Un-Solved Problems

OR500 Part 3
By ISSR CS
(Urban Renewal Model)
Urban planning deals with three general areas: (1) building new housing developments, (2) upgrading
inner-city deteriorating housing and recreational areas, and (3) planning public facilities (such as schools
and airports).
The constraints associated with these projects are both economic (land, construction, financing) and social
(schools, parks, income level).
The objectives in urban planning vary. [n new housing developments, profit is usually the motive for
undertaking the project. In the remaining two categories, the goals involve social, political, economic, and
cultural considerations. Indeed,
in a publicized case in 2004, the mayor of a city in Ohio wanted to condemn an old area of the city to
make way for a luxury housing development. The motive was to increase tax collection to help alleviate
budget shortages.
The city of Erstville is faced with a severe budget shortage. Seeking a long-term solution, the city council
votes to improve the tax base by condemning an inner-city housing area and replacing it with a modern
development.
The project involves two phases: (1) demolishing substandard houses to provide land for the new
development, and (2) building the new development. The following is a summary of the situation.
1. As many as 300 substandard houses can be demolished. Each house occupies a 25-acre lot. The cost
of demolishing a condemned house is $2000.
2. Lot sizes for new single-, double-, triple-, and quadruple-family homes (units) are .18, .28, A, and.5
acre, respectively. Streets, open space, and utility easements account for 15% of available acreage.

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(Urban Renewal Model)

3. In the new development the triple and quadruple units account for at least 25% of the total. Single units
must be at least 20% of all units and double units at least 10%.
4. Tile tax levied per unit for single, double, triple, and quadruple units is $1,000, $1,900, $2,700, and
$3,400, respectively.
5. The construction cost per unit for single-, double-, triple-, and quadruple- family homes is $50,000,
$70,000, $130,000, and $160,000, respectively. Financing through a local bank can amount to a maximum
of $15 million.
How many units of each type should be constructed to maximize tax collection?

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 Wooden TV
A manufacturer is beginning the last week of production of four different models of wooden television
consoles, labeled by I,II,III,IV each of them must be assembled then decorated .
The models requires 4,5,3 and 5 hours respectively for assembling , and 2,1,4 and 3 hours for decorating.
The profit of the models are 7,6,6 and 9$ per unit respectively .
The manufacturer has 30.000 hours for assembling (750 assemblers working for 40 hours) and has
20.000 hours Available for decorating (500 decorators working for 40 hours) .
How many of each model should the manufacturer produce to Max* the profit ?
Hint all units can be sold .

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Gasoline - Blend
The Aztec Refining Company produces two types of unleaded gasoline,
regular and premium, which it sells to its chain of service stations for $12
and $14 per barrel, respectively. Both types are blended from Aztec's
inventory of refined domestic oil and refined foreign oil, and must meet
the following specifications:

Maximum Minimum Maximum Minimum

Vapor Octane Demand Deliveries
Pressure Rating bbl/wk bbl/wk
Regular 23 88 100,000 50,000
Premium 23 93 20,000 5,000

The characteristics of the refined oils in inventory are as follows:

Vapor Octane Inventory Cost
Pressure Rating bbl $/bbl
Domestic 25 87 40.000 8
Foreign 15 98 60.000 15

What quantities of the two oils should Aztec blend into the two gasoline
in order to maximize weekly profit?

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Camping Trip
a hiker plans to go on camping trip ,there are five items the hiker wishes to take with her ,but together they
Exceed 60 Ib weight limit which the hiker can carry .
To assist herself in the selection process ,she has assigned a value to each item in ascending order of
Importance.

Item Item 1 Item 2 Item 3 Item 4 Item 5

Weight 52 Ib 23 Ib 35 Ib 15 Ib 7 Ib
Value 100 60 70 15 15

Which items should she take to maximize to total value without exceeding the restriction weight ?

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Television manufacturing
A television manufacturing company has to decide on the number of 27- and 20- inch sets to be produced
at one of its factories.
Market research indicates that at most 40 of the 27- inch and 10 of the 20-inch sets can be sold per
month.
The maximum number of work hours available is 500 per month.
A 27-inch set requires 20 work hours, and a 20-inch set requires 10 work hours.
Each 27-inch set sold produces a profit of $120, and each 20-inch set produces a profit of $80.
A wholesaler has agreed to purchase all the television set produced if the number do not exceed the
maxima indicated by the market research.
(a)Formulate a linear programming model for this problem.
(a) Solve this model graphically.

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Max Profit
A company produces two products requiring resources P and Q.
Management wants to determine how many units of each product to produce so as to maximize profit.
For each unit of product 1, 1 unit of resource P and 2 units of resource Q are required.
For each unit of product 2, 3 units of resource P and 2 units of resource Q are required.
The company has 200 units of resource P and 300 units of resource Q.
Each unit of product 1 gives a profit $1, and each unit of product 2, up to 60 units, gives a profit of $2.
Any excess over 60 units of product 2 brings no profit, so such an excess has been ruled out.
(a) Formulate a linear programming model for this problem.
(b)Solve this problem graphically. What is the resulting total profit?

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Insurance company
An insurance company is introducing two new product lines: special risk insurance and mortgages.
The expected profit is 5 per unit on special risk insurance and 2 per unit on mortgages.
Management wishes to establish sales quotas for the new product lines to maximize total expected profit.
The work requirements are as follows:

Department Special Risk Mortgages Work Hours

Available
Underwriting 3 2 2400
Administration 0 1 800
Claims 2 0 1200

(a) Formulate a linear programming model for this problem.

(b) Use the graphical method to solve this model.

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