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# COST MINIMIZATION

OF MAXCITY CLINIC

Submitted By:
Group 2, Section- A
Ankit Thareja 29NMP
Arun Saraswat 29NMP15
Gaurav Arora29NMP28
Khagesh Vasisth29NMP37
Mayank Kashyap29NMP40
Pritam Kumari29NMP42
Mohnish Singh29NMP46

Linear Programming

## Linear Programming is that branch of mathematical programming

which is designed to solve optimization problems where all the
constraints as well as the objectives are expressed as linear
function .It was developed by George B. Denting in 1947.

## Linear Programming has following elements: (a) Variables which

denote the available choices and (b) the related mathematical
expressions which relate the variables to the controlling conditions.

## Objective Function :Objective Function is an equation that

defines what you want to achieve by solving the financial problem.
Objective of solving a linear programming problem could for
example be to maximize contribution by the production and sale of
optimum quantities of products.

## The general objective function of LP model is expressed as:

Optimize (maximize or minimize) Z = c1x1 + c2x2 + + cnxn
where, Z is the measure-of-performance variable, which is a function
of x1, x2, , xn. Quantities c1, c2, , cn are parameters that
represent the contribution per unit respective variable to the
measure-of-performance Z.

## Constraints: Constraints are any limitations that prevent an

organization from maximizing its profits.Constraints have to be
'programmed' into a linear programming problem in the form of
mathematical expressions so that the optimum solution is within
feasible limits.

## Limiting factor constraints: These are mathematical expressions

of the scarce resources (e.g. land, labor, machine hours, etc.) that
prevent a business from maximizing its sales.

## Demand constraints :These constraints quantify the maximum

demand of products or services.

## Minimum Supply constraints: These constraints quantify the

minimum supply of products or services (e.g. due to contractual
commitments).

## Non-negativity constraints: If the objective of a business is to

minimize cost, solving the linear programming problem without
defining non-negativity constraints (e.g. the number of units of
product X and Y should not be lower than zero) would suggest an
optimum solution of producing negative infinite units of both
products.

## Community health clinic named MaxCity Clinic operates from

Morning 9AM to Evening 5 PM . It has requirements for between 10
and 18 doctors depending on the time of day. Lunchtime, from noon
to 2 P.M., is usually heaviest.
The table below indicates the doctors needed at various hours
when the clinic is open.

## The clinic employs 12 full-time doctors , and use services of Part

time doctors for looking after patients.
As per policy part-time doctor must put in exactly 4 hours per day
but can start anytime at the start of hour between 9 A.M. and 1 P.M.
Part-time doctors are less expensive because no retirement or
lunch benefits are provided to them.
Full time doctors work from 9 A.M. to 5 P.M. but are allowed 1 hour
for lunch. (Half the full-timers eat at 11 A.M., the other half at noon.)
By clinic policy, the clinic limits part-time hours to a maximum of
50% of the days total requirement.
Part-timers earn Rs 600 per hour (or Rs 2400 per day) on average,
whereas full-timers earn 7500 per day in salary and benefits on
average.
The clinic head wants to set a doctors schedule such that it would
minimize its total Doctors Costs per day . As a head of clinic he has
full authority to release 1 or more of its full-time doctor if it is
profitable to do so.

## Solving the subject problem using big M method of linear

programming:

Assuming:

F = full-time doctors
P1 = part-time doctors starting at 9 (leaving at 1PM)
P2 = part-time doctors starting at 10 (leaving at 2 PM)
P3 = part-time doctors starting at 11 (leaving at 3 PM)
P4 = part-time doctors starting at noon (leaving at 4 PM)
P5 = part-time doctors starting at 1 (leaving at 5 PM)

Objective function:

## Min. total daily doctors salary = 7500F + 2400(P1 + P2 + P3 + P4 + P5)

Subject to constraints :
F + P1
10
F + P1 + P2 12
1/2F + P1 + P2 + P3 14
1/2F + P1 + P2 + P3 + P4 16
F + P2 + P3 + P4 + P5 18
F + P3 + P4 + P5 17
F + P4 + P5 15
F + P5 10

## (9 A.M to 10 A.M needs)

(10 A.M to 11 A.M needs)
(11 A.M to noon needs)
(noon to 1 PM needs)
(1 PM to 2 PM needs)
(2 PM to 3 PM needs)
(3 PM to 4 PM needs)
(4 PM to 5 PM needs)

## Only 12 full-time doctors are available, so

F 12

Part-time doctors cannot exceed 50% of total hours required each day,
which is the sum of the doctors needed each hour.

10)

## F, P1, P2, P3, P4, P5 0

TORA ANALYSIS :

Solving the problem using the TORA software as it has many variables
and constraints

Results
The solution for minimization of cost we got is :

F = full-time doctors
P1 = part-time doctors starting at 9 (leaving at 1PM)
P2 = part-time doctors starting at 10 (leaving at 2 PM)
P3 = part-time doctors starting at 11 (leaving at 3 PM)
P4 = part-time doctors starting at noon (leaving at 4 PM)
P5 = part-time doctors starting at 1 (leaving at 5 PM)

=
=
=
=
=
=

10
6
1
2
5
0