ChE

522: Chemical Engineering Plant Design and Economics Lecture Notes

OPTIMUM DESIGN and DESIGN STRATEGY

• Optimization is the process of improving an existing situation, device, or system such as a chemical process.
o Set up an optimization problem
o Quantify the value of a potential improvement
o Identify quickly the potential for improvement
o Identify the constraints, barriers, and bottlenecks for improvement
o Choose an appropriate procedure to find the best change
o Evaluate the result of the optimization
• Terms and Definition:
o Decision variables (also called design variables) – are those independent variables over which the engineer has some
control. These can be continuous variables such as temperature or discrete (integer) variables such as number of
stages in a column.
o Objective function – is a mathematical function that, for the best values of the decision variables, reaches a minimum
(or maximum). Thus, it is the measure of value or goodness for the optimization problem.
§ If it is a profit, one searches for its maximum.
§ If it is a cost, one searches for its minimum.
§ There could be more than one objective function for a given optimization.
o Constraints – are limitations on the values of decision variables.
§ These may be linear or non-linear, may involve more than one decision variable
§ It is called an equality constraint if it is written as an equality involving two or more decision variables
§ Example: a reaction may require a specific oxygen concentration in the combined feed to the reactor. The
mole balance on the oxygen in the reactor is an equality constraint.
§ It is called an inequality constraint if it is written as an inequality involving one or more decision variables
o
§ Example: the catalyst may operate effectively below 400 C, or below 20 Mpa.
§ An equality constraint effectively reduces the dimensionality (the number of truly independent decision
variables) of the optimization problem.
§ Inequality constraints reduce (& often bound) the search space of the decision variables.
o Global optimum – is a point at w/c the objective function is the best for all allowable values of the decision variables.
There is no better acceptable solution.
o Local optimum – is a point from w/c no small, allowable change in decision variables in any direction will improve the
objective function.

o Linear programming – the optimization method that is used if the objective function is linear in all decision variables
and all constraints are linear.
o Non-linear programming – optimization method that is used in other optimization problems
o Quadratic programming – a nonlinear optimization used if the objective function is second order in the decision
variables and the constraints are linear
o Mixed integer – used for optimization problems involving both discrete and continuous decision variables

Optimization is usually a dynamic, creative activity involving brainstorming, exploring alternatives, and asking “what if?”

• Methods:
1. Classical Optimization 3. Dynamic Programming
a) One variable – differential calculus 4. Method of Lagrange
b) Two or more variable – partial differentiation Multipliers
2. Linear Programming 5. Method of Steepest
§ Graphical Ascent or Descent
§ Simplex method 6. Geometric Programming


• General Procedure for Determining Optimum Conditions
a. Determine what factor is to be optimized (objective function).
§ Typical factors are: total cost per unit of production or per unit time
• Profit
• Amount of final product per unit time
• Percent conversion

1

ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes
b. Develop relationships showing how the different variables (decision variables & constraints) involved affect
the chosen factor
c. Combine relationships graphically or analytically to give the desired optimum conditions

• Procedure with One Variable
o Graphically, the optimum condition is the maximum point or the minimum point on the curve obtained by plotting the
objective function vs decision variable.

Optimum Design for One Variable











Optimum diameter

st
o Analytically, take the 1 derivative of the objective function, equate to zero and solve for the unknown variable.
The value of the variable occurs at an optimum point or point of inflection.
nd
o Take the 2 derivative and check if it is
§ > 0, the value occurs at a minimum
§ < 0, the value occurs at a maximum
§ equal to zero, the value occurs at the point of inflection

• Procedure with Two or More Variables
A. Graphical
§ Two dimensional (see fig.)
The factor being optimized is plotted against
one of the independent variable (x) w/ a
second variable (y) held at a constant value.
Plot the points, the optimum value of x and y
occurs at the minimum point on the curve
§ Three dimensional
Solve first for optimum value of CT, x, and y at
one constant value of z then plot z versus the
optimum values of CT.
B. Analytical Method
§ Take partial derivatives, equate to zero.
§ Solve the two equations simultaneously.
§ If more than two independent variables
are involved, same procedures must be
employed.



Graphical determination of optimum conditions w/ 2 or more independent variables

Optimum Production rates in Plant Operation
• One of the most important variables in any plant operation is the amount of product produced per unit time.
• Production rate depends on many factors such as:
o the number of hours in operation per day, per week, or per month
o the load placed on the equipment
o the sales market available

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ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes
• Analysis of the costs involved under different conditions & considerations of these & other factors allows determination of
the optimum rate of production also called economic lot size.
• Design factors/considerations and actual plant operation may differ from each other and that this may affect production
rates.
• Price and market conditions do not remain constant so that even if the design engineers have based their recommendation
on a similar item, the actual data may not always coincide with the design data.

