1. A forestry company has four sites on which they grow trees.

They are considering four spices f

trees, the pines, spruces, walnuts and other hardwoods. Data on the problem are given below.
How much area should the company devote to the growing of various species in the various
sites?
Site Area Expected Annual Yield from Expected Annual Revenue from
Number Available Species Species
3
at Site (m /ka) (money units per ka)
(ka) Pine Spruce Walnut Hard- Pine Spruce Walnut Hard-
wood wood
1 1500 17 14 10 9 16 12 20 18
2 1700 15 16 12 11 14 13 24 20
3 900 13 12 14 8 17 10 28 20
4 600 10 11 8 6 12 11 18 17
Minimal required 22.5 9 4.8 3.5
expected annual
yield (km3)

2. A European company has three coke oven plants, code named 1,2,3. The coal comes from four
different sources; USA, Ruhr, Lorraine, and Saar. The plants produce coke, which may be
classified into two categories metallurgical coke and coke screenings; they also produce coke
oven gas. The coke oven plants are operated by heating them with either blast furnace gas or
coke oven gas. The process flow chart is given in Figure 1.12. The production of coke oven gas
and coke depends on the coal used. The proportion of coke screenings in the coke produced
depends on the coal used and the plant where it is used. Metallurgical coke is what is left in the
coke after coke screenings are separated. Processing 1 ton of coal requires the heat equivalent
of 0.611 kth of coke oven gas. One unit of blast furnace gas is equivalent to 0.927 kth of coke
oven gas. The annual processing capacities of the three plants are 9 x 10 5 tons, 7x 105 tons, and
3 x 105 tons of coal, respectively.

Saar coal cannot be used in plants 1 and 2. USA coal and Lorraine coal cannot be used in plant 3.
The percentage of Lorraine coal in the coal used at plant 1 cannot exceed 30. The percentage of
Lorraine coal in the coal used at plant 2 cannot exceed 35. The percentage of Saar coal in the
coal used at plant 3 cannot exceed 40. Coke oven gas can be bought or sold in any amounts at
$11/kth. Coke screenings can be sold in any amounts at $98/ton. Blast furnace gas can be
purchased in any amounts at $8/unit. The prices of coal are given below. All the coke screenings
produced are sold. All the coke oven gas produced is either used up at the plants or sold. It is
required to produce a total of 10 6 tons of metallurgical coke at minimal cost.
 Coal Coke Oven Gas Produced Coke Tons/Ton of Coal
Source kth/Ton of Coal
USA 1.08 0.88
Ruhr 1.10 0.80
Saar 1.25 0.74
Lorraine 1.45 0.72
Coal / Source
USA $80.39/ton
Ruhr $80.90/ton at plant 1 and 2
$83.93/ton at plant3
Saar $80.14/ton
Lorraine $68.70/ton

Proportion of Coke Screenings in the Coke Produced

Using Coal from
At Plant USA Ruhr Saar Lorraine
1 0.10 0.09 0.10 0.15
2 0.08 0.08 0.08 0.11
3 0.07 0.07 0.07 0.10

Figure 1.12
Metallurgical Coke
USA

Ruhr Coke Coke Screenings

Coal
Oven
from Saar
Plant
Lorraine Coke Oven Gas

Blast
Furnace Gas
3. A housewife wants to fix a naturally vitamin-rich cake made out of blended fruit for supper. Data
on the available types of fruit are given in the table at the bottom. To keep the cake palatable
she has to make sure that the use of the various fruits is within the bounds specified. Formulate
the problem of finding the minimum cost blend that satisfies all of these constraints. By simple
linear transformations on the variables show that this LP can be transformed into an equivalent
LP in which the lower bounds on all the variables are zero.

Fruit Type Number of Units of Nutrient/kg of Cost Restrictions of Fruit Use (kg)
Fruit ($/kg)
Vitamin A Vitamin C of Fruit Minimum Maximum
1 2 0 0.25 2 10
2 0 3 0.31 3 6
3 2 4 0.48 0 7
4 1 2 0.21 5 20
5 3 2 0.19 0 5

4. A firm manufactures four products called P 1, P2, P3, P4. Product P1 can be sold at a profit $10per
ton up to a quantity of 10 tons. Quantities of P 1 over 10 tons but not more than 25 tons can be
sold at a profit of $7 per ton. Quantities beyond 25 tons earn a profit of only $5 per ton.
Product P2 yields a profit of $8 per ton up to 7 tons. Quantities of P 2 above 7 tons yield a profit of
only $4 per ton. Everyone who buys P2 also buys P4 to go along with it. This is described later.
Both products P1, P2 can be sold in unlimited amounts.

