DECISION VARIABLE: The Problem Is To Determine How Many Steel Mills To Transport From Production
DECISION VARIABLE: The Problem Is To Determine How Many Steel Mills To Transport From Production
DECISION VARIABLE: The Problem Is To Determine How Many Steel Mills To Transport From Production
CASE PROBLEM
PROBLEM STATEMENT
These mills supply steel to four cities, where manufacturing plants have the following demand:
To cost
From 1 2 3 4
A $14 $9 $16 $18
B $11 $8 $7 $16
C $16 $12 $10 $22
a. Because of a truckers’ strike, shipments are prohibited from Birmingham to Chicago. Formulate
this problem as a linear programming model and solve it by using the computer.
DECISION VARIABLE: The problem is to determine how many steel mills to transport from production
cities to each supplied cities to minimize the total cost of transportation; representing the cities are:
x1A = Bethlehem
x1B = Birmingham
x1C = Gary
x2 = Steel mills to St. Louis from:
x2A = Bethlehem
x2B = Birmingham
x2C = Gary
x3A = Bethlehem
x3C = Gary
x4A = Bethlehem
x4B = Birmingham
x4C = Gary
Minimize Z = 14x1A + 11x1B + 16x1C + 9x2A + 8x2B + 12x2C +16x3A +7x3B + 10x3C + 18X4A +
16x4B + 22X4C
MODEL CONSTRAINTS: The constraints in this problem are the demand, production and the truck strike
from Birmingham to Chicago. The constraint for production is:
x3B = 0
The complete model for this problem is:
Minimize Z = 14x1A + 11x1B + 16x1C + 9x2A + 8x2B + 12x2C +16x3A +7x3B + 10x3C + 18X4A +
16x4B + 22X4C
Subject to:
x3B = 0
xij ≥ 0
b. What would be the effect on the optimal solution of a reduction in production capacity at the Gary
mill from 320 tons to 290 tons per week?
INTEGER PROGRAMMING
CASE PROBLEM
PROBLEM STATEMENT
The artisans at Jewelry Junction in Phoenix are preparing to make gold jewelry during a 2-month period
for the Christmas season. They can make bracelets, necklaces, and pins. Each bracelet requires 6.3
ounces of gold and 17 hours of labor, each necklace requires 3.9 ounces of gold and 10 hours of labor,
and each pin requires 3.1 ounces of gold and 7 hours of labor. Jewelry Junction has available 125 ounces
of gold and 320 hours of labor. A bracelet sells for $1,650, a necklace for $850, and a pin for $790. The
store wants to know how many of each item to produce to maximize revenue.