• Classification of total product cost
o Operating costs – costs depending on the rate of production & include expenses for direct labor, raw materials,
heat, power, supplies, & other similar items w/c are function of the amount of material produced.
§ Basis of operating cost is per unit of production
Types of operating costs
§ Minimum expenses for RM, labor, power, etc.
§ Extra expenses (also known as super-production costs) due to increasing the rate of production.
§ Example of super-production costs – extra expenses caused by overload on power facilities, additional
labor requirements, decreased efficiency of conversion
Organization costs – expenses due for directive personnel, physical equipment, and other services or facilities w/c must be
maintained irrespective of the amount of material produced.

n
Superproduction cost per unit of production = mP eqn. 01

Where: P – rate of production (total units produced/time)
m, n – constants

Let: h be the operating costs, constant per unit of production
Oc – organization costs per unit time
cT – total product cost per unit of production
Then:
n
cT = h + mP + Oc ; $ _ eqn. 02
P unit
From equations 1 & 2, the following can be derived:
n
CT = cTP = h + mP + Oc P where CT - total product cost; $/time
P r – profit per unit of production
n
r = s – cT = s - h + mP + Oc ; $ s – selling price/unit production
P unit R - profit per unit time
n
R = rP = s - h - mP - Oc P ; $ eqn. 03
P time

Optimum Production Rate For Minimum Cost Per Unit of Production
• The determination of the production rate that will give the least cost is very important.
• Graphically, plotting the total product cost per unit against production rate will show the minimum product cost and the
production corresponding to it is the optimum production rate.
• Analytically, by taking the first derivative of eqn. 2 and equating to zero, an optimum production rate can be obtained. i.e;
n-1 1/(n+1)
dcT = nmPo – Oc = 0 ; Po = Oc where Po – optimum production rate
2
dP Po nm

Optimum Production Rate For Maximum Total Profit
• In some cases, the amount of money earned over a given time period is more important than the amount of money earned
for each unit of product sold.
• The production rate that will give the maximum profit per unit of time may differ from the production rate that will give the
minimum cost per unit of production.
• Graphically, a plot of profit per unit time against production rate goes to a maximum.
• Analytically, by taking the first derivative of eqn. 03 and equating to zero, an optimum production rate is obtained, i.e.
n 1/n
dR = (s-h)Po – m(n+1)Po = 0 ; Po = s – h
dP m(n +1)

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ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes
Optimum Conditions in Cyclic Operations
• Some operations are cyclic w/c involve shutdown for some activities.
• Such type of processes occurs in batch processes or when rate of production decreases with time.
• In true batch processes, no product is obtained until the unit is shutdown for discharging.
• A good example for batch process is the operation of filter presses such as the PFFP and LF.
• In semi-continuous cyclic operations, the product is delivered continuously but the rate of delivery decreases w/ time.
• The variable total time required per cycle must therefore be considered in determining optimum conditions.
• For such operations, relationships similar to the following can be developed to express overall factors. Basis: 1 cycle

Total annual cost = (operating & shutdown costs/cycle)(cycles/year) + AFC
Annual production = (production/cycle)(cycles/yr)
Cycles per year = operating + downtime/yr .
operating + downtime/cycle

Problem: Determination of profits at optimum production rates (ex.2/352)
1.2
A plant produces pumps at the rate of P units per day. The variable costs per pump have been found to be $47.73 + 0.1P . The
total daily fixed charges are $1750, and all other expenses are constant at $7325/day. If the selling price per pump is $173,
determine (a) the daily profit at a production schedule giving the minimum cost per pump. (b) the daily profit at a production
schedule giving the maximum daily profit. (c) the production schedule at the break- even point.

1.2
Given: Variable cost; $/pump = 47.73 + 0.1P
FC = $1750 + $7325 = $9075/d
Selling price; $/pump = 173

Req’d: a) daily profit at a production giving minimum cost per pump
b) daily profit at a production giving maximum daily profit
c) production at break even point

Soln: P = units/d

1.2
a) Objective function is cT: cT = VC + FC = 47.73 + 0.1P + 9075 ; $ .
P unit

0.2 2.2
Minimize cost/unit: dcT = 0.1(1.2)Po - 9075 = 0 ; 0.12Po = 9075 Po = 165.0 units/d
2
dP Po


Daily profit (at optimum production giving minimum cost) is determined from

1.2
R = (s – cT)Po = {173 – [47.73 + 0.10(165) + 9075/165]}165

R = $4035.54/d


b) objective function is R:
1.2
R = (s – cT)P = [173 – (47.73 + 0.1P + 9075/P)]P

1.2
Maximize profit/d: dR = 173 – 47.73 – 0.1(2.2)Po = 0
dP
1.2
125.27 = 0.22Po Po = 197.78 = 198 units/d

Daily profit at Po is:
1.2
R =[173 – (47.73 + 0.1(198) + 9075/198)]198 = $4439.25/d

c) @ break even point, profit = 0:

1.2
[173 – (47.73 + 0.1Po + 9075/Po)]Po = 0 Solving; Po = 88 units/day

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ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes

Determination of conditions for minimum total cost in a batch operation:
An organic chemical is being produced by a batch operation in which no product is obtained until the batch is finished. Each cycle
consists of the operating time necessary to complete the reaction plus a total time of 1.4 hr for discharging and charging. The
0.25
operating time per cycle is equal to 1.5Pb hr, where Pb is the kg of product/batch. The operating costs during the operating period
are $20/hr and the costs during the discharge-charge periods are $15/hr. The annual fixed costs for the equipment vary with the
0.8
size of the batch as follows: CF = 340Pb $/yr. Inventory & storage charges may be neglected. If necessary, the plant can be
operated 24 hr/d for 300 days/yr. The annual production is 1M kg of product. At this capacity, raw material and miscellaneous
costs, other than those already mentioned, amount to $260,000/yr. Determine the cycle time for conditions of minimum total cost
per year.

