7 LINEAR PROGRAMMING EXAMPLE ABC, Inc. creates 2 types of toys: car and boat. The car is priced at P550, and the boat at P70O. The cost of the car is P50, while P70 for the boat. The car needs 1 hour of woodwork labor and 1 hour of painting and assembling labor. The boat requires 2 hours of woodwork labor and1 hour of painting and assembling labor. Cost of woodwork labor is P30 per hour, worth of painting and assembling labor is P20 per hour. Monthly, ABC has 5000 existing hours of woodwork labor and 3000 hours of painting and assembling labor. There is an unlimited demand for boat, while an average demand for car is at most 2000. ABC wants to get the best out of monthly profit (total revenue - total cost).FORMULATION . Decision Variables x1= number of produced cars each month x2= number of produced boats each month N Objective function 1. Total Revenue (TR) = revenue from sold cars + revenue from sold boats TR = 550x1 + 700x2 2. Monthly wood cost (WC) = WC of produced cars + WC of produced boats WC = 50x1 + 70x2 3. Woodwork Labor Cost (WLC) = WLC of produced cars + WLC of produced boats WLC = 30x1 + 60x2 4. painting and assembling labor cost (PALC)= PALC of produced cars + PALC of produced boats PALC = 20x1 + 20x25. Total Cost (TC) = WC + WLC + PALC. TC = (50x1 + 70x2) + (30x1 + 60x2) + (20x1 +20x2) TC = 100x1 + 150x2 6. Total Profit (TP) = TR- TC TP = (550x1 + 700x2) - (100x1 + 150x2) TP = 450x1 + 550x2 Maximize z = 450x1 + 550x23. Constraints 1. ABC has just 5000 hours of woodwork labor accessible per month 2. No more than 3000 hours should be used for finished labor each month 3. Because of minimal demand, ABC should only have 2000 cars delivered each month Constraint 1 x1 + 2x2 <=5000 Constraint 2 x1 + x2 <=3000 Constraint 3 x1 <= 2000 nonnegativity constraint x1, x2>=0V7 LINEAR PROGRAMMING 2.2 GRAPHICAL SOLUTION Step 1: Graphing a Feasible Area os NonnyConstraint 1 x1 + 2x2 <=5000 x1 + 2x2 = 5000 Let x1 be 0 x1 + 2x2 = 5000 A (0, 2500) 0 + 2x2 = 5000 x2 = 2500 Let x2 be 0 x1 + 2x2 = 5000 B (5000, 0) x1+0=5000 x1 = 5000W LNEAR PROGRAMMING 2.2 GRAPHICAL SOLUTION Step 1: Graphing a Feasible Area uNer 5, +2, <5000 ©1000 20003000 4005000 Figure 2.2 Woodwork LaborConstraint 2 x1 + x2 <=3000 x1 + x2 = 3000 Let x1 be 0 0+x2=3000 A(0, 3000) x2 = 3000 Let x2 be 0 x1 +0=3000 B (3000, 0) x1 = 3000VW LINEAR PROGRAMMING 2.2 GRAPHICAL SOLUTION Step 1: Graphing a Feasible Area © 1000 2000 300040005000 m igure 2.3 Paimting and Assembling LaborW LINEAR PROGRAMMING 2.2 GRAPHICAL SOLUTION Step 1: Graphing a Feasible Area The last constraint for produced cars expressed as x; = 2000 is comprehended in Figure 2.4. Feasible area can be seen on the left side of the line while x, < 2000 is emphasized by a line parallel to the axis x2,V7 LuNear PROGRAMMING 2.2 GRAPHICAL SOLUTION Step 2: Combining the constraints 2 4000 3000 2000 10 © 1000 2000 $000 40095000 Fig. 2.5 Feasible Area nMethods 1. lsoprofit Line Method 2. Corner Point MethodW LINEAR PROGRAMMING 2.2 GRAPHICAL SOLUTION Step 3: Graphing an objective function sem Fig, 2.6 lsoprofit LinesZz =450x1 + 550x2 450x1 + 550x2 = 495,000 Let x1 be 0 0 + 550x2 = 495000 A (0, 900) x2 = 900 Let x2 be 0 450x1 +0 = 495000 B (1100, 0) x1 = 1100VW uNnear PROGRAMMING 2.2 GRAPHICAL SOLUTION Step 4: Finding the Optimal Solution a0 PS — [ton zion vw — = 1550 000 ag JOS, Fig. 27 Optimal Solutionz= 450x1 + 550x2 x1= 1000 x2 = 2000 450x1 + 550x2 450 ( 1000 ) + 550 ( 2000 ) 450 000 + 1 100 000 = 1 550 000VW LINEAR PROGRAMMING 2.2 GRAPHICAL SOLUTION A set of points S is a convex set if the section of the line connecting each pair of points in $ is entirely enclosed in S. OMB e& oo” o~ @ Fig. 2.8 Convex and Non-Convex Sets If the convex set boundary consists only of linear segments, as seen in cases (b ) and (c), the set is called a convex polyhedron.Corner Point Method Corner Points moow> Z = 450x1 + 550x2 x1 0 2000 2000 1000 0 0 1000 2000 2500 Zz 0 900000 1450000 1550000 1375000