P3 is a by-product obtained while producing P 1. Up to 10 tons of P3 can be sold at $2 profit per

ton. However, beyond 10 tons there is no market for P 3, and since it cannot be stored, it has to
be disposed of at a cost to the firm of $3 per ton.

P4 is a by-product obtained while producing P 2. Also, P4 can be produced independently. Every

customer who buy θ tons of P2 has to by θ/2 tons of P4 to go along with it for every θ ≥ 0. Also, P4
has an independent market in unlimited quantities. One ton of P 4 yields a profit of $3 per ton if it
is sold along with P2. One ton of P4 sold independently yields a profit of $2.50 per ton.

Production of 1 ton of P 1 requires 1 h of machine 1 time plus 2 h of machine 2 time. One ton of
P2 requires 2 h of machine 1 time plus 3 h of machine 2 time. Each ton of P1produced
automatically delivers 3/2 tons of P3 as a byproduct without any additional work. To produce 1
ton of P4 independently requires 3 h of machine 3 time.

The company has 96 h of machine 1 time, 120 h of machine 2 time, and 240 h of machine 3 time
available. The company wishes to maximize its total net profit. Formulate this problem as an LP
and justify your formulation.
5. A farmer has to purchase the following quantities of fertilizer from four different shops, subject
to the following capacities and prices how can he fulfill his requirement at minimal cost?
Fertilizer Type Minimum Required (tons)
1 185
2 50
3 50
4 200
5 185
Shop Number Maximum (all types combined) They Can Supply
1 350 tons
2 225
3 195
4 275

Price in Money Units per Ton of Fertilizer Type

At Shop 1 2 3 4 5
1 45.0 13.9 29.9 31.9 9.9
2 42.5 17.8 31.0 35.0 12.3
3 47.5 19.9 24.0 32.5 12.4
4 41.3 12.9 31.2 29.8 11.0

6. A company manufactures three different products 1,2,3, using limestone as the basic raw
material. The company has its own limestone quarries, which can produce up to 250 units of
limestone per day at a cost of $2/unit. It the company needs additional limestone it can buy it
from a supplier at a cost of $5/unit.

The regional electric utility has recently adopted a modern stepwise rate system to discourage
wastage. It charges the company $30 per unit for the first 1000 units of electricity used daily,
$45 per unit for 500 units per day beyond the initial 1000 units, and a hefty $75 per unit for any
amount beyond the initial 1500 units of electricity used per day.

The region’s water distribution authority charges at the rate of $6 per unit of water used per day
up to 800 units, and $7 per unit for any amount used beyond 800 units per day. The company
buys fuel from a supplier at the rate of $4/unit, but the energy conservation laws restrict the
company from using more than 3000 units of fuel per day.

The company’s labor force provide 640 man-hours of labor per day during regular working
hours, and regular wages for these laborers are paid directly by the company’s parent
organization and do not cost the company itself anything directly. However, if the company
needs more that 640 man-hours of labor per day, they can get up to a maximum of 160 more
man-hours per day by asking the laborers to work overtime, for which the company has to pay
 itself at the rate of $12 per man-hour. The remaining data in the problem are tabulated at the
bottom.

Units of inputs Needed to Produce One unit of product Selling Price

Product Limestone Electricity Water Fuel Labor
1 1/2 3 1 1 2 $300/unit for the first 50
units; $250/Unit beyond 50
units per day
2 1 2 1/4 1 1 $350/unit to an upper limit
of 100 units/day
3 3/2 5 2 3 1 $450/unit

7. A company manufactures a product, the demand for which varies from month to month. The
raw material and labor availability exhibit seasonal variations. During the months 10, 11, 12, 1,
2, 3 the company can hire at most enough labor to produce 1200 and 600 tons per month
during regular time and overtime, respectively. In months 4, 5, 6, 7, 8, 9 these labor capacities
are 800 and 500 tons, respectively. The product manufactured during a month can be sold
anytime during the next month or later. Storage costs are $1.00/ton from one month to the next
for the product. Raw material cannot be stored. It has to be used up in the month in which it is
obtained. Operations begin in month 1 with a stock of 50 tons of the product. At the end of
month 12 the company should have a stock of at least 50 tons of the product. Determine an
optimum production schedule.