0.25
Given: tdischarge&charge = 1.4 hr ; operating time = 1.5Pb hr
Optg costs = $20/hr, shutdown cost = $15/hr,
0.8
AFC = CF = 340Pb $/yr, other FC = $260,000/yr
Production = 1 M kg

Req’d: cycle time for conditions of minimum total cost per year.

Sol’n: Pb = kg production/cycle ; Let CT = total annual costs

CT = (optg costs/cycle)(cycles/yr) + (shutdown costs/cycle)(cycles/yr) + Total Annual Fixed Costs

6 6
Cycles/yr = annual production = 1x10 kg prod’n/yr = 1x10 cycles
production/cycle Pb kg prod’n/cycle Pb yr

0.25 0.25
Operating costs/cycle = ($20/hr)(1.5Pb )hr/cycle = 30Pb $/cycle

Shutdown costs/cycle = ($15/hr)(1.5 hr/cycle) = $21/cycle

0.25
Cycle time = operating time + downtime = 1.5 Pb + 1.4 hrs


0.25 6 6
CT = 30Pb $ 1x10 cycles + $ 21 1x10 cycles
0.8
Cycle Pb yr cycle Pb yr + 340Pb + 260000



6 6 0.8 st
CT = 30x10 + 21x10 + 340Pb + 260,000 Minimize TAC to give optimum Pb at min cost, 1 derivative = 0
0.75
Pb Pb

6 6
d(CT) = -(0.75)30x10 - 21x10 + 0.8(340) = 0 ;
1.75 2 0.2
dP Pb Pb Pb

6 -1.75 6 -2 -0.2
- 22.5x10 Pb – 21x10 Pb + 272 Pb = 0 Pb,o = 1626 kg/cycle

0.25
@ Pb,o = 1626 kg/cycle; cycle time = 1.5 Pb + 1.4

0.25
cycle time = 1.5(1626) + 1.4 = 10.925 hrs/cycle (Ans)

6
total time used = 10.925 hrs 1x10 cycles = 6718.9 hrs/yr
yr cycle 1626 yr

total available time/yr = 300(24) = 7200 hrs/yr


Cycle time for maximum amount of production from a PFFP:
Tests w/ a PFFP, operated at constant pressure, have shown that the relation between the volume of the filtrate delivered and the
2 3
time in operation can be represented as follows. Pf = 18(θf + 0.11) where Pf is the m of filtrate delivered during θf hrs of filtering

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ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes
th
time. The cake formed in each cycle must be washed w/ an amount of water equal to 1/16 times the volume of the filtrate
delivered per cycle. The washing rate remains constant and is equal ¼ of the filtrate delivery rate at the end of the filtration. The
time required per cycle for dismantling, dumping and reassembling is 6 hrs. Under the conditions where the preceding information
applies, determine the total cycle time necessary to permit the maximum output of filtrate during each 24 hrs.

Given:
Pf = volume of filtrate delivered/cycle Vw = Pf ; rw = ¼ rf & rf = 1 dPf
1/2 3
Pf = 4.24(θf+0.11) m /cycle 16 4 dθf

θf = filtration time/cycle θw = washing time/cycle
θd,d,r = 6 hrs/cycle

Reqd: optimum cycle time for maximum output of filtrate/day

Soln: objective function is to maximize volume of filtrate per day, Vf

3
Vol delivered, Vf = N, cycles x Pf, m . ; Cycles = 24 hrs/day .
day day cycle day cycle time; hrs/cycle

Let total cycle time be θT : θT = θf + θd,d,r + θw

1/2
θw = Vw ; rw = ¼ rf and rf = dPf = d (4.24)( θf+0.11)
rw dθf dθf
-1/2
rf = ½ (4.24)( θf+0.11) (1)
3
rf = 2.12 ; rw = 1 2.12 = 0.53 m
1/2 1/2 1/2
(θf+0.11) 4 (θf+0.11) (θf+0.11) hr

1/2 1/2 1/2
θw = Vw = Pf(θf+0.11) = 4.24(θf+0.11) (θf+0.11) = (θf+0.11)
rw 16(0.53) 16(0.53) 2

θT = θf + θddr + θw = θf + 6 + θf + 0.11 = 1.5 θf + 6.055 hrs .
2 cycle
cycles = 24 hrs/d .
day (1.5 θf + 6.055) hrs/cycle

1/2
volume delivered = 24 4.24(θf+0.11)
day 1.5 θf + 6.055

1/2 3 1/2 -1
Vf = 101.76(θf+0.11) ft = [101.76(θf+0.11) ](1.5θf + 6.055)
(1.5θf + 6.055) day

