OR Modelling Todays Goals

Discuss Past Exam

Problem 1
Farmer Jones must determine how many acres of corn and wheat to plant this year. An acre of wheat yields 25 bushels of wheat and requires 10 hours of labour per week. An acre of corn yields 10 bushels of corn and requires 4 hours of labour per week. All wheat can be sold at 4 a bushel, and all corn can be sold at 3 a bushel. Seven acres of land and 40 hours per week of labour are available. Government regulations require at least 30 bushels of corn be produced during the current year. Let x1 = number of acres of corn planted, and x2 = number of acres of wheat planted. Using these decision variables, formulate an LP whose solution will tell Farmer Jones how to maximise the total revenue from wheat and corn.

Solution 1
max z = 30 x1 + 100 x2 st x1 + 10 x1 x1 , x2 0 x2 7 30 (land constraint ) (labour constraint ) (government constraint ) 4 x1 + 10 x2 40

Problem 2
Leary Chemical manufactures three chemicals: A, B and C. These chemicals are produced via two production processes: 1 and 2. Running process 1 for an hour costs $4 and yields 3 units of A, 1 unit of B, and 1 of C. Running process 2 for an hour costs $1 and produces 1 unit of A and 1 of B. To meet customer demands, at least 10 units of A, 5 of B, and 3 of C must be produced daily. Let x1 = number of hours of process 1 and, x2 = number of hours of process 2. Then the appropriate LP is: min z = 4x1 + x2 s.t. 3x1 + x2 10 (chemical A) x1 + x2 5 (chemical B) x1 3 (chemical C) x1 24 (at most 24 hours per day process 1) (at most 24 hours per day process 2) x2 24 x1, x2 0 Graphically depict the feasible region and determine a daily production plan that minimizes the cost of meeting Leary Chemicals daily demands.

Solution 2
The feasible region PFHGC is shown in Figure 1. AB is 3x1 + x2 = 10. CD is x1 + x2 = 5. EF is x1 = 3. GH is x1 = 24. HI is x2 = 24. The dotted line is the iso-cost line 4x1 + x2 = 24. Moving the iso-cost line down to the left of the feasible region, we see that point P (where the CD and EF constraints intersect) is optimal. Thus the optimal solution to LP is x1 = 3, x2 = 2 and z = 4(3) + 2 = $14.
x2 F 24 I 22 20 18 16 14 12 10 A 8 6 D 4 P 2 x1 0 0 2 E B C 4 6 8 10 12 14 16 18 20 22 G 24 H

Problem 3
Use the simplex algorithm to find the optimal solution to the following problem: max z = 2x1 - x2 + x3 s.t.3x1 + x2 + x3 60 x1 - x2 + 2x3 10 x1 + x2 - x3 20 x1, x2, x3 0

Solution 3
z 1 0 0 0 1 0 0 0 x1 -2 3 1 1 0 0 1 0 x2 1 1 -1 1 -1 4 -1 2 x3 -1 1 2 -1 3 -5 2 -3 s1 0 1 0 0 0 1 0 0 s2 0 0 1 0 2 -3 1 -1 s3 0 0 0 1 0 0 0 1 RHS 0 60 10 20 20 30 10 10 15/2 None 5* Enter x 2 in row 3 20 10 * 20 Enter x 1 in row 2 Ratio

1 0 0 0

0 0 1 0

0 0 0 1

3/2 1 1/2 - 3/2

0 1 0 0

3/2 -1 1/2 - 1/2

1/2 -2 1/2 1/2

25 10 15 5

This tableau is optimal. The optimal solution is z = 25, s1 = 10, x1 = 15, x2 = 5, x3 = s2 = s3 = 0.

