Problems

Additional
resolved
 PROPOSED FORMULATION PROBLEMS
Problem 1
DYNAMIX company manufactures high-precision metal parts that are used in automobile engines.
of races. The piece is manufactured in a forging and refining process and minimal amounts of are required.
various metals. Each piece requires 40 ounces of lead, 48 of copper, and 60 of cast iron. There are 4 types of
mineral available for the forging and refining process. Type 1 ore contains 4 ounces of lead, 2 of
copper and 2 of cast iron per pound. One pound of type 2 ore contains 2 ounces of lead, 6 of copper, and 6 of
cast steel. One pound of type 3 mineral contains 1 ounce of lead, 4 of copper and 4 of making cast. Lastly,
Type 4 mineral contains 1/2 ounce of lead, 1 of copper, and 8 ounces of cast steel per pound. The cost per pound
for the four minerals is $20, $30, $60, and $50, respectively. The company would like to mix the
minerals in such a way that the specifications of the parts are met and the cost of manufacturing them is minimized.

Formulate an appropriate linear programming model for this situation.

Problem 2
The production supervisors of a refinery must schedule two blending processes. When they
During process 1, 100 barrels of national oil and 300 barrels of oil are consumed in one hour.
imported. Similarly, when process 2 is carried out for one hour, 100 barrels are consumed.
national oil and 200 barrels of imported oil. Regarding production, process 1 generates 4000
gallons of gasoline and 1750 gallons of oil for domestic use per hour of operation. Process 2 generates
3500 gallons of gasoline and 2250 gallons of oil for domestic use, per hour. For the next run of
production, there are 1200 barrels of domestic oil and 1800 barrels of imported oil available. The
sales contracts require that 28,000 gallons of gasoline and 12,000 gallons of oil be produced for
domestic consumption. The contributions to profits per hour of operation are $1000 and $1100 for the
processes 1 and 2, respectively.

Formulate an appropriate linear programming model for this situation.

Problem 3
The company DYNAMIX operates a plane that combines passengers and cargo between Lima Airport, Peru and
Quito, Ecuador. Due to the high operating costs, the plane does not depart until all its holds have
They are loaded. The plane has three holds: lower, middle, and upper. Due to space limitations in
the warehouses, the plane cannot carry more than 100 tons of cargo on each trip.

No more than 40 tons of cargo should be taken in the lower hold. For balance purposes, the hold
The midsection must carry one third of the load of the lower hold and the upper hold must carry two fifths.
parts of the cargo in the lower hold. However, no more than 60 tons of cargo should be carried in the
combined medium and upper warehouses.

The profits from transportation are $8 per ton of cargo in the lower hold, $10 per ton of cargo
in the intermediate warehouse and $12 per ton of cargo in the upper warehouse, after deducting all expenses
necessary.

Formulate an appropriate linear programming model for this situation.

Problem 4
The company DYNAMIX has just acquired an operating license for the car service between the
Jorge Chavez airport and the city of Lima. Before the service of those cars, a fleet of 30 operated.
vans, however, the volume of business makes it easy to justify the addition of other vehicles.
In addition, most of the vehicles are very old and require very expensive maintenance.
low investment required for the acquisition of the license, the company is in a position to replace
all existing vehicles. Three types of vehicles are being considered: vans, small buses and
large buses. The company has examined every type of vehicle and has gathered the data shown
In the following table. The DYNAMIX Board has authorized $500,000 for the acquisition of vehicles. The
the company has projected that it can adequately use as many vehicles as it can finance; however,
the service and maintenance facilities are limited. At this time, the department of
maintenance can handle 30 vans. Currently, the company does not wish to expand the facilities.
of maintenance. Since the new fleet may include small and large buses, the department of
Maintenance must be able to work with them. A small bus is equivalent to 1 1/2.
vans and each large bus is equivalent to 3 vans.

Type of vehicles Purchase price Net annual income

Truck $6500 $2000
Small bus $10500 $2800
Large bus $29000 $6500

Formulate an appropriate linear programming model for this situation.

Problem 5
The company DYNAMIX is developing a new butter bar made from milk and peanuts. The product must
have at least 5 grams of proteins, but no more than 5 grams of carbohydrates and no more than 3 grams of
saturated fats. The following table shows some additional data.

Milk butter Peanut

Cost per ounce $0.10 $0.18
Proteins (grams per ounce) 4.00 0.80
Carbohydrates (grams per ounce) 2.50 1.00
Saturated fats (grams per ounce) 2.00 0.50

Formulate an appropriate linear programming model for this situation.

Problem 6
The company DYNAMIX manufactures and sells video equipment. The company is organized based on
profit centers, that is, the performance of each operating center (unit) of the company is determined at
through the weekly profits it generates. The profit center for circuit boards manufactures them from two
classes, which are used in various final products manufactured by the company. It takes 15 minutes to
Manufacture the circuit board No. 1; 24 minutes to manufacture No. 2. The normal operating hours for the
The center has 240 hours per week. The profits for the boards are $4 for board No. 1 and $5 for the board.
No. 2.

The production manager has decided to limit the center's overtime operation to a maximum of 24 hours.
but at the same time wants all available man-hours to be used during normal hours.

The logistics manager indicates that the committed orders of 10 units of the board must be fulfilled.
No.1 and 15 units of board No.2.

The marketing manager has established that the maximum demand is 500 units of board No. 1 and 400.
units for the board No. 2.

Formulate an appropriate linear programming model for this situation.

Problem 7
A farmer raises pigs for sale and wants to determine the amounts of the different types of feed he should provide.
to each pig to meet certain nutritional requirements at a minimum cost. The following table provides the
units of each class of basic nutrient ingredient contained in one kilogram of each type of food, along with
with daily nutritional requirements and food costs:

Ingredient Kilogram Kilogram Kilogram Requirement

nutritional of corn of fats of alfalfa daily minimum
Carbohydrates 90 20 40 200
Proteins 30 80 60 180
Vitamins 10 20 60 150
Cost $42 $36 $30

Formulate an appropriate linear programming model for this situation.

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Problem 8
Ms. Cárdenas, dietitian at the State Hospital in the city of Lima, is responsible for planning and
management of the dietary requirements of the patients. Mrs. Cárdenas examines in these
moments a case of a patient who has been given a special diet consisting of two food sources.
The patient has not been restricted in the quantity of the two foods they can consume; however, they should be
satisfy the following minimum nutritional requirements per day: 1000 units of nutrient A, 2000 units
of nutrient B and 1500 units of nutrient C. Each ounce of food source No. 1 contains 100 units.
of nutrient A, 400 units of nutrient B, and 200 units of nutrient C; each ounce of the food source
No 2 contains 200 units of nutrient A, 250 units of nutrient B, and 200 units of nutrient C. Both
Food sources are somewhat expensive, source No. 1 costs $6 per pound and source No. 2 costs $8 per pound.

Mrs. Cárdenas wishes to determine the combination of food sources that results in the lowest cost and that
satisfy all nutritional requirements.

Formulate an appropriate linear programming model for this situation.

Problem 9
Mr. Acuña has $200,000 that he wants to invest to maximize his annual return on investment.
Mr. Acuña has identified the investment alternatives and the dollars he is willing to invest in each one.
of them.

Type of investment Performance on Dollars that there will be

the investment to be inverted
Bonds 6% At least $40000
Savings bank account 5% $10000 - $30000
Mutual funds 8% No more than $20000
Venture capital 7% At least $60000

Formulate an appropriate linear programming model for this situation.

Problem 10
The DYNAMIX Company faces the problem of determining which development projects it should undertake in the
next 4 years. The company has a limited amount of funds for capital investments; it cannot
finance all the projects. For each of these, their present value and requirements have been determined
capital associate. Each project has different capital requirements for the next 4 years. In the
The following table shows the estimated present value, capital requirements, and available capital.
projected for each of them.

Present value Capital requirement

Project estimated net Year 1 Year 2 Year 3 Year 4
1) Plant expansion 180000 30000 40000 40000 30000
New machinery 20000 12000 8000 0 4000
3) Research on new products 72000 30000 20000 20000 20000
4) Warehouse expansion 80000 20000 30000 40000 10000
Available capital funds 65000 80000 80000 50000

The management of DYNAMIX would like a capital plan that shows the expenses that must be made for each
one of the 4 years and which projects should be financed.

Formulate an appropriate linear programming model for this situation.

Problem 11
A manufacturing company discontinued the production of a certain line of unprofitable products. This created a
considerable excess in production capacity. Management wants to dedicate this capacity to one or more of
three products; referred to as products 1, 2, and 3. The following table summarizes the available capacity of each
machine that can limit production:

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 Type of machine Available time
(machine hours per week)
Milling machine 500
I return 350
Grinding machine 150

The number of machine hours required for each product is:

Type of machine Product 1 Product 2 Product 3

Milling machine 9 3 5
I return 5 4 0
Grinder 3 0 2

The sales department has indicated that the potential sales for products 1 and 2 exceed the rate.
maximum production and that the potential sales of product 3 are 20 units per week. The profit
the unit price would be $50, $20, and $25, respectively, for products 1, 2, and 3. The goal is to determine how many
products of each type the company must produce to maximize profit.

Formulate an appropriate linear programming model for this situation.

Problem 12
The company DYNAMIX manufactures auxiliary gasoline tanks for subcompact cars. The company
It manufactures a type of tank that is suitable for various automobiles. Currently, the company has a large
demand and a fixed production capacity. With the intention of satisfying the demand, the company is
considering: (1) operating based on various shifts in overtime, (2) outsourcing some orders with
other companies and/or (3) hire temporary employees.

The production manager is concerned about turning to external subcontractors or hiring temporary employees.
because this could reduce the quality of the work. In some cases, the costs would even be higher.
The data in the following table describes the labor requirements, costs, and average levels.
quality associated with the different alternatives. With the current workforce, the company can set up
a total of 200 hours of operations (180 hours in regular time and 20 hours in overtime) per week.

Operations
Normal time
Required hours 4 4 5 6
Cost per hour $12 $18 $10 $10
Quality level 99% 98% 94% 98%

The current demand for the gasoline tank is 100 units per week, and the average quality level.
it must be at least 98%.

Formulate an appropriate linear programming model for this situation.

Problem 13
The company DYNAMIX manufactures three different types of bearings used in textile equipment. All the bearings
they are manufactured in a pressing operation. The manufacturing time required to make a bearing
basic is 5 hours, while a high precision one requires 12 hours of production time. The bearing of
The general application requires 8 hours of production time. The company has 500 hours available per week.
production capacity. The unit profits obtained from the sale of bearings are: $1000 per bearing
basic; $1450 for general application bearings and $2500 for high-precision ones. The marketing department
has pointed out that the demand behavior for the bearings implies that the company can sell all
those who manufacture.

The production manager wants to use the entire production capacity and has also limited the time.
extra up to 40 hours per week.

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The marketing manager wants to achieve the following weekly sales goals for each type of bearing: 20
basic, 24 of general application and 15 of high precision.

Formulate an appropriate linear programming model for this situation.

Problem 14
An agricultural cooperative in the city of Chiclayo operates four farms. The production of each farm is
limited by the amount of water available for irrigation and by the number of acres available for cultivation. The
The data from the following table describes the farms.

Availability of Availability of
Farm water (cubic feet) land (acres)
1 480000 450
2 1320000 650
3 370,000 350
4 890000 500

Typically, the cooperative cultivates 3 types of products, although not every farm necessarily does.
cultivate all of them. Due to the limitation in the availability of harvesting equipment, there are restrictions
about the number of acres of each product that are grown on each farm. The data from the following table
they reflect the maximum acres of each crop that can be produced on each farm. The water that is required
(expressed in thousands of cubic feet per acre) for the respective crops is: 6, 5 and 4. The profits that are
Projected per acre for each of the three crops are $500, $350, and $200, respectively.

Crop Farm 1 Farm 2 Farm 3 Farm 4

A 200 300 100 250
B 150 200 150 100
C 200 350 200 300

To maintain a workload among the 4 farms, the cooperative has adopted the policy of having in
each farm cultivates an equal percentage of available land.

Formulate an appropriate linear programming model for this situation.

Problem 15
A company DYNAMIX sells 5 types of plywood whose production requires the use of each of the
three machines. In this regard, the following table shows the time required (in minutes) for manufacturing
of each of the plywood sheets.

Type of plywood machine 1

A 12 8 5
B 7 9 10
C 8 4 7
D 10 0 3
E 7 11 2

Each machine can be used for 128 hours each week.

The type A, B, and C triplays have a high demand that has not yet been met by the national supply;
These plates are sold at a price of $150, $120, and $150 per unit respectively.

The demand for triplays D and E faces quite a competitive supply, such that the first 20
Flatirons produced weekly can be sold at the price of $120 per unit, while any
The amount above 20 units would have to be sold at a price of $90 per unit, so that the
the company should not lose its market share.

The cost per hour of the labor used in the work of the machines is: $120 on machine 1, $120 on

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machine 2 and $90 in machine 3. The cost of the inputs used in the production of the triplets is: $60
$30

Formulate a suitable linear programming model for this situation.

Problem 16
The company DYNAMIX manufactures two types of products (A and B). The production of both products requires two
operations. The first operation takes place in department No. 1. The manufacturing of product A
Product A requires 3 hours in the first operation while product B requires 4 hours in this same operation.
The second operation can be carried out either in department 2 or in department 3. The necessary time for
production in department 2 for each unit of A is 3 hours; for each unit of B is 6 hours. If
Department 3 is used, the production time for each unit of A is 8 hours and for B it is 10.
hours. There are 3000, 3600, and 5000 hours of available production time in the respective departments.
$6.50 per hour for department 1,
$8.00 per hour for department 2 and $5.00 per hour for department 3. The Company has a
demand of 400 units for product A and 300 units for product B.

The production manager aims to meet customer demand while also limiting overtime.
department 2 to a maximum of 1000 hours, and minimize the extra time in departments 1 and 3.

Formulate a suitable linear programming model for this situation.

Problem 17
The company DYNAMIX has a machine that processes two products: peanuts and cocoa. When processing the peanuts, it
It obtains 30 pounds of peanut butter per hour. When processing cocoa, 60 pounds of cocoa are obtained per hour.
necessary preparation time of the machine to switch from processing one product to another is
despicable. The monthly demand and inventory holding costs for each product are shown
in the following table.

Demand Storage costs

per pound-month
Peanut butter Cocoa Peanut butter Cocoa
April 400 600 $0.10 $0.05
May 450 700 $0.10 $0.05
June 500 650 $0.12 $0.05

The initial inventory for each product at the beginning of April is 400 pounds and must also be zero at the beginning of
July. At no time can the peanut butter inventory exceed 1,000 pounds nor the cocoa 500.
libras. Likewise, each month there are 20 hours of machine time available.

Formulate a suitable linear programming model for this situation.

Problem 18
The company DYNAMIX has a machine capable of manufacturing tubes of large and small diameters for
plumbing contractors. Large pipes are produced at a speed of 200 feet per hour and small ones at
300 feet per hour. Every hour that the machine is used to produce large tubes generally causes
1.5 blockages per hour and when producing small tubes there are 3 blockages per hour. Each
stopping requires approximately 5 minutes for the process to be restarted during which the
machine cannot produce pipes. The management wants an equal number of feet of both sizes of pipes and the
maximum total number of tubes possible.

It is desired to know how much time of an 8-hour day should be allocated to the production of large tubes and how much to
the small tubes.

Formulate a suitable linear programming model for this situation.

Problem 19
The company DYNAMIX forecasts a demand of 5000 units for its luxury stapler model.

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for the next quarter. This article is assembled using three main components: base, cartridge
for staples and handle. So far, the company has manufactured the three components. However, the forecast
5000 units is a new peak in sales volume and there are doubts that the company has enough.
production capacity to manufacture all components. The company is considering hiring a
local company to manufacture at least part of the components. The time requirements of
production per unit is as follows:

Production time (hours) Total time

available in the
Department Base Cartridge Handle department
(hours)
A 0.03 0.02 0.05 400
B 0.04 0.02 0.04 400
C 0.02 0.03 0.01 400

After considering the global expenses of the company and the costs of materials and labor, the
The accounting department has determined the unit manufacturing cost for each component. These
Data, along with the purchase price quotes for the contracting company, are as follows:

Component Manufacturing cost Purchase cost

Base $0.75 $0.95
Cartridge $0.40 $0.55
Handle $1.10 $1.40

Formulate an appropriate linear programming model for this situation.

Problem 20
The company DYNAMIX manufactures two types of electronic transistors for an important manufacturer of
appliances. Every quarter, the manufacturer informs the company about its requirements for
transistors. Monthly demands for transistors can vary considerably depending on the
type of appliances produced by the manufacturer.

The following order has just been received for the next three months:

Transistor February March April

TR-A 2800 1500 3100
TR-B 2700 1800 3200

It costs $20 to produce each unit of the TR-A transistor and $10 for each unit of the TR-B transistor, likewise it has been
it is determined that the monthly cost of keeping a transistor in inventory is 1.5% of its cost
production.

It is also known that the inventories at the beginning of the three-month program period are 500 units of the
transistor TR-A and 1000 units of transistor TR-B, the company establishes an inventory level at the end of
a period of three months of at least 500 units of the TR-A transistor and no more than 1000 units of
transistor TR-B.

Regarding production capacity, the availability of labor, and storage capacity,

has the following information:

Month Machine Labor Storage

(hours) (hours) (pies2)
February 400 300 10000
March 500 300 10000
April 600 300 1000

The requirements for each transistor unit are as follows:

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 Transistor Machine Labor Storage
(hours) (hours) (pies2)
TR-A 0.10 0.05 2
TR-B 0.08 0.02 3

All orders must be delivered on time.

Formulate an appropriate linear programming model for this situation.

Problem 21
The company DYNAMIX has $2,000,000 available for investments. There are five possible types of investment:
stocks, bonds, loans, real estate, and savings through passbooks. At the beginning of each year, they can be made
investments, whether in stocks, in bonds, or in both. The dollars invested in stocks at the beginning of
any year they produce profits of 15% at the end of two years. Every dollar invested in bonds at the beginning
From a year results in 40% profits at the end of three years. Investments in loans can
it should only be done at the beginning of the second year; however, every dollar invested produces 90% profits
after five years. Investments in real estate yield a 75% profit at the end of two
years; but this investment option is only available at the beginning of the fifth year. All the money that is not
invests at the beginning of any given year in a passbook savings account. The interest rate
this account has an annual interest rate of 7.5%.