-1/2 -1 1/2 -2
dVf = 101.76 (½)(θf,o + 0.11) (1)(1.5θf,o + 6.055) + 101.76(θf,o+0.11) (-1)(1.5θf,o+6.055) (1.5) = 0
dθf

1/2
50.88 = 152.64(θf,o+0.11)
1/2 2
(θf + 0.11) (1.5θf+6.055) (1.5θf,o+6.055)


50.88(1.5θf,o+6.055) = 152.64(θf,o + 0.11) ; θf,o = 3.82 hrs
Cycle time, θT = 1.5θf + 6.055 = 1.5(3.82) + 6.055 = 11.785 hrs/cycle

Semicontinuous Cyclic Operations

• Product is delivered continuously but the rate of delivery decreases with time owing to:
o scaling,

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ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes
o collection of side product,
o reduction in conversion efficiency
o or similar other causes.
• It is necessary to shutdown operation periodically in order to restore the original conditions for high production rates.
• The optimum cycle time can be determined for conditions such as maximum amount of production per unit time or minimum
cost per unit of production.

Scale Formation:
• Solids deposit on the heat-transfer surfaces (scales are formed)
• Continuous formation of scales
o causes a gradual increase in the resistance to flow of heat
o and thereby reducing the rate of heat transfer
o and rate of evaporation if the same temperature difference driving forces are maintained.
• These condition requires shutdown for cleaning
• The time for cleaning is included in the optimum operation time
• Scaling occur especially when the feed contains a dissolved material that has inverted solubility
• Inverted solubility means the solubility decreases as the temperature of the solution is increased.
• Fro such a material, the solubility is least near the heat-transfer surface where the temperature is greatest.
• Thus, the solids crystallize out from the solution forming a scale and are deposited on the heat-transfer surface.
• Examples of common materials causing scaling are: calcium sulfate, Ca(OH)2, Na2CO3, Na2SO4 and other calcium salts.
Magnesium salts also form scales.
• When true scale formation occurs, equations similar to the following applies:

1 = aθb + d where: a & d – are constants; θb – operating time/cycle
2
U U – overall heat transfer coefficient
• Other appropriate equations can be used when it is not convenient to determine the overall heat transfer coefficient.
• The rate of heat transfer at any time is: separate variables & integrate:
Q θb
dQ = UAΔt = AΔt . dQ = A Δt 1 dθb
1/2 0 0 1/2
dθb (aθb + d) (aθb + d)

1/2 1/2
Q = 2AΔt [(aθb + d) – d ] where Q – heat transferred/cycle
a Δt – temperature gradient; A – heat transfer area

Cycle Time for Maximum Amount of Heat Transfer
• Equations that relate heat transfer and time can be used for finding the cycle time that will permit the maximum amount of
heat transfer.
• Each cycle consists of an operating or boiling time, θb and time for empting, cleaning & recharging is θc
• Total time per cycle: hrs/cycle = θt = θb + θc
• Total time used for actual operation, emptying, cleaning & refilling = H (hrs)
• The number of cycles during the overall operation is:
Cycles = H hrs
(θb + θc ) hrs/cycle

• The total amount of heat transferred during the operation is:
QH = (Q/cycle) x (cycles/H,hr) = amount of heat/hr

1/2 1/2
QH = 2AΔt (aθb + d) – d H .
a (θb+θc)

• Graphically, a plot of total amount of heat transferred versus θb will show a maximum at the optimum value of θb.
st
• Analytically, the 1 derivative of QH w/ respect to θb is set to zero and θb is solved.
1/2
dQh = 0 ; θb = θc + 2 (adθc)
dθb a
• Use of tangential method for finding optimum conditions
o Used for constant cleaning time (θc).
o A plot of the amount of heat transferred vs boiling time is prepared.

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ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes
o A tangent to the curve starting from θc (cleaning time) w/ slope equal to Q/(θb + θc) define the optimum point.
o The point of tangency will give the optimum value of the boiling time per cycle for conditions of maximum amount
of heat transferred.
See figure 11-5, page 358 for an example
o

Cycle Time for Minimum Cost per Unit of Heat Transfer
• Assumption are as follows:
o An evaporation unit of fixed capacity is available
o A definite amount of feed and evaporation must be handled each day
o The total cost for one cleaning & inventory charge is constant no matter how much boiling time is used.
• Determine the cycle time that will permit operation at the least cost.
• The total cost includes
o Fixed charges on the equipment & fixed overhead expenses
o Steam, materials & storage costs, proportional to the amount of feed & evaporation
o Expenses for direct labor during the actual evaporation operation
o Cost of cleaning
• First two costs are independent of time
• An optimum cycle time can be found by minimizing the total costs for cleaning & for direct labor during the evaporation
• Let Cc be the cost for one cleaning, Sb be the direct labor cost per hour during operation
• The total variable costs during H hours of operating and cleaning time is:

CT, for H hrs = (Cc + Sbθb) H .
θb + θc
• Substituting the term H/(θb+θc) from QH equation:
CT, for H hrs = aQH(Cc + Sbθb) .
1/2 1/2
24AΔt[(aθb + d) – d ]

