HW 1

1. The Elixer 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 contribute 1 unit each 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.

Formulate algebraically the Linear Programming model for this problem.

2. Gillian’s Restaurant has an ice-cream counter where it sells two main products, ice cream
and frozen yogurt, each in a variety of flavors. The restaurant makes one order for ice cream
and yogurt each week, and the store has enough freezer space for 115 gallons total of both
products. A gallon of frozen yogurt costs $0.75 and a gallon of ice cream costs $0.93, and the
restaurant budgets $90 each week for these products. The manager estimates that each week
the restaurant sells at least twice as much ice cream as frozen yogurt. Profit per gallon of ice
cream is $4.15, and profit per gallon of yogurt is $3.60.

Formulate algebraically the Linear Programming model for this problem.

3. Universal Claims Processors processes insurance claims for large national insurance
companies. Most claim processing is done by a large pool of computer operators, some of
whom are permanent and some of whom are temporary. A permanent operator can process 16
claims per day, whereas a temporary operator can process 12 per day, and on average the
company processes at least 450 claims each day. The company has 40 computer workstations.
A permanent operator generates about 0.5 claim with errors each day, whereas a temporary
operator averages about 1.4 defective claims per day. The company wants to limit claims with
errors to 25 per day. A permanent operator is paid $64 per day, and a temporary operator is
paid $42 per day. The company wants to determine the number of permanent and temporary
operators to hire in order to minimize costs.

a. Formulate algebraically the Linear Programming model for this problem.

b. Solve the model by using the computer. Highlight the optimal solution in Excel worksheet
and explain it briefly. Collect your worksheets for all problems in this assignment in a single
Excel file before uploading that file in Blackboard. After solving all problems, upload a
single Excel file in Blackboard.

4. The Crumb and Custard Bakery makes coffee cakes and Danish pastries in large pans. The
main ingredients are flour and sugar. There are 25 pounds of flour and 16 pounds of sugar
available, and the demand for coffee cakes is 5. Five pounds of flour and 2 pounds of sugar
are required to make a pan of coffee cakes, and 5 pounds of flour and 4 pounds of sugar are
required to make a pan of Danish. A pan of coffee cakes has a profit of $1, and a pan of
Danish has a profit of $5. The company wants to determine the number of pans of cakes and
Danish to produce each day so that profit will be maximized.

a. Formulate a linear programming model for this problem.

b. Solve the model by using the computer. Highlight the optimal solution in Excel worksheet
and explain it briefly. Collect your worksheets for all problems in this assignment in a single
Excel file before uploading that file in Blackboard. After solving all problems, upload a
single Excel file in Blackboard.