The financial manager wants the company to diversify its investments, therefore he does not wish to invest more than
$700,000 in any investment category during any year. He also wants to invest at least
$400,000 in real estate, given that this investment category has a high return. On the other hand, it has
a floating account has been established for operational purposes. The money in this account is placed in savings.
through a notebook. They must have at least $100,000 in that account at all times. Finally, the
The company has a financial obligation of $400,000 that it must cover at the end of the third year.

Investment diagram over several years

Type of investment Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Year 1
actions 15% ======== =======>
bonds 40% ======== ======== =======>
savings 7.5%
Year 2
actions 15% ======== =======>
bonds 40% ======== ======== =======>
loans 90% ======== ======== ======== ======== =======>
savings 7.5% =======>
Year 3
actions 15% ======== =======>
bonds 40% ======== ======== =======>
savings 7.5% =======>
Year 4
actions 15% ======== =======>
bonds 40% ======== ======== =======>
savings 7.5% =======>
Year 5
actions 15% ======== =======>
real estate 75% ======== =======>
savings 7.5% =======>
Year 6
savings 7.5% =======>

Formulate an appropriate linear programming model for this situation.

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Problem 22
The company DYNAMIX has 14,000 gallons of domestic gas in its facility in Chancay and 16,000 gallons.
stored at its facility in Huaura. From these facilities, the company must supply the business.
Fresh food 10000 gallons and to the company Dietetic Salads 20000 gallons. The cost of shipping 1
The gallon from each storage installation to each customer is:

Of A Fresh Food Dietary Salads

Chancay $ 0.04 $ 0.06
Huaura $0.05 $ 0.03

Formulate an appropriate linear programming model for this situation.

Problem 23
The company DYNAMIX manufactures and sells a general-purpose fertilizer. The company produces the fertilizer.
on three different floors and sends the final product to four different warehouses located in various places of the
Department of Arequipa. Since some manufacturing operations have existed for longer than others,
There are different production costs in the different plants. (The most recent plants use more processes)
modern and updated that result in lower production costs). In the following table, there
They present the production costs in dollars per ton and the capacity in tons for the plants.

Plant Costs Capacity

1 $38 650
2 $45 600
3 $30 600

The requirements in tons for the four warehouses are 300, 450, 500 and 600 respectively. Due to
that each warehouse operates separately, the prices per ton in the respective warehouses differ by a
little. The selling prices are $62, $63, $64, and $64. The goal of the managers is to maximize the
total utilities for the company. Therefore, they must consider the transportation costs associated with shipping.
from the product of a specific plant to a specific warehouse. Transportation costs (expressed in
Dollars per ton for the different transportation routes are shown in the following table.

Warehouse
Plant 1 2 3 4
1 $23 $18 $21 $25
2 $21 $24 $23 $18
3 $18 $21 $27 $23

Formulate an appropriate linear programming model for this situation.

Problem 24
The company DYNAMIX operates in the business of repairing washing machines and dryers.
domestic. The company serves customers in the Miraflores district. It has five service employees.
who live in different parts of the city. In order to save driving time and costs at the beginning of
Every day, the service staff goes directly from their homes to the places where they are needed.
The following table presents the distances (in blocks) associated with the first five jobs that must
to be carried out. Each service employee is paid for driving; for this reason, the company wants to minimize the
extra transfer distance.

Work
Employee 1 2 3 4 5
1 20 14 6 10 22
2 16 8 22 20 10
3 8 6 24 14 12
4 20 22 2 8 6
5 4 16 22 6 24

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Formulate an appropriate linear programming model for this situation.

Problem 25
The company DYNAMIX has four sales territories to which its salespeople are assigned. The company
It has been determined that sales depend on the days/salesperson per month. The data shows that the
ventas diarias por día/vendedor son $2000, $1600, $900 y $800, respectivamente, para los cuatro territorios.

The company has a sales team of four people; all the salespeople work 20 days a month. Given
that all sales territories are close to each other, salespeople are not restricted to a single territory
but rather, the company demands that each salesperson works in at least two territories. As
incentive for sales the company tries to satisfy the preference that each of the sellers has for
certain territories. The preference index that appears in the following table (where the number 5 reflects)
the greatest preference) indicates the preference that each seller has for the territories.

Territory
Seller 1 2 3 4
1 5 4 2 4
2 4 3 5 4
3 3 5 0 2
4 5 4 1 3

The marketing manager wants to maximize the weighted preference index for each salesperson, where the
weighted index is the seller's index, in relation to their territory, multiplied by the percentage of time
that invests in that territory and accumulated for all the territories it visits.

The personnel manager establishes that at least 10 selling days must be invested in each territory.

Formulate an appropriate linear programming model for this situation.

Problem 26
The company DYNAMIX, manufacturer of electric shavers, has decided to invest up to $38,000 in advertising.
for the electric shavers for men that it manufactures. Some market research studies
carried out by the Company have shown that the market it desires for razors is composed of its
mostly by men between 20 and 45 years of age, who have annual incomes of $15,000 or more and have
completed five or more years of university education. Based on these findings, the group of
market research has determined that the characteristics of customers have a relative importance of
agreement with the following weights:

Characteristics Weight
Age (20-45) 0.40
Annual income ($15,000 or more) 0.35
University education (5 or more years) 0.25

The marketing manager of the company has decided to use the services of an advertising agency to
to help them develop an advertising plan that allows them to reach potential customers more effectively
effective. After studying the data on customer characteristics, the advertising agency has suggested
that the Company considers placing advertisements in three popular consumer magazines. For brevity, simply
we will call the magazines A, B, and C. The following table indicates what the characteristics are of the
consumers of the three magazines.

Percentage of consumers
Characteristics Magazine A Magazine B Magazine C
Age (20-45) 40 70 60
Annual income ($15,000 or more) 60 50 40
University education (5 or more years) 30 20 60
Reading public 780000 940000 1,250,000

The advertising agency has indicated to the marketing manager that an appropriate goal would be to maximize the

10
number of effective exposures, given the advertising budget available. The goal should not be
maximize the number of exposures for all readers of the advertisement, but rather, maximize the
number of potential customers exposed to the advertising. To develop an effective exposure factor,
a reading index must be calculated for each magazine. The reading index is calculated by summing the products of
percentage of readers who have a certain characteristic based on the weight that the company has assigned to it
characteristic.

The advertising agency has indicated that an effectiveness coefficient for readers must be developed.
multiplying the reading index of each magazine by its respective audience.

Finally, the effective exposure, E, per ad is determined by dividing the effectiveness coefficient by the
cost per ad. The agency indicates that the cost per ad in the three magazines is $500, $750, and $800.
respectively.

Based on the analysis and joint studies of the company and the advertising agency, it has been decided that the number
the maximum number of advertisements that must be placed in each magazine is 36, 40, and 45, respectively. Additionally, it has been
It has been decided that at least nine ads must be placed in magazine A and at least five in magazine C.

It is necessary to determine the amount of advertising dollars that should be invested in each magazine to
maximize effective exposure, and also determine the number of ads that should be placed in each
magazine.

Formulate an appropriate linear programming model for this situation.

Problem 27
DYNAMIX is an exclusive retail outlet that sells suits and jackets for
Gentleman. The company sells three lines of clothing: sports, for executives, and luxury. In general, these lines
can be characterized as moderately priced, slightly expensive, and expensive. The most expensive lines
they require more complicated displays and a greater amount of time from the sales staff; however, with
these result in higher profits. For planning purposes, the company has determined that the profit
Average per item in the sports line is $6.50, while the unit profit for the executive lines
and the luxury ones are $13.70 and $23.25, respectively. The profits from each of these lines do not differ between the
suits and jackets. From past experiences, the company has determined that 200 feet are required.2for display
1000 units of the sports line, while 450 feet are required.2for 1000 items from the line of
young executives and 690 feet2for 1000 items displayed from the luxury line. Previous experiences
they indicate that the man-hours of sales personnel required for 1000 items sold are for
The respective lines are 250, 650, and 1800.

In order to maintain a reasonable variety of suits and bags, the company orders at least 1000 items of
each line. To reflect the fact that more suits are sold than jackets, the company maintains a ratio
from 80 to 20 on each of the lines when making their orders. The company has 65,000 feet.2of space in the
exhibition hall. The managers have determined that the station where the items are
Marketable products last approximately 16 weeks. At this time, the company has a workforce of
Sale of 8 people. The normal work week for all sales staff is 48 hours.

Formulate an appropriate linear programming model for this situation.

Problem 28
The company DYNAMIX manufactures two products, the corresponding data is shown below:

Product 1 Product 2
Selling Price per unit $15 $8
Required work (hours) 0.75 0.50
Machine time (hours) 1.50 0.80
Raw material (units) 2 1

Every week, up to 400 units of raw material can be purchased, at a cost of $1.50 per unit. The
the company has 4 workers who work 40 hours a week each, additionally they can work hours

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extras paying them $6 per extra hour. A total of 320 machine hours are available weekly. In the absence of
the maximum demand for product 1 is 50 units and the maximum demand for product 2 is 60
units. Advertising can be used to increase demand; thus, for every dollar of advertising
for product 1 the demand increases by 2 units and for every dollar of advertising for product 2 the
demand increases by 1 unit. Up to $100 can be spent on advertising per week (budget).

Formulate a suitable linear programming model for this situation.

Problem 29
The company DYNAMIX manufactures three types of energy seed combinations that are sold to wholesalers.
which in turn sell them to retail outlets. The three types are normal, special, and extra, and they are sold
at $1.50, $2.20, and $3.50 per pound, respectively. Each mix requires the same ingredients: peanuts, raisins
and carob. The costs of these ingredients are $0.90 per pound of peanuts, $1.60 per pound of raisins and $1.50 per
carob pound.

The requirements for the mixtures are:

• Normal, at least 5% of each ingredient
• Special, at least 20% of each ingredient and no more than 50% of any of them.
• Extra, at least 25% raisins and no more than 25% peanuts

The production facilities make a maximum of 1000 pounds of peanuts available per week.
2000 of raisins and 3000 of carob. There is a fixed cost of $2000 for the production of the mixtures. There is
also the condition that the normal mixture must be limited to 20% of the total production.

Formulate a suitable linear programming model for this situation.

Problem 30
The company DYNAMIX is an important manufacturer of stereophonic equipment. Currently, the
The company's administrators are considering adding a new product line to their existing group.
of stereo systems. The new line will include four new products. The company has two plants in
that can be manufactured by the new product line. The manufacturing process in plant 1 has a
structure something different from that of plant 2. In plant 1, three manufacturing processes are required, in plant 2
only two processes are required. Because the manufacturing operations of the two plants differ, their
variable costs are also different. Therefore, it may be more profitable to manufacture an item from the line in one of
the plants and one or more of the others on the other. The selling price and the variable costs, as well as
maximum demand for the new products is shown in the following table.

Product
Selling price and demand 1 2 3 4
Selling price $200 $300 $250 $280
Variable costs: plant No. 1 $160 $270 $240 $270
Variable costs: plant No. 2 $220 $300 $200 $220
Demand (units) 1000 3000 4000 6000

The following table describes the manufacturing operations for the two plants (the numbers in the table
they express hours of manufacturing time). The manager of plant 1 has indicated that they can dedicate the
following monthly production capacity hours for the new product line: operation A 30000
hours, operation B 100000 hours, operation C 16000 hours. In each of the two operations of plant 2
There are 20,000 hours of production time available. The company would like to determine the amount of
each of the 4 types of products that must be manufactured each month in the two plants, so that
maximize the company's profit contribution.

Product
1 2 3 4
Plant 1:
Operation A 6.0 7.2 4.0 7.0
Operation B 18.0 20.0 16.0 18.0
Operation C 2.0 2.0 1.0 1.0

12
 Plant 2:
Operation X 8.0 8.0 4.0 8.0
Operation Y 10.0 16.0 8.0 6.0

Formulate an appropriate linear programming model for this situation.

Problem 31
The company DYNAMIX is a large agricultural cooperative. The company has 130 acres on which it produces
three main products: soybeans, wheat, and corn. The cooperative's products are for consumption by its
members and for sales to third parties. The cooperative is organized in such a way that needs must be met.
first the demands of its members before selling the items to third parties. All surpluses of
Production is sold at market price. The following table summarizes for each product, during the
growing season, the projected yield (in bushels per acre), the demand (in bushels) that the
members request, market demand (in bushels), and estimated profit (dollars per bushel).

Cultivation Performance Demand for the Demand of Utility

members market
Soybean 420 2000 10000 $1.50
Wheat 200 5000 8000 $1.80
Corn 70 1000 3000 $2.50

Formulate an appropriate linear programming model for this situation.

Problem 32
The northern cone of the city of Lima has two public schools that meet the needs of the population.
School 1 has a capacity of 6,500 students and school 2 has a capacity for 4,500 students. The
the northern cone is subdivided into 6 areas. Each of them has a different size and a distinct combination of
students from low socio-economic levels. The following table describes the six areas.

Area Total population of Students with level

students low socio-economic
A 1900 200
B 2475 1600
C 1000 490
D 2150 450
E 1800 870
F 1400 590

A plan against discrimination, ordered by the Ministry of Education, specifies that each school
It must have at least 32% of students from a low socio-economic level. No school can have
more than 45% of students from a low socio-economic level. In an attempt to comply with the law, it is desired to
minimize the number of miles that students must travel on the school bus. In the following table there
they show data indicating the distances in kilometers between the various areas and the schools
corresponding. If possible, we would like to avoid having students travel more than 2.8 kilometers.

Area School 1 School 2

A 1.5 2.5
B 1.8 1.9
C 2.2 2.6
D 2.5 2.3
E 2.9 1.8
F 2.8 1.1

Formulate an appropriate linear programming model for this situation.

Problem 33
The company DYNAMIX is a shoe manufacturer located in the city of Trujillo. The company is

13
specializes in the manufacturing of dress shoes and does not sell directly to the public but sells through
from retail outlets. According to fluctuations in the costs of various components, the company has
It has been observed that the production cost varies from month to month. Due to these cost variations (and the low
handling and storage cost which is $1.00 per month per pair of shoes), the company considers that
It is advantageous to manufacture excess pairs of shoes in some months to sell them in other months.
subsequent. The company's managers have forecasted demand and costs for seven months
as shown in the following table. The company wants to schedule production to minimize costs.
production and handling totals.

Month Demand Projected cost

predicted (by pair)
1 150000 $36
2 110000 $42
3 180000 $38
4 100000 $40
5 200,000 $35
6 180000 $39
7 110000 $37

Formulate an appropriate linear programming model for this situation.

Problem 34
DYNAMIX Company specializes in manufacturing parts for the automotive industry. Currently,
the company has a capacity problem and is forced to buy parts from a competitor company
to be able to meet the commitments it has made. The problem the company faces is that
Factory four products, and the manufacturing processes are carried out on six machines. The production times,
In hours, necessary to manufacture the products are shown in the following table.

Machine
Product 1 2 3 4 5 6
1 0.08 0.04 0.04 0.00 0.06 0.12
2 0.00 0.02 0.10 0.30 0.18 0.12
3 0.04 0.12 0.00 0.15 0.50 0.45
4 0.12 0.08 0.35 0.00 0.00 0.10

There are 60 hours of available time on each of the machines. The company has an order for 250.
units per week for each product. The manufacturing costs for the four products are $2.60,
$2.25, $4.40, and $2.10. If the company purchases the parts from the external competitor, the purchase prices are
$3.15, $2.75, $4,70 y $2.30, respectivamente.

Formulate a suitable linear programming model for this situation.

Problem 35
The company DYNAMIX is considering expanding the capacity of its plant for the next eight quarters.
The company's goal is to make its manufacturing capacity as wide as possible by the end of two
years.

The company manufactures a single product. The costs of raw materials and other variable costs are $120 per
unit. Each unit produced requires 1.2 units of production capacity. All costs and
Production requirements occur in a single period; sales occur in the immediately following period.
back. Each unit is sold for $175.

For expansion purposes (at any time), the company has two policies; one or the other can be used.
both of them. Under policy 1, each additional unit of capacity requires $24000 at the beginning of the period;
new capacity is available at the beginning of the next period. Each unit of additional capacity under the
Policy 2 requires $18,000 at the beginning of the period in which the expansion starts; but that capacity
new is not available until the beginning of the subsequent period to the first.

14
The company has $320,000 at the beginning of period 1. That money must be used to finance production and the
expansion of the plant. After period 1, there are no external funds available. Both production and
The expansion of the plant, after period 1, must be financed from the materials fund or from other funds.
Generated with sales. At the beginning of period 1, a total of 960 units of capacity are functional.
All extensions must be ready to operate by the end of period 8.

Formulate an appropriate linear programming model for this situation.

Problem 36
The DYNAMIX company sells innovative products at retail. It is considering adding two new ones.
products to the line it already has. The company has decided to work on the products on a trial basis for two years.
You will acquire both products from a wholesaler. The cost per unit for each product for the time horizon
Two years is shown in the following table. Product 1 will be sold at $1.20 and product 2 at $1.05.
The selling price will be fixed for a period of two years.

Cost Sales (units)

Product Year 1 Year 2 Year 1 Year 2
1 $0.75 $0.80 6 7
2 $0.70 $0.85 9 12

The company recognizes that the sales of the new products will largely depend on advertising.
the advertising department has projected sales for the next two years. These projections,
expressed in units sold per dollar of advertising, are also shown in the table. The department of
Advertising has also predicted that in both years at least 30%, but no more than 60% of the total of
units sold (of both products) will be of product type 2.

At the beginning of year 1, the company had $12,000 available for advertising and purchases. The products can
buy for one year and keep it until the next year without incurring maintenance costs. The advertising in
Any year has an effect only on the sales of that year. The expenses for purchases and advertising in year 2
They can be financed with the profits from year 1.

Formulate an appropriate linear programming model for this situation.

Problem 37
A contractor from a company located in the city of Huaraz does work on roofs. Since the
the price of tiles varies with the seasons of the year, the company tries to accumulate stock when the
prices are low and store them for later use. The company charges the current market price
for the tiles it installs, regardless of when they were purchased. The following table reflects what the company has
projected as unit cost, unit price, and demand for tiles over the next four
seasons.

Season Purchase price Market price Sales

Summer $21.00 $22.00 100000
Autumn $22.00 $23.25 140000
Winter $26.00 $28.50 200000
Spring $24.00 $25.50 160000

When tiles are purchased in one season and stored for later use, a cost is incurred
management of $6 for every thousand pieces, as well as a storage cost of $12 for every thousand pieces
for each season in which they are stored. The maximum that can be kept in the warehouse is 220,000
parts; this includes the material that is purchased to be used in the same period. The company has set a
policy that states that materials are not kept for more than four seasons.

