Handout - LP

1.

A company has two grades of inspectors I and II, who are to be assigned for a quality control inspection. It is required that at least 1,800 pieces be inspected per day (8 hours). Grade-I inspector can check 25 pieces per hour with an accuracy of 98%. Grade-II can check 15 pieces per hour with an accuracy of 95%. The hourly wage rate of Grade-I and II is $4 and $3 respectively. Each time an error is made, the cost to the company is $2. The company has available for the inspection job eight grade-I and ten grade-II inspectors. The company wants to determine optimal number of inspectors to be appointed for the job with objective to minimize total cost.

2.

A homeowner wants to paints her house. The paint must possess a viscosity of at least 200 centipoises. For the desired level of brilliance and durability, there must be at least 14 grams of a chemical-A and 30 grams of chemical-B in each gallon of paint. There are two kinds of paint (I and II) available to her. Type I cost $6 and II cost $4 per gallon. Per gallon specifications of paints are as follows: Paint-I 400 20 20 Paint-II 100 10 60

Viscosity Chemical-A Chemical-B

The homeowner decides to blend I and II in order to meet the three requirements at a minimum cost. How much of I and II should be used in each gallon of the blend in order to minimize cost. 3. A business firm is planning to advertise a special anniversary sale on radio and TV during a particular week. For that, a maximum budget of $16,000 is approved. It is found that radio commercial cost $800 per spot with a minimum contract of five spots. TV commercial cost $4,000 per spot. Because of heavy demand, only four TV spots are available in the designated week. A study reveals that a TV spot is six times effective as a radio spot in reaching potential customers. How should the firm allocate its advertising to attract the largest possible number of potential customers? A federal agency has a budget of $1 billion in the form of grants for innovative research in the area of energy alternatives. A management review team consisting of scientists and economists has made a preliminary review of 200 applications, narrowing the field to 6 finalists. Each of the six finalists projects have been evaluated and scored in relation to potential benefits expected over the next ten years. These estimated benefits are shown in the table below. They represent the net benefits per dollar invested in each alternative.

4.

Handout - LP

Project Solar-1 Solar-2 Synthetic fuels Coal Nuclear Geothermal

Net Benefit per dollar invested 4.4 3.8 4.1 3.5 5.1 3.2

Requested level of funding ($ in million) 220 180 250 150 400 120

Above table also shows the requested level of funding. These figures represent the maximum amount, which can be awarded to any project. The agency can award any amount up to the indicated maximum for a given project. Similarly, the president has mandated that the nuclear project should be funded to al least 50% of the requested amount. The agencys administrator has a strong interest in solar projects and has requested that the combined amount awarded to the two projects should be at least $300 million. Apart from above, following constraints should also be considered. i. ii. iii. iv. v. Each project should receive at least 20% of the requested amount. The amount awarded for the synthetic fuel project should be at least as much as that awarded for the coal project. Combined funding for the geothermal project and synthetic project should be at least $30 million. Funding for the nuclear project should be at least 40% greater then the funding for the geothermal project. Funding for the Solar-2 should be no more then 80% of the funding for Solar-1.

Formulate a LP model to determine the amount of money to be awarded to each project in order to maximize total benefits. 5. Formulate a linear programming model of the following problem: (Actual solution is not required). A paper mill produces rolls of paper used in cash register. Each roll of paper is 100 cm long and can be produced in widths of 2, 4, 6 and 10 cm. The companys production process results in rolls that are 24 cm in width. Thus the company must cut its 24 cm roll to the desired width. It has six basic cutting alternatives. The number of rolls of various sizes that can be cut by these alternatives are as follows:

Cutting alternatives

2 cm

Number of Rolls 4 cm 6 cm

10 cm

Waste (cm)
2

Handout - LP

1 2 3 4 5 6

6 1 4

3 3 1 4 2

2 1 2 1 1

1 1 -

2 2 2 2

The production should not be less than 2000 rolls (2 cm), 3600 rolls (4 cm), 1600 rolls (6 cm) and 500 rolls (10 cm). Determine how many times each cutting alternative should be used if firm wants to minimize total waste. 6. Formulate a linear programming model of the following problem: (Actual solution is not required). Universal Mines Inc. operates three mines. The ore from each mine is separated into two grades before it is shipped. The daily production capacities of the mines and their daily operating costs are as follows: High Grade Ore Tons per day 4 6 1 Low Grade Ore Tons per day 4 4 6 Operating Cost Per day 20,000 22,000 18,000

Mine I Mine II Mine III

Company has committed itself to deliver 54 tons of high grade ore and 65 tons of low grade per week. It also has a labor contract that guarantees employees a full day pay of each day or fraction of a day the mine is open. Develop a LP model to determine number of days each mine should be operating during the upcoming week if Company is to fulfill its commitment at minimum cost. [Note: Variables should be defined properly].