• CT, for H hrs can be minimized to obtain optimum cycle time that will give the least cost
• Graphically, CT can be plotted vs θb, minimum point determines optimum cycle time
st
• Analytically, 1 derivative can be taken and equated to zero and optimum θb can be solved.
1/2
dCT = 0 ; θb,o = Cc + 2 (adCcSb) ; time/cycle
dθb Sb aSb
• Checking total time θt:
1/2 1/2
θt = θb + θc = 2AH’Δt[(aθb,opt + d) – d ]
aQH
where H’ – total time available for operation, emptying, cleaning & recharging

Accuracy and Sensitivity of Results:
• The principles illustrated in the preceding discussions shows general concepts on the determination of optimum conditions.
• Other factors such as cost due to taxes, time value of money, capital, efficiency or inefficiency of operation & special
maintenance were not emphasized.
• Such factors may influence the optimum conditions and must therefore be taken into account in the final analysis.
• The engineer must practically understand and recognize when to take into account such factors and when the added
accuracy obtained by accounting them is not worth the difficulty they cause in the analysis.

Fluid Dynamics (optimum Economic Pipe Diameter)
• Investment for piping and pipe fittings is an important part of the total investment for a chemical plant.
• It is therefore necessary to choose the size of pipes that will give the minimum cost for pumping & fixed charges.
• The use of increased pipe diameter will cause an increase in the fixed charges for the piping system & decrease in the
pumping or blowing charges.
• An optimum pipe diameter must exist.
• This optimum condition can be found at the point at w/c the sum of pumping & blowing costs plus fixed charges on the
piping system is a minimum.
• Pumping and Blowing Costs:
For incompressible fluid through a pipe of constant diameter:
2
o W = 2fV L(1+J) + B where: W- mechanical work added (ft-lbf/lbm)
gcD

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ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes

For turbulent flow (Nre > 2100) & for new steel pipes: f – fanning friction V – ave fluid linear velocity,ft/s
o f = 0.04 : NRe = DVρ/µ L – length of pipe, ft
0.16
(NRe) J – friction loss due to fittings expressed as eq loss in straight pipes
gc – constant
For laminar flow (NRe < 2100) f = 16/NRe B – constant taking all other factors of the ME balance

Annual pumping cost for turbulent flow is given by:
2.84 0.84 0.16
o Cpumping = 0.273qf ρ µ K(1+J)Hy + B’
4.84
Di E
Annual pumping cost for viscous flow is given by: Di – inside pipe dia, inch
2
o C’pumping = 0.024qf µc K(1+J)Hy + B’
4
Di E
µc – fluid viscosity, cP ; K – constant of electrical energy, $/kWh
Hy – hours of operation per year; E – efficiency of motor & pump (fraction)
B’ - a constant independent of Di
Cpumping – pumping cost ($/yr) per foot of pipe length when flow is turbulent
C’pumping – pumping cost ($/yr) per foot of pipe length when flow is viscous

• Fixed Charges for piping System
n
o The purchased cost is cpipe = XDi
n
o The annual cost for installed piping system is : Cpipe = (1+F)XDi KF
o Where: cpipe – purchase cost of new pipe/ft pipe length, $/ft
o X – purchase cost of new pipe/ft of pipe length if pipe dia is 1 in, $/ft
o N – a constant w/ value dependent on type of pipe
o Cpipe – cost for installed piping system, $/yr/ft of pipe length
o F – ratio of total costs fro fittings & installation to purchase cost for new pipe
o KF – Annual fixed charges including maintenance, expressed as fraction of initial cost for completely installed pipe

• Optimum Economic Pipe Diameter:
• The total annual cost for piping system & pumping for turbulent flow is:
2.84 0.84 0.16 n
CT = 0.273qf ρ µ K(1+J)Hy + B’ + (1+F)XDi KF
4.84
Di E
st
The optimum pipe diameter is obtained by taking the 1 derivative and equating to zero: i.e.

2.84 0.84 0.16 1/(4.84+n)
Di,o = 1.32qf ρ µ K(1+J)Hy
n(1 + F)XEKF
• The total annual cost for piping system & pumping for viscous flow is:
2 n
C’pumping = 0.024qf µc K(1+J)Hy + B’ + (1+F)XDi KF
4
Di E
st
The optimum pipe diameter is obtained by taking the 1 derivative and equating to zero: i.e.
2 1/(4+n)
Di,o = 0.096 qf µcK(1+J)Hy
n(1 + F)XEKF


LINEAR PROGRAMMING
• Most widely used optimization technique, perhaps the most effective
• The word programming does not refer to computer programming,
• But it means optimization (also true for non-linear and integer programming)
• Both objective function and constraints are linear (problems)
• A mathematical technique for determining optimum conditions for allocation of resources & operating capabilities to attain a
definite objective.
• Also useful for analysis of alternative uses of resources or alternative objectives

Objective: usually to maximize profit and minimize cost
Objective function: mathematical function
Decision variables – design variables
Constraints – limitations on the values of decision variables

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ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes
Common Constraints:
1. use of raw materials 3. time availability
2. man-hours (labor) 4. budget

RATIONAL APPROACH TO PROBLEMS INVOLVING LP
1. A systematic description of the objective
2. A systematic description of the limitations or constraints
3. A clear knowledge of decision variables
4. Combination of the constraints conditions and the objective function to choose the best result out of many possibilities.