Formulate an appropriate linear programming model for this situation.

Problem 38
The company DYNAMIX manufactures three types of coats for men: sports (A), formal (B), and executive (C).

15
Due to the competitive nature of the business and the high demand for labor in the industry, it is of great
importance of keeping employees satisfied. The Production Manager of the company believes that a
one way to meet the needs of your employees is to offer them full-time employment, even when
this requires producing in excess and incurring some losses. Fortunately, the Production Manager hopes that the
demand for its products remains quite high. In fact, to meet part of the demand, it could
It is necessary to work overtime.

The three lines of coats from the company are manufactured in two departments. The attached table is a program.
weekly requirements of labor and materials for the manufacturing process. The unit prices
for the three lines are $100, $150, and $250, respectively. The Production Manager has determined that at a
normal production rate the variable costs are $70, $80 and $100 per coat, respectively. The costs
Overtime is $2 per hour above the normal salary for department 1 and $3 for department 2.
The materials for the overtime can be purchased at a cost of $2 per meter above the cost.
normal.

The Marketing Chief has forecasted that the market demand for the sports coat is 1000 units.
per week, and the demand for the other two lines is 500 and 200 units, respectively. The level of
The production equilibrium is 100 units of product A, and 50 units of each of the other two.
products.
Product requirements (per unit)
Sports Formal Executive Resources
Department 1 4 hours 12 hours 10 hours 8000 hours
Apartment 2 6 hours 6 hours 16 hours 4000 hours
Material 8 meters 6 meters 12 meters 8000 meters

The production manager wants to use all available production capacity, that is, there should be no downtime.
idle in no department; in addition to reaching the break-even production levels in each
one of the product lines.

Given that there is likely to be a labor shortage in department 2, and given that it can be sent
personal, in overtime, to that department, the overtime here may be greater than that of department 1.
However, the overtime for department 2 must not exceed 600 hours. The overtime for
department 1 must not exceed 200 hours.

The marketing manager wants to meet all market demands.

Formulate an appropriate linear programming model for this situation.

Problem 39
The DYNAMIX Company distills and distributes fine wine. The company manufactures three distinct wines: rosé, semi-dry and
dry. The blends are produced by combining different grades of base wine. The requirements for the blends,
and the availability and price (cost) per fifth of a gallon of base wine (availabilities given in fifths of a gallon
per day) appear in the following table.

The production manager has established that at least 2000 fifths of a gallon of rosé wine should be produced.
1000 fifths of semi-dry wine per day.

Actions Cost per fifth of a gallon Availability

Grade I $6.50 1800
Grade II $5.00 2000
Grade III $3.50 1200

Type Requirements Selling price

Rose No more than 12% $6.00
of grade III
At least 50%
of grade I

16
 Type Requirements Selling price
Semidry No more than 40% $5.25
of grade III
At least 25%
of grade I
Type Requirements Selling price
Dry No more than 50% $4.75
of grade III
At least 10%
of grade II

Formulate an appropriate linear programming model for this situation.

Problem 40
The DYNAMIX Company is engaged in wholesale trade (that is, the company buys from the manufacturer and sells)
a retail outlets). The company handles a single product and the capital with which it operates is limited. Due to
that the selling price of the product is somewhat seasonal and, therefore, may vary from month to month, to the company
It is advisable to buy in certain months to sell in certain later months. The company has
defined information regarding the cost at which you can buy and the price at which you can sell in the
next four months. The data is:

My 1 2 3 4
Cost 8 8 10 12
Price 12 10 7 9

Sales are made at the beginning of the month and then purchases are made. The amount that is acquired is
completely based on the income generated from sales. Purchases are restricted by the
storage capacity of the company; currently, 3000 units of the
products (an additional amount of 1000 units can be stored, but this is considered undesirable). In
At this moment (in early month 1), there are 2000 units in the warehouse that had a cost of $6 each.
unit.

The production manager indicates that in month 1 only the normal capacity of the warehouse should be used.

The company must have at least $2000 in reserve each month for operational contingencies; and when
less than $4000 available at the beginning of month 4, after purchases. This money will be used to fulfill
with an external financial commitment.

Formulate an appropriate linear programming model for this situation.

Problem 41
An important university in Lima has a considerable donation fund: it has been assigned to the Director of
The responsibility of determining the best investment portfolio lies with the Economy. The Director has decided that they can
invest all the funds in stocks, assuming that certain risk policies are employed. The Director has
six acceptable action alternatives have been identified. The following table describes the data for these
alternatives.

Action number
1 2 3 4 5 6
Current price per share $90 $25 $70 $125 $35 $140
Average annual growth rate 0.09 0.08 0.06 0.04 0.03 0.01
Average annual dividend per share $1.15 $0.20 $1.90 $2.15 $0.80 $3.40
Risk factor 0.07 0.09 0.10 0.04 0.03 0.04

The return on each of these investment alternatives is determined as follows:

Performance = (current price per share x growth rate + dividends) / current price per share

17
Currently, there is $1,500,000 in the fund. The financial manager wants to achieve a return on the
an investment of at least 8%, and achieve dividends of at least $18,000 per year. On the other hand, he decides
invest at least 35% of the total money in the three stocks with the lowest risk factors,
limit the weighted risk factor of the portfolio to 6% or less and limit the total dollars invested in
the three low-risk alternatives up to a maximum of $700,000.

Formulate an appropriate linear programming model for this situation.

Problem 42
The administration manager of DYNAMIX Company, a large manufacturer of electric razors, has
decided to invest up to $38,000 in advertising for the electric shavers for men that it manufactures. Some
market research studies conducted by the Company have shown that the market desires
for razors is mostly made up of men between the ages of 20 and 45, who have
income of $15,000 or more and have completed two or more years of university education. Based on these
discoveries, the market research group has decided that the characteristics of the customers have
a relative importance according to the following weights:

Characteristics Weight
Age (20-45) 0.40
Annual income ($15,000 or more) 0.35
University education (5 or more years) 0.25

The Marketing Manager of DYNAMIX has decided to use the services of an advertising agency.
to help them develop an advertising plan that allows them to reach potential customers more effectively
effective. After studying the data on customer characteristics, the advertising agency has suggested
that the Company consider placing ads in three popular consumer magazines. For brevity simply
we will refer to the magazines A, B, and C. The following table indicates what the characteristics of the
consumers of the three magazines.

Percentage of consumers
Characteristics Magazine A Magazine B Magazine C
Age (20-45) 40 70 60
Annual income ($15,000 or more) 60 50 40
University education (5 or more years) 30 20 60
Reading public 780000 940000 1250000

The advertising agency has indicated to DYNAMIX that an appropriate goal would be to maximize the number of
effective exposures, given the advertising budget available. The objective should not be to maximize the
number of exposures for all advertising readers, but rather, maximize the number of customers
potentials exposed to advertising. To develop an effective exposure factor, it must be calculated a
reading index for each magazine. The reading index is calculated by summing the products of the percentage of
readers who have a specific characteristic determined by the weight that the company has assigned to it
characteristic.

The advertising agency has stated that an effectiveness coefficient for readers must be developed,
multiplying the reading index of each magazine by its respective audience.

Finally, the effective exposure, E, per advertisement is determined by dividing the effectiveness coefficient by the
The agency indicates that the cost per ad in the three magazines is $500, $750, and $800.
respectively.

From the analysis and joint studies of the DGA and the advertising agency, it has been decided that the maximum number of
advertisements that must be placed in each magazine are 36, 40, and 45, respectively.

It is necessary to determine the amount of advertising dollars that should be invested in each magazine to
maximize effective exposure, and also determine the number of ads that should be placed in each
magazine.

18
The marketing manager must achieve a minimum effective exposure of 7,500,000, limiting advertising costs.
a $38000 and place at least 9 ads in magazine A and at least 5 in magazine C.

Formulate an appropriate linear programming model for this situation.

Problem 43
The company DYNAMIX distributes a packaged, seasonal product in a certain region that includes a
large metropolitan area. The product is especially attractive to people with children. The manufacturer
the product has offered to participate in a pre-season discount promotion, and the company is
planning to launch an advertising campaign. It is planned to present full-page color advertisements in the
supplements of the Sunday editions of the two most important newspapers. The message has been prepared
advertising and the copies. The only point to be determined is the chronological scheduling of the media.
communication; that is to say, the number of consecutive publications in each newspaper.

From an ideal point of view, it would be desirable to relate this to the benefit that can be obtained for each
publication. However, it is difficult to measure the benefits of a chronological programming in media of
communication. Therefore, in practice, substitute measures are used, which have been shown
positively correlated with the benefits. Examples of such measures include the reach of the
chronological programming of the media (defined as the fraction of people, in a
customer population given, exposed at least once to the advertisement) and the frequency of the programming
chronological (defined as the average number of exposures among members of the population who
They have heard the announcement, at least once). It would also be advisable to reach various degrees in different
sectors of the population. Consider that for this problem, scope is the most appropriate criterion and that it
wants to differentiate between a primary group of all people who have at least one child of school age
the school, and a secondary group that includes all families with an annual income of more than $8000.

Data regarding the reach of Sunday supplements can be obtained from the newspapers.
to the different population groups. For example, for the Alfa newspaper and the primary group, they indicate the following
average fraction of people reached in the group as a function of the number of publications:

Number of publications x 1 2 3 4 5 6
Accumulated fraction and 0.54 0.66 0.75 0.83 0.87 0.89

Unfortunately, this is a non-linear relationship with a significant decrease in accumulated reach after
four publications. The same applies to the reach of the secondary group in the Alfa newspaper. Therefore,
it seems uneconomical to exceed four publications in the Alfa newspaper. During the first four publications,
It is possible to approximate the previous relationship quite closely using the equation:

y = 0.49 + 0.08x for 1≤ x≤ 4

If this procedure is applied to similar data in terms of scope for other combinations of groups and
From the media, the following equations are obtained:

Diary Group Equation

Alfa primary y = 0.49 + 0.08x
Beta primary y = 0.47 + 0.12x
Alpha secondary y = 0.44 + 0.12x
Beta secondary y = 0.37 + 0.09x

For the Beta newspaper, the decline occurs after five publications. Estimates indicate that the newspapers
They share equally among the primary group, but the Alfa newspaper has 60% of the secondary group. The Alfa newspaper
Cobra $3000 per publication; the Beta newspaper, which uses lower quality paper, charges only $2000 per publication.
The management has allocated a budget of $16,000 for the advertising campaign.

Formulate an appropriate linear programming model for this situation.

19
 PROPOSED PROBLEM SOLVING FORMULATION

Problem 1
Decision variables
Xi: amount of pounds of mineral type i to be used in the manufacture of parts
i = 1, 2, 3, 4

Objective function
minimize Z = 20 X1 + 30 X2 + 60 X3 + 50 X4

Restrictions
Minimum lead requirement
4 X1 + 2 X2 + 1 X3 + 0.5 X4≥ 40

Minimum copper requirement

2 X1 + 6 X2 + 4 X3 + 1 X4≥ 48

Minimum requirement for cast iron

2 X1 + 6 X2 + 4 X3 + 8 X4≥ 60

Range of existence
X1, X2, X3, X4≥ 0

Problem 2
Decision variables
Xi: number of operation hours of process i
i = 1, 2

Objective function
maximize Z = 1000 X1 + 1100 X2

Restrictions
Availability of national oil
100 X1 + 100 X2≤ 1200

Availability of imported oil

300 X1 + 200 X2≤ 1800

Gasoline requirement
4000 X1 + 3500 X2≥ 28000

Oil requirement for domestic consumption

1750 X1 + 2250 X2≥ 12000

Range of existence
X1, X2≥ 0

Problem 3
Decision variables
Xi: amount of tons of cargo transported in hold i
i = 1, 2, 3 (1=inferior, 2=media, 3=superior)

Objective function
maximize Z = 8 X1 + 10 X2 + 12 X3

20
Restrictions
Aircraft load capacity
X1 + X2 + X3≤ 100

Loading limit in the lower hold

X1≤ 40

Balance of the wineries

3
X1 - 3 X2 = 0

2 X1 = 5 X3
2 X1 - 5 X3 = 0

Combined load limitation in the intermediate and upper hold

X2 + X3≤ 60

Range of existence
X1, X2, X3≥ 0

Problem 4
Decision variables
quantity of type i vehicles to be purchased
pickup truck

Objective function
maximize Z = 2000 X1 + 2800 X2 + 6500 X3

Restrictions
Available investment
6500 X1 + 10500 X2 + 29000 X3≤ 500,000

Maintenance capacity
X1 + 1.5 X2 + 3 X3≤ 30

Range of existence
X1, X2, X3≥ 0

Problem 5
Decision variables
Xi: number of ounces of product i to be used in the candy bar
milk butter

Objective function
minimize Z = 0.10 X1 + 0.18 X2

Restrictions
Protein requirement
4 X1 + 0.8 X2≥ 5

Carbohydrate requirement
2.5 X1 + 1 X2≤ 5

Requirement of fats
2 X1 + 0.5 X2≤ 3

Range of existence

21
Xi≥ 0

Problem 6
Decision variables
Xi: number of circuit boards No. i to be produced weekly

Objective function
maximize Z = 4X1 + 5X2

Restrictions
Availability of extra time
0.25 X1 + 0.40 X2≤ 264

Committed orders
X1≥ 10
X2≥ 15

Forecasted demand
X1≤ 500
X2≤ 400

Availability of time during normal hours

0.25X1 + 0.40X2≥ 240

Range of existence
Xi≥ 0

Problem 7
Decision variables
number of kilograms of corn that should be given daily to each pig
number of kilograms of fats that should be given daily to each pig
number of kilograms of alfalfa that should be given daily to each pig

Objective function
minimize Z = 42 X1 + 36 X2 + 30 X3

Restrictions
Minimum carbohydrate requirement
90 X1 + 20 X2 + 40 X3≥ 200

Minimum protein requirement

30 X1 + 80 X2 + 60 X3≥ 180

Minimum vitamin requirements

10 X1 + 20 X2 + 60 X3≥ 150

Range of existence
X1, X2, X3≥ 0

Problem 8
Decision Variables
X1: number of ounces of food source No. 1 that the patient should consume daily
X2: number of ounces of food source No. 2 that the patient should consume daily

Objective function
minimize Z = 0.375 X1 + 0.5 X2

22
Restrictions
Requirement of nutrient A
100 X1 + 200 X2≥ 1000

Nutrient B requirement
400 X1 + 250 X2≥ 2000

Nutrient C requirement
200 X1 + 200 X2≥ 1500

Range of existence
X1, X2≥ 0

Problem 9
Decision variables
Xi: amount of dollars invested in advertising in investment type i
bonds

Objective function
maximize Z = 0.06X1 + 0.05X2 + 0.08X3 + 0.07X4

Restrictions
Availability for investment
X1 + X2 + X3 + X4≤ 200000

Investment Ranges by Sector

X1≥ 40000
X2≥ 10000
X2≤ 30000
X3≤ 20000
X4≥ 60000

Range of existence
X1, X2, X3, X4≥ 0

Problem 10
Decision variables
Xj: proportional value that indicates the extent to which project j (j = 1, 2, 3, 4) is financed
Xj = 1 indicates that the project is funded and Xj < 1 indicates that the project is not funded.

Objective function
maximize Z = 180000 X1 + 20000 X2 + 72000 X3 + 80000 X4

Restrictions
Capital requirement, year 1
30000 X1 + 12000 X2 + 30000 X3 + 20000 X4≤ 65000

Capital requirement, year 2

40000 X1 + 8000 X2 + 20000 X3 + 30000 X4≤ 80000

Capital requirement, year 3

40000 X1 + 20000 X3 + 40000 X4≤ 80000

Capital requirement, year 4

30000 X1 + 4000 X2 + 20000 X3 + 10000 X4≤ 50000

23
Fractional financing of a project
X1≤ 1
X2≤ 1
X3≤ 1
X4≤ 1

Range of existence
X1≥ 0

Problem 11
Decision variables
X1: number of units of product 1 produced weekly
X2: number of units of product 2 that are produced weekly
X3: number of units of product 3 produced weekly

Objective function
maximize Z = 50 X1 + 20 X2 + 25 X3

Restrictions
Available time of the milling machine
9 X1 + 3 X2 + 5 X3≤ 500

Available lathe time

5 X1 + 4 X2≤ 350

Available time of the grinder

3 X1 + 2 X3≤ 150

Potential sales of product 3

X3≤ 20

Range of existence
X1, X2, X3≥ 0

Problem 12
Decision variables
X1: amount of gasoline tanks produced in normal time
X2: amount of gasoline tanks produced in overtime
X3: number of fuel tanks obtained through subcontracting
number of gasoline tanks produced through temporary employment

Objective function
minimize Z = 48 X1 + 72 X2 + 50 X3 + 60 X4

Restrictions
Demand for gasoline tanks
X1 + X2 + X3 + X4≤ 100

Minimum average quality level

0.99 X1 + 0.98 X2 + 0.94 X3 + 0.98 X4≥ 0.98 (X1 + X2 + X3 + X4)
0.01 X1 - 0.04 X3≥ 0

Availability of hours during normal time

4 X1≤ 180

Availability of hours in overtime

4 X2≤ 20

24
Range of existence
X1, X2, X3, X4≥ 0

Problem 13
Decision variables
number of basic bearings that will be produced weekly
X2: number of high precision bearings that will be manufactured weekly
X3: number of general application bearings that will be produced weekly

Objective function
maximize Z = 1000X1 + 2500X2 + 1450X3

Restrictions
Production capacity
5X1 + 12X2 + 8X3≥ 500

Weekly sales for each type of bearing

X1≥ 20
X2≥ 15
X3≥ 24

Availability of extra time

5X1 + 12X2 + 8X3≤ 540

Range of existence
X1, X2, X3≥ 0

Problem 14
Decision variables
Xij: number of acres assigned on farm i, for the cultivation of j
i = 1, 2, 3, 4
A

Objective function
maximize Z = 500 X11 + 500 X21 + 500 X31 + 500 X41 + 350 X12 + 350 X22 + 350 X32 + 350 X42 + 200 X13 +
200 X23 + 200 X33 + 200 X43

Restrictions
Water availability on each farm
6 X11 + 5 X12 + 4 X13≤ 480
6 X21 + 5 X22 + 4 X23≤ 1320
6 X31 + 5 X32 + 4 X33≤ 370
6 X41 + 5 X42 + 4 X43≤ 890

Land availability on each farm

X11 + X12 + X13≤ 450
X21 + X22 + X23≤ 650
X31 + X32 + X33≤ 350
X41 + X42 + X43≤ 500

Maximum acres of each crop that can be produced on each farm

X11≤ 200
X21≤ 300
X31≤ 100
X41≤ 250
X12≤ 150

25
X22≤ 200
X32≤ 150
X42≤ 100
X13≤ 200
X23≤ 350
X33≤ 200
X43≤ 300

Workload balanced by available land

650 X11 + 650 X12 + 650 X13 - 450 X21 - 450 X22 - 450 X23 = 0
350 X21 + 350 X22 + 350 X23 - 650 X31 - 650 X32 - 650 X33 = 0
500 X31 + 500 X32 + 500 X33 - 350 X41 - 350 X42 - 350 X43 = 0

Range of existence
Xij≥ 0

Problem 15
Decision variables
Number of type A plywood sheets that will be produced weekly
X2: Number of type B plywood sheets that will be produced weekly
X3: Number of type C plywood sheets that will be produced weekly
X4: Number of type D plywood sheets that will be produced weekly, not exceeding 20
X5: Number of type D plywood sheets that will be produced weekly, exceeding 20
X6: Number of type E plywood sheets that will be produced weekly, not exceeding 20.
X7: Quantity of type E plywood sheets that will be produced weekly, and that exceed 20.

