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CH 10

The document discusses several linear programming problems involving maximizing profits or audiences given budget constraints. Optimal solutions are found using integer programming software for problems involving locating homes for maximum profit, selecting a combination of advertising types to meet goals, and determining production levels to minimize deviations from profit and sales targets.

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46 views

CH 10

The document discusses several linear programming problems involving maximizing profits or audiences given budget constraints. Optimal solutions are found using integer programming software for problems involving locating homes for maximum profit, selecting a combination of advertising types to meet goals, and determining production levels to minimize deviations from profit and sales targets.

Uploaded by

om
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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10.21
Let X1 represents the no. of prime-time ads.
Let X2 represents the no. off-peak ads.

Each prime-time ad costs $390 and reaches 8200 people and


Off-peak ads each cost $240 and reach 5100 people.
Bailey has budgeted $1800/week for advt.
Bailey wants to have at least 2 prime ads and no more than 6 off peak ads

We can formulate LP problem from above info as,

Max Z = 8200 X1 +5100 X2

Constraint:
390 X1+240 X2 <=1800
X1>= 2
X2 <=6
X1,X2>=0

From given constraint we can plot graph as,

Optimum solution will be at intersection.


But this is formulated using L.P. and thus we need to round-off using integer programming hence,

We will take 4.25 to 4 to obtain optimum solution.

Hence,
Max =8200 X1+ 5100 X2
i.e. 8200(2)+5100*(4)
Max =36800

Therefore 2 prime ads per week and 4 off-peak ads per week then the audience is 36800

Similarly finding the optimum solution using Integer programming software (QM software )

Optimum solution is 37900


i.e. 4 prime ads/week, 1 off-peak ads per week then the audience is 37900

We have,
∑▒𝐶𝑖𝑋𝑖
Max Z =

where, Xi = item nos.


Ci = Utility of the item

1 = if the item is carried


0= if the item is not carried

Then,
Max Z = 80 X1+ 20X2 +50X3 +55X4 +50X5+ 75X6 +30X7 +70X8
Consider weight of all items as constraint for the linear program as
8X1 +X2 +7x3+ 6X4 +3X5 +12x6 +5X7 +14X8 <= 35

Using QM integer programming,


Items carried =1,2,4,5,6,7
Maximum Utility value is = 310

For given information insecond part, Item no. 3 and no. 5 are mutually exclusive.
Then constraint will be,

8X1 +X2 +7x3+ 6X4 +3X5 +12x6 +5X7 +14X8 <= 35


2X3 + X5 >= 2

Using QM integer programmig module,


So items can be carried are 1,2,3,4,5 and 7 with Total Utility = 285

Let X1, X2,X3 ….X8 are locations

Then using L.P. equations can be written as,


Max Proft.= 5000 X1+ 6000 X2+10000 X3+ 12000 X4+ 8000 X5+ 3000 X6 +9000 X7 +10000 X8

Constraint
60000X1+50000X2+82000X3+103000X4+50000X5+41000X6+80000X7+69000X8<=300000

X1<=1
X2<=1
X3<=1
X4<=1
X5<=1
X6<=1
X7<=1
X8<=1
Solving above equation using QM,

Thus
Innis construction company can build homes at locations X2,X3,X5,X6,X8 for max. profit= $37,000

i.e. at location Mt. Auburn , Mt. Adams , Norwood, Covington , Eden Park

We have four variables in problem,

Let,
X1 = no. of advt. for TV
X2 = no. of advt. for Radio
X3 = no. of advt. of Billboards
X4 = no.of advt. for Newspaper

We can tabulate given data as follows,

Tv
Radio
Bill boards
News paper

Objective of function:

Minimize deviations = P1d1- + P2d2+ + P3d3- + P4d4+ + P4d5+ P4d6+ + P4d7+


Where, P = Profit goals
Subject to :
The number of people reached:
40,000 X1 + 32,000 X2 + 34,000 X3 + 17,000 X4 –d1+ + d1- = 1,500,000

The budget:
900 X1 + 500 X2 + 600 X3 + 180 X4 –d2+ + d2- = 16,000

The number of television or radio ads:


X1 + X2 –d3+ + d3- = 6

Restriction on the number of each individual type of ad:


X1 – d4+ + d4- = 10 X3 –d6+ + d6- = 10
X2 – d5+ + d5- = 10 X4 –d7+ + d7- = 10
X1 , X2 , X3, X4 , and all di => 0 non-negativity constraint

Solving Using QM Goal Programming Module,


Audience exposure and budget are met completely.
TV, Radio and Bill boards are less than 10

88.86 Newspaper ads at $180 =


88.86 Newspaper ads @ 17000 people reached total people as =

X1 = number of 2-drawer cabinets produced weekly


X2 = number of 3-drawer cabinets produced weekly
d1 = underachievement of profit goal
d1 = overachievement of profit goal
d2 = idle time in production capacity
d3 = underachievement of sales goal for 2-drawer cabinets
d4 = underachievement of sales goal for 3-drawer cabinets

Minimize deviation: P1D1- + P1D1+ +P2D2-+ P3D3-+P3D4-


With Constraint,
10X1 + 15X2 +D1- - D1+ = 11000
1X1 + 2X2 + D2- - D2+ = 1300
X1 + D3- - D3+ = 600
X2 + D4- - D4+ = 400

All Xi, Di variables ≥ 0


The solution is to produce 500 two-drawer (X1) , and 400 three-drawer (X2) . Based on priority analysis,
priority 3 =100. This means that the sales goal is underachieved by 100. Which means meaning the two-
drawer sales goal is underachieved by 100.
1 = if the house is built at location
0= if the house is not built at location
Cost Estimation to be reached by advts.
900 40000
500 32000
600 34000
180 17000
$ 15,994.80
1510620

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