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156   CHAPTER 4 LINEAR PROGRAMMING APPLICATIONS


                                                                   t 12 þ t 13   400
                                                                   t 23 þ t 24   800
                                                                   t 34    100
                                                                   t 41 þ t 42   200

                                       The complete linear programming model has two product decision variables (P 1
                                     and P 2 ), four department workforce assignment variables (b 1 , b 2 , b 3 and b 4 ), seven
                                     transfer variables (t 12 , t 13 , t 23 , t 24 , t 34 , t 41 and t 42 ) and 12 constraints. The full
                                     formulation is then:
                                      Max  10P 1 þ 9P 2 þ 0b 1 þ 0b 2 þ 0b 3 þ 0b 4 þ 0t 12 þ 0t 13 þ 0t 23 þ 0t 24 þ 0t 34 þ 0t 41 þ 0t 42

                                      s:t:
                                        0:65P 1 þ 0:95P 2   b 1   0
                                        0:45P 1 þ 0:85P 2   b 2   0
                                            P 1 þ 0:7P 2   b 3   0
                                         0:15P 1 þ 0:3P 2   b 4   0
                                          b 1 þ t 12 þ t 13   t 41 ¼ 6500
                                      b 2   t 12 þ t 23 þ t 24   t 42 ¼ 6000
                                           b 3   t 13   t 23 þ t 34 ¼ 7000
                                      b 4   t 24   t 34 þ t 41 þ t 42 ¼ 1400
                                                  t 12 þ t 13   400
                                                  t 23 þ t 24   800
                                                      t 34   100
                                                  t 41 þ t 42   200
                                      P 1 ; P 2 ; b 1 ; b 2 ; b 3 ; b 4 ; t 12 ; t 13 ; t 23 ; t 24 ; t 34 ; t 41 ; t 42   0

                                     Notice that the objective function shows all the decision variables even though only
                                     two of them have non-zero coefficients, since it is only production of P 1 and P 2 that
                                     contribute financially to profit. Figure 4.4 shows the optimal solution to the problem.
                                       McCormick’s profit can be increased by E84 011   E73 590 ¼ E10 421 by taking
                    Variations in the  advantage of cross-training and workforce transfers. The optimal product mix of
                    workforce assignment  6825 units of product 1 and 1751 units of product 2 can be achieved if t 13 ¼ 400
                    model could be used in  hours are transferred from department 1 to department 3; t 23 ¼ 651 hours are
                    situations such as
                    allocating raw material  transferred from department 2 to department 3; and t 24 ¼ 149 hours are transferred
                    resources to products,  from department 2 to department 4. The resulting workforce assignments for
                    allocating machine time  departments 1–4 would provide 6100, 5200, 8051 and 1549 hours, respectively.
                    to products and
                    allocating salesforce time  If a manager has the flexibility to assign personnel to different departments,
                    to stores or sales  reduced workforce idle time, improved workforce utilization and improved profit
                    territories.     should result. The linear programming model in this section automatically assigns
                                     employees and labour-hours to the departments in the most profitable manner.



                               4.3    Blending, Diet and Feed-Mix Problems


                                     A large category of LP applications fall into the area generally known as blending, or
                                     diet or feed-mix problems. Typically such problems revolve around the requirement
                                     to mix together a variety of ingredients in order to produce some final product in
                                     such a way that the final product meets certain specified criteria. Applications of
                                     blending problems range from the oil industry where crude oils have to be blended
                                     with other ingredients to make a variety of petrols and related fuels, through the




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