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Formulation of an LP problem
Eli Daisy produces the drug Rozac from four chemicals. Today they must produce 1,000 lb of the drug.
The three active ingredients in Rozac are A, B and C. By weight, at least 8% of Rozac must consist of A, at
least 4% of B and at least 2% of C. The cost per pound of each chemical and the amount of each active
ingredient in 1 lb of each chemical are given in the below table.
It is necessary that at least 100 lb of chemical 2 be used. Formulate an LP that minimizes the cost of
producing todays batch of Rozac, explicitly defining the variables, objective function and constraints.


Chemical Cost ($ per lb) A B C
1 8 0.03 0.02 0.01
2 10 0.06 0.04 0.01
3 11 0.1 0.03 0.04
4 14 0.12 0.09 0.04
Formulation of an LP
A factory produces two types of chocolate bitter and sweet using two types of raw materials (RM) A
and B, and three production processes. Process 1 requires 3kg from RM A and 1kg from RM B and yields
2kg bitter chocolate and 1 kg sweet chocolate. Process 2 requires 1kg of RM A and 1kg of RM B and
yields 0.9kg of bitter chocolate and 0.9kg of sweet chocolate. Process 3 requires 1kg of RM A and 3kg of
RM B and yields 1kg of bitter chocolate and 2kg of sweet chocolate. In order to meet demands the
factory must produce at least 1,000kg of sweet chocolate and 1,500 of bitter chocolate. Logistics allows
the factory to handle at most 4,300kg of RM. RM A can be purchased at $2/kg and RM B can be
purchased at $2.2/kg. The factory sells its bitter chocolate for $4.4/kg and its sweet chocolate for
$5.3/kg. Formulate an LP that maximizes profits, explicitly defining the variables, objective function and
constraints.

Graphical Solution
Problem 1 (minimization problem)
Dorian auto manufacturers luxury cars and trucks for which likely customers are high income men (HIM)
and high income women(HIW). To reach these groups, Dorian has embarked on a TV advertising
campaign t and has decided to purchase 1 minute commercial spots on two types of programs; comedy
shows and foot ball games. Each comedy commercial is seen by 7m HIW and 2m HIM. Each football
commercial is seen by 2m HIW and 12m HIM. A 1min comedy ad costs $50K and a 1min fottbal ad costs
$100K. dorian would like the commercial to be seen by at least 28m HIW and 24m HIM. Formulate and
LP and solve it graphically. Then, answer the following questions
1. Find the range of values on the cost of a comedy ad for which the current basis remain optimal
2. Find the range of values on the cost of a football ad for which the current basis remain optimal
3. Find the range of values for required HIW exposures for which the current basis remain
optimal,. Determine the new optimal solution if 28 + million HIW exposures are required
4. Find the range of values for required HIM exposures for which the current basis remains
optimal. Determine the new optimal solution if 24 + million HIM exposures are required
5. Find the shadow price of each constraint
6. If 26m HIW exposures are required, determine the new optimal z-value.

Graphical Solution
Graphically solve the following linear program. Determine the range of both Obj. function coefficients,
the rand of right-hand side (RHS) of each constraint and the associated shadow price.
MAX 30X1 + 25x2
S.T.
3X1 + 1.5x2 <= 1200
1.5X1 + 2x2 <= 750
X1 + Y <= 450
X1,2>=0

Compute Based Solution