Preliminary calculations
Cost of X1: 150 - 60 - 12(120/60) - 8(120/60) - 5(90/60) = 42.5
Cost of X2: 120 - 30 - 7(120/60) - 9(120/60) - 10(90/60) = 43
Cost of X3: 150 - 60 - 8(120/60) - 4(120/60) - 7(90/60) = 55.5
Cost of X4: 120 - 30 - 10(120/60) - 0(120/60) - 3(90/60) = 65.5
Cost of X5: 90 - 30 - 10(120/60) - 0(120/60) - 3(90/60) = 35.5
Cost of X6: 120 - 30 - 7(120/60) - 11(120/60) - 2(90/60) = 51
Cost of X7: 90 - 30 - 7(120/60) - 11(120/60) - 2(90/60) = 21

Objective function
maximize Z = 42.5 X1 + 43 X2 + 55.5 X3 + 65.5 X4 + 35.5 X5 + 51 X6 + 21 X7

Restrictions
Machine 1 capacity
12 X1 + 7 X2 + 8 X3 + 10 X4 + 10 X5 + 7 X6 + 7 X7≤ 7680

Machine capacity 2
8 X1 + 9 X2 + 4 X3 + 11 X6 + 11 X7≤ 7680

Machine capacity 3
5 X1 + 10 X2 + 7 X3 + 3 X4 + 3 X5 + 2 X6 + 2 X7≤ 7680

Production of type D plywood sheets

X4≤ 20

Production of type E plywood sheets

X6≤ 20

Range of existence
Xi≥ 0

26
Problem 16
Decision variables
X12: number of units of product A that will be manufactured in Department 2
X13: number of units of product A that will be manufactured in Department 3
X22: number of units of product B that will be produced in Department 2
X23: number of units of product B that will be manufactured in Department 3

So:
X11: number of units of product A that will be manufactured in Department 1
where X11 = X12 + X13
X21: number of units of product B that will be manufactured in Department 1
where X21 = X22 + X23

Objective function
minimize Z = 6.5(3 X12 + 3 X13 + 4 X22 + 4 X23) + 8(3 X12 + 6 X22) + 5(8 X13 + 10 X23)
minimize Z = 43.5 X12 + 59.5 X13 + 74 X22 + 76 X23

Restrictions
Customer demand
X12 + X13≥ 400
X22 + X23≥ 300

Availability of extra time in department 2

3 X12 + 6 X22≤ 4600

Availability of extra time in departments 1 and 3

3X12 + 3X13 + 4X22 + 4X23≤ 3000
8 times 13 plus 10 times 23≤ 5000

Range of existence
Xij≥ 0

Problem 17
Decision variables
Xij: production in pounds of product i during month j
peanut butter
j = 1, 2, 3 (1=abril, 2=mayo, 3=junio)
Yij: amount of pounds of product i in inventory at the beginning of month j
peanut butter
April

Objective function
minimize Z = 0.10 Y12 + 0.05 Y22 + 0.10 Y13 + 0.05 Y23 + 0.12 Y14 + 0.05 Y24

Restrictions
Inventory levels of peanut butter at the end of each month
Y11 = 400
Y11 + X11 - Y12 = 400
Y12 + X12 - Y13 = 450
Y13 + X13 - Y14 = 500
Y14 = 0

Inventory levels of cocoa at the end of each month

Y21 = 400
Y21 + X21 - Y22 = 600
Y22 + X22 - Y23 = 700
Y23 + X23 - Y24 = 650
0

27
Storage capacity for peanut butter
Y11≤ 1000
Y12≤ 1000
Y13≤ 1000
Y14≤ 1000

Storage capacity for cocoa

Y21≤ 500
Y22≤ 500
Y23≤ 500
Y24≤ 500

Availability of production time

(1/30) X11 + (1/60) X21≤ 20
2 X11 + 1 X21≤ 1200

(1/30) X12 + (1/60) X22≤ 20

2 X12 + 1 X22≤ 1200

(1/30) X13 + (1/60) X23≤ 20

2 X13 + 1 X23≤ 1200

Range of existence
Xij≥ 0

Problem 18
Decision variables
Xi: number of machine hours that will be used to manufacture tube type i
i = 1, 2 (1=pequeño, 2=grande)

Preliminary calculations

Production per hour of small tubes

300 - 3(5) (300)/60 = 225
Production per hour of large tubes
200 - 1.5(5) (200)/60 = 175

Objective function
maximize Z = 225 X1 (or maximize Z = 175 X2)

Restrictions
Equal amount of tubes of each type
225 X1 - 175 X2 = 0

Machine time availability

X1 + X2≤ 8

Range of existence
Xi≥ 0

Problem 19
Decision variables
Xi: number of components i that will be produced
base
Yi: amount of components i that will be purchased
base

28
Objective function
minimize Z = 0.75 X1 + 0.40 X2 + 1.10 X3 + 0.95 Y1 + 0.55 Y2 + 1.40 Y3

Restrictions
Production capacity
0.03 X1 + 0.02 X2 + 0.05 X3≤ 400
0.04 X1 + 0.02 X2 + 0.04 X3≤ 400
0.02 X1 + 0.03 X2 + 0.01 X3≤ 400

Demand
X1 + Y1 = 5000
X2 + Y2 = 5000
X3 + Y3 = 5000

Range of existence
Xi, Yi≥ 0

Problem 20
Decision variables
Xij: number of transistors i produced in month j
i = 1, 2 (1=TR-A, 2=TR-B); j = 1, 2, 3 (1 = febrero, 2=marzo, 3=abril)
Yij: number of transistors i in inventory at the end of month j
i = 1, 2 (1=TR-A, 2=TR-B); j = 1, 2, 3 (1 = febrero, 2=marzo, 3=abril)
Yi0: number of transistors i in inventory at the beginning of February
TR-A

Objective Function
minimize Z = 20 X11 + 20 X12 + 20 X13 + 10 X21 + 10 X22 + 10 X23
+ 0.30 Y11 + 0.30 Y12 + 0.30 Y13 + 0.15 Y21 + 0.15 Y22 + 0.15 Y23

Restrictions
Initial inventory + Production - Demand = Final inventory
Y10 + X11 - 2800 = Y11
Y11 + X12 - 1500 = Y12
Y12 + X13 - 3100 = Y13

Y20 + X21 - 2700 = Y21

Y21 + X22 - 1800 = Y22
Y22 + X23 - 3200 = Y23

Initial inventories
Y10 = 500
Y20 = 1000

Final inventories
Y13≥ 500
Y23≤ 1000

Monthly capacity of the machines

0.10 X11 + 0.08 X21≤ 400
0.10 X12 + 0.08 X22≤ 500
0.10 X13 + 0.08 X23≤ 600

Monthly labor capacity

0.05 X11 + 0.02 X21≤ 300
0.05 X12 + 0.02 X22≤ 300
0.05 X13 + 0.02 X23≤ 300

29
Monthly storage capacity
2 Y11 + 3 Y21≤ 10000
2 Y12 + 3 Y22≤ 10000
2 Y13 + 3 Y23≤ 10000

Range of existence
Xij, Yij≥ 0

Problem 21
Decision variables
amount of dollars to be invested in year i in category j
i = 1,2,3,4,5,6 y j = 1 (acciones), 2 (bonos), 3 (préstamos), 4 (bienes raíces), 5 (ahorros).

Objective function
maximize Z = 1.9 X23 + 1.4 X42 + 1.15 X51 + 1.75 X54 + 1.075 X65

Restrictions
Total investments equal the available amount.
Year 1: X11 + X12 + X15 = 2000000
Year 2: X21 + X22 + X23 + X25 = 1.075 X15
X21 + X22 + X23 + X25 - 1.075 X15 = 0
Year 3: X31 + X32 + X35 = 1.15 X11 + 1.075 X25
X31 + X32 + X35 - 1.15 X11 - 1.075 X25 = 0
Year 4: X41 + X42 + X45 = 1.40 X12 + 1.15 X21 + 1.075 X35 - 400000
X41 + X42 + X45 - 1.40 X12 - 1.15 X21 - 1.075 X35 = - 400000
Year 5: X51 + X54 + X55 = 1.40 X22 + 1.15 X31 + 1.075 X45
X51 + X54 + X55 - 1.40 X22 - 1.15 X31 - 1.075 X45 = 0
Year 6: X65 = 1.40 X32 + 1.15 X41 + 1.075 X55
1.40

Diversification of investments
Year 1: actions X11≤ 700000
bonds X12≤ 700000
Year 2: actions X11 + X21≤ 700000
bonds X12 + X22≤ 700000
loans X23≤ 700000
Year 3: actions X21 + X31≤ 700000
bonds X12 + X22 + X32≤ 700000
Year 4: actions X31 + X41≤ 700000
bonds X22 + X32 + X42≤ 700000
Year 5: actions X41 + X51≤ 700000
real estate X54≤ 700000

Minimum investment in real estate of $400,000

Year 5: X54≥ 400000

Floating account with $100,000 at all times

Year 1: X15≥ 100000
Year 2: X25≥ 100000
Year 3: X35≥ 100000
Year 4: X45≥ 100000
Year 5: X55≥ 100000
Year 6: X65≥ 100000

Financial commitment of $400,000

30
Year 3: 1.4 X12 + 1.15 X21 + 1.075 X35≥ 400000

Range of existence
Xij≥ 0

Problem 22
Decision variables
Xij: number of gallons of domestic gas sent from city i to company j
i = 1, 2 (1=Chancay, 2=Huaura) j = 1, 2 (1=Comida Fresca, 2= Ensaladas Dietéticas)

Objective function
minimize Z = 0.04 X11 + 0.06 X12 + 0.05 X21 + 0.03 X22

Restrictions
Offer from the city of Chancay
X11 + X12 = 14000

Offer from the city of Huaura

X21 + X22 = 16000

Demand of the company Fresh Food

X11 + X21 = 10000

Demand of the company Dietetic Salads

X12 + X22 = 20000

Range of existence
Xij≥ 0

Problem 23
Decision variables
Xij: amount of tons of fertilizer transported from plant i to warehouse j
i = 1, 2, 3
j = 1, 2, 3, 4

Objective function
maximize Z = 62(X11 + X21 + X31) + 63(X12 + X22 + X32) + 64(X13 + X23 + X33) + 64(X14 + X24 + X34)
- 38 (X11 + X12 + X13 + X14) - 45 (X21 + X22 + X23 + X24) - 30 (X31 + X32 + X33 + X34)
- (23 X11 + 18 X12 + 21 X13 + 25 X14 + 21 X21 + 24 X22 + 23 X23 + 18 X24 + 18 X31 + 21 X32 + 27
X33 + 23 X34

maximize Z = 1 X11 - 4 X21 + 14 X31 + 7 X12 - 6 X22 + 12 X32

+ 5 X13 - 4 X23 + 7 X33 + 1 X14 + 1 X24 + 11 X34

Restrictions
Plant capacity
X11 + X12 + X13 + X14 = 650
X21 + X22 + X23 + X24 = 600
X31 + X32 + X33 + X34 = 600

Warehouse requirements
X11 + X21 + X31 = 300
X12 + X22 + X32 = 450
X13 + X23 + X33 = 500
X14 + X24 + X34 = 600

Range of existence

31
Xij≥ 0

Problem 24
Decision variables
Xij: represents the decision to assign employee i to job j (Xij = 1) or not (Xij = 0)
i = 1, 2, 3, 4, 5
j = 1, 2, 3, 4, 5

Objective function
minimize Z = 20 X11 + 14 X12 + 6 X13 + 10 X14 + 22 X15
+ 16 X21 + 8 X22 + 22 X23 + 20 X24 + 10 X25
+ 8 X31 + 6 X32 + 24 X33 + 14 X34 + 12 X35
+ 20 X41 + 22 X42 + 2 X43 + 8 X44 + 6 X45
+ 4 X51 + 16 X52 + 22 X53 + 6 X54 + 24 X55

Restrictions
An employee performs a single job
X11 + X12 + X13 + X14 + X15 = 1
X21 + X22 + X23 + X24 + X25 = 1
X31 + X32 + X33 + X34 + X35 = 1
X41 + X42 + X43 + X44 + X45 = 1
X51 + X52 + X53 + X54 + X55 = 1

A job is done by a single employee

X11 + X21 + X31 + X41 + X51 = 1
X12 + X22 + X32 + X42 + X52 = 1
X13 + X23 + X33 + X43 + X53 = 1
X14 + X24 + X34 + X44 + X54 = 1
X15 + X25 + X35 + X45 + X55 = 1

Range of existence
Xij≥ 0

Problem 25
Decision variables
number of days that seller i works in territory j
i = 1, 2, 3, 4; j = 1, 2, 3, 4

Objective function
maximize Z = 2000 X11 + 2000 X21 + 2000 X31 + 2000 X41 + 1600 X12 + 1600 X22 + 1600 X32 + 1600 X42
+ 900 X13 + 900 X23 + 900 X33 + 900 X43 + 800 X14 + 800 X24 + 800 X34 + 800 X44

Restrictions
Maximize the weighted preference index for each seller
5 X11 + 4 X12 + 2 X13 + 4 X14≥ 5 (X11 + X12 + X13 + X14)
- 1 X12 - 3 X13 - 1 X14≥ 0

4 X21 + 3 X22 + 5 X23 + 4 X24≥ 5 (X21 + X22 + X23 + X24)

- 1 X21 - 2 X22 - 1 X24≥ 0

3 X31 + 5 X32 + 2 X34≥ 5 (X31 + X32 + X33 + X34)

- 2 X31 - 5 X33 - 3 X34≥ 0

5 X41 + 4 X42 + 1 X43 + 3 X44≥ 5 (X41 + X42 + X43 + X44)

- 1 X42 - 4 X43 - 2 X44≥ 0

Minimum requirement of 10 vendor days in each territory

X11 + X21 + X31 + X41≥ 10

32
X12 + X22 + X32 + X42≥ 10
X13 + X23 + X33 + X43≥ 10
X14 + X24 + X34 + X44≥ 10

Monthly workload
X11 + X12 + X13 + X14 = 20
X21 + X22 + X23 + X24 = 20
X31 + X32 + X33 + X34 = 20
X41 + X42 + X43 + X44 = 20

Sellers assigned to at least two territories

X11≤ 19
X12≤ 19
X13≤ 19
X14≤ 19
X21≤ 19
X22≤ 19
X23≤ 19
X24≤ 19
X31≤ 19
X32≤ 19
X33≤ 19
X34≤ 19
X41≤ 19
X42≤ 19
X43≤ 19
X44≤ 19

Range of existence
Xij≥ 0

Problem 26
Preliminary calculations

Reading indices
Magazine A: 0.40(40%) + 0.35(60%) + 0.25(30%) = 0.445
Magazine B: 0.40(70%) + 0.35(50%) + 0.25(20%) = 0.505
Magazine C: 0.40(60%) + 0.35(40%) + 0.25(60%) = 0.530

Effectiveness coefficients
Magazine A: 0.445(780000) = 347100
Magazine B: 0.505(940000) = 474700
Magazine C: 0.530(1250000) = 662500

Effectiveness of exposure
Magazine A: 347100 / 500 = 694.20 readers per dollar invested
Magazine B: 474700 / 750 = 632.93 readers per dollar invested
Magazine C: 662500 / 800 = 828.13 readers per dollar invested

Decision variables
Xi: amount of dollars invested in ads in magazine i
A

Objective function
maximize Z = 694.20 X1 + 632.93 X2 + 828.13 X3

Restrictions

33
Investment in advertising
X1 + X2 + X3≤ 38000

A minimum of 9 ads must be placed in magazine A and 5 ads in magazine C.

