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Each week Chemco can purchase unlimited quantities of raw material at $6/lb. Each pound of purchased raw material can be used to produce either input 1 or input 2. Each pound of raw material can yield 2 oz of input 1, requiring 2 hours of processing time and incurring$2 in processing costs. Each pound of raw material can yield 3 oz of input 2, requiring 2 hours of processing time and incurring $4 in processing costs. Two production processes arc available. It takes 2 hours to run process 1, requiring 2 oz of input 1 and 1 oz of input 2. It costs$1 to run process 1. Each time process 1 is run 1 oz of product A and 1 oz of liquid waste arc produced. Each time process 2 is run requires 3 hours of processing time, 2 oz of input 2 and 1 oz of input 1. Process 2 yields 1 oz of product B and .8 oz of liquid waste. Process 2 incurs $8 in costs. Chemco can dispose of liquid waste in the Port Charles River or use the waste to produce product C or product D. Government regulations limit the amount of waste Chemco is allowed to dump into the river to 1,000 oz/week. One ounce of product C costs$4 to produce and sells for $11. One hour of processing time, 2 oz of input 1, and .8 oz of liquid waste arc needed to produce an ounce of product C. One unit of product D costs$5 to produce and sells for $7. One hour of processing lime, 2 oz of input 2, and 1.2 oz of liquid waste arc needed to produce an ounce of product D.At most 5,000 oz of product A and 5,000 oz of product B can be sold each week, but weekly demand for products C and D is unlimited.Product A sells for$18/oz and product B sells for $24/oz. Each week 6,000 hours of processing time is available. Formulate an LP whose solution will tell Chemco how to maximize weekly profit.

Question

Plantco produces three products. Three workers work for Plantco, and the company must determine which product(s) each worker should produce. The number of units each worker would produce if he or she spent the whole day producing each type of product are given in Table 21. TABLE 21:

 ProductWorker123120121021215936510\begin{matrix} \text{ } & \text{Product}\\ \text{Worker} & \text{1} & \text{2} & \text{3}\\ \text{1} & \text{20} & \text{12} & \text{10}\\ \text{2} & \text{12} & \text{15} & \text{9}\\ \text{3} & \text{6} & \text{5} & \text{10}\\ \end{matrix}

The company is also interested in maximizing the happiness of its workers. The amount of happiness “earned” by a worker who spends the entire day producing a given product is given in Table 22. TABLE 22:

WorkerProduct 12316810265939108\begin{matrix} \text{Worker} & \text{Product}\\ \text{ } & \text{1} & \text{2} & \text{3}\\ \text{1} & \text{6} & \text{8} & \text{10}\\ \text{2} & \text{6} & \text{5} & \text{9}\\ \text{3} & \text{9} & \text{10} & \text{8}\\ \end{matrix}

Construct a trade-off curve between the objectives of maximizing total units produced daily and total worker happiness.

Solution

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We have two objectives, maximize production and maximize worker happiness. Letting xi,jx_{i,j} denote the fraction of the day worker ii produces product jj these objectives are given by the formulas

maxz1=20x1,2+12x1,2+10x1,3+12x2,1+15x2,2+9x2,3+6x3,1+5x3,2+10x3,3maxz2=6x1,2+8x1,2+10x1,3+6x2,1+5x2,2+9x2,3+9x3,1+10x3,2+8x3,3\begin{align*} \max z_1&=20x_{1,2} + 12x_{1,2}+10x_{1,3}+12x_{2,1}+15x_{2,2}+9x_{2,3}+6x_{3,1}+5x_{3,2}+10x_{3,3}\\ \max z_2&=6x_{1,2} + 8x_{1,2}+10x_{1,3}+6x_{2,1}+5x_{2,2}+9x_{2,3}+9x_{3,1}+10x_{3,2}+8x_{3,3} \end{align*}

We have the following resource restrains:

xi,1+xi,2+xi,3+=1   (i=1,2,3)x1,j+x2,j+x3,j+=1   (j=1,2,3)xi,j0\begin{align*} x_{i,1}+x_{i,2}+x_{i,3}+&= 1\ \ \ (i=1,2,3)\\ x_{1,j}+x_{2,j}+x_{3,j}+&= 1\ \ \ (j=1,2,3)\\ x_{i,j}&\geq 0 \end{align*}

If we want to maximize production we obtain the solution

(z1,z2)=(45,19)(z_1,z_2)=(45,19)

If we want to maximize happiness we obtain the solution

(z1,z2)=(27,26)(z_1,z_2)=\left(27,26\right)

Adding a restraint z219+iz_2\geq 19+i for i{0,1,2,,7}i\in\{0,1,2,\dots,7\} we obtain the following values for the trade-off curve:

z1z2451943.172041.332139.52237.672335.832434252726\begin{array}{|c|c|}\hline z_1&z_2\\\hline 45&19\\\hline 43.17&20\\\hline 41.33&21\\\hline 39.5&22\\\hline 37.67&23\\\hline 35.83&24\\\hline 34&25\\\hline 27&26\\\hline \end{array}

Bellow we show a graph of this trade-off curve.

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