Oil blending model

Properties of crude oil inputs Value per barrel Quality level

Crude oil 1 $65 10
Crude oil 2 $50 5

Properties of outputs Gasoline Heating oil

Selling price per barrel $75 $60
Required quality level 8 6

Blending plan (barrels of crude in each output)

Gasoline Heating oil Used
Crude oil 1 2000 2000 4000 <=
Crude oil 2 2000 8000 10000 <=
Barrels sold 4000 10000

Quality constraints with cleared denominators

Gasoline Heating oil
Quality obtained 30000 60000
>= >=
Quality required 32000 60000

Objective to maximize
Total revenue $965,000
Available Leftover
5000 1000
10000 0
 A B C D E F G H I J K L M N O P Q R S
1 Grand Prix transportation model
2 The Grand Prix Automobile Company manufactures automobiles in three plants and then ships them to
3 Unit shipping costs four regions of the country.
The plants can supply the amounts listed in the right column of Table 5.1. The customer demands by
4 To region are listed in the bottom row of this table, and the unit costs of shipping an automobile from each
5 Region 1 Region 2 Region 3 Region 4 plant to each region are listed in the middle of the table. Grand Prix wants to find the lowest-cost
6 From Plant 1 $131 $218 $266 $120 shipping plan for meeting the demands of the four regions without exceeding the capacities of the
plants.
7 Plant 2 $250 $116 $263 $278
8 Plant 3 $178 $132 $122 $180
9
10 Shipping plan, and constraints on supply and demand
11 To
12 Region 1 Region 2 Region 3 Region 4 Total shipped Capacity
13 From Plant 1 150 0 0 300 450 450
14 Plant 2 100 200 0 0 300 600
15 Plant 3 200 0 300 0 500 500
16 Total received 450 200 300 300
17
18 Demand 450 200 300 300
19
20 Objective to minimize
21 Total cost 176050
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [Input data Examples in class.xlsx]Example 5.1
Report Created: 20.09.2023 12:31:45

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$13 Plant 1 Region 1 150 0 131 119 13
$D$13 Plant 1 Region 2 0 221 218 1E+030 221
$E$13 Plant 1 Region 3 0 191 266 1E+030 191
$F$13 Plant 1 Region 4 300 0 120 13 239
$C$14 Plant 2 Region 1 100 0 250 39 72
$D$14 Plant 2 Region 2 200 0 116 88 116
$E$14 Plant 2 Region 3 0 69 263 1E+030 69
$F$14 Plant 2 Region 4 0 39 278 1E+030 39
$C$15 Plant 3 Region 1 200 0 178 13 69
$D$15 Plant 3 Region 2 0 88 132 1E+030 88
$E$15 Plant 3 Region 3 300 0 122 69 194
$F$15 Plant 3 Region 4 0 13 180 1E+030 13