X1 / 500≥ 9
X1≥ 4500

X3 / 800≥ 5
X3≥ 4000

Number of ads
X1 / 500≤ 36
X1≤ 18000

X2 / 750≤ 40
X2≤ 30000

X3 / 800≤ 45
X3≤ 36000

Range of existence
Xi≥ 0

Problem 27
Decision variables
Xi: number of type i vehicles to be purchased
Van

Objective function
maximize Z = 2000 X1 + 2800 X2 + 6500 X3

Restrictions
Available investment
6500 X1 + 10500 X2 + 29000 X3≤ 500000

Maintenance capacity
X1 + 1.5 X2 + 3 X3≤ 30

Range of existence
X1, X2, X3≥ 0

Problem 28
Decision variables
Xi: quantity of units of product i manufactured weekly; i = 1,2
Yi: amount of advertising dollars invested in product i weekly i = 1,2
HE: amount of overtime hours used per week

Objective function
maximize Z = (15 - 3) X1 + (8 - 1.5) X2 - 6 HE - 1 Y1 - 1 Y2
maximize Z = 12 X1 + 6.5 X2 - 6 HE - 1 Y1 - 1 Y2

Restrictions

Demand for product 1

X1≤ 50 + X1 + 2 Y1
X1 - 2 Y1≤ 50

34
Demand for product 2
X2≤ 60 + 1 Y2
X2 - 1 Y2≤ 60

Labor availability
0.75 X1 + 0.5 X2≤ 4 (40) + HE
0.75 X1 + 0.5 X2 - HE≤ 160

Availability of raw material

2 X1 + 1 X2≤ 400

Availability of money for advertising

Y1 + Y2≤ 100

Machine hour availability

1.5 X1 + 0.8 X2≤ 320

Range of existence
Xi≥ 0

Problem 29
Decision variables
amount of pounds of ingredient i to be used in mixture j
peanut
1, 2, 3 (1=normal, 2=special, 3=extra)

Objective function
maximize Z = (1.50 - 0.90) X11 + (1.50 - 1.60) X21 + (1.50 - 1.50) X31
(2.20 - 0.90) X12 + (2.20 - 1.60) X22 + (2.20 - 1.50) X32
(3.50 - 0.90) X13 + (3.50 - 1.60) X23 + (3.50 - 1.50) X33

maximize Z = 0.60 X11 - 0.10 X21 + 1.30 X12 + 0.60 X22 + 0.70 X32 + 2.60 X13 + 1.90 X23 + 2.00 X33

Restrictions
Normal mix requirements
X11≥ 0.05 (X11 + X21 + X31)
0.95 X11 - 0.05 X21 - 0.05 X31≥ 0

X21≥ 0.05 (X11 + X21 + X31)

- 0.05 X11 + 0.95 X21 - 0.05 X31≥ 0

X31≥ 0.05 (X11 + X21 + X31)

- 0.05 X11 - 0.05 X21 + 0.95 X31≥ 0

Special mix requirements

X12≥ 0.20 (X12 + X22 + X32)
0.80 X12 - 0.20 X22 - 0.20 X32≥ 0

X22≥ 0.20 (X12 + X22 + X32)

- 0.20 X12 + 0.80 X22 - 0.20 X32≥ 0

X32≥ 0.20 (X12 + X22 + X32)

- 0.20 X12 - 0.20 X22 + 0.80 X32≥ 0

X12≤ 0.50 (X12 + X22 + X32)

0.50 X12 - 0.50 X22 - 0.50 X32≤ 0

35
X22≤ 0.50 (X12 + X22 + X32)
- 0.50 X12 + 0.50 X22 - 0.50 X32≤ 0

X32≤ 0.50 (X12 + X22 + X32)

- 0.50 X12 - 0.50 X22 + 0.50 X32≤ 0

Extra blend requirements

X23≥ 0.25 (X13 + X23 + X33)
- 0.25 X13 + 0.75 X23 - 0.25 X33≥ 0

X13≤ 0.25 (X13 + X23 + X33)

0.75 X13 - 0.25 X23 - 0.25 X33≤ 0

Peanut availability
X11 + X12 + X13≤ 1000

Availability of raisins
X21 + X22 + X23≤ 2000

Availability of carob
X31 + X32 + X33≤ 3000

The normal mixture should be limited to 20% of total production.

X11 + X21 + X31≤ 0.20 (X11 + X21 + X31 + X12 + X22 + X32 + X13 + X23 + X33)
0.80 X11 + 0.80 X21 + 0.80 X31 - 0.20 X12 - 0.20 X22 - 0.20 X32 - 0.20 X13 - 0.20 X23 - 0.20 X33≤ 0

Range of existence
Xij≥ 0

Problem 30
Decision variables
Xij: amount of units of product i produced monthly in plant j
i = 1, 2, 3, 4 j = 1, 2

Objective function
maximize Z = (200 - 160) X11 + (300 - 270) X21 + (250 - 240) X31 + (280 - 270) X41
(200 - 220) X12 + (300 - 300) X22 + (250 - 200) X32 + (280 - 220) X42

maximize Z = 40 X11 + 30 X21 + 10 X31 + 10 X41 - 20 X12 + 50 X32 + 60 X42

Restrictions
Production capacity in operation A
6 X11 + 7.2 X21 + 4 X31 + 7 X41≤ 30000

Production capacity in operation B

18 X11 + 20 X21 + 16 X31 + 18 X41≤ 100,000

Production capacity in operation C

2 X11 + 2 X21 + 1 X31 + 1 X41≤ 16000

Production capacity in operation X

8 X12 + 8 X22 + 4 X32 + 8 X42≤ 20000

Production capacity in operation Y

10 X12 + 16 X22 + 8 X32 + 6 X42≤ 20000

36
Demand for product 1
X11 + X12≤ 1000

Demand for product 2

X21 + X22≤ 3000

Demand for product 3

X31 + X32≤ 4000

Demand for product 4

X41 + X42≤ 6000

Range of existence
Xij≥ 0

Problem 31
Decision variables
Xi: amount of acres allocated to produce crop i
Soybean

Objective function
maximize Z = 1.50 (420)(X1 - 2000/420) + 1.80 (200)(X2 - 5000/200) + 2.50 (70)(X3 - 1000/70)

maximize Z = 630 X1 + 360 X2 + 175 X3 - 14500

Restrictions
Availability of acres
X1 + X2 + X3≤ 130

Soybean production
X1≥ 2000/420
X1≥ 4.76

Wheat production
X2≥ 5000/200
X2≥ 25

Corn production
X3≥ 1000/70
X3≥ 14.29

Demand for soybeans

X1≤ 12000/420
X1≤ 28.57

Wheat demand
X2≤ 13000/200
X2≤ 65

Corn demand
X3≤ 4000/70
X3≤ 57.14

Range of existence
X1, X2, X3≥ 0

Problem 32

37
Decision variables
number of students from the low socio-economic level in area i that will study at school j
A
j = 1, 2
Yij: number of students from other socio-economic levels in area i who will study at school j
A
j = 1, 2

Objective function
minimize Z = 1.5 X11 + 1.5 Y11 + 2.5 X12 + 2.5 Y12 + 1.8 X21 + 1.8 Y21 + 1.9 X22 + 1.9 Y22
+ 2.2 X31 + 2.2 Y31 + 2.6 X32 + 2.6 Y32 + 2.5 X41 + 2.5 Y41 + 2.3 X42 + 2.3 Y42
+ 2.9 X51 + 2.9 Y51 + 1.8 X52 + 1.8 Y52 + 2.8 X61 + 2.8 Y61 + 1.1 X62 + 1.1 Y62

Restrictions
School capacity 1
X11 + Y11 + X21 + Y21 + X31 + Y31 + X41 + Y41 + X51 + Y51 + X61 + Y61≤ 6500
School capacity 2
X12 + Y12 + X22 + Y22 + X32 + Y32 + X42 + Y42 + X52 + Y52 + X62 + Y62≤ 4500

To attend to at least 32% of students from the low socio-economic level

X11 + X21 + X31 + X41 + X51 + X61≥ 0.32 (X11 + Y11 + X21 + Y21 + X31 + Y31 + X41 + Y41 + X51 + Y51 +
X61 + Y61
0.68 X11 - 0.32 Y11 + 0.68 X21 - 0.32 Y21 + 0.68 X31 - 0.32 Y31 + 0.68 X41 - 0.32 Y41 + 0.68 X51 - 0.32 Y51 +
0.68 X61 - 0.32 Y61≥ 0

X12 + X22 + X32 + X42 + X52 + X62≥ 0.32 (X12 + Y12 + X22 + Y22 + X32 + Y32 + X42 + Y42 + X52 + Y52 +
X62 + Y62
0.68 X12 - 0.32 Y12 + 0.68 X22 - 0.32 Y22 + 0.68 X32 - 0.32 Y32 + 0.68 X42 - 0.32 Y42 + 0.68 X52 - 0.32 Y52 +
0.68 X62 - 0.32 Y62≥ 0

Attend to at least 45% of students from the low socio-economic level

X11 + X21 + X31 + X41 + X51 + X61≤ 0.45 (X11 + Y11 + X21 + Y21 + X31 + Y31 + X41 + Y41 + X51 + Y51 +
X61 + Y61
0.55 X11 - 0.45 Y11 + 0.55 X21 - 0.45 Y21 + 0.55 X31 - 0.45 Y31 + 0.55 X41 - 0.45 Y41 + 0.55 X51 - 0.45 Y51 +
0.55 X61 - 0.45 Y61≤ 0

X12 + X22 + X32 + X42 + X52 + X62≤ 0.45 (X12 + Y12 + X22 + Y22 + X32 + Y32 + X42 + Y42 + X52 + Y52 +
X62 + Y62
0.55 X12 - 0.45 Y12 + 0.55 X22 - 0.45 Y22 + 0.55 X32 - 0.45 Y32 + 0.55 X42 - 0.45 Y42 + 0.55 X52 - 0.45 Y52 +
0.55 X62 - 0.45 Y62≤ 0

Total student population by area

X11 + Y11 + X12 + Y12 = 1900
X21 + Y21 + X22 + Y22 = 2475
X31 + Y31 + X32 + Y32 = 1000
X41 + Y41 + X42 + Y42 = 2150
X51 + Y51 + X52 + Y52 = 1800
X61 + Y61 + X62 + Y62 = 1400

Student population of low socio-economic level by area

X11 + X12 = 200
X21 + X22 = 1600
X31 + X32 = 490
X41 + X42 = 450
X51 + X52 = 870
X61 + X62 = 590

Students should not travel more than 2.8 kilometers

38
X51 = 0
Y51 = 0

Range of existence
Xij≥ 0

Problem 33
Decision variables
Xi: number of pairs of shoes produced in month i
i = 1, 2, 3, 4, 5, 6, 7
Yi: number of pairs of shoes in inventory at the end of month i
i = 1, 2, 3, 4, 5, 6, 7

Objective function
minimize Z = 36 X1 + 42 X2 + 38 X3 + 40 X4 + 35 X5 + 39 X6 + 37 X7
+ 1 Y1 + 1 Y2 + 1 Y3 + 1 Y4 + 1 Y5 + 1 Y6 + 1 Y7

Restrictions
Initial inventory + Production - Demand = Final inventory
X1 - 150000 = Y1
Y1 + X2 - 110000 = Y2
Y2 + X3 - 180000 = Y3
Y3 + X4 - 100000 = Y4
Y4 + X5 - 200000 = Y5
Y5 + X6 - 180000 = Y6
Y6 + X7 - 110000 = Y7

Range of existence
Xij≥ 0

Problem 34
Decision variables
Xi1: quantity of units of product i to be produced per week
i = 1, 2, 3, 4
Xi2: quantity of units of product i to be purchased per week
i = 1, 2, 3, 4

Objective function
minimize Z = 2.60 X11 + 2.25 X21 + 4.40 X31 + 2.10 X41 + 3.15 X12 + 2.75 X22 + 4.70 X32 + 2.30 X42

Restrictions
Availability by machine
0.08 X11 + 0.04 X31 + 0.12 X41≤ 60
0.04 X11 + 0.02 X21 + 0.12 X31 + 0.08 X41≤ 60
0.04 X11 + 0.10 X21 + 0.35 X41≤ 60
0.03 X21 + 0.15 X31≤ 60
0.06 X11 + 0.18 X21 + 0.50 X31≤ 60
0.12 X11 + 0.12 X21 + 0.45 X31 + 0.10 X41≤ 60

Orders by product
X11 + X12≥ 250
X21 + X22≥ 250
X31 + X32≥ 250
X41 + X42≥ 250

Range of existence
Xij≥ 0

39
Problem 35
Decision variables
Xij: number of capacity assets to be added in quarter i using policy j
i = 1, 2, 3, 4, 5, 6, 7, 8
j = 1, 2
Yk: quantity of units of the product that will be manufactured in quarter k and will be sold in quarter k+1
k = 1, 2, 3, 4, 5, 6, 7, 8

Objective function
maximize Z = X11 + X12 + X21 + X22 + X31 + X32 + X41 + X42 + X51 + X52 + X61 + X62 + X71 + 960

Restrictions
Investment during the first quarter
24000 X11 + 18000 X12≤ 320000 - 120 Y1
24000 X11 + 18000 X12 + 120 Y1≤ 320000

Investment during the second quarter

24000 X21 + 18000 X22≤ 320000 - 120 Y1 - 24000 X11 - 18000 X12
+ 175 Y1 - 120 Y2

24000 X21 + 18000 X22 + 24000 X11 + 18000 X12 - 55 Y1 + 120 Y2≤ 320000

Investment during the third quarter

24000 X31 + 18000 X32≤ 320000 - 120 Y1 - 24000 X11 - 18000 X12
+ 175 Y1 - 120 Y2 - 24000 X21 - 18000 X22
+ 175 Y2 - 120 Y3

24000 X21 + 18000 X22 + 24000 X11 + 18000 X12 + 24000 X31 + 18000 X32 - 55 Y1 - 55 Y2 + 120 Y3
≤ 320000

Investment during the fourth quarter

24000 X41 + 18000 X42≤ 320000 - 120 Y1 - 24000 X11 - 18000 X12
+ 175 Y1 - 120 Y2 - 24000 X21 - 18000 X22
+ 175 Y2 - 120 Y3 - 24000 X31 - 18000 X32
+ 175 Y3 - 120 Y4

24000 X21 + 18000 X22 + 24000 X11 + 18000 X12 + 24000 X31 + 18000 X32 + 24000 X41 + 18000 X42 - 55 Y1
- 55 Y2 - 55 Y3 + 120 Y4≤ 320000

Investment during the fifth quarter

24000 X51 + 18000 X52≤ 320000 - 120 Y1 - 24000 X11 - 18000 X12
+ 175 Y1 - 120 Y2 - 24000 X21 - 18000 X22
+ 175 Y2 - 120 Y3 - 24000 X31 - 18000 X32
+ 175 Y3 - 120 Y4 - 24000 X41 - 18000 X42
+ 175 Y4 - 120 Y5

24000 X21 + 18000 X22 + 24000 X11 + 18000 X12 + 24000 X31 + 18000 X32 + 24000 X41 + 18000 X42 +
24000 X51 + 18000 X52 - 55 Y1 - 55 Y2 - 55 Y3 - 55 Y4 + 120 Y5≤ 320000

Investment during quarter 6

24000 X61 + 18000 X62≤ 320000 - 120 Y1 - 24000 X11 - 18000 X12
+ 175 Y1 - 120 Y2 - 24000 X21 - 18000 X22
+ 175 Y2 - 120 Y3 - 24000 X31 - 18000 X32
+ 175 Y3 - 120 Y4 - 24000 X41 - 18000 X42
+ 175 Y4 - 120 Y5 - 24000 X51 - 18000 X52

40
 + 175 Y5 - 120 Y6

24000 X21 + 18000 X22 + 24000 X11 + 18000 X12 + 24000 X31 + 18000 X32 + 24000 X41 + 18000 X42 +
24000 X51 + 18000 X52 + 24000 X61 + 18000 X62 - 55 Y1 - 55 Y2 - 55 Y3 - 55 Y4 - 55 Y5 + 120 Y6≤ 320000

Investment during the quarter 7

24000 X71 + 18000 X72≤ 320000 - 120 Y1 - 24000 X11 - 18000 X12
+ 175 Y1 - 120 Y2 - 24000 X21 - 18000 X22
+ 175 Y2 - 120 Y3 - 24000 X31 - 18000 X32
+ 175 Y3 - 120 Y4 - 24000 X41 - 18000 X42
+ 175 Y4 - 120 Y5 - 24000 X51 - 18000 X52
+ 175 Y5 - 120 Y6 - 24000 X61 - 18000 X62
+ 175 Y6 - 120 Y7

24000 X21 + 18000 X22 + 24000 X11 + 18000 X12 + 24000 X31 + 18000 X32 + 24000 X41 + 18000 X42 +
24000 X51 + 18000 X52 + 24000 X61 + 18000 X62 + 24000 X71 + 18000 X72 - 55 Y1 - 55 Y2 - 55 Y3 - 55 Y4 -
55 Y5 - 55 Y6 + 120 Y7≤ 320000

Production capacity in the first quarter

1.2 Y1≤ 960

Production capacity in the second quarter

1.2 Y2≤ 960 + X11
- X11 + 1.2 Y2≤ 960
Production capacity in the third quarter
1.2 Y3≤ 960 + X11 + X12 + X21
- X11 - X12 - X21 + 1.2 Y3≤ 960

Production capacity for the 4th quarter

1.2 Y4≤ 960 + X11 + X12 + X21 + X22 + X31
- X11 - X12 - X21 - X22 - X31 + 1.2 Y4≤ 960

Production capacity for the 5th quarter

1.2 Y5≤ 960 + X11 + X12 + X21 + X22 + X31 + X32 + X41
- X11 - X12 - X21 - X22 - X31 - X32 - X41+ 1.2 Y5≤ 960

Production capacity for the 6th quarter

1.2 Y6≤ 960 + X11 + X12 + X21 + X22 + X31 + X32 + X41 + X42 + X51
- X11 - X12 - X21 - X22 - X31 - X32 - X41 - X42 - X51 + 1.2 Y6≤ 960

Production capacity for the 7th quarter

1.2 Y7≤ 960 + X11 + X12 + X21 + X22 + X31 + X32 + X41 + X42 + X51 + X52 + X61
- X11 - X12 - X21 - X22 - X31 - X32 - X41 - X42 - X51 - X52 - X61+ 1.2 Y7≤ 960

Range of existence
Xij≥ 0
Yk≥ 0

Problem 36

Version 1
Decision variables
amount of money invested in buying product i in year j
i = 1, 2 j = 1, 2
amount of money invested in advertising for product i in year j

41
 i = 1, 2 j = 1, 2

Objective function
maximize Z = (1.20 - 0.75)(6 Y11) + (1.20 - 0.80)(7 Y12) + (1.05 - 0.70)(9 Y21) + (1.05 - 0.85)(12 Y22)
maximize Z = 2.7 Y11 + 2.8 Y12 + 3.15 Y21 + 2.4 Y22

Restrictions
Availability for advertising and purchases year 1
X11 + X21 + Y11 + Y21≤ 12000

Sales≤ Purchases
6 Y11≤ X11 / 0.75
9 Y21≤ X21 / 0.70

At least 30% of the units sold will be from product 2 in year 1

9 Y21≥ 0.30 (9 Y21 + 6 Y11)

No more than 60% of the units sold will be of product 2 in year 1

9 Y21≤ 0.60 (9 Y21 + 6 Y11)

Availability for advertising and purchases in year 2

X12 + X22 + Y12 + Y22≤ 1200 + 2.7 Y11 + 3.15 Y21

Sales≤ Purchases
7 Y12≤ X12 / 0.80 + (X11 / 0.75 - 6 Y11)
12 Y22≤ X22 / 0.85 + (X12 / 0.70 - 9 Y12)

At least 30% of the units sold will be of product 2 in year 2

12 Y22≥ 0.30 (12 Y22 + 7 Y12)

No more than 60% of the units sold will be of product 2 in year 2

12 Y22≤ 0.60 (12 Y22 + 7 Y12)

Range of existence
Xij, Yij≥ 0

Version 2
Decision variables
Xij: quantity of units of product i purchased in year j
i = 1, 2 j = 1, 2
Yij: number of units of product i sold in year j
i = 1, 2 j = 1, 2

Objective function
maximize Z = (1.20 - 0.75) Y11 + (1.20 - 0.80) Y12 + (1.05 - 0.70) Y21 + (1.05 - 0.85) Y22
maximize Z = 0.45 Y11 + 0.40 Y12 + 0.35 Y21 + 0.30 Y22

Restrictions
Availability for advertising and purchases year 1
Y11 / 6 + Y21 / 9 + 0.75 X11 + 0.70 X21≤ 12000

Sales≤ Purchases
Y11≤ X11
Y21≤ X21

At least 30% of the units sold will be of product 2 in year 1

42
Y21≥ 0.30 (Y21 + Y11)

No more than 60% of the units sold will be of product 2 in year 1.

