Transportation Problem (Chapter 7)
A company supplies goods to three customers, who each require 30 units. The company has
two warehouses. Warehouse 1 has 40 units available, and warehouse 2 has 30 units available.
The costs of shipping 1 unit from warehouse to customer are shown in Table 7. There is a
penalty for each unmet customer unit of demand: With customer 1, a penalty cost of $90 is
incurred; with customer 2, $80; and with customer 3, $110. Formulate a balanced transportation
problem to minimize the sum of shortage and shipping costs.
A shoe company forecasts the following demands during the next six months: month 1—200;
month 2—260; month 3—240; month 4—340; month 5—190; month 6—150. It costs $7 to
produce a pair of shoes with regular-time labor (RT) and $11 with overtime labor (OT). During
each month, regular production is limited to 200 pairs of shoes, and
A hospital needs to purchase 3 gallons of a perishable medicine for use during the current
month and 4 gallons for use during the next month. Because the medicine is perishable, it can
only be used during the month of purchase. Two companies (Daisy and Laroach) sell the
medicine. The medicine is in short supply. Thus, during the next two months, the hospital is
limited to buying at most 5 gallons from each company. The companies charge the prices shown
in Table 10. Formulate a balanced transportation model to minimize the cost of purchasing the
needed medicine
A bank has two sites at which checks are processed. Site 1 can process 10,000 checks per day,
and site 2 can process 6,000 checks per day. The bank processes three types of checks:
vendor, salary, and personal. The processing cost per check depends on the site (see Table 11).
Each day, 5,000 checks of each type must be processed. Formulate a balanced transportation
problem to minimize the daily cost of processing checks.
The Ayatola Oil Company controls two oil fields. Field 1 can produce up to 40 million barrels of
oil per day, and field 2 can produce up to 50 million barrels of oil per day. At field 1, it costs $3 to
extract and refine a barrel of oil; at field 2, the cost is $2. Ayatola sells oil to two countries:
England and Japan. The shipping cost per barrel is shown in Table 12. Each day, England is
willing to buy up to 40 million barrels (at $6 per barrel), and Japan is willing to buy up to 30
million barrels (at $6.50 per barrel). Formulate a balanced transportation problem to maximize
Ayatola’s profits.
Touche Young has three auditors. Each can work as many as 160 hours during the next month,
during which time three projects must be completed. Project 1 will take 130 hours; project 2, 140
hours; and project 3, 160 hours. The amount per hour that can be billed for assigning each
auditor to each project is given in Table 13. Formulate a balanced transportation problem to
maximize total billings during the next month.
General Ford produces cars at L.A. and Detroit and has a warehouse in Atlanta; the company
supplies cars to customers in Houston and Tampa. The cost of shipping a car between points is
given in Table 60 (“—” means that a shipment is not allowed). L.A. can produce as many as
1,100 cars, and Detroit can produce as many as 2,900 cars. Houston must receive 2,400 cars,
and Tampa must receive 1,500 cars.
Sunco Oil produces oil at two wells. Well 1 can produce as many as 150,000 barrels per day,
and well 2 can produce as many as 200,000 barrels per day. It is possible to ship oil directly
from the wells to Sunco’s customers in Los Angeles and New York. Alternatively, Sunco could
transport oil to the ports of Mobile and Galveston and then ship it by tanker to New York or Los
Angeles.
A company must meet the following demands for a product: January, 30 units; February, 30
units; March, 20 units. Demand may be backlogged at a cost of $5/unit/month. All demand must
be met by the end of March. Thus, if 1 unit of January demand is met during March, a
backlogging cost of 5(2) $10 is incurred. Monthly production capacity and unit production cost
during each month are given in Table 66. A holding cost of $20/unit is assessed on the inventory
at the end of each month.
Oilco has oil fields in San Diego and Los Angeles. The San Diego field can produce 500,000
barrels per day, and the Los Angeles field can produce 400,000 barrels per day. Oil is sent from
the fields to a refinery, either in Dallas or in Houston (assume that each refinery has unlimited
capacity). It costs $700 to refine 100,000 barrels of oil at Dallas and $900 at Houston. Refined
oil is shipped to customers in Chicago and New York. Chicago customers require 400,000
barrels per day of refined oil; New York customers require 300,000. The costs of shipping
A firm producing a single product has three plants and four customers. The three plants
produce 3,000, 5,000, and 5,000 units, respectively, during the next time period. made a
commitment to sell 4,000 units to customer 1, 3,000 units to customer 2, and at least 3,000 units
to customer 3. Both customers 3 and 4 also want to buy as many of the remaining units
A company can produce as many as 35 units/month. The demands of its primary customers
must be met on time each month; if it wishes, the company may also sell units to secondary
customers each month. A $1/unit holding cost is assessed against each month’s ending
inventory. The relevant data are shown in Table 83.