Mathematical Formulation:
Decision variables: Let x1 = units of product 1 ; xn – units of product n
x2 = units of product 2
Objective function: Max profit: P = a1x1 + a2x2 + …. + abxn
Subject to: (constraints)
a11x1 + a12x2 + . … + anxn (≤,≥, = ) b1
a21x1 + a22x2 + …. + a2nxn (≤,≥, = ) b2
a1 , a2 ……………..xn ≥ 0
v Availability of RM, man hours availability, non-negativity constraints, others

Methods:
1. Graphical – applies only up to 2 decision variables only
2. Simplex – Gauss Jordan
Applies to at least 2 or more decision variables.


SIMPLEX ALGORITHM:
Optimality condition:
Maximization: the entering variable is the non-basic variable having the most negative coefficient in the Z equation.
Minimization: the entering variable is the non-basic variable having the most positive coefficient in the equation.
• A tie between 2 non-basic equation variables maybe broken arbitrarily
• Where all the left hand side coefficients of the Z-equation are non-negative, the optimum is reached.
Feasibility condition: The leaving variable is the variable corresponding to the smallest ratio of the current values of the basic
variables to the positive constraint coefficients of the entering variable.
A tie may be broken arbitrarily.

Problem 3:
Two products X & Y, both require processing time on machines 1 & 2. Machine 1 has 200 hours available, and machine 2 has 400 hrs
available. Product X requires 1 hour on machine 1 and 4 hours on machine 2. Product Y requires 1 hour on machine 1 and 1 hour on
machine 2. Each unit of product X yields $10 profit and $5 for product Y. Determine the number of units of products X & Y that
should be produced to give the maximum profit. Solve by simplex method.
Soln:
Decision variables: let X – be the no. of units of product X
Y – be the no. of units of product Y
Objective function: Max profit (P), P = 10X + 5 Y
Subject to: constraints
a) X + Y ≤ 200 b) 4X + Y ≤ 400 c) X, Y > 0
Standard form:
Max. P = 10X + 5 Y + 0S1 + 0S2 or P – 10X – 5Y = 0
ST: X + Y + S1 +0S2 = 200 or X + Y + S1 = 200
4X + Y + 0S1 + S2 = 400 or 4X + Y + S2 = 400
X, Y > 0
Where S – represent slack variable to convert the inequality to an equality

10

ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes

Initial tableau

Decision Variables Slack Variables

Basic X Y S 1 S 2 RHS
P -10 -5 0 0 0
S 1 1 1 1 0 200 200/1 = 200
S 2 4 1 0 1 400 400/4 = 100

Pivot pt. EV: X LV: S2 LR = 100

Entering variable (EV): the non-basic variable w/ most negative sign (X)
Leaving variable (LV): the variable corresponding to the most (+) of the entering variable.

nd st
2 tableau (1 iteration)
New R3 = Old R3 ÷ 4 ; New R1 = New R3 x 10 + old R1
New R2 = New R3 x (-1) + old R2

Decision Variables Slack Variables
Basic X Y S 1 S 2 RHS
P 0 -5/2 0 5/2 1000
S 1 0 ¾ 1 -1/4 100 (100) / (3/4) = 133.33
X 1
¼ 0 ¼ 100 (100) / (1/4) = 400
EV: Y LV: S1 Pivot pt: (¾) LR = 133.33

rd nd
3 tableau (2 iteration)
New R2 = Old R2 x (4/3) ; New R1 = New R2 x (5/2) + old R1
New R3 = New R2 x (-1/4) + old R3

Decision Variables Slack Variables Optimum
Basic X Y S 1 S 2 RHS Answers:
P 0 0 10/3 5/3 4000/3 P = 1333.33
Y 0 1 4/3 -1/3 400/3 Y = 133.33
X 1
0 -1/3 1/3 200/3 X = 66.67

Problem 4: Carnell Electronics Inc., produces two models of electronic calculators, the X15 & Y10. The company has been extremely
surprised by the demand for its products. Until an expansion program is completed, the company will be able to sell as many of
either model as it can produce. Production capacity is limited in three departments: soldering, assembly and molding. Each month,
the company has 50,000 minutes of molding capacity. Either model requires 1 min of molding time. Model X15 requires 5 min to
assemble, Y10 requires 2.5 min. The company has 200,000 minutes of assembly time each month. Soldering operations require 3 min
on the X15 and 8 min on the Y10. The company has 300,000 minutes of soldering time each month. Model X15 contributes $10 to
profit, $8 for Y10. Determine the maximum profit. Solve graphically and by simplex method.