Y21≤ 0.60 (Y21 + Y11)

Availability for advertising and purchases in year 2

Y12 / 7 + Y22 / 12 + 0.80 X12 + 0.85 X22≤ 1200 + 0.45 Y11 + 0.35 Y21

Sales≤ Purchases
Y12≤ X12 + (X11 - Y11)
Y22≤ X22 + (X12 - Y12)

At least 30% of the units sold will be of product 2 in year 2.

Y22≥ 0.30 (Y22 + Y12)

No more than 60% of the units sold will be of product 2 in year 2.

Y22≤ 0.60 (Y22 + Y12)

Range of existence
Xij, Yij≥ 0

Problem 37
Decision variables
Xij: number of tiles (in thousands) purchased in the i-th station and sold in the j-th station.
i = 1, 2, 3, 4 j = 1, 2, 3, 4 i<j Summer

Objective function
maximize Z = (22000 - 21000) X11 + (23250 - 21000 - 18) X12
(28500 - 21000 - 30) X13 + (25500 - 21000 - 42) X14
+ (23250 - 22000) X22 + (28500 - 22000 - 18) X23
2659200
(25500 - 26000 - 18) X34 + (25500 - 24000) X44
maximize Z = 1000 X11 + 2232 X12 + 7470 X13 + 4458 X14 + 1250 X22 + 6482 X23 + 3470 X24 + 2500 X33 -
518 X34 + 1500 X44

Restrictions
Demands
X11 = 100
X12 + X22 = 140
X13 + X23 + X33 = 200
X14 + X24 + X34 + X44 = 160

Storage capacity
X11 + X12 + X13 + X14≤ 220
X12 + X13 + X14 + X22 + X23 + X24≤ 220
X13 + X14 + X23 + X24 + X33 + X34≤ 220

Range of existence
Xij≥ 0

Problem 38
Decision variables
number of sports shelters that will be manufactured during the week
X2: number of formal shelters that will be manufactured during the week
number of executive shelters that will be manufactured during the week

Objective function

43
maximize Z = 30 X1 + 70 X2 + 150 X3
- 2 (8 X1 + 6 X2 + 12 X3 - 8000) - 2 (4 X1 + 12 X2 + 10 X3 - 8000) - 3 (6 X1 + 6 X2 + 16 X3 - 4000)
maximize Z = -12 X1 + 16 X2 + 88 X3 + 44000

Restrictions
Normal time availability in department 1
4 X1 + 12 X2 + 10 X3≥ 8000

Normal time utilization in department 2

6 X1 + 6 X2 + 16 X3≥ 4000

Production levels of the break-even point

X1≥ 100
X2≥ 50
X3≥ 50

Availability of extra time in department 1

4 X1 + 12 X2 + 10 X3≤ 8200

Availability of extra time in department 2

6 X1 + 6 X2 + 16 X3≤ 4600

Availability of raw materials

8 X1 + 6 X2 + 12 X3≥ 8000

Market demands
X1≥ 1000
X2≥ 500
X3≥ 200

Range of existence
Xi≥ 0

Problem 39
Decision variables
Xij: number of fifths of grade i gallon that will be used in the wine type j
donde i = 1 (I), 2 (II), 3 (III); j = 1 (Rose), 2 (Semiseco), 3 (Seco)

Objective function
maximize Z = -0.50X11 + 1 X21 + 2.50X31 - 1.25X12 + 0.25X22 + 1.75X32 - 1.75X13 - 0.25X23 + 1.25X33

Restrictions
Minimum requirements for rosé wine and semi-dry wine per day
X11 + X21 + X31≥ 2000
X12 + X22 + X32≥ 1000

Use of raw materials

X11 + X12 + X13≤ 1800
X21 + X22 + X23≤ 2000
X31 + X32 + X33≤ 1200

Composition of the wines

X31≤ 0.12 (X11 + X21 + X31)
-0.12 X11 - 0.12 X21 + 0.88 X31≤ 0

X11≥ 0.50 (X11 + X21 + X31)

0.50 X11 - 0.50 X21 - 0.50 X31≥ 0

44
X32≤ 0.40 (X12 + X22 + X32)
- 0.40 X12 - 0.40 X22 + 0.60 X32≤ 0

X12≥ 0.25 (X12 + X22 + X32)

0.75 X12 - 0.25 X22 - 0.25 X32≥ 0

X33≤ 0.50 (X13 + X23 + X33)

- 0.50 X13 - 0.50 X23 + 0.50 X33≤ 0

X23≥ 0.10 (X13 + X23 + X33)

- 0.10 X13 + 0.90 X23 - 0.10 X33≥ 0

Range of existence
Xij≥ 0

Problem 40
Decision variables
Yj: number of units initially in inventory, sold in month j
j = 1, 2, 3, 4
Xij: number of units purchased in month i, sold in month j
i = 1, 2, 3; j = 2, 3, 4; i < j

Objective function
maximize Z = 6 Y1 + 4 Y2 + 1 Y3 + 3 Y4 + 2 X12 - 1 X13 + 1 X14 - 1 X23 + 1 X24 - 1 X34

Restrictions
Normal storage capacity, in month 1
2000 + X12 + X13 + X14 - Y1≤ 3000
X12 + X13 + X14 - Y1≤ 1000

Minimum booking of $2000 each month

12 Y1 - 8 X12 - 8 X13 - 8 X14≥ 2000
10 Y2 + 10 X12 - 8 X23 - 8 X24 + 12 Y1 - 8 X12 - 8 X13 - 8 X14≥ 2000
7 Y3 + 7 X13 + 7 X23 - 10 X34 + 10 Y2 + 10 X12 - 8 X23 - 8 X24 + 12 Y1 - 8 X12 - 8 X13 - 8 X14≥ 2000
9 Y4 + 9 X14 + 9 X24 + 9 X34 + 7 Y3 + 7 X13 + 7 X23 - 10 X34 + 10 Y2 + 10 X12 - 8 X23 - 8 X24 + 12 Y1 - 8
8≥ 2000

Having $4000 at the beginning of month 4, after purchases

9 Y4 + 9 X14 + 9 X24 + 9 X34 + 7 Y3 + 7 X13 + 7 X23 - 10 X34 + 10 Y2 + 10 X12 - 8 X23 - 8 X24 + 12 Y1 - 8
8≥ 4000
9 Y4 + 9 X14 + 9 X24 + 9 X34 + 7 Y3 + 7 X13 + 7 X23 - 10 X34 + 10 Y2 + 10 X12 - 8 X23 - 8 X24 + 12 Y1 - 8
8≥ 6000

Units available at the beginning of month 1

Y1 + Y2 + Y3 + Y4 = 2000

Normal and extra capacity of the warehouse in months 2 and 3

2000 + X12 + X13 + X14 - Y1 + X23 + X24 - Y2 - X12≤ 4000
X13 + X14 - Y1 + X23 + X24 - Y2 ≤ 2000

2000 + X12 + X13 + X14 - Y1 + X23 + X24 - Y2 - X12 + X34 - Y3 - X13 - X23≤ 4000
X14 - Y1 + X24 - Y2 + X34 - Y3≤ 2000

Range of existence
Xij, Yj≥ 0

45
Problem 41
Decision variables
Xi: number of shares of type i that will be purchased
i = 1, 2, 3, 4, 5, 6

Objective function
maximize Z = 90 X1 + 25 X2 + 70 X3 + 125 X4 + 35 X5 + 140 X6

Restrictions
Minimum return on investment of 8%
0.103(90 X1) + 0.088(25 X2) + 0.087(70 X3) + 0.057(125 X4) + 0.052(35 X5) + 0.034(140 X6)≥ 0.08(90 X1 + 25
X2 + 70 X3 + 125 X4 + 35 X5 + 140 X6
2.07 X1 + 0.2 X2 + 0.49 X3 - 2.875 X4 - 0.98 X5 - 6.44 X6 >= 0

Minimum dividends of $18000 per year

1.15 X1 + 0.20 X2 + 1.90 X3 + 2.15 X4 + 0.80 X5 + 3.40 X6≥ 18000

Invest at least 35% of the total money in the three stocks with the lowest risk factors.
125 X4 + 35 X5 + 140 X6≥ 525000

Weighted maximum risk factor of 6%

0.07(90 X1) + 0.09(25 X2) + 0.10(70 X3) + 0.04(125 X4) + 0.03(35 X5) + 0.04(140 X6)≤ 0.06(90 X1 + 25 X2 + 70
X3 + 125 X4 + 35 X5 + 140 X6
0.9 X1 + 0.75 X2 + 2.8 X3 - 2.5 X4 - 1.05 X5 - 2.8 X6≤ 0

Limit the dollars invested in the three low-risk alternatives

125 X4 + 35 X5 + 140 X6≤ 700000

Available funds for investment

90 X1 + 25 X2 + 70 X3 + 125 X4 + 35 X5 + 140 X6≤ 1,500,000

Range of existence
Xi≥ 0

Problem 42
Reading indices
magazine A : 0.40(40%) + 0.35(60%) + 0.25(30%) = 0.445
magazine B : 0.40(70%) + 0.35(50%) + 0.25(20%) = 0.505
magazine C : 0.40(60%) + 0.35(40%) + 0.25(60%) = 0.530
Effectiveness coefficients
magazine A : 0.445(780000) = 347100
Magazine B : 0.505(940000) = 474700
magazine C : 0.530(1250000) = 662500
Effectiveness of exposure
magazine A : 347100 / 500 = 694.20 readers per dollar invested
Magazine B: 474700 / 750 = 632.93 readers per dollar invested
Magazine C: 662500 / 800 = 828.13 readers per dollar invested

Decision variables
Xi: amount of dollars to be invested in advertising in magazine i
A

Objective function
maximize Z = 694.20 X1 + 632.93 X2 + 828.13 X3

Restrictions
Minimum effective exposure
694.20 X1 + 632.93 X2 + 828.13 X3≥ 7500000

46
Maximum advertising cost of $38000
X1 + X2 + X3≤ 38000

Minimum number of ads for magazines A and C

(1/500) X1≥ 9
X1≥ 4500

(1/800) X3≥ 5
X3≥ 4000

Maximum number of advertisements for magazines A, B, and C

(1/500) X1≤ 36
X1≤ 18000

(1/750) X2≤ 40
X2≤ 30000

(1/800) X3≤ 45
X3≤ 36000

Range of existence
Xi≥ 0

Problem 43
Decision variables
Xi: number of publications in journal i
Alfa

Objective function
maximize Z = 0.5 (0.49 + 0.08 X1) + 0.5 (0.47 + 0.12 X2) + 0.6 (0.44 + 0.12 X1) + 0.4 (0.37 + 0.09 X2)
maximize Z = 0.112 X1 + 0.096 X2 + 0.892

Restrictions
Double the publications in the Alpha newspaper than in the Beta newspaper
X1 - 2 X2≥ 0

Budget for the advertising campaign

3000 X1 + 2000 X2≤ 16000

Number of publications
X1≥ 1
X1≤ 4
X2≥ 1
X2≤ 5

Range of existence
Xi≥ 0

47
 INTEGER LINEAR PROGRAMMING

Problem 1
The metropolitan area of Lima has received a donation to build a set of facilities.
new ones for the treatment of alcoholics. The employees in charge of planning in Lima have
divided the metropolitan area into 7 zones and are considering five possible locations to set up the
alcohol treatment centers. They have also determined which places are less than
half an hour's drive from each region, since the donation requires that there be a
treatment center within this distance for each member of the population. The following table
show the regions, the potential centers, and the estimated costs to build each center
treatment. One is recorded for the treatment centers and areas that meet the criterion of
half an hour drive times.

POSSIBLE CENTERS
ZONE
SURQUILLO BARRANCO COMAS Lynx THE VICTORY
I 1
II 1 1 1
III 1 1 1
IV 1 1
V 1 1
VI 1 1 1
VII 1 1 1
COST (miles $) 400 250 350 200 500

It is desired to choose the centers that should be built to serve all the areas. Formulate a
adequate PLE model for this situation.

Problem 2
A company produces three products, which require raw materials and space.
Storage. The respective technical information is presented below:

Resource Product A Product B Product C Available

Raw Material (pounds) 4 lbs. 3 lbs. 1.5 lbs. 1600 lbs.
Space (feet3) 2 feet3 3 feet3 2 feet3 1200 feet3

Product A is sold for 25 soles and product B is sold for 20 soles, however their production costs
depends on the amount produced according to a nonlinear relationship, as shown in the
following tables:

Product A Unit cost (S/. ) Product B Unit cost (S/.)

0 - 80 10 0 – 95 13
81 - 150 11 96 - 130 11
151 – 200 13 131 - 180 10
201 – 300 15 181 - 240 9

The profit of product C is 3 soles and at least 20 units must be produced.

Formulate a suitable linear programming model for this situation.

Problem 3

The CCSS company faces the problem of determining which development projects it should undertake.
The company has only US$1,250,000 available. The attached table shows us the possible projects of
investment, the estimated NPV and the required investment.

1
 ESTIMATED VPN INVERSION
PROJECT
(US$) REQUIRED
A 80,000 100,000
B 230,000 250,000
C 150,000 120,000
D 300,000 400,000
E 180,000 210,000
F 420,000 460,000

• Two of the projects A, C, E, and F must be undertaken.

• Projects C and E must be undertaken simultaneously.
• Projects A or D must be undertaken.
• The D project cannot be undertaken unless projects A and C are also undertaken.
• If projects B and E are undertaken, project A must also be undertaken.

Formulate a PLE model that helps the management of CCSS decide which projects should be
finance

Problem 4

DYNAMIX specializes in the preparation of computer programs for the government and the
industry. These programs are written in one of four programming languages. FORTRAN,
Assembler, C and APL. The company has three programmers who perform this work and there are five
programming jobs that need to be completed as soon as possible. Not all programmers
they work at the same speed in all languages and are paid differently based on their
experience. Each of the jobs must be carried out by a single programmer. The costs of
The completion of each task by programmer is shown in the following table:

Work
Programmer
1 2 3 4 5
César $100 $150 $200 $100 $50
Luis $80 $200 $100 $100 $80
Raúl $200 $250 $250 $150 $100

Below is the time (in hours) that each programmer needs to finish each
work and its available time.

Work Available time

Programmer
1 2 3 4 5 (hours)
Cesar 10 15 20 10 5 35
Luis 4 10 5 5 4 20
Raúl 20 25 25 15 10 40

Formulate an appropriate integer linear programming model for this situation.

Problem 5

The School of Business is in the process of selecting a new director. The president of the
the association wishes to appoint a committee of four people to work in the summer on it
related to the selection. Each member of the committee will be paid a salary
summer bonus consisting of 10% of their annual salary.
Each of the various departments has appointed a professor to be part of the committee.
The following table presents these teachers, their department, and their annual salary. It also
provide your appointment, years of service, and available time to work on the search for

2
The president of the faculty wants to choose a committee that minimizes costs, subject to the
following restrictions:

Four members
An average of at least 5 years of service.
A total working time for the committee of 100 hours.
A minimum of one member from each level for the committee.
R5: The management professors should not be together on the committee

Salary Years of Hours

Name Department Position
annual available services
Chávez $25000 Administration Main Professor 10 30
Quiroz $20000 Accounting Assistant Professor 2 35
Stole $30000 Marketing Principal Professor 15 40
Mejia $15000 Insurance Associate Professor 10 30
Rock $20000 Real Estate Assistant Professor 4 15
Romero $15000 Finance Assistant Professor 3 10
Peace $20000 Administration Associate Professor 6 20
Helper $25000 Economy Principal Professor 20 40

Formulate a suitable integer linear programming model for this situation.

Problem 6

Consider the following mixed integer programming problem:

Maximize Z = 5x1 + x2
Subject to: -x1+ 2x2≤ 4
x1–x2≤ 1
4x1+x2≤ 12

moreover, x1,x2≥ 0, integers

Solve the problem graphically.

Problem 7

An American professor will spend a short sabbatical at the University of Iceland.

wants to take all the necessary items on his flight. After gathering his material
The professional realized that the airline's rules regarding luggage space and weight
registered will severely limit the amount of clothing you can pack. (Think about bringing a coat
hot and upon arriving in Iceland, she will buy a thick coat). The clothes she wants to pack include 3
skirts, 3 pants, 4 blouses and 3 dresses. The teacher wants to maximize the number of
combinations that you can use in Iceland (including the special dress that you will wear on the trip).
Every dress is a combination. Other combinations consist of a blouse and a skirt or
a pair of pants. However, some of them together do not look good and do not qualify as a combination.
In the table below, those that form a combination are marked with an x.

Blouse Sweater of
1 2 3 4 Iceland
1 x x x
Skirt 2 x x
3 x x x x
1 x x
Pants 2 x x x x
3 x x x

3
The following table shows the weight (in grams) and the volume (in cubic centimeters) of each
piece of clothing.
Weight Volume
1 600 5000
Skirt 2 450 3500
3 700 3000
1 600 3500
Pants 2 550 6000
3 500 4000
1 350 4000
2 300 3500
Blouse
3 300 3000
4 450 5000
1 600 6000
Dress 2 700 5000
3 800 4000
Total
4000 32000
allowed

Formulate a binary integer programming model to choose the clothing items to take.
(Suggestion: after using binary decision variables to represent the individual pieces
You must introduce auxiliary binary variables to represent the combinations of the case. After that
use the constraints and the objective function to ensure that these auxiliary variables have the
correct values, given the values of the decision variables.

Professor: Walter Silva

4
 Applications: Goal Programming

Problem 1
The clothing company 'Elegant Clothing' manufactures three types of coats for men:
sportswear (A), formal (B) and executive (C). Due to the competitive nature of the business and to the
the high demand for labor in the industry is of great importance to keep satisfied
the employees. The Production Manager of the company believes that one way to satisfy the
the needs of their employees is to offer them full-time employment, even when this
demand to produce excessively and incur some losses. Fortunately, the Production Chief
they expect the demand for their products to remain quite high. In fact, for
To satisfy part of the demand, it may be necessary to work overtime.