Network (Chapter 8)
At the beginning of year 1, a new machine must be purchased. The cost of maintaining a
machine i years old is given in Table 5. The cost of purchasing a machine at the beginning of
each year is given in Table 6. There is no trade-in value when a machine is replaced. Your goal
is to minimize the total cost (purchase plus maintenance) of having a machine for five years.
Determine the years in which a new machine should be purchased
A company sells seven types of boxes, ranging in volume from 17 to 33 cubic feet. The demand
and size of each box is given in Table 7. The variable cost (in dollars) of producing each box is
equal to the box’s volume. A fixed cost of $1,000 is incurred to produce any of a particular box.
If the company desires, demand for a box may be satisfied by a box of larger size. Formulate
and solve a shortest-path problem whose solution will minimize the cost of meeting the demand
for boxes.
During the next four months, a construction firm must complete three projects. Project 1 must be
completed within three months and requires 8 months of labor. Project 2 must be completed
within four months and requires 10 months of labor. Project 3 must be completed at the end of
two months and requires 12 months of labor. Each month, 8 workers are available. During a
given month, no more than 6 workers can work on a single job. Formulate a maximum-flow
problem that could be
Fordco produces cars in Detroit and Dallas. The Detroit plant can produce as many as 6,500
cars, and the Dallas plant can produce as many as 6,000 cars. Producing a car costs $2,000 in
Detroit and $1,800 in Dallas. Cars must be shipped to three cities. City 1 must receive 5,000
cars, city 2 must receive 4,000 cars, and city 3 must receive 3,000
Each year, Data Corporal produces as many as 400 computers in Boston and 300 computers in
Raleigh. Los Angeles customers must receive 400 computers, and 300 computers must be
supplied to Austin customers. Producing a computer costs $800 in Boston and $900 in Raleigh.
Computers are transported by plane and may be sent through
Oilco has oil fields in San Diego and Los Angeles. The San Diego field can produce 500,000
barrels per day, and the Los Angeles field can produce 400,000 barrels per day. Oil is sent from
the fields to a refinery, in either Dallas or Houston (assume each refinery has unlimited
capacity). To refine 100,000 barrels costs $700 at Dallas and $900 at Houston. Refined oil is
shipped to customers in Chicago and New York. Chicago customers require 400,000 barrels per
day, and New York customers
Workco must have the following number of workers available during the next three months:
month 1, 20; month 2, 16; month 3, 25. At the beginning of month 1, Workco has no workers. It
costs Workco $100 to hire a worker and $50 to fire a worker. Each worker is paid a salary of
$140/month. We will
Braneast Airlines must determine how many airplanes should serve the Boston–New
York–Washington air corridor and which flights to fly. Braneast may fly any of the daily flights
shown in Table 36. The fixed cost of operating an airplane is $800/day. Formulate an MCNFP
that can be used to maximize Braneast’s daily profits. (Hint: Each node in the network
represents a city and a time. In addition to arcs representing flights, we must allow for the
possibility that an airplane will stay put for an hour or more. We must ensure that the model
includes
Daisymay Van Line moves people between New York, Philadelphia, and Washington, D.C. It
takes a van one day to travel between any two of these cities. The company incurs costs of
$1,000 per day for a van that is fully loaded and traveling, $800 per day for an empty van that
travels, $700 per day for a fully
During the next three months, Shoemakers, Inc. must meet (on time) the following demands for
shoes: month 1, 1,000 pairs; month 2, 1,500 pairs; month 3, 1,800 pairs. It takes 1 hour of labor
to produce a pair of shoes. During each of the next three months, the following number of
regular-time labor hours are available: month 1, 1,000 hours; month 2, 1,200 hours; month 3,
1,200 hours. Each month, the company can require workers to put in up to 400 hours of
overtime. Workers
A company produces a product at two plants, 1 and 2. The unit production cost and production
capacity during each period are given in Table 41. The product is instantaneously shipped to the
company’s only customer according to the unit shipping costs given in Table 42. If a unit is
produced and shipped during period 1, it can still be used to meet a period 2 demand