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$C$16 Total received Region 1 450 250 450 300 100
$D$16 Total received Region 2 200 116 200 300 200
$E$16 Total received Region 3 300 194 300 200 100
$F$16 Total received Region 4 300 239 300 150 100
$G$13 Plant 1 Total shipped 450 -119 450 100 150
$G$14 Plant 2 Total shipped 300 0 600 1E+030 300
$G$15 Plant 3 Total shipped 500 -72 500 100 200
 A B C D E F G H I J K L M N
1 Grand Prix transportation model: a more general network formulation
2
3 Network structure and flows Flow balance constraints
4 Origin Destination Unit cost Flow Capacity constraints
5 1 1 131 150 Plant Outflow Capacity Alternative formula for Outflows:
6 1 2 218 0 1 450 450 450
7 1 3 266 0 2 300 600 300
8 1 4 120 300 3 500 500 500
9 2 1 250 100
10 2 2 116 200 Demand constraints
11 2 3 263 0 Region Inflow Demand
12 2 4 278 0 1 450 450
13 3 1 178 200 2 200 200
14 3 2 132 0 3 300 300
15 3 3 122 300 4 300 300
16 3 4 180 0
17
18 Objective to minimize
19 Total Cost 176050
 A B C D E F G H I J K L M N O P Q R S T
1 Grand Prix transportation model with taxes
2
3 Input data We now assume that Grand Prix not only ships the autos, but it manufactures them at the
4 Unit shipping costs (shipping only) plants and sells them in the various regions.
5 To Plant data This problem takes now place in a global context. The effect is that the unit production
6 Region 1 Region 2 Region 3 Region 4 Unit production cost Tax rate costs vary by plant, the unit selling prices vary by region, and the tax rates on profits vary
7 From Plant 1 $131 $218 $266 $120 $14,350 30% according to the plant at which the autos are produced (regardless of where they are sold).
The capacities of the plants, the demands of the regions, and the unit shipping costs are
8 Plant 2 $250 $116 $263 $278 $16,270 35%
the same as before in Example 5.1.
9 Plant 3 $178 $132 $122 $180 $16,940 22% In addition, the unit production costs and tax rates are given in Table 5.2, and the unit
10 selling prices in Table 5.3. For example, if plant 1 produces an auto and ships it to region 2,
11 Unit selling prices at regions $19,290 $20,520 $17,570 $18,320 where it is sold, the profit in $ before taxes is: 20520-14350-218=$5952. This is taxed at
12 plant 1’s rate of 30%, so the after-tax profit is 5952*(1 - 0.3)=$4116.4 . The company now
13 Shipping plan, and constraints on supply and demand needs to find a production and shipping plan that maximizes its after-tax profit.
14 To
15 Region 1 Region 2 Region 3 Region 4 Total shipped Capacity
16 From Plant 1 450 0 0 0 450 <= 450
17 Plant 2 0 0 300 300 600 <= 600
18 Plant 3 0 500 0 0 500 <= 500
19 Total received 450 500 300 300
20 >= >= >= >=
21 Demand 450 200 300 300
22
23 Monetary outputs
24 After-tax profit per unit produced in given plant and sold in given region
25 Region 1 Region 2 Region 3 Region 4
26 Plant 1 $3,366.30 $4,166.40 $2,067.80 $2,695.00
27 Plant 2 $1,800.50 $2,687.10 $674.05 $1,151.80
28 Plant 3 $1,694.16 $2,689.44 $396.24 $936.00
29
30 Objective to maximize
31 After-tax profit $3,407,310
 A B C D E F G H I J K L M N O
1 Assignment of jobs to machines
2 Suppose there are four jobs and five machines. Every pair of a machine and a job has a given job
3 Times to perform jobs on various machines completion time. Machines 1, 3, and 5 can handle at most one job apiece, whereas machines 2 and
4 Job 4 can handle two jobs apiece. The problem is to assign the machines to the jobs so that the total
time to complete all jobs is minimized.
5 1 2 3 4
6 Machine 1 14 5 8 7
7 2 2 12 6 5
8 3 7 8 3 9
9 4 2 4 6 10
10 5 5 5 4 8
11
12 Assignments, and constraints on machine capacities and job completion requirements
13 Job
14 1 2 3 4 Jobs on machine Machine capacity
15 Machine 1 0 0 0 0 0 <= 1
16 2 1 0 0 1 2 <= 2
17 3 0 0 1 0 1 <= 1
18 4 0 1 0 0 1 <= 2
19 5 0 0 0 0 0 <= 1
20 Machines on job 1 1 1 1
21 = = = =
22 Required 1 1 1 1
23
24 Objective to minimize
25 Total time 14
 A B C D E F G H I J K L M N O P Q R
1 Assignment of bus companies to routes
2 The city of Spring View is taking bids from six bus companies on the eight routes that must be
3 Input data driven in the surrounding school district. Each company enters a bid of how much it will charge to
4 Maximum routes per company 2 drive selected routes, although not all companies bid on all routes. The data are listed in Table
5.4. (If a company does not bid on a route, the corresponding entry is blank.) The city must decide
5 which companies to assign to which routes with the specifications that
6 Network setup, flows, and arc capacity constraints Flow balance constraints (1)if a company does not bid on a route, it cannot be assigned to that route;
7 Origin 1 Destination 1 Cost 1 Flow 1 Company Routes assigned Maximum allowed (2) exactly one company must be assigned to each route; and
(3) a company can be assigned to at most two routes.
8 1 2 8200 0 1 1 <= 2 The objective is to minimize the total cost of covering all routes
9 1 3 7800 1 2 2 2
10 1 4 5400 0 3 1 2
11 1 6 3900 0 4 0 2
12 2 1 7800 0 5 2 2
13 2 2 8200 0 6 2 2
14 2 4 6300 0
15 2 6 3300 1 Route Companies assigned Required
16 2 7 4900 1 1 1 = 1
17 3 2 4800 1 2 1 = 1
18 3 6 4400 0 3 1 = 1
19 3 7 5600 0 4 1 = 1
20 3 8 3600 0 5 1 = 1
21 4 3 8000 0 6 1 = 1
22 4 4 5000 0 7 1 = 1
23 4 5 6800 0 8 1 = 1
24 4 7 6700 0
25 4 8 4200 0
26 5 1 7200 0
27 5 2 6400 0
28 5 4 3900 1
29 5 5 6400 0
30 5 6 2800 0
31 5 8 3000 1
32 6 1 7000 1
33 6 2 5800 0
34 6 3 7500 0
35 6 4 4500 0
36 6 5 5600 1
37 6 7 6000 0
38 6 8 4200 0
39
40 Objective to minimize
41 Total cost 40300