The three lines of coats from the company are manufactured in two departments. The attached table is
a weekly program of labor and materials requirements for the process of
Manufacturing. The unit prices for the three lines are $100, $150, and $250, respectively.
The Production Manager has determined that at a normal production rate the costs
the variables are $70, $80, and $100 per coat, respectively. The costs of extra time are
$2 per hour above the normal salary for department 1 and $3 for department 2.
The materials for extra time can be purchased at a cost of $2 per meter extra.
of the normal cost.

The Marketing Manager has forecasted that the market demand for the sports coat is
of 1000 units per week, and the demand for the other two lines is 500 and 200 units,
respectively. The equilibrium production level is 100 units of product A, and 50
units of each of the other two products.

Product requirements (per unit)

Sports Formal Executive Resources
Dept. 1 4 hours 12 hours 10 hours 8000 hours
Dept. 2 6 hours 6 hours 16 hours 4000 hours
Material 8 meters 6 meters 12 meters 8000 meters

The Production Manager has identified, in order of priority, the following goals:

Utilize all available production capacity, that is, there should be no

idle time in no department.
2) Reaching the production levels of break-even point in each of the
product lines.
3) Given that there is likely to be a labor shortage in the
department 2, and since personnel can be sent, in overtime, to that
department, the overtime here may be greater than that of the department
However, the extra time for department 2 must not exceed 600.
hours. The overtime for department 1 should not exceed 200 hours.
4) Achieve a weekly profit target of $20,000.
5) Satisfy all market demands. Within this goal, they must
use different weights to reflect the normal unit contribution to
the profits.

Formulate an appropriate goal programming model for this situation.

Problem 2
The Financial Company 'Rich Man' has two million dollars available for
investments. There are five possible types of investment: stocks, bonds, loans, real estate
roots and savings through passbooks. At the beginning of each year, investments can be made, already
be in stocks, bonds, or both. The dollars invested in stocks initially
of any year they produce profits of 15% at the end of two years. Every dollar invested
in bonds at the beginning of a year results in 40% profits at the end of three years. The
investments in loans can only be made at the beginning of the second year; however, each
Dollars that are invested yield 90% profit after five years. Investments in
real estate results in 75% profits after two years; but this option of
investments are only available at the beginning of the fifth year. All the money that is not invested at
At the beginning of any given year, a certain amount is placed in a savings account. The rate of
The interest on this account is 7.5% per year.

The financial manager has established the following goals in order of priority:

1) The company must diversify its investments, which is why it does not wish to invest more.
of $700,000 in any investment category during any year.
2) At least $400,000 must be invested in real estate, since this
The investment category has a high yield.
3) A floating account has been established for operational purposes. The money
From this account, it is placed in savings through a booklet. They must be held when
less than $100,000 in that account at all times.
4) The company has a financial obligation of $400,000 that it must cover.
end of the third year.
5) The Financial Company would like to maximize its total return on the
investment at the end of year 6.

Investment diagram over several years

Type of investment Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Year 1
15% shares ======== =======>
40% bonus ======== ======== =======>
savings 7.5% =======>
Year 2
15% actions ======== =======>
40% bonus ======== ======== =======>
loans 90% ======== ======== ======== ======== =======>
savings 7.5% =======>
Year 3
15% actions ======== =======>
bonuses 40% ======== ======== =======>
savings 7.5% =======>
Year 4
15% actions ======== =======>
40% bonus ======== ======== =======>
savings 7.5% =======>
Year 5
15% actions ======== =======>
real estate 75% ======== =======>
savings 7.5% =======>
Year 6
savings 7.5% =======>

Formulate an appropriate goal-setting programming model for this situation.

Problem 3
The company Samtron manufactures and markets video equipment. The company is organized
based on profit centers, that is, the performance of each operating center is determined
(unit) of the company through the weekly profits it generates. The center of
Circuit boards are manufactured in two types, which are used in various
final products manufactured by the company. It takes 15 minutes to produce the
circuit board No. 1; 24 minutes to manufacture No. 2. Normal operating hours
For the center, it is 240 hours per week. The profits for the boards are $4 per board.
No. 1 and $5 for board No. 2. The utility center manager has listed, in order of
priority, the following goals:

1) Achieve weekly profits of at least $4000.

 2) Limit the center's overtime operation to a maximum of 24 hours.
3) Fulfill committed orders of 100 units of board No.1 and 150
units of board No.2.
4) Satisfy the forecasted demand for each circuit of 500 units of
board No. 1 and 400 units for No. 2.
5) Use all available man-hours during normal hours.

Formulate an appropriate goal-setting programming model for this situation.

Problem 4
The company Maquinaria Textil manufactures three different types of bearings that are used in equipment.
textile. All the bearings are manufactured in a pressing operation. The manufacturing time
What is required to make a basic yoyos is 5 hours, while a high-end one
Precision requires 12 hours of production time. The general application bearing requires 8.
production time hours. The company has 340 weekly hours of capacity
from production. The unit profits obtained from the sale of bearings are: $1000 per
basic balero; $1450 for general application balero and $2500 for high precision ones. The
the marketing department has pointed out that the behavior of the demand for bearings
implies that the company can sell all it manufactures. The production manager has
list, in order of priority, the following goals:

1) Use all production capacity.

2) Achieve the weekly sales goals for each type of bearing: 20 basic ones,
24 of general application and 15 of high precision. Assign differential weights of
agreement with the relative usefulness of each board.
Limit overtime to a maximum of 40 hours per week.
4) Maximize profits.

Formulate a suitable goal-setting programming model for this situation.

Problem 5
Delta Manufacturing produces two types of products (A and B). The manufacturing of both
products require two operations. The first operation takes place in the department
No. 1. The manufacturing of product A requires 3 hours in the first operation while the
Product B requires 4 hours for this same operation. The second operation can take place in
whether it is in department 2 or in 3. The necessary production time in the
Department 2 for each unit of A is 3 hours; for each unit of B is 6 hours. If
Department 3 is used, the production time for each unit of A is 8 hours and for
B is from 10 hours. There are 3000, 3600, and 5000 hours available of production time in the
respective departments. The labor costs associated with the three departments
son

Department 1: $6.50 per hour

Department 2: $8.00 per hour
Department 3: $5.00 per hour

The Company has a demand of 400 units for product A and 620 units for
Product B. The production manager has listed the following goals in order of priority:

1) Meet the demand of customers.

2) Limit the overtime in department 2 to a maximum of 1000 hours.
3) Minimize total costs.
4) Minimize extra time in departments 1 and 3.

Formulate an appropriate goal-setting programming model for this situation.

Problem 6
The Antonio-Li Company distills and distributes fine wine. The company produces three different wines.
rosé, semi-dry, and dry. The blends are produced by combining different grades of base wine.
The requirements of the mixtures, and the availability and price (cost) per fifth of a gallon of
base wine (availability given in fifths of a gallon per day) appears in the following table.

Actions Cost per fifth of a gallon Availability

Grade I $6.50 1800
Grade II $5.00 2000
Grade III $3.50 1200
Type Requirements Selling price
Rose No more than 12% $6.00
of grade III
At least 50%
of grade I
Type Requirements Selling price
Semidry No more than 40% $5.25
of grade III
At least 25%
of grade I
Type Requirements Selling price
Dry No more than 50% $4.75
of grade III
At least 10%
of grade II

The company has established the following goals in order of priority:

1) Produce at least 2000 fifths of rosé wine and 1000 fifths of

semi-dry wine per day.
2) Maximize profits.
3) Use all available daily quantities of raw materials.

Formulate an appropriate goal-setting programming model for this situation.

Problem 7
Assume that a certain person must limit themselves to a diet of milk, beef, and
eggs. That person is not restricted in the quantity of any of those items they choose.
but it is important to meet certain minimum requirements and minimize consumption
cholesterol.

Components Milk Beef Eggs Daily requirement

of the foods (mg/gallon) (mg/pound) (mg/dozen) minimum (mg)
Vitamin A 2 2 20 2
Vitamin B 200 20 20 60
Vitamin C 20 200 20 10
Cholesterol 140 units 100 units 240 units
per gallon per pound by the dozen
Cost $2.00 / gallon $2.75 $1.20 / dozen

The table reflects the amount, in milligrams, of vitamins A, B, and C that each of the
food products, as well as their level (units) of cholesterol. It also includes the
minimum daily vitamin requirements and the cost of each product. Assume
the following goals have been established, in order of priority:

Meet the minimum daily vitamin requirements. It has double the

importance of meeting the vitamin A requirement than the requirements of
vitamins B and C.
2) Minimize cholesterol consumption.
3) Minimize the costs associated with the diet.

Formulate a goal-setting programming model suitable for this situation.

Problem 8

The DYNAMIX Manufacturer produces auxiliary gasoline tanks for automobiles.

subcompacts. The company manufactures a type of tank that is suitable for various cars. In
Currently, the company has a high demand and a fixed production capacity. With the
intention to meet the demand, the company is considering: (1) operating on the basis
of various shifts in overtime, (2) subcontract some orders with other companies and/or
to hire temporary employees.

Administrators are concerned about turning to external subcontractors or hiring employees.

temporary due to this could reduce the quality of the work. In some cases,
the costs would be higher. The data in the following table describe the requirements of
labor, the costs and the average quality levels associated with the different
alternatives. With the current workforce, the company can mount a total of 200 hours.
of operations (180 hours in normal time and 20 hours in overtime) per week.

Operations
Normal time
Required hours 4 4 5 6
Cost per hour $12 $18 $10 $10
Quality level 99% 98% 94% 98%

After this analysis, the company determined, in order of priority, the following goals:

The current demand for the gasoline tank is 100 units per week.
the company would like to meet this demand; however, due to
limited storage capacities, the company would like to avoid the
oversupply. The managers have decided that meeting the
demand is twice as important as avoiding overproduction.
2) Achieve an average quality level of 98%.
3) Minimize the total costs associated with all operations.

Formulate a suitable goal-setting programming model for this situation.

Problem 9
Dixon Company is dedicated to wholesale trade (that is, the company buys from
manufacturer and sells to retail outlets). The company handles a single product and the capital
with which operation it is limited. Because the selling price of the product is somewhat seasonal
and for this reason, it can vary from month to month, it is beneficial for the company to buy at certain
months to sell in certain subsequent months. The company has defined information with
regarding the cost at which you can buy and the price at which you can sell in the following
four months. The data is:

Me 1 2 3 4
Cost 8 8 10 12
Price 12 10 7 9

Sales are made at the beginning of the month and then purchases are made. The quantity that
The acquisition is entirely based on the income generated from sales. The purchases
they are restricted by the company's storage capacity; currently,
3000 units of the products can be stored (a quantity can be stored
additional 1000 units, but this is considered undesirable). At this time (to
At the beginning of the month, there are 2000 units in the warehouse that cost $6 each.
unit. The administrator of the Dixon has identified, in order of priority, the following
goals:

In month 1, only the normal capacity of the warehouse must be used.

2) The company would like to have at least $2000 in reserve every month, for
operational contingencies.
 3) You must have at least $4000 available at the beginning of month 4, after that
from the purchases. This money will be used to fulfill a commitment
external financial.
4) The company would like to maximize its total profits for the period.
complete of four months.

Develop a suitable goal-setting program model for this situation.

Problem 10
DYNAMIX Company, a newly formed investment brokerage, has
$600,000 to place them in a set of investment alternatives. Investment type 1 is
available in each of the next six years and is expected to yield a return of
28% for each dollar invested, at the time of its maturity at the end of three years. The investment
type 2 is also available in each of the next six years. This investment will yield
$1.16 for every dollar invested and matures at the end of two years. Type 3 investment is available.
only at the beginning of the second year and yields $1.50 at the end of the fourth year for every dollar invested.
Investment type 4 is available at any time after the third year and generates a
a 40% return at the end of two years. The final investment opportunity, type 5, is
available only once, at the beginning of year 1. This investment would yield $1.45 for every dollar
reversed, but it does not mature until the beginning of year 5. When the investments mature, they are
available for reinvestment. DYNAMIX would like to determine the investment portfolio
that maximizes the total return on investment for a period of six years (that is, at the end
of the sixth year).

The administrators have established the following goals in order of priority:

1) At least $50,000 must be placed in investment type 1, in years 1 and 3.

and 4.
2) To fulfill a financial obligation of $50000 at the end of years 2 and 4.
These amounts must be withdrawn from the fund.
3) Limit unused funds in any year to a maximum of $5000.
4) At least $100,000 must be placed in the type 5 investment.
5) The Company would like to maximize its total return on investment at the end.
from the year 6.

Formulate a goal-setting model suitable for this situation.

Problem 11
The advertising company LB & JV has four sales territories to which they are assigned.
its sellers. The company has determined that sales are dependent on the
days/seller per month. The data shows that daily sales per day-seller are
$2000, $1600, $900 and $800, respectively, for the four territories. The company has a
four-person sales team; all the salespeople work 20 days a month. Given that
all sales territories are close to each other, salespeople are not restricted to a
not only territory but rather, the company demands that each salesperson works at least
in two territories. As an incentive for sales, the company tries to satisfy the preference
that each of the sellers has for certain territories. The index of preference that
appears in the following table (where the number 5 reflects the highest preference) indicates the
preference that each seller has for the territories.

Territory
Seller 1 2 3 4
1 5 4 2 4
2 4 3 5 4
3 3 5 0 2
4 5 4 1 3

The administrators of LB & JV have established the following in order of priority

goals:
 1) Maximize sales.
2) Maximize the weighted preference index for each seller, where the
weighted index is the seller's index, with respect to their territory,
multiplied by the percentage of time invested in that territory and
added for all the territories it visits.
3) At least 10 seller days must be invested in each territory.

Formulate an appropriate goal-setting programming model for this situation.

Problem 12
The administrators of the DGA Company, a large manufacturer of electric shavers, have
decided to invest up to $38,000 in advertising for men's electric shavers
What factory. Some market research studies conducted by the Company have
it has been shown that the market it wants for razors is mostly made up of
for men aged between 20 and 45 years, who have an income of $15000 or more and have completed
two or more years of university education. Based on these findings, the group of
market research has decided that customer characteristics have a
relative importance according to the following weights:

Features Weight
Age (20-45) 0.40
Annual income ($15,000 or more) 0.35
University education (5 or more years) 0.25

The marketing department administrators of the DGA have decided to use the
advertising agency services to help them develop an advertising plan
that allows them to reach potential customers more effectively. After studying the
customer characteristics data, the advertising agency has suggested that the Company
consider placing advertising in three popular consumer magazines. For brevity, simply
We will refer to the magazines as A, B, and C. The following table indicates what the characteristics are.
of the consumers of the three magazines.

Percentage of consumers
Characteristics Magazine A Magazine B Magazine C
Age (20-45) 40 70 60
Annual income ($15000 or more) 60 50 40
University education (5 or more years) 30 20 60
Reading public 780000 940000 1,250,000

The advertising agency has indicated to the DGA that an appropriate goal would be to maximize the
number of effective exposures, given the available advertising budget. The objective
it should not be to maximize the number of exposures for all readers of the advertising, but
rather, maximize the number of potential customers exposed to the advertising. For
to develop an effective exposure factor, a reading index must be calculated for each
magazine. The reading index is calculated by adding the products of the percentage of readers that
they have a characteristic determined by the weight that the company has assigned to it
characteristic.

The advertising agency has stated that an effectiveness coefficient must be developed for
the readers, multiplying the reading index of each magazine by its respective audience.

Finally, the effective exposure, E, per advertisement is determined by dividing the coefficient of
effectiveness between the cost per ad. The agency indicates that the cost per ad in the three
magazines are $500, $750, and $800, respectively.

From analysis and joint studies of the DGA and the advertising agency, it has been decided that the
the maximum number of ads that should be placed in each magazine is 36, 40 and 45,
respectively.
It is necessary to determine the number of advertising dollars that must be invested in each
magazine to maximize effective exposure, and also determine the number of ads that
They must be placed in each magazine.

The administration has specified, in order of priority, the following goals:

1) Achieve a minimum effective exposure of 7,500,000.

2) Limit the advertising cost to $38000.
3) At least 9 ads must be placed in magazine A and at least 5
in the C magazine. Use the effectiveness level in the presentation as weight
differential.
4) Maximize the level of exposure effectiveness.

Formulate an appropriate goal-setting programming model for this situation.

Problem 13
Mr. Acuña has $100,000 that he wishes to invest to maximize his annual return on
investment. Mr. Acuña has identified the investment alternatives and the dollars that he is
willing to invest in each of them.

Type of investment Performance Investment

Bonds 6% At least $40,000
Savings bank account 5% $10,000 - $30,000
Mutual funds 8% No more than $20,000
Venture capital 7% At least $60000

Mr. Acuña spoke with a financial manager and asked for recommendations.
specific regarding their investments. After analyzing the problem, the analyst told him
informed Mr. Acuña that it was impossible to meet the investment conditions, but that
a near solution could be identified if priorities were assigned to the conditions of the
investment. After examining the investment alternatives, Mr. Acuña identified, in
order of priority, the following goals:

1) Satisfy the bonus and account goals in the best possible way.
savings, taking into account that the goal of the savings account has
twice the importance of the bonus goal.
2) Reach the venture capital goal, if possible. That is, allocate when
less than $60000.
3) Achieve, if possible, the goal of investing in mutual funds.
4) Achieve, if possible, a minimum of $8000 in return on the
investments.

a) Propose a linear programming model for this problem with the aim of
demonstrate why the analyst concluded that Mr. Acuña would not be able to reach his
initial investment objectives. Explain what would happen if an attempt were made to resolve the
linear programming problem.
b) Propose a goal programming model for the problem.
Solutions

Problem 1
Decision variables
X1: number of sports shelters that will be manufactured during the week
X2: number of formal shelters to be manufactured during the week
X3: number of executive shelters that will be manufactured during the week

Goal restrictions
Utilize the entire production capacity
Department 1: 4 X1 + 12 X2 + 10 X3 + u1 - v1 = 8000
Department 2: 6 X1 + 6 X2 + 16 X3 + u2 - v2 = 4000

Satisfy the production levels of the break-even point

Product A: X1 + u3 - v3 = 100
Product B: X2 + u4 - v4 = 50
Product C: X3 + u5 - v5 = 50

Limit the overtime in the two departments to 200 and 600 hours, respectively.
Department 1 : v1 + u6 - v6 = 200
Department 2 : v2 + u7 - v7 = 600

Achieve weekly profits of $20,000

Material : 8 X1 + 6 X2 + 12 X3 + u8 - v8 = 8000
Utility: 30 X1 + 70 X2 + 150 X3 - 2v1 - 3v2 - 2v8 + u9 - v9 = 20000

Satisfy all market demand

Product A: X1 + u10 = 1000
Product B: X2 + u11 = 500
Product C: X3 + u12 = 200

Objective function
min Z = P1(u1+u2) + P2(u3+u4+u5) + P3(v6+v7) + P4(u9) + P5(30 u10 + 70 u11 + 150 u12)

Range of existence
Xj, ui, vi≥ 0

Problem 2
Decision variables
amount of dollars to be invested in year j in category k
j = 1,2,3,4,5,6 y k = 1 (acciones), 2 (bonos), 3 (préstamos), 4 (bienes raíces), 5 (ahorros).