State University has three professors who each teach four courses per year. Each year, four
sections of marketing, finance, and production must be offered. At least one section of each
class must be offered during each semester (fall and spring). Each professor’s time preference
During the next two months, Machineco must meet (on time) the demands for three types of
products shown in Table 45. Two machines are available to produce these products. Machine 1
can only produce products 1 and 2, and machine 2 can only produce products 2 and 3. Each
machine can be used for up to
Integer Programming (Chapter 9)
Coach Night is trying to choose the starting lineup for the basketball team. The team consists of
seven players who have been rated (on a scale of 1 poor to 3 excellent) according to their
ball-handling, shooting, rebounding, and defensive abilities. The positions that each player is
allowed to play and the player’s abilities are listed in Table 9. The five-
Because of excessive pollution on the Momiss River, the state of Momiss is going to build
pollution control stations. Three sites (1, 2, and 3) are under consideration. Momiss is
A manufacturer can sell product 1 at a profit of $2/unit and product 2 at a profit of $5/unit. Three
units of raw material are needed to manufacture 1 unit of product 1, and
To graduate from Basketweavers University with a major in operations research, a student must
complete at least two math courses, at least two OR courses, and at least two computer
courses. Some courses can be used to fulfill more than one requirement: Calculus can fulfill the
math requirement; operations research, math and OR requirements; data structures, computer
A company is considering opening warehouses in four cities: New York, Los Angeles, Chicago,
and Atlanta. Each warehouse can ship 100 units per week. The weekly fixed cost of keeping
each warehouse open is $400 for New York, $500 for Los Angeles, $300 for Chicago, and $150
for Atlanta. Region 1 of the country requires 80 units per week, region 2 requires 70 units per
week, and region
Glueco produces three types of glue on two different production lines. Each line can be utilized
by up to seven workers at a time. Workers are paid $500 per week on production line 1, and
$900 per week on production line 2. A week of production costs $1,000 to set up production line
1 and $2,000 to set up production line 2. During a week on a production line, each worker
produces the number of units of glue shown in Table 12. Each week, at least 120 units of glue 1,
at least 150 units of glue 2, and at least 200 units
The manager of State University’s DED computer wants to be able to access five different files.
These files are scattered on 10 disks as shown in Table 13. The amount of storage required by
each disk is as follows: disk 1, 3K; disk 2, 5K; disk 3, 1K; disk 4, 2K; disk 5, 1K; disk 6, 4K; disk
7, 3K; disk 8, 1K; disk 9, 2K; disk 10, 2K.
Fruit Computer produces two types of computers: Pear computers and Apricot computers.
Relevant data are given in Table 14. A total of 3,000 chips and 1,200 hours of labor are
available. Formulate an IP to help Fruit maximize profits
The Lotus Point Condo Project will contain both homes and apartments. The site can
accommodate up to 10,000dwelling units. The project must contain a recreation project:either a
swimming–tennis complex or a sailboat marina, but not both. If a marina is built, then the
number of homes in the project must be at least triple the number of apartments in the project. A
marina
A product can be produced on four different machines. Each machine has a fixed setup cost,
variable production costs per-unit-processed, and a production capacity given in Table 15. A
total of 2,000 units of the product must be produced. Formulate an IP whose solution will tell us
how to minimize total costs.
Eastinghouse sells air conditioners. The annual demand for air conditioners in each region of
the country is as follows: East, 100,000; South, 150,000; Midwest, 110,000; West, 90,000.
Eastinghouse is considering building the air conditioners in four different cities: New York,
Atlanta, Chicago, and Los Angeles
Breadco Bakeries is a new bakery chain that sells bread to customers throughout the state of
Indiana. Breadco is considering building bakeries in three locations: Evansville, Indianapolis,
and South Bend. Each bakery can bake as many as 900,000 loaves of bread each year. The
The Father Domino Company sells copying machines. A major factor in making a sale is
Domino’s quick service. Domino sells copiers in six cities: Boston, New York, Philadelphia,
Washington, Providence, and Atlantic City.