Problem 4
Use the simplex algorithm to find the optimal solution to the following problem: min z = 2x1 + 3x2 s.t.2x1 + x2 4 x1 - x2 - 1 x1, x2 0

Solution 4
(big M) After adding slack, excess and artificial variables, we obtain the following: max -z = - 2x1 - 3x2 - Ma1 s.t. 2x1 + x2 - s1 + a1 = 4 - x1 + x2 + s2 = 1 Proceeding with the simplex algorithm we obtain: Z x1 x2 s1 s2 a1 RHS -1 0 0 2 2 -1 3 1 1 0 -1 0 0 0 1 M 1 0 0 4 1

Solution 4 contd
Z -1 0 0 x1 2 2 -1 x2 3 1 1 s1 0 -1 0 s2 0 0 1 a1 M 1 0 RHS 0 4 1

Z -1 0 0 -1 0 0

x1 2 - 2M 2 -1 0 1 0

x2 -M + 3 1 1 2 1/2 6/4

s1 M -1 0 1 - 1/2 - 1/2

s2 0 0 1 0 0 1

a1 0 1 0 M-1 1/2 1/2

RHS -4M 4 1 -4 2 3

Ratio 2* None

Enter x 1 in row 1

This tableau is optimal. The optimal solution is z = 4, x 1 = 2, s 2 = 3, e 1 = x 2 = a 1 = 0.

Problem 5
Radioco manufactures two types of radios. The only scarce resource needed to produce radios is labor. At present, the company has two laborers. Laborer 1 is willing to work up to 40 hours per week and is paid $5 per hour. Laborer 2 is willing to work up to 50 hours per week and is paid $6 per hour. The price as well as the resources required to build each type of radio are given in Table 1. Letting xi be the number of type i radios produced each week, Radioco should solve the following LP: max z = 3x1 + 2x2 s.t. x1 + 2x2 40 2x1 + x2 50 x1, x2 0 Table 1: Radio 1 Price $25 Resources required Laborer 1: 1 hour Laborer 2: 2 hours Raw material cost: $5 Price $22 Radio 2 Resources required Laborer 1: 2 hours Laborer 2: 1 hour Raw material cost: $4

(1) (2)

Problem 5 contd
The feasible region for LP is shown below. The optimal solution is x1 = 20, x2 = 10 with z = $80. The slope of the iso-profit line is - 3/2, the slope of constraint (1) is - 1/2 and the slope of constraint (2) equals - 2.
x2 70 60 50 40 30 20 10 0 0 10 20 30 40 50 x1

a For what values of the price of a type 1 radio would the current solution remain optimal? b For what values of the price of a type 2 radio would the current solution remain optimal? c Assume that laborer 1 is willing to work only 30 hours per week. Find the new optimal solution to the LP. d Assume that laborer 2 is willing to work up to 60 hours per week. Find the new optimal solution to the LP. e Find the shadow price of each constraint.

Solution 5ab
a Let c1 = profit from a type 1 radio. The slope of the iso-profit line is - c1/2. The current solution is still optimal if the slope of the iso-profit line is steeper than that of constraint (1) and flatter than that of constraint (2) or: 2 - c1/2 -1/2, or 1 c1 4. Thus, $23 = 22 + 1 price of a type 1 radio 22 + 4 = $26. b The current solution remains optimal for - 2 3/c2 -1/2, or 1.5 c2 6. Thus, $21.5 price of a type 2 radio $26.
x2 70 60 50 40 30 20 10 0 0 10 20 30 40 50 x1

Solution 5cd
x2 60

50

(2')

40

(2)

30 z = 60 20 (1) 10 (1')

c In Figure 1, constraint (1) becomes (1). The optimal solution still occurs where both constraints are binding or, x1 + 2x2 = 30 and 2x1 + x2 = 50. This yields x1 = 70/3, x2 = 10/3 and z =$230/3. Since the solution is feasible, it is optimal. d In Figure 1, constraint (2) becomes (2). The optimal solution still occurs where x1 + 2x2 = 40 and 2x1 + x2 = 60. This yields x1 = 80/3, x2 = 20/3 and z =$280/3.

0 0 10 20 30 40 x1

Solution 5e
If 40 + laborer 1 hours are available, the optimal solution is where x1 + 2x2 = 40 + and 2x1 + x2 = 50. This yields x1 = 20 - /3, x2 = 10 + 2/3 and z =$80 + /3. Thus the shadow price of constraint (1) is $1/3. If 50 + laborer 2 hours are available, the optimal solution is where x1 + 2x2 = 40 and 2x1 + x2 = 50 + . This yields x1 = 20 + /3, x2 = 10 - /3 and z =$80 + 4/3. Thus the shadow price of constraint (2) is $4/3.