Goal restrictions
Diversify investments
Year 1: actions X11 + u1 - v1 = 700000
bonds X12 + u2 - v2 = 700000
Year 2: actions X11 + X21 + u3 - v3 = 700000
bonds X12 + X22 + u4 - v4 = 700000
loans X23 + u5 - v5 = 700000
Year 3: actions X21 + X31 + u6 - v6 = 700000
bonds X12 + X22 + X32 + u7 - v7 = 700000
Year 4: actions X31 + X41 + u8 - v8 = 700000
bonds X22 + X32 + X42 + u9 - v9 = 700000
Year 5: actions X41 + X51 + u10 - v10 = 700000
real estate X54 + u11 - v11 = 700000

At least $400,000 must be invested in real estate.

Year 5: X54 + u12 - v12 = 400000
The floating account must have $100,000 at all times.
Year 1: X15 + u15 - v15 = 100000
Year 2: X25 + u25 - v25 = 100000
Year 3: X35 + u35 - v35 = 100000
Year 4: X45 + u45 - v45 = 100000
Year 5: X55 + u55 - v55 = 100000
Year 6: X65 + u65 - v65 = 100000

Fulfill the financial commitment of $400,000

Year 3: 1.4 X12 + 1.15 X21 + 1.075 X35 + u13 - v13 = 400000

Maximize return on investments

Year 6: 1.9 X23 + 1.4 X42 + 1.15 X51 + 1.75 X54 + 1.075 X65 + u14 - v14 = 10000000

Structural restrictions
Total investments must equal the amount available for investment.
Year 1: X11 + X12 + X15 2000000
Year 2: X21 + X22 + X23 + X25 = 1.075 X15
Year 3: X31 + X32 + X35 = 1.15 X11 + 1.075 X25
Year 4: X41 + X42 + X45 1.40 X12 + 1.15 X21 + 1.075 X35 - 400000
Year 5: X51 + X54 + X55 1.40 X22 + 1.15 X31 + 1.075 X45
Year 6: X65 = 1.40 X32 + 1.15 X41 + 1.075 X55

Objective function
min Z = P1(v1+v2+v3+v4+v5+v6+v7+v8+v9+v10+v11) + P2(u12)
+ P3(u15+u25+u35+u45+u55+u65) + P4(u13) + P5(u14)

Range of existence
Xjk, ui, vi≥ 0

Problem 3
Decision variables
number of circuit boards No. 1 to be produced weekly
X2: number of circuit boards No. 2 that will be produced weekly

Goal restrictions
Achieve weekly profits of at least $4000
4 X1 + 5 X2 + u1 - v1 = 4000

Limit the center's overtime operation to 24 hours

v2 + u3 - v3 = 24

Fulfill the committed orders of 100 units of board No. 1 and 150 units of
board No. 2
X1 + u4 - v4 = 100
X2 + u5 - v5 = 150

Satisfy the forecasted demand for each circuit of 500 units of panel No. 1 and 400
units of board No. 2
X1 + u6 - v6 = 500
X2 + u7 - v7 = 400

Utilize all available man-hours during normal hours

0.25 X1 + 0.40 X2 + u2 - v2 = 240

Objective function
min Z = P1u1 + P2v3 + P3(u4 + u5) + P4(u6 + u7) + P5u2

Range of existence
Xj, ui, vi≥ 0
Problem 4
Decision variables
number of basic bearings that will be produced weekly
X2: number of high-precision bearings that will be manufactured weekly
X3: number of general application ball bearings that will be produced weekly

Goal restrictions
Utilize the entire production capacity
5X1 + 12X2 + 8X3 + u1 - v1 = 340

Achieving the weekly sales goals for each type of bearing

Basic balero: X1 + u2 - v2 = 20
High precision bearing: X2 + u3 - v3 = 15
General application bearing: X3 + u4 - v4 = 24

Limit overtime to a maximum of 40 hours per week

v1 + u5 - v5 = 40

Maximize profits
1000 X1 + 2500 X2 + 1450 X3 + u6 - v6 = 100000

Objective function
min Z = P1u1 + P2(1000 u2 + 2500 u3 + 1450 u4) + P3v5 + P4u6

Range of existence
Xj, ui, vi≥ 0

Problem 5
Decision variables
X12: number of units of product A that will be produced in Department 2
X13: number of units of product A that will be manufactured in Department 3
X22: number of units of product B that will be manufactured in Department 2
X23: number of units of product B to be manufactured in Department 3

So:
X11: number of units of product A that will be manufactured in Department 1
where X11 = X12 + X13
X21: number of units of product B that will be manufactured in Department 1
where X21 = X22 + X23

Goal restrictions
Satisfy customer demand
X12 + X13 + u1 - v1 = 400
X22 + X23 + u2 - v2 = 620

Limit the overtime in department 2 to a maximum of 1000 hours

Normal hours: 3 X12 + 6 X22 + u3 - v3 = 3600
Overtime: v3 + u4 - v4 = 1000

Minimize total costs

6.5(3 X12 + 3 X13 + 4 X22 + 4 X23) + 8(3 X12 + 6 X22) + 5(8 X13 + 10 X23) + u5 - v5 = 0

Minimize the overtime in departments 1 and 3

Department 1: 3 X12 + 3 X13 + 4 X22 + 4 X23 + u6 - v6 = 3000
Department 3: 8 X13 + 10 X23 + u7 - v7 = 5000

Objective function
min Z = P1(u1 + u2) + P2v4 + P3v5 + P4(v6 + v7)

Range of existence
Xjk, ui, vi≥ 0

Problem 6
Decision variables
Xjk: number of fifths of gallon of grade j that will be used in wine type k
where j = 1 (I), 2 (II), 3 (III); k = 1 (Rose), 2 (Semiseco), 3 (Seco)

Goal restrictions
Produce at least 2000 fifths of rose wine and 1000 fifths of semi-dry wine.
per day
X11 + X21 + X31 + u1 - v1 = 2000
X12 + X22 + X32 + u2 - v2 = 1000

Maximize profits
-0.50 X11 + X21 + 2.50 X31 - 1.25 X12 + 0.25 X22 + 1.75 X32 - 1.75 X13 - 0.25 X23 + 1.25 X33
+ u3 - v3 = 100000

Utilize all available daily quantities of raw materials

X11 + X12 + X13 + u4 - v4 = 1800
X21 + X22 + X23 + u5 - v5 = 2000
X31 + X32 + X33 + u6 - v6 = 1200

Structural constraints
X31≤ 0.12(X11 + X21 + X31)
X11≥ 0.50(X11 + X21 + X31)
X32≤ 0.40(X12 + X22 + X32)
X12≥ 0.25(X12 + X22 + X32)
X33≤ 0.50(X13 + X23 + X33)
X23≥ 0.10(X13 + X23 + X33)

Objective function
min Z = P1(u1 + u2) + P2u3 + P3(u4 + u5 + u6)

Range of existence
Xjk, ui, vi≥ 0

Problem 7
Decision variables
amount of gallons of milk that will be used for the diet
X2: amount of beef that will be used for the diet
X3: number of dozens of eggs that will be used for the diet

Goal restrictions
Meet the minimum daily vitamin requirements
2 X1 + 2 X2 + 20 X3 + u1 - v1 = 2
200 X1 + 20 X2 + 20 X3 + u2 - v2 = 60
20 X1 + 200 X2 + 20 X3 + u3 - v3 = 10

Minimize cholesterol consumption

140 X1 + 100 X2 + 240 X3 + u4 - v4 = 0

Minimize the costs associated with the diet

2 X1 + 2.75 X2 + 1.2 X3 + u5 - v5 = 0

Objective function
min Z = P1(2u1 + u2 + u3) + P2v4 + P3v5

Range of existence
Xj, ui, vi≥ 0
Problem 8
Decision variables
number of gasoline tanks produced in normal time
number of gasoline tanks produced in overtime
X3: number of fuel tanks obtained through subcontracting
number of gasoline tanks produced through temporary employment

Goal restrictions
Satisfy the demand
X1 + X2 + X3 + X4 + u1 - v1 = 100

Achieve an average quality level of 98%

0.99 X1 + 0.98 X2 + 0.94 X3 + 0.90 X4 + u2 - v2 = 0.98(X1 + X2 + X3 + X4)

Minimize the total costs associated with all operations

48 X1 + 72 X2 + 50 X3 + 60 X4 + u3 - v3 = 0

Structural restrictions
X1≤ 45
X2≤ 5

Objective function
min Z = P1(2u1 + v1) + P2u2 + P3v3

Range of existence
Xj, ui, vi≥ 0

Problem 9
Decision variables
number of units initially in inventory, sold in month k
k = 1, 2, 3, 4
Xjk: number of units purchased in month j, sold in month k
j = 1, 2, 3; k = 2, 3, 4; j < k

Goal Restrictions
Use only the normal capacity of the warehouse in month 1
2000 + X12 + X13 + X14 - X01 + u1 - v1 = 3000

Savings of at least $2000 every month

12 X01 - 8X12 - 8X13 - 8X14 + u2 - v2 = 2000
10 X02 + 10 X12 - 8 X23 - 8 X24 + 12 X01 - 8 X12 - 8 X13 - 8 X14 + u3 - v3 = 2000
7 X03 + 7 X13 + 7 X23 - 10 X34 + 10 X02 + 10 X12 - 8 X23 - 8 X24 + 12 X01 - 8 X12 - 8 X13 -
8 X14 + u4 - v4 = 2000
9 X04 + 9 X14 + 9 X24 + 9 X34 + 7 X03 + 7 X13 + 7 X23 - 10 X34 + 10 X02 + 10 X12 - 8 X23
- 8 X24 + 12 X01 - 8 X12 - 8 X13 - 8 X14 + u5 - v5 = 2000

Having $4000 at the beginning of month 4, after purchases.

v5 + u6 - v6 = 4000

Maximize profits
6 X01 + 4 x02 + 1 X03 + 3 X04 + 2 X12 - X13 + X14 - X23 + X24 - X34 + u7 - v7 = 1000000

Structural restrictions
X01 + X02 + X03 + X04 = 2000
2000 + X12 + X13 + X14 - X01 + X23 + X24 - X02 - X12≤ 4000
2000 + X12 + X13 + X14 - X01 + X23 + X24 - X02 - X12 + X34 - X03 - X13 - X23≤ 4000

Objective function
min Z = P1v1 + P2(u2 + u3 + u4 + u5) + P3u6 + P4u7
Range of existence
Xjk, ui, vi≥ 0

Problem 10

Investment diagram over several years

Type of investment Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Year 1
type 1 28% ======== ======== =======>
type 2 16% ======== =======>
type 5 45% ======== ======== ======== =======>
Year 2
type 1 28% ======== ======== =======>
type 3 50% ======== ======== =======>
type 2 16% ======== =======>
Year 3
type 1 28% ======== ======== =======>
type 2 16% ======== =======>
Year 4
type 1 28% ======== ======== =======>
type 2 16% ======== =======>
type 4 40% ======== =======>
Year 5
type 2 16% ======== =======>
type 4 40% ======== =======>

Decision variables
Xjk: amount of dollars that will be invested in investment type j, in year k
j = 1, 2, 3, 4, 5; k = 1, 2, 3, 4, 5, 6
X6k: amount of dollars that will not be invested in year k
j = 1, 2, 3, 4, 5, 6

Goal Restrictions
Invest at least $50,000 in investment type 1 in years 1, 3, and 4.
X11 + u1 - v1 = 50000
X13 + u2 - v2 = 50000
X14 + u3 - v3 = 50000

Fulfill a financial obligation of $50,000 at the end of years 2 and 4

1.16 X21 + X62 + u4 - v4 = 50000
1.45 X51 + 1.28 X12 + 1.50 X32 + 1.16 X23 + X64 + u5 - v5 = 50000

Limit unused funds in any year to a maximum of $5000

X61 + u6 - v6 = 5000
X62 + u7 - v7 = 5000
X63 + u8 - v8 = 5000
X64 + u9 - v9 = 5000
X65 + u10 - v10 = 5000
X66 + u11 - v11 = 5000

Invest at least $100,000 in investment type 5.

X51 + u12 - v12 = 100000

Maximize the total return on investment

1.28 X14 + 1.16 X25 + 1.40 X45 + x66 + u13 - v13 = 1000000

Structural restrictions
X11 + X21 + X51 + X61 = 600000
X12 + X22 + X32 + X62 - X61 = 0
X13 + X23 + X63 - 1.16 X21 - X62 = -50000
X14 + X24 + X44 + X64 - 1.28 X11 - 1.16 X22 - X63 = 0
X25 + X45 + X65 - 1.45 X51 - 1.28 X12 - 1.5 X32 - 1.16 X23 - X64 = -50000
X66 - 1.28 X13 - 1.16 X24 - 1.40 X44 - X65 = 0

Objective function
min Z = P1(u1 + u2 + u3) + P2(u4 + u5) + P3(v6 + v7 + v8 + v9 + v10 + v11) + P4u12 + P5u13

Range of existence
Xjk, ui, vi≥ 0

Problem 11
Decision variables
Xjk: number of days that seller j works in territory k
j = 1, 2, 3, 4; k = 1, 2, 3, 4

Goal restrictions
Maximize sales
2000(X11 + X21 + X31 + X41) + 1600(X12 + X22 + X32 + X42) + 900(X13 + X23 + X33 + X43)
+ 800(X14 + X24 + X34 + X44) + u1 - v1 = 10000000

Maximize the weighted preference index for each seller

5 X11 + 4 X12 + 2 X13 + 4 X14 + u2 - v2 = 5(X11 + X12 + X13 + X14)
4 X21 + 3 X22 + 5 X23 + 4 X24 + u3 - v3 = 5(X21 + X22 + X23 + X24)
3 X31 + 5 X32 + 2 X34 + u4 - v4 = 5(X31 + X32 + X33 + X34)
5 X41 + 4 X42 + 1 X43 + 3 X44 + u5 - v5 = 5(X41 + X42 + X43 + X44)

At least 10 seller days must be invested in each territory.

X11 + X21 + X31 + X41 + u6 - v6 = 10
X12 + X22 + X32 + X42 + u7 - v7 = 10
X13 + X23 + X33 + X43 + u8 - v8 = 10
X14 + X24 + X34 + X44 + u9 - v9 = 10

Structural restrictions
X11 + X12 + X13 + X14 = 20
X21 + X22 + X23 + X24 = 20
X31 + X32 + X33 + X34 = 20
X41 + X42 + X43 + X44 = 20

X11≤ 19
X12≤ 19
X13≤ 19
X14≤ 19
X21≤ 19
X22≤ 19
X23≤ 19
X24≤ 19
X31≤ 19
X32≤ 19
X33≤ 19
X34≤ 19
X41≤ 19
X42≤ 19
X43≤ 19
X44≤ 19

Objective function
min Z = P1u1 + P2(u2 + u3 + u4 + u5) + P3(u6 + u7 + u8 + u9)
Range of existence
Xjk, you, we≥ 0

Problem 12
Preliminary calculations
Reading indices
Magazine A: 0.40(40%) + 0.35(60%) + 0.25(30%) = 0.445
magazine B : 0.40(70%) + 0.35(50%) + 0.25(20%) = 0.505
magazine C : 0.40(60%) + 0.35(40%) + 0.25(60%) = 0.530

Effectiveness coefficients
magazine A: 0.445(780000) = 347100
magazine B: 0.505(940000) = 474700
magazine C : 0.530(1250000) = 662500

Effectiveness of exposure
Magazine A: 347100 / 500 = 694.20 readers per dollar invested
Magazine B: 474700 / 750 = 632.93 readers per dollar invested
magazine C: 662500 / 800 = 828.13 readers per dollar invested

Decision variables
amount of dollars that will be invested in advertising in magazine i
j = 1, 2, 3 (1 = A, 2 = B, 3 = C)

Goals restrictions
Achieve a minimum effective exposure of 7,500,000
694.20 X1 + 632.93 X2 + 828.13 X3 + u1 - v1 = 7500000

Limit the advertising cost to $38,000

X1 + X2 + X3 + u2 - v2 = 38000

At least 9 ads must be placed in magazine A and at least 5 ads in the

magazine C
(1/500)X1 + u3 - v3 = 9
(1/800)X3 + u4 - v4 = 5

Maximize the level of exposure effectiveness

694.20 X1 + 632.93 X2 + 828.13 X3 + u5 - v5 = 10000000

Structural restrictions
(1/500)X1≤ 36
(1/750)X2≤ 40
(1/800)X3≤ 45

Objective function
min Z = P1u1 + P2v2 + P3(694.20u3 + 828.13u4) + P4u5

Range of existence
Xj, ui, vi≥ 0

Problem 13
Decision variables
Xj: amount of dollars invested in advertising for investment type j
bonds
venture capital

a)
0.06 X1 + 0.05 X2 + 0.08 X3 + 0.07 X4
s.a. X1 + X2 + X3 + X3≤ 100000
X1≥ 40000
 X2≥ 10000
X2≤ 30000
X3≤ 20000
X4≥ 60000
with X1, X2, X3, X4≥ 0

The region is not feasible to resolve.

b)

min Z = P1(u1 + 2u2 + 2v3) + P2u4 + P3v4 + P4u6

s.a X1 + X2 + X3 + X3≤ 100000
X1 + u1 - v1 = 40000
X2 + u2 - v2 = 10000
X2 + u3 - v3 = 30000
X4 + u4 - v4 = 60000
X3 + u5 - v5 = 20000
0.06 X1 + 0.05 X2 + 0.08 X3 + 0.07 X4 + u6 - v6 = 8000
with X1, X2, X3, X4, u1, v1, u2, v2, u3, v3, u4, v4, u5, v5, u6, v6≥ 0