LINEAR PROGRAMMING: GRAPHICAL SOLUTION

(Minimization Problem)
Session Objectives

To discuss the graphical approach in solving linear programming problems as

applied to minimization problems
To highlight the differences between LP problems involving maximization and
minimization of the objective function
To review the topics and lessons taken up in Session 03-04
To further illustrate the application of the graphical approach in solving business
problems

Main Reference:

Chapter 7, Section 7.5, pp.237-241

Mindoro Mines
To illustrate the use of the graphical approach to solving linear programming
minimization problems, we shall use the Mindoro Mines example. If you already have
basic understanding of the graphical method from the example in Session 03, you
should have little difficulty appreciating the following application.
Mindoro Mines operates 2 mines: one in Katibo and the other on Itim Na Uwak
Island. The ore from the mines is crushed at the site and then graded into highsulfur ore (ligmite), low-sulfur ore (pyrrite) and mixed ore. The graded ore is then
sold to a cement factory which requires, every year, at least 12,000 tons of
ligmite, at least 8,000 tons of pyrrite, and at least 24,000 tons of the mixed ore.
Each day, at a cost of P22,000 per day, the Katibo mine yields 60 tons of ligmite,
20 tons of pyrrite, and 30 tons of the mixed ore. In contrast, at the Itim Na Uwak
Island mine, at a cost of P25,000 per day, the mine yields 20 tons of ligmite, 20
tons of pyrrite, and 120 tons of the mixed ore.
The management of Mindoro Mines would like to determine how many days a
year it should operate the two mines to fill the demand from the cement plant at
minimum cost. What are the binding constraints?
The Graphical Approach
Step 1. Define all decision variables.
Let

x1 = number of days (in a year) to operate the Katibo mine

x2 = number of days (in a year) to operate the Itim Na Uwak Island mine

Step 2. Define the objective function.

Minimize C = 22000 x1 + 25000 x2 (total cost of operating the mines in pesos)
Step 3. Define all constraints.
(1)
(2)
(3)
(4)
(5)

60 x1 + 20 x2
20 x1 + 20 x2
30 x2 + 120 x2
x1
x2
x1 , x2

12000 (ligmite demand in tons)

8000 (pyrrite demand in tons)
24000 (mixed ore demand in tons)

365 (maximum number of days in a year)

365 (maximum number of days in a year)

0 (non-negativity requirement)

Step 4. Graph all constraints.

Step 5. Determine the area of feasible solutions.
For Steps 4 and 5, please refer to the following graph.

Step 6. Determine the optimal solution.

Using the shot-gun approach, we list down the following corners or extreme points (with
their respective coordinates):
(1) x1 = 365

x2 = 365

C = 22000 (365) + 25000 (365) = 17,155,000

(2) x1 = 365

x2 = 108.75

C = 22000 (365) + 25000 (108.75) = 10,748,750

(3) x1 = 78.33333

x2 = 365

C = 22000 (78.33333) + 25000 (365) = 10,848,333

(4) x1 = 100

x2 = 300

C = 22000 (100) + 25000 (300) = 9,700,000

(5) x1 = 266.66667

x2 = 133.3333 C = 22000 (266.667)+25000 (133.333) = 9,200,000

The Optimal Solution
Step 7. Determine the binding and non-binding constraints.
Observing graphically, we find that binding constraints are those associated with pyrrite
and mixed ore production. Total production of these two items will exactly match the
requirements of the cement factory. Meanwhile, ligmite production will be in excess of
the minimum requirement of 12000 tons by about 6,667 tons. Likewise, total available
operating days will not be completely utilized.

LINEAR PROGRAMMING: THE GRAPHICAL APPROACH

Exercises
1. Luzon Timber Corporation
The Luzon Timber Corporation cuts raw timber, lauan, and tanguile, into standard
size planks. Two steps are required to produce these planks from raw timber:
debarking and cutting. Each hundred meters of lauan takes 1.0 hour to debark 1.2
hours to cut. Each hundred meters of tanguile takes 1.5 hours to debark and 0.6
hour to cut. The bark removing machines can operate up to 600 hours per week but
the cutting machines are limited to 480 hours per week.
Luzon Timber can buy a maximum of 36,000 meters of raw lauan and 32,000 meters
of raw tanguile. If the profit per hundred meters of processed logs is P1,800 for
lauan and P2,000 for tanguile, how much lauan and tanguile should be bought and
processed by the corporation in order to maximize total profits?
Suppose next that the finished planks must go through kiln-drying as well and the
kiln can only process a combined total of 45,000 meters of planks. What product
combinations are now feasible? Which combination will maximize combined profits
under the new conditions?
2. Small Refinery
A small refinery produces only two products: lubricants and sealants. These are
produced by processing crude oil through 3 processors: a cracker, a splitter, and a
separator. These processors have limited capacities. For the cracker, at most 1000
hours; for the splitter, at most 4200 hours; and for the separator, at most 2400 hours
per week. Similarly, there is a limit on the supply of crude oil: at most 700 barrels per
week.
To produce one barrel of lubricant, we need one hour at the cracker, 6 hours at the
splitter, and 4 hours at the separator. To produce a barrel of sealant, we need 2
hours at the cracker, 7 hours at the splitter, and 3 hours at the separator.
Under these conditions, what product combinations of lubricants and sealants are
feasible? If a barrel of lubricant nets P2000 and a barrel of sealant nets P2500,
which product combination will maximize combined profits?
Next, suppose it were now possible to expand the splitter capacity from 4200 hours
up to 4374 hours per week. If this expansion will mean added costs (along with
more production), what is the most money the small refinery should pay to finance
the expansion? Assume all other conditions of the problem remain the same except
for the added capacity on the splitter.

