERCISE 4
If we now have the option to do a 2 pound box, we will have to change the restriction
so that it expresses the maximum amount. Also, since the 1 and 2 pound boxes
distribute equally, there is not going to be a proportion problem.
EXERCISE 5
Adding this new restriction will not change the solution of the problem because we
already found that the optimal solution required that both types of candies added up
to 1 pound.

EXERCISE 6

We add the following modified constraint, replacing the previous one regarding the
maximum weight of the 1 pound box

In the Mayflower we modify the constraint so that it has this form 80𝑥𝑐 + 90𝑓 = 1600.
When we apply it the solution does not change

However, in the Salem box, when we add the new constraint 90𝑥𝑡 + 110𝑥𝑓 = 1600
the solution does change. Xt=0.9, xf= 0.7, Z=0.137. We have a new value for the
number of pieces of fudge and a new value for the objective function as well.

What we noticed in this exercise is that the 1 pound weight box constraint is not
satisfied, which may be the thing that complicates the assortment. It could be that
making sure that the box weights one pound is difficult due to the data being an
average of the piece weight and some outliers could mess the desired box weight up.

EXERCISE 7

a. In order to do this, we have to transform all the existing constraints so that it


expresses the new units of the variable:

For the Salem problem:

100𝑥𝑡 ≤ 0.7 and 100𝑥𝑓 ≤ 0.9, 1𝑥𝑡 + 1𝑥𝑓 ≤ 16,5, 1𝑥𝑡 + 1𝑥𝑓 ≥ 15,5

Nuts: 15𝑥𝑓 + 14𝑥𝑓 ≥ 0.1475


Fruits: 4𝑥𝑓

Caramel: 8𝑥𝑡

Marshmallow: 4𝑥𝑓 ≥ 0.02

For the Mayflower problem:

100𝑥𝑐 ≤ 0.7 and 100𝑥𝑓 ≤ 0.9, 1𝑥𝑡 + 1𝑥𝑓 ≤ 16,5, 1𝑥𝑡 + 1𝑥𝑓 ≥ 15,5

Nuts: 10𝑥𝑐 + 15𝑥𝑓 ≥ 0.13

Fruits: 6𝑥𝑐 + 4𝑥𝑓 ≥ 0.045

Caramel: 10𝑥𝑐 ≤ 0.05

Marshmallow: 2𝑥𝑐 + 4𝑥𝑓 ≤ 0.03

b. The solution of the problem is

Salem Solution xt=0.009, xf= 0.007, Z=0.00137

Mayflower Solution xc=0.004, xf= 0.0055, Z=0.001055

c. When we round for integers in Question 6 it does not affect the optimality of the
problem, therefore we cannot compare with the results found in part b

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