The Objective Function-Operation Research-Handouts, Lecture notes of Operational Research

Operations Research (OR) refers to the science of decision making. This course elaborate like linear, nonlinear and discrete optimization. This lecture handout was provided by Sir Avikshit Gupte. It includes: Transshipment, Transportation, General, Formulated, Practical, Streamlined, Technique, Research

Typology: Lecture notes

2011/2012

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The Objective Function
The objective of this problem is different from the objectives in the previous examples in which only profit
was Maximized (or cost minimized). In this problem profit is not Maximized, but rather the audience exposure is
Maximized.
This objective function demonstrates that although a linear programming model must either Maximize or
Minimize some objective, the objective itself can be in terms of any type of activity or valuation.
For this problem the objective of audience exposure is determined by summing the audience exposure
gained from each type of advertising
Maximize Z = 20, 000 X1 + 12, 000 X2 + 9, 000 X3
Where Z = the total number of audience exposures
20, 000 X1 = the estimated number of exposures from television commercials
12, 000 X2 = the estimated number of exposures from radio commercials
9, 000 X3 = the estimated number of exposures from newspaper ads
Model Constraints
The first constraint in this model reflects the limited budget of Rs. 100, 000 allocated for advertisement,
Rs. 15, 000 X1 + 6, 000 X2 + 4, 000 X3 < 100, 000
where
Rs. 15, 000 X1 = the amount spent for television advertising
6, 000 X2 = the amount spent for radio advertising
4, 000 X3 = the amount spent for newspaper advertising
The next three constraints represent the fact that television and radio commercials are limited to four and
ten, respectively, while newspaper ads are limited to seven.
X1 < 4 commercial
X2 < 10 commercials
X3 < 7 ads
The final constraint specifies that the total number of commercials and ads cannot exceed fifteen due to the
limitations of the advertising firm:
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The Objective Function

The objective of this problem is different from the objectives in the previous examples in which only profit was Maximized (or cost minimized). In this problem profit is not Maximized, but rather the audience exposure is Maximized.

This objective function demonstrates that although a linear programming model must either Maximize or Minimize some objective, the objective itself can be in terms of any type of activity or valuation.

For this problem the objective of audience exposure is determined by summing the audience exposure gained from each type of advertising

Maximize Z = 20, 000 X 1 + 12, 000 X 2 + 9, 000 X 3

Where Z = the total number of audience exposures

20, 000 X 1 = the estimated number of exposures from television commercials

12, 000 X 2 = the estimated number of exposures from radio commercials

9, 000 X3 = the estimated number of exposures from newspaper ads

Model Constraints

The first constraint in this model reflects the limited budget of Rs. 100, 000 allocated for advertisement,

Rs. 15, 000 X 1 + 6, 000 X 2 + 4, 000 X 3 < 100, 000

where

Rs. 15, 000 X 1 = the amount spent for television advertising

6, 000 X 2 = the amount spent for radio advertising

4, 000 X 3 = the amount spent for newspaper advertising

The next three constraints represent the fact that television and radio commercials are limited to four and ten, respectively, while newspaper ads are limited to seven.

X 1 < 4 commercial

X 2 < 10 commercials

X 3 < 7 ads

The final constraint specifies that the total number of commercials and ads cannot exceed fifteen due to the limitations of the advertising firm:

X 1 + X 2 + X 3 < 15 commercials and ads

The complete linear programming model for this problem is summarized as

Maximize Z = 20, 000 X 1 + 12, 000 X 2 + 9, 000 X 3

Subject to

Rs. 15, 000 X 1 + 6, 000 X 2 + 4, 000 X 3 < Rs. 100, 000

X 1 < 4

X 2 < 10

X 3 < 7

X 1 + X 2 + X 3 < 15

X 1 , X 2 , X 3 > 0

Example 6 Transportation

The Philips Television Company produces and ships televisions from three warehouses to three retail stores on a monthly basis. Each warehouse has a fixed demand per month. The manufacturer wants to know the number of television sets to ship from each warehouse to each store in order to minimize the total cost of transportation.

Each warehouse has the following supply of televisions available for shipment each month.

Warehouse Supply (sets)

  1. Karachi 300
  2. Lahore 100
  3. Islamabad 200

    600 

Each retail store has the following monthly demand for television sets:

Store Demand (sets)

A. Faisalabad 150 B. Peshawar 250 C. Hyderabad 200


600

The costs for transporting television sets from each warehouse to each retail store are different as a result of different modes of transportation and distances. The shiping costs per television set for each route are,

The three demand constraints are developed in the same way except that television sets can be supplied from any of the three warehouses. Thus, the amount shipped to one store is the sum of the shipments from the three warehouses:

X1A + X2A + X3A = 150

X1B + X2B + X3B = 250

X1C + X2C + X3C = 200

The complete linear programming model for this problem is summarized as:

Minimize Z = Rs. 6X1A+8X1B+1X1C + 4X2A + 2X2B + 3X2C + 3X3A + 5X3B + 7X3C

subject to X1A + X1B + X1C = 300

X2A + X2B + X2C = 100

X3A + X3B + X3C = 200

X1A + X2A + X3A = 150

X1B + X2B + X3B = 250

X1C + X2C + X3C = 200

Xij > 0