3. Mang Tiagos Kamote

Mang Tiago owns 2 fields: a 7000 sq.m. plot where he also lives and an 8000 sq.m.
plot at the libis. He raises palay all year round but in the first half of the year, he also
usually plants mongo and then in the second half, kamote. Both crops are cash
crops. (A sack of mongo sells for P150 while a kaing of kamote sells for P60).
However, to fulfill at least his familys palay needs, Mang Tiago reserves at least
5000 sq.m. (of the total 15000 sq.m.) for growing palay all year round. (The palay
does not have to be grown in just one field.)
On the average, Mang Tiagos harvests from each 1000 sq.m. of Field 1, 10 sacks of
mongo and 80 kaings of kamote. From each 1000 sq.m. of the other field, he
harvests 12 sacks of mongo and 60 kaings of kamote. Lately, however, he
discovered that when kamote is planted in the second semester, exactly where
mongo was planted in the first semester, his kamote crops improved by 20 per cent
in Field 1 and by 40 per cent in Field 2. (The explanation is that mongo introduces
nitrogen compounds into the soil which helps the succeeding kamote crop.
Unfortunately, the mongo derives no special benefit from the kamote.)
Labor is a critical resource. Each 200 sq.m. in Field 1 which are planted to cash
crops require one hour of tending each day while 150 sq.m. in Field 2 would require
just as much because of differing soil characteristics. (Assume that apart from Mang
Tiago who works 10 hours each day, 2 helpers are available to assist him, each
working 8 hours daily.) Finally, the cash crops also require cash outlays. Mongo
requires P550 per 1000 sq.m. in Field 1 and P600 per 1000 sq.m. in Field 2.
Kamote requires P425 per 1000 sq.m. in Field 1 and P400 per 1000 sq.m. in Field 2.
Mang Tiago has decided to follow up every mongo patch in the first semester by
kamote in the second semester to take advantage of the nitrogen benefit. How can
he maximize his net income from the 2 cash crops.
Next, suppose Mang Tiago is able to reduce his palay-planted area from 5000 sq.m.
down to just 4900 sq.m. (so that 100 sq.m. more are available for cash crops), how
should Mang Tiago change the land allocation? or will such a change be necessary?
Finally, if it is required that the palay be planted in just one field, would your original
formulation still apply?
4. A Small Bakeshop
A small bakeshop is famous for its 2 products: Stop Signs and Centreos. A Stop
Sign is actually an octagonal-shaped cookie, while a Centreo is just a round pastry.
Both are made from a special mix of which only 6000 oz. can be prepared each day.
A Stop Sign requires 2 oz. of the mix while a Centreo requires 6 oz. Both are also
topped with frosting (of which at most 8000 oz. is available each day) with each Stop
Sign requiring 6 oz. and each Centreo 4 oz. of the topping. The topping is artfully
applied (part of the reason for the phenomenal success of the bakeshop) and it
requires an expert topper 2 minutes each for a Stop Sign and a Centreo. (A total of
40 topper hours are available each day.)

Stop Signs start out and are baked as squares. Just before topping they are cut into
octagons by lopping off the 4 triangles from the corners. These triangles are called
Pythagorean Triangles and each requires a half oz. of topping. This topping need
not be applied as artfully and so does not require topper time.
A Centreo starts out and is baked as a big round pastry and is formed by punching
out the center (hence the derivation of its name). This leaves a big o-shaped pastry
which is cut further into 2 semicircles which are sold as Charlies. Charlies are sold
as they are and do not require either frosting nor topper time.
Now if each Stop Sign sells for P10, each Centreo for P8, each Triangle for P3, and
each Charlie for P6, what is the optimal bake plan for the bakeshop to maximize its
daily revenue?
5. Tourist Trap
Tourist Trap, Inc. manages a 300-room resort hotel, a 120-seat floating casino, and a
200-seat restaurant. Management has observed that 30% of the foreign tourists and
50% of the local tourists gamble at the floating casino, while 80% of the foreign
tourists and only 20% of the local tourists eat at the restaurant.
If the average daily revenue from a foreign tourist is P800 while the average daily
revenue from a local tourist is P500, what is the ideal mix of foreign and local tourists
which management must try to book to maximize its revenue without overcrowding
its facilities?