Soln:
Decision variables: let X1 = no. of units of model X15 produced
X2 = no. of units of model Y10 produced
Objective function: maximize profit:
Constraints: 1) molding capacity (50,000 min: 1 min for both)
2) assembly time (200,000 min) X15 = 5 min; Y10 = 2.5 min
3) soldering time (300,000 min) X15 = 3 min; Y10 = 8 min
4) X1, X2 > 0

11

ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes
Objective function: max P; P = $10(X1) + $8(X2) ; P = 10X1 + 8X2
Subject to: 1) X1(1min/unit) + X2(1 min/unit) ≤ 50,000 ; X1 + X2 ≤ 50,000
2) X1(5min/unit)+X2(2.5 min/unit) ≤ 200,000 ; 5X1 + 2.5X2 ≤ 200,000
3) X1(3min/unit) + X2(8 min/unit) ≤ 300,000 ; 3X1 + 8X2 ≤ 300,000
4) X1, X2 > 0
a) graphical solution:
L1: X1 + X2 = 50,000 : pts: (0,50,000) & (50,000, 0)
L2: 5X1 + 2.5X2 = 200,000 : pts: (0, 80,000) & (40,000, 0)
L3: 3X1 + 8X2 = 300,000 : pts: (0, 37,500) & (100,000, 0)

X2 Points of intersection: extreme pts in feasible region
L 2 L1 & L3: X2 = 30,000, X1 = 20,000 & P = $440,000
L1 & L2: X2 = 20,000, X1 = 30,000 & P = $460,000
Optimum answers:
30,000 units of model X15
L1 20,000 units of model Y10
Shaded area: feasible region
L3




X1



b) By Simplex method:
Std from: max P = 10X1 + 8X2 or P – 10X1 – 8X2 = 0
ST: 1) 3X1 + 8X2 + S1 = 300,000
2) 5X1 + 2.5X2 + S2 = 200,000
3) X1 + X2 + S3 = 50,000
4) X1, X2 > 0

Initial tableau
Decision Variables Slack Variables
Basic X 1 X 2 S 1 S 2 S 3 RHS
P -10 -8 0 0 0 0
S 1 3 8 1 0 0 300,000 100,000
S 2 5 2.5 0 1 0 200,000 40,000
S 3 1 1 0 0 1 50,000 50,000
EV: X1 LV: S2 LR = 40,000
New R3 = Old R3 ÷ 5 ; New R1 = New R3 x 10 + Old R1
New R2 = New R3 x (-3) + Old R2 ; New R4 = New R3 x (-1) + Old R4
nd st
2 tableau : 1 iteration
Decision Variables Slack Variables
Basic X 1 X 2 S 1 S 2 S 3 RHS
P 0 -3 0 2 0 400,000
S 1 0 13/2 1 -3/5 0 180,000 26,692
X 1 1 1/2 0 1/5 0 40,000 80,000
S 3 0 1/2 0 -1/5 1 10,000 20,000
EV: X2 LV: S3 LR = 20,000

12

ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes

New R4 = Old R4 x 2 ; New R3 = New R4 x (-1/2) + Old R3
New R2 = New R4 x (-6.5) + Old R2 ; New R1 = New R4 x 3 + Old R1


rd nd
3 tableau: 2 iteration
Decision Variables Slack Variables Optimum
Basic X 1 X 2 S 1 S 2 S 3 Answers
P 0 0 0 4/5 6 460,000
S 1 0 0 1 2/5 -13 50,000
X 1 1 0 0 2/5 -1 30,000
X 2 0 1 0 -2/5 2 20,000


Problem 5:
Catchem is a supplier of special chemicals to petroleum & chemical industries in the San Francisco Bay area of Northern California.
Martha Sellmore, sales manager of Calchem is trying to determine how the typical salesperson should divide time between
petroleum (PIC) & chemical industry customers (CIC). The ff information seems pertinent to the sales manager.
PIC CIC
Ave profit per sales call $500 $200
Hours of salesperson’s time req’d/ sales call 8 hrs 8/3 hrs
Ave. entertainment cost/sales call $40 $30
If less than 8 hours per day per salesperson is required for sales calls, other administrative duties can be performed to fill out the
day. A maximum of $60 per sales person per day fro entertainment cost is allowed under company policy. How many daily sales
calls to petroleum and chemical industry customers should each salesperson make, on the average, to maximize profits? Solve
graphically.

Problem 6:
Carnell Electronics Inc., produces two models of electronic calculators, the X15 & Y10. The company has been extremely surprised by
the demand for its products. Until an expansion program is completed, the company will be able to sell as many of either model as
it can produce. Production capacity is limited in three departments: soldering, assembly and molding. Each month, the company
has 50,000 minutes of molding capacity. Either model requires 1 min of molding time. Model X15 requires 5 min to assemble, Y10
requires 2.5 min. The company has 200,000 minutes of assembly time each month. Soldering operations require 3 min on the X15
and 8 min on the Y10. The company has 300,000 minutes of soldering time each month. Model X15 contributes $10 to profit, $8 for
Y10. Determine the maximum profit. Solve the problem graphically and by simplex method.

