Assignment 1

Formulate the following optimization problems with linear constraints and a linear function to be minimized or maximized and express your answer in the conventional format discussed in the class. In your exposition, clearly distinguish between decision variables and data parameters. Indicate the meaning of all symbols you introduce. (Just formulate the problem.) Problem 1: A cylindrical can of a given volume V0 is to be proportioned in such a way as to minimize the total cost of the material in a box of 12 cans, arranged in a 3 4 pattern. The cost expression takes the form c1S1 +c2S2, where S1 is the surface area of the 12 cans and S2 is the surface area of the box. The coefficients c1 and c2 are nonnegative. A side requirement is that no dimension of the box can exceed a given size D0. Problem 2: A manufacturing company has a permit to operate T seasons, after which (in season T+1) it is only allowed to sell any leftover products. It is able to manufacture m different products, each requiring n different types of processing. Product i for (j = 1, . . . ,m) costs Ci Rs /liter to make and requires hij hours/liter of processing of type j (for j = 1, . . . , n). Due to equipment limitations, the total time available for type j processing of all products during season t is Hjt hours for t = 1, . . . , T (as a first pass we wont worry about order of processing problems). All the processing of a liter of product i must be completed in one season (it is not possible to start with some of the types of processing in one season and then finish with the others in the next), and that liter can then be sold from the next season onward. To sell a liter of product i in season t requires eit hours of marketing effort (labor). This labor can be hired in season t at the cost of dt Rs/hour at the ordinary rate, up to a total of at hours. For additional labor beyond that, a higher rate of Dt dollars is paid. (There is no limit on the amount of hours at this higher rate or on the amounts off sales, which are regarded as a sure consequence of the marketing effort.) The selling price for product i in season t is pit Rs/liter. If a quantity of the product i is available for sale during a season, but it is not sold then, the manufacturer has to pay qi dollars/liter to store it an keep it in shape for possible sale in the next season. An alternative to marketing or storing is to donate quantities to charity. For this there is no monetary cost or reward. All products must be disposed of by the end of period T + 1. What should the manufacturer do to maximize net profit over the entire period? Problem 3: A farmer can lease land up to 1000 acres. He has to pay Rs. 300 per acre (per year) if he leases up to 600 acres. For any land beyond 600 acres, he can lease at Rs. 400 per acre. He grows corn on the land. He can grow corn at normal level or at intense level (more fertilizer, irrigation, etc.). Normal level yields 70 bushels per acre. Intense level yields 100 bushels/acre. The normal and intense levels require, respectively, 7 and 9 hours of labor per acre and Rs. 1000 and Rs. 1500 in materials (such as seed, fertilizer, water, etc.) per acre. (On each acre, some amount can be at the normal level and some at the intense

level.) Harvesting requires 0.5 hours of labor per bushel harvested. Harvested corn can be sold up to any amount at the rate of Rs. 125 per bushel. The farmer can raise poultry at the same time. Poultry is measured in poultry units. To raise one poultry unit requires 25 bushels of corn, 20 hours of labor, and 25 ft2 of shed floor space. He can either use the corn he has grown to feed the chickens, or he can buy corn on the market. He buys corn at the rate of Rs.160 / bushel on the retail market. He can sell chickens at the price of Rs. 8750 per poultry unit in the wholesale market up to 200 units. Any amount of poultry over 200 units sells for just Rs.8000 per unit. He has only one shed for raising poultry, and it has 15,000 ft2 of floor space. He and his collective can contribute 4000 hours of labor per year at no cost. If he needs more labor, he can hire it at Rs. 200/hour up to 3000 hours. For any amount of labor over 3000 hours he has to pay Rs. 300 per hour. What should he do to maximize her net profit? What is that net profit? Problem 4: The summer Olympic Games are coming to town, and a teenage entrepreneur is planning to make money off tourists by selling them souvenir sun hats and umbrellas. He can get plain sun hats and umbrellas at costs of c1 and c2 dollars each, respectively, and then use a kit he has in order to imprint them with a souvenir logo. With the logo he can sell them for p1 and p2 dollars each, in unlimited quantity. He does have limitations from two directions, however. First, he has only k dollars to invest in the venture. Second, he has to store his items between the time he can get them and the time of the Games. He has a total of b cubic meters of space that he can use for free in his own basement, and theres an extra e cubic meters of space available in his neighbors housebut to the extent that he uses that hell have to pay d dollars per cubic meter over the storage period. Sun hats and umbrellas take up s1 and s2 cubic meters of storage space each, respectively. How many sun hats and umbrellas should he stock up, and how much space should he rent from the neighbor, if any?