Worksheet for the course of Operation Research 1. The Ethiopia Drug Company produces a drug from two ingredients.

Each ingredient contains the same three antibiotics, in different proportions. One gram of ingredient 1 contributes 3 units, and 1 gram of ingredient 2 contributes 1 unit of antibiotic 1; the drug requires 6 units. At least 4 units of antibiotic 2 are required, and the ingredients each contribute 1 unit per gram. At least 12 units of antibiotic 3 are required; a gram of ingredient 1 contributes 2 units, and a gram of ingredient 2 contributes 6 units. The cost for a gram of ingredient 1 is $80, and the cost for a gram of ingredient 2 is $50. The company wants to formulate a linear programming model to determine the number of grams of each ingredient that must go into the drug in order to meet the antibiotic requirements at the minimum cost. a. Formulate a linear programming model for this problem. b. Solve this model by using graphical analysis. c. Solve using graphical methods 2. Solve the following linear programming model graphically and using simplex method: Max Z=605X1+10X2 Subjected to 2X1+4X2<=40 X1+X2<=15 X1>=8 X1,X2>=0 3. The Medical Supplies Company has a total of 12 salespeople it wants to assign to three regions the South, the East, and the Midwest. A salesperson in the South earns $600 in profit per month for the company, a salesperson in the East earns $540, and a salesperson in the Midwest earns $375. The southern region can have a maximum assignment of 5 salespeople. The company has a total of $750 per day available for

expenses for all 12 salespeople. A salesperson in the South has average expenses of $80 per day, a salesperson in the East has average expenses of $70 per day, and a salesperson in the Midwest has average daily expenses of $50. The company wants to determine the number of salespeople to assign to each region to maximize profit. a. Formulate an integer programming model for this problem. b. Solve using integer programing model 4. Oranges are grown, picked, and then stored in warehouses in Bahirdar, Mekelle, and Arbaminch. These warehouses supply oranges to markets in Addis Ababa, Dire Dawa, Harar, and Jimma. The following table shows the shipping costs per truckload (in hundreds of dollars), supply, and demand. To (cost, in $100s) From Bahirdar Mekelle Addis Ababa Dire Dawa Harar Jimma Supply $9 11 $14 10 8 170 $12 6 15 100 $17 10 7 150 200 200 200

Arbaminch 12 Demand 130

a. Formulate this problem as a linear programming model b. Find initial solution using Northwest corner method c. Find initial solution using Least Cost Method d. Test the optimality using Stepping stone method on each stage e. Test the optimality using Modified Distribution method on each stage 5. An electronics firm produces electronic components, which it supplies to various electrical manufacturers. Quality control records indicate that different employees produce different numbers of defective items. The average number of defects produced by each employee for each of six components is given in the following table:

Component Employee 1 2 3 4 5 6 A 30 22 18 14 25 32 B 24 28 16 22 18 14 C 16 14 25 18 14 10 D 26 30 14 23 16 14 E 30 20 12 21 16 18 F 22 13 22 30 28 20

Determine the optimal assignment that will minimize the total average number of defects produced by the firm per month.

6. A university department head has five instructors to be assigned to four different courses. All the instructors have taught the courses in the past and have been evaluated by the students. The rating for each instructor for each course is given in the following table (a perfect score is 100): Course Instructor 1 2 3 4 5 A 80 95 85 93 91 B 75 90 95 91 92 C 90 90 88 80 93 D 85 97 91 84 88

The department head wants to know the optimal assignment of instructors to courses to maximize the overall average evaluation. The instructor who is not assigned to teach a course will be assigned to grade exams. 7. The newspaper Company produces two kinds of paper newsprint and white wrapping paper (butcher paper). It requires 5 minutes to produce a yard of newsprint and 8 minutes to produce a yard of wrapping paper. The company has 4,800 minutes of normal production capacity available each week. The profit is $0.20 for a yard of newsprint and $0.25 for a yard of wrapping paper. The weekly demand is for 500 yards of newsprint and 400 yards of wrapping paper. The company has established the following goals, in order of priority: 1. Limit overtime to 480 minutes. 2. Achieve a profit of $300 each week. 3. Fulfill the demand for the products in order of magnitude of their profits. 4. Avoid underutilization of production capacity. a. Formulate a goal programming model to determine the number of yards of each type of paper to produce weekly to satisfy the various goals. b. Solve the goal programming model by using graphical and simplex methods. 8. The Beaver Creek Pottery Company has developed the following nonlinear programming model to determine the optimal number of bowls (x1) and mugs (x2) to produce each day: maximize Z = $7x1 0.3x12 + 8x2 0.4x22 subject to 4x1 + 5x2 = 100 hr. Determine the optimal solution to this nonlinear programming model using substitution and lagrange multiplier method

9. A local real estate investor in Orlando is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment: Gasoline Availability Investment Motel Restaurant Theater Shortage $ 8,000 2,000 6,000 Stable Supply $15,000 8,000 6,000 Surplus $20,000 6,000 5,000

Determine the best investment, using the following decision criteria. a) Maximax b) Maximin c) Minimax regret d) Hurwicz (a= .4) e) Equal likelihood 10. In Westvale, a small, rural town in Maine, virtually all shopping and business are done in the town. The town has one farm and garden center that sells fertilizer to the local farmers and gardeners. The center carries three brands of fertilizer Plant Plus, Crop Extra, and Gro-fast and every person in the town who uses fertilizer uses one of the three brands. The garden center has 9,000 customers for fertilizer each spring. An extensive market research study has determined that customers switch brands of fertilizer according to the following probability transition matrix:

This spring Plant Plus Plant plus Crop Extra Gro-fast 0.4 0.5 0.4

next spring crop Extra 0.3 0.1 0.2 Gro fast 0.3 0.4 0.4

The number of customers presently using each brand of fertilizer is shown in the following table: Fertilizer Brand Customers Plant Plus Crop Extra Gro-fast 3,000 4,000 2,000

a. Determine the steady-state probabilities for the fertilizer brands. b. Forecast the customer demand for each brand of fertilizer in the long run and the changes in customer demand. 11. An agriculturist has a farm with 126 acres. He produces radish, pea and potato. Whatever he raises is fully sold in the market. He gets Birr 5 for radish per Kg, Birr 4 for pea per Kg and Birr 5 for potato per Kg. the average yield is 1,500Kg of radish per acre, 1,800 Kg of pea per acre and 1,200Kg of potato per acre. To produce each 100Kg of radish and pea and to produce each 80kg of potato, a sum of Birr 12.50 has to be used for manure. Labour required for each acre to raise the crop is 6-man-day for radish and potato each and 5-man-days for pea. A total of 500 man-days of labor at a rate of Birr. 40 per man-day are available. Formulate this problem as an LP model to maximize the agriculturist total profit. 12. A farmer has 1,000 acres of land on which he can grow corn, wheat or soybeans. Each acre of corn costs Birr 100 for preparation requires 7 man-days of work and yields a profit of Birr 30. An acre of wheat costs Birr 120 to prepare requires 10 man-days of

work and yields a profit of Birr 40. An acre of soybeans costs Birr 70 to prepare requires 8 man-days of work and yields a profit of Birr 20. If the farmer has Birr 1,000,000 for preparation and can count on 8,000 man-days of work, how many should be allocated to each crop to maximize profits? 13. An animal feed company must produce 200kg of a mixture of consisting of ingredients x1 and x2, respectively. X1 costs Birr 3per Kg and X2 Birr 8per Kg. No more than 80Kg of x1 can be used, and at least 60Kg of x2 must be used. Find out how much of each ingredient should be used if the company wants to minimize cost. 14. An agriculture company has 80 tons of type I fertilizer and 120 tons of type II fertilizer. The company mixes these fertilizers into two products. Product X requires 2 parts of type I and 1 part of type II fertilizers. Product Y requires 1 part of type I and 3 parts of type II fertilizers. If each product sells for $2000, what is the maximum revenue and how many of each product should be made and sold to maximize revenue? 15. Solve the following linear programming model graphically and using simplex method: Max Z=605X1+10X2 Subjected to 2X1+4X2<=40 X1+X2<=15 X1>=8 X1,X2>=0 16. The Cereal Company makes a cereal from several ingredients. Two of the ingredients, oats and rice, provide vitamins A and B. The company wants to know how many ounces of oats and rice it should include in each box of cereal to meet the minimum requirements of 48 milligrams of vitamin A and 12 milligrams of vitamin B while minimizing cost. An ounce of oats contributes 8 milligrams of vitamin A and 1 milligram of vitamin B, whereas an ounce of rice contributes 6 milligrams of A and 2 milligrams of B. An ounce of oats costs $0.05, and an ounce of rice costs $0.03.

a. Formulate a linear programming model for this problem. b. Solve this model by using graphical analysis. c. Solve using simplex methods 17. The Furniture Company produces chairs and tables from two resources labor and wood. The company has 80 hours of labor and 36 kg of wood available each day. Demand for chairs is limited to 6 per day. Each chair requires 8 hours of labor and 2kg of wood, whereas a table requires 10 hours of labor and 6 kg of wood. The profit derived from each chair is $400 and from each table, $100. The company wants to determine the number of chairs and tables to produce each day in order to maximize profit. a. Formulate a linear programming model for this problem. b. Solve this model by using graphical analysis. c. Solve using simplex methods 18. The Meatpacking Company produces a hot dog mixture in 1,000-kg batches. The mixture contains two ingredients chicken and beef. The cost per kg of each of these ingredients is as follows: Ingredient Chicken Beef Cost/kg. $3 $5

Each batch has the following recipe requirements: a. At least 500 kg of chicken b. At least 200 kg of beef The ratio of chicken to beef must be at least 2 to 1. The company wants to know the optimal mixture of ingredients that will minimize cost. Formulate a linear programming model for this problem. And solve simplex methods

19. The Fertilizer Company produces two types of fertilizers, Fastgro and Super Two. The company has developed the following nonlinear programming model to determine the optimal number of bags of Fastgro (X1) and Super Two (X2) that they must produce each day to maximize profit, given a constraint for available potassium. Maximize Z= $30X1 - 2X21+25X2 -0.5X22 Subject to 3X1+ 6X2= 300 kg Determine the optimal solution to this nonlinear programming model using the substitution method. 20. The Riverwood Paneling Company makes two kinds of wood paneling, Colonial and Western. The company has developed the following nonlinear programming model to determine the optimal number of sheets of Colonial paneling (x1) and Western paneling (x2) to produce to maximize profit, subject to a labor constraint. Maximize Z = $25X1 -0.8X21+ 30X2 -1.2X22 Subject to X1+2X2= 40 hr 21. The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost per barrel is $16. Price is related to demand according to the following linear equation. V=75,000 - 1,153.8p Develop the nonlinear profit function for the brewery and determine the price that will maximize profit, the optimal volume, and the maximum profit per year.