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Linear Programming

The company can maximize profit by producing 4,221 books and 1,473 calculators per month. This will result in total sales of $110,934 and maximum profit of $83,933 per month after accounting for costs of $27,000.

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Carl Neil Domingo
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3K views

Linear Programming

The company can maximize profit by producing 4,221 books and 1,473 calculators per month. This will result in total sales of $110,934 and maximum profit of $83,933 per month after accounting for costs of $27,000.

Uploaded by

Carl Neil Domingo
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Linear Programming Sample Problem:

1.) A company receives in sales $ 20 per book and $ 18 per calculator. The cost per unit to m
each book and calculator are $ 5 and $ 4 respectively. The monthly (30 day ) cost must not
$ 27,000 per month. If the manufacturing equipment used by the company takes 5 minute
produce a book and 15 minutes to produce a calculator , how many books and calculators s
company make to maximize profit or sales? Determine the maximum profit or sales the com
earns in a 30 day period.

B C S = 20B + 18C
(this is the objective function since it has 3 variables)
Sales$20 $18
Cost $5 $4 where:
Time5min15min S = total sales
B = books
C = calculators

for: Constraints
1.) 5B + 4C ≤ $ 27,000
2.) 5B + 15C ≤ 43,2where:
30 days 24 hrs 60 min
x x
1 1 day 1 hr
Make a Graph: = 43,200 minutes
C
from equation 1 of constfrom equation 2 of constraints:
for B intercept let C = 0 for B intercept let C = 0
6,750
then:from equation 1: then:from equation 2:
5B + 4(0) ≤ 27,000 5B + 15(0) ≤ 43,200
B = 5,400 B = 8,640
for C intercept let B = 0 for C intercept let B = 0
2,880 5(0) + 4C ≤ 27,000 5(0) + 15C ≤ 43,200
C = 6,750 C = 2,880

B
5400 8,640
Identify all the four quarter points:
Solve for the unidentified quarter points:
Multiply equation 2 of constraints with -1
then: then:
-5B - 15C = -43,200 substitute C to equation 1:
add: 5B + 4C = 27,000 5B + 4(1473) = 27,000
(0) - 11C = -16,200 B = 4,221.6
(must be round up
C = 1,472.72 for B is number of books
C = 1,473 (must be round up for B = 4,221
C is number of calculators.)
Objective: Make a table:
S = 20B + 18C B C S (Sales)
5,400 0 108,000
0 2,880 51,840
4,221 1,473 110,934
substitutes:
1.)S = 20B + 18C 2.)S = 20B + 18C 3.)S = 20B + 18C
= 20(5,400) + 18(0) = 20(0) + 18(2,880) = 20(4,221) + 18(1,473)
= 20(5,400) + 18(0) = 18(2,880) = 84,420 + 26,514
S = $ 108,000 S = $ 51,840 S = $ 110,934

Therefore:
Number of Books and Calculators for maximum sales or profit:
Books = 4,221
Caculators = 1,473

Maximum Profit in 30 days:


P=S-C
= 110,934 - 27,000
= $ 83,933.00

Assignment:
2.) A self-employed carpenter earns $ 90 for the sale of a table and $ 180 for the sale of a roc
takes 2 hours for him to make a table and 5 hours to manufacture a rocking chair. He is lim
working 40 hours per week. The average manufacturing cost is $ 15 per table and $ 45 per
chair. He wishes to keep his manufacturing costs at $ 315 per week. How many tables and
chairs should he make to maximize his weekly sales? Determine the maximum sales and p
make per week.
e cost per unit to manufacture
day ) cost must not exceed
any takes 5 minute to
oks and calculators should the
rofit or sales the company

3 variables)

constraints:
for the sale of a rocking chair. It
king chair. He is limited to
r table and $ 45 per rocking
w many tables and rocking
aximum sales and profit he can

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