Cousin Bruzie of radio station WABC schedules radio commercials in 60-second blocks. This
hour, the station has sold commercial time for commercials of 15, 16, 20, 25, 30,
A Sunco oil delivery truck contains five compartments, holding up to 2,700, 2,800, 1,100, 1,800,
and 3,400 gallons of fuel, respectively. The company must deliver three types of fuel (super,
regular, and unleaded) to a customer. The demands, penalty per gallon short, and the maximum
allowed shortage are given in Table 29. Each compartment of the truck can carry only one type
of gasoline. Formulate
Simon’s Mall has 10,000 sq ft of space to rent and wants to determine the types of stores that
should occupy the mall. The minimum number and maximum number of each type of store
(along with the square footage of each type) is given in Table 30. The annual profit made b each
type of store will, of course, depend on how many
A power plant has three boilers. If a given boiler is operated, it can be used to produce a
quantity of steam (in tons) between the minimum and maximum given in Table 34. The cost of
producing a ton of steam on each boiler is also given. Steam from the boilers is used to produce
power on three turbines. If operated, each
The Indiana University Business School has two rooms that each seat 50 students, one room
that seats 100 students, and one room that seats 150 students. Classes are held five hours a
day. The four types of requests for rooms are listed in Table 37. The business school must
decide how many requests of each type
Ford has four automobile plants. Each is capable of
producing the Taurus, Lincoln, or Escort, but it can only
produce one of these cars. The fixed cost of operating each
plant for a year and the variable cost of producing a car of
each type at each plant are given in Table 51.
The Transylvania Olympic Gymnastics Team consists of six people. Transylvania must three
people to enter both the balance beam and floor exercises. They must also enter a total of four
people in each event. The score that each individual gymnast can attain in each event is shown
in Table 89. Formulate an IP to maximize the total score attained by the Tran
A court decision has stated that the enrollment of each high school in Metropolis must be at
least 20 percent black. The numbers of black and white high school students in each of the
city’s five school districts are shown in Table 90.
The Cubs are trying to determine which of the following free agent pitchers should be signed:
Rick Sutcliffe (RS), Bruce Sutter (BS), Dennis Eckersley (DE), Steve Trout (ST), Tim Stoddard
(TS). The cost of signing each pitcher and the number of victories each pitcher will add to the
Cubs are shown in Table
State University must purchase 1,100 computers from three vendors. Vendor 1 charges $500
per computer plus a delivery charge of $5,000. Vendor 2 charges $350 per computer plus a
delivery charge of $4,000. Vendor 3 charges $250 per computer plus a delivery charge of
$6,000. Vendor 1 will sell the university at most
Consider a country where there are 1¢, 5¢, 10¢, 20¢, 25¢, and 50¢ pieces. You work at the
Two-Twelve Convenience Store and must give a customer 91¢ in change. Formulate an IP that
can be used to minimize the number of coins needed to give
Eastinghouse ships 12,000 capacitors per month to their customers. The capacitors may be
produced at three different plants. The production capacity, fixed monthly cost of operation, and
variable cost of producing a capacitor at each plant are given in Table 96. The fixed cost for a
plant is incurred only if the
Newcor’s steel mill has received an order for 25 tons of steel. The steel must be 5% carbon and
5% molybdenum by weight. The steel is manufactured by combining three types of metal: steel
ingots, scrap steel, and alloys. Four steel ingots are available
Monsanto annually produces 359 million lb of the chemical maleic anhydride. A total of reactors
are available to produce maleic anhydride. Each reactor can be run on one of three settings.
The cost (in thousands of dollars) and pounds
Gotham City has been divided into eight districts. The time (in minutes) it takes an ambulance to
travel from one district to another is shown in Table 100. The population of each district (in
thousands) is as follows: district 1, 40; district 2, 30; district 3, 35; district 4, 20; district 5, 15;
district 6, 50; district 7, 45;
A company must complete three jobs. The amounts of processing time (in minutes) required are
shown in Table 101. A job cannot be processed on machine j unless for all i j the job has
completed its processing on machine i. Once a job begins its processing on machine j, the job
cannot be preempted on machine j. The flow time for a job is the difference between
Arthur Ross, Inc., must complete many corporate tax returns during the period February
15–April 15. This year the company must begin and complete the five jobs shown in Table 102
during this eight-week period. Arthur Ross employs four full
PSI believes it will need the amounts of generating capacity shown in Table 103 during the next
five years. The Company has a choice of building (and then operating) power plants with the
specifications shown in Table 104. Formulate an IP to minimize
Four trucks are available to deliver milk to five groceries. The capacity and daily operating cost
of each truck are shown in Table 107. The demand of each grocery store can be supplied by
only one truck, but a truck may deliver to more
The State of Texas frequently does tax audits of companies doing business in Texas. These
companies often have headquarters located outside the state, so auditors must be sent to
out-of-state locations. Each year, auditors must make 500 trips to cities in