Problem 7:
A merchant plans to sell two models of computers at costs of $500 & $800 respectively. The $500 model yields a profit of $45 and
the $800 model yields a profit of $50. The merchant estimates that the total monthly demand will not exceed 250 units. Find the
no. of units of each model that should be in stock in order to maximize profit. Assume that the merchant does not want to invest
more than $140,000 in computer inventory.

Problem 8:
A fruit juice company makes two special drinks by blending apple and pineapple juice. The first drink uses 30% of apple juice and
nd
70% of pineapple while the 2 drink uses 60% of apple and 40% of pineapple. There are 1000 liters of apple and 1500 liters of
st nd
pineapple juice available. If the profit for the 1 drink is $0.60/L and that of the 2 drink is $0.50/L, find the amount in liters of each
drink that should be produced in order to maximize profit.

Problem 9:
Maximize Z = 3x1 + 4x2
Subject to: 2x1 + 5x2 ≤ ; 4x1 + 3x2 ≤ 12 ; x1, x2 ≥ 0.

Problem 10:
A chemist sells four scents of perfume. Each of these scents contains three types of perfume in the ff proportions:
Type of Perfume
At present, the quantities on hand are: 220 oz of type K, 240 oz of type
Scent K L M L, and 110 oz of type M. No additional amounts can e obtained during
the coming week. She sells at $1.95/oz of scent A, $1.90/oz of scent B,
$1.70/oz of scent C and $1.45/oz of scent D. The demand for these 13
scents during the coming week is
ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes
A 20% 50% 30%
B 35% 40% 25%
C 50% 30% 20%
D 60% 25% 15%
expected to be such that the entire supply of whatever product mix is prepared can be sold. What are the constraints and the
objective function which should be taken into consideration determining many ounces of each scent should be prepared?

Problem 11:
A production facility is being used to produce three different products, x1, x2 and x3. Each of these products requires a known
number of employee-hours and machine-hours for production such that: Product x1 requires 10 employee-hours and 15 machine –
hours per unit. Product x2 requires 25 employee-hours and 10 machine-hours per unit. Product x3 requires 20 employee-hours and
10 machine-hours per unit. The profit per unit is $5 for x1, $10 for x2, and $12 for x3. Over the base production period under
consideration, a total of 300 of employee-hours and a total of 200 machine-hours are available. With the special restriction that all
employee-hours are to be used, what mix products will maximize the profits?

Problem 12: A confectioner manufacture two kinds of candy bars: Ergies (packed w/ energy for kids) and Nergies (for weight
watchers). Ergies sell at a profit of $0.50/box. The candy is processed in three main operations: blending, cooking, and packaging.
Each box of Ergies candy requires 1 min blending, 5 min for cooking and 3 min for packing while each box of Nergies requires, 2 min
blending, 4 min cooking and 1 min for packing. During each production run, the blending equipment is available for a maximum of
14 machine hours, the cooking equipment for at most 40 machine hours and packaging equipment for at most 15 machine hours. If
each machine can be allocated to the making of either type of candy at all times that it is available for production, determine how
many boxes of each kind of candy the confectioner should make to realize the maximum profit. Solve graphically and by simplex
method.

Soln:
Decision variables: Let X1 – boxes of Ergies & X2 – boxes of Nergies
Objective function: maximize profit, P; P = 0.5X1 + 0.60X2
Subject to constraints: a) X1 + 2X2 ≤ 840 → L1
b) 5X1 + 4X2 ≤ 2400 → L2
c) 3X1 + 2X2 ≤ 900 → L3
d) X1, X2 > 0
a) Graphical soln: L1 pts: (0, 420) & (840, 0)
L2 pts: (0,600) & (480,0)
L3 pts: (0,900) & (300,0)
From graph: optimum condition is the intersection of L1 & L3

From (1) X1 = 840 – 242
in (3) 3[840-2X2] + X2 = 900
X2 = 324 boxes of Nergies (0,900) L3
X1 = 192 boxes of Ergies
P = 0.5(192) + 0.6(324) = $290.4












L3 L2 L1
(300,0) (480,0) (840,0)

b) by simplex method:
Initial Decision Variables Slack Variables

14

ChE 522: Chemical Engineering Plant Design and Economics Lecture Notes

Basic X 1 X 2 S 1 S 2 S 3 RHS
P -0.5 -0.6 0 0 0 0
S 1 1 2 1 0 0 840
S 2 5 4 0 1 0 2,400
S 3 3 1 0 0 1 900



RHS
Basic X 1 X 2 S 1 S 2 S 3
P 1.3 0 0 0 0.6 540 NR1 = NR4(0.6)+OR1
S 1 -5 0 1 0 -2 -960 NR2 = NR4(-2) + OR2
S 2 -7 0 0 1 -4 -1,200
X 2 3 1 0 0 1 900 NR3 = NR4(-4) + OR3

NR4 = OR4
Basic X 1 X 2 S 1 S 2 S 3 Answers
P 0 0 -0.26 0 1.12 290.4
X 1 1 0 -1/5 0 -0.4 192
S2 0 0 -1.4 1 -8.2 144
X 2 0 1 0.6 0 2.2 324 NR1 = NR2(-1.3)+OR1

NR2 = OR2 / (-5)

15