Cost of Labor ($Ton of Limit on Raw Demand Selling

Production) During Material (tons) Price
Availability ($/ton)
(enough to make
tons of product)
Month Regular Time Overtime
1 $4 $6 600 400 18
2 during these 450 700 18
3 months 425 600 18
4 $9 1200 900 25
5 $6 1300 900 25
6 during these 1600 900 25
7 months 1600 800 25
8 1500 600 25
9 1300 800 25
10 $4 $6 500 1200 30
11 500 1100 30
12 500 1400 30
8. A company has a permit to operate for five seasons. It can manufacture only during the first four
seasons and in the fifth period it is only allowed to sell any leftover products. It can manufacture
two types of products. One unit of product 1 requires five man-hours in preparatory shop and
three man-hours in finishing shop. Each unit of product 2 requires six man-hours in preparatory
shop and one man-hour in finishing shop. During each season the company has at most 12,000
man-hours in preparatory and 15,000 man-hours in the finishing shop (only during the first four
seasons). The product manufactured during some season can be sold anytime from the next
season onward. However, selling requires some marketing effort and it is expected that 0.1 and
0.2 man-hours of marketing effort are required to sell 10 units of products 1 and 2, respectively.
Man-hours for marketing effort can be hired at the rates given in the table at top. There is no
limit on the number of man-hours that can be hired for marketing effort at the overtime rate. If
a unit of product is available for sale during a season, but is not sold in that season, the
manufacturer has to pay carryover charges of $2 per unit to put it up for sale again in the next
season. The selling prices in the various seasons are given in the table above. How should the
company operate in order to maximize its total profit?
Season Normal Rate Maximum Overtime Expected Selling Price per
per Man-hour Man-Hours at Rate per Unit of
Normal Rate Man-Hour Product 1 Product 2
2 #2 400 $20 $20 $45
3 $4 300 $20 25 40
4 $1 600 $20 30 40
5 $10 1000 $20 15 30

9. The table at the bottom gives the composition of various foods used in making cereals. The
other material in each food is fiber, water, etc. The company blends these food materials and
makes two kinds of cereals. In the process of blending, 3% of protein, 5% of starch, and 10% of
minerals and vitamins are completely lost from the mix. For each 100 kg of foods added in the
blend, the blending process adds 5 kg of other material (mainly water and fat).

Cereal type 1 sells for #1.50/kg. it should contain at least 22% of protein, 2% of mineral and
vitamins, and at most 30% of starch by weight. Cereal type 2 sells for $1.00/kg. it should contain
at least 30% starch by weight. What is the optimal product mix for the company?

Percentage Content (by Weight)

Food Protein Starch Minerals, Other Price ($/kg) Availability
Vitamins, etc. Material Per Day (kg)
1 45 12 4 39 0.68 1500
2 7 38 1 54 0.27 500
3 12 25 2 61 0.31 1000
4 27 40 3 30 0.45 2000
10. An agency controls the operation of a system consisting of two water reservoirs with one
hydroelectric power generation plant attached to each. The planning horizon for the system is a
year, divided into six periods. Reservoir 1 has a capacity for holding 3500 kilo acre-ft (ka-ft) of
water and reservoir 2 has a capacity of 5500 ka-ft. At any given instant of time, if the reservoir is
at its full capacity, the additional inflowing water is spilled over a spillway. Spilled water does
not produce any electricity.

During each period some specified minimal amount of water must be released from the
reservoirs to meet the downstream requirements for recreation, irrigation, and navigation
purposes. However, there is no upper limit on the amount of water that can be released from
the reservoirs. Any unreleased water is stored (up to the capacity of the reservoir) and can be
used for release in subsequent periods. All water released from the reservoirs (even though it is
released for recreation and other purposes) produces electricity.

It can be assumed that during each period, the water inflows and releases occur at a constant
rate. Also on an average 1 a-ft of water released from reservoir 1 produces 310 kWh of
electricity and 1 a-ft released from reservoir 2 produces 420 kWh. At the beginning of the year
reservoir 1 contains 1800 ka-ft of water and reservoir 2 contains 2500 ka-ft of water. The same
amounts of water must be left in the respective reservoirs at the end of the year.

The electricity produced can either be sold to a local firm (called a class I customer) or to class II
customers. Class I customer buy electricity on an annual basis; they require that specified
percentages of it should be supplied in the various periods. They pay $10 per 1000 kWh. Class II
customers buy electricity on a period by period basis. They will purchase any amount of
electricity in any period at $5 per 1000 kWh. The other data for the problem are given in the
table at the bottom. Operate the system to maximize the total annual revenue from the sale of
electricity.
Inflows in Kilo Acre-feet Minimum Release from Percentage of Annual
into Reservoir Reservoir Energy Sold to Class I
Customer to Be
Period 1 2 1 2 Delivered in Period
1 547 2616 200 304 10
2 1471 2335 200 578 12
3 982 1231 200 995 15
4 146 731 200 1495 32
5 32 411 200 558 21
6 159 497 200 392 10