1

OPTIMIZATION TECHNIQUES
CASE STUDY (The Graphic Palette)
GROUP: 01

PRESENTED TO:
Dr. SALMAN HABIB
PRESENTED BY:
ABU HURAIRA ATTA ULLAH 2020-IM-7
MUHAMMAD ASIM 2020-IM-14
FAIZIAN REHMAN 2020-IM-24
 2

CONTENTS OF PRESENTATION
• Graphic Palette Firm • Sensitivity analysis
• Machine capacities • Conclusion
• Processing Cost • Comparison of Normal vs. Sensitivity
analysis results
• Cost of extra processing
• Transshipment Model
• Objective Function
• Constraints
• Solution
 3

Graphic Palette Firm

• Firm in Charleston, South Carolina
• Graphic artwork and produces color and
black-and-white posters, lithographs, and
banners
• Owners, Kathleen and Lindsey Taylor
• Client needs complex posters to be
manufactured in 3-Stages
 4

Machine Capacities
• 9 machines divided in 3 Stages
Stage 1 Stage 2 Stage 3
• All the machines are of different
models and of varying ages, so they
Machine 1 = 750 Machine 4 = 530 Machine 8 = 620
cannot process the same number of
posters in the specified time frame Machine 2 = 900 Machine 5 = 320 Machine 9 = 750
necessary to complete the job.
Machine 3 = 670 Machine 6 = 450

Machine 7 = 250
 5

Processing Cost (Stage 1-2) Stage 2

Stage Machine Machine Machine Machine Stage 1 4

(1-2) (cost) (cost) (cost) (cost)

1
Machine 4 5 6 7 5
1 $18 $23 $25 $21
2
2 20 26 24 19
6
3 24 24 22 23
• The machines are of different ages and types, the costs of producing posters 3
on them differ.
7
 6
Stage 2
Extra Processing Cost (Stage 2-3)
4
Stage Machine (cost) Machine (cost) Stage 3

(2-3) 8
5
Machine 8 9
4 $36 $41
5 40 52 6
6 42 46 9

7 33 49
7
• Processing cost of posters processed till stage 2, to
further stage 3
 7

Transshipment Model
Stage 1 Stage 2 Stage 3

1
8
5

9
3

7
 8

Objective Function
• How to route the posters through the various stages for
Graphic Palette to minimize costs
• Minimize = Z = 18x14 + 23x15 + 25x16 + 21x17 + 20x24 +
26x25 + 24x26 + 19x27 + 24x34 + 24x35 + 22x36 + 23x37 +
36x48 + 41x49 + 40x58 + 52x59 + 42x68 + 46x69 + 33x78 +
49x79
Stage 1 Stage 2 Stage 3
i = 1,2,3
4
j = 4,5,6,7
1 8 k = 8,9
5 Generic Form:
2
6 9
3
7
 9

Constraints
• The capacity constraints for stage 1
x14 + x15 + x16 + x17 <=750
x24 + x25 + x26 + x27 <=900
x34 + x35 + x36 + x37 <=670
For stage 1; Stage 1 Stage 2
i = 1,2,3 4

j = 4,5,6,7 1
5
So generic formulation will be,
2
6
Where is the total capacity of machine i in stage 1.
3
7
 10

Constraints
• The capacity constraint for stage 2
x14 + x24 + x34 <=530
x15 + x25 + x35 <=320
x16 + x26 + x36 <=450
x17 + x27 + x37 <=250
Stage 1 Stage 2
For stage 2;
i = 1,2,3 4
j = 4,5,6,7 1
So generic formulation will be, 5
2
Where is the total capacity of machine j in stage 2. 6
3
7
 11

Constraints
• The capacity constraint for stage 3
x48 + x58 + x68 + x78 = 620
x49 + x59 + x69 + x79 = 750
For stage 3;
j = 4,5,6,7
Stage 2 Stage 3
k = 8,9
4
So generic formulation will be,
8
5

Where is the total capacity of machine k in stage 3.

6 9

7
 12

Constraints
• Transshipment node constraints
x14 + x24 + x34 - x48 - x49=0
x15 + x25 + x35 - x58 - x59=0
x16 + x26 + x36 - x68 - x69=0
x17 + x27 + x37 - x78 - x79=0 Stage 1 Stage 2 Stage 3
• the non-negativity constraints : xij>=0 4
1 8
Generic formulation will be, 5
2
6
3 9
7
Solution 13
Multiple optimal solutions found.
Objective value: Stage 2
Z = 82, 540 dollars Variable Value
Stage 1 4 x14 530
530
150 Stage 3 x48 150
1
220 8 x69 370
5 220
380 x49 380
2 x15 220
6
370
x58 220
9
370 250 x78 250
250
3
x27 250
7
x36 370
 14

Verification of Solution
Equation Slack or Surplus Constraints Values of variables
X14 = 530.0000
1. 82540.00 Z = 18x14 + 23x15 + 25x16 + 26x17 +
X17 = 0
20x24 + 26x25 + 24x26 + 19x27 + 24x34 + X24 = 0
24x35 + 22x36 + 23x33 + 36x48 + 41x49 + X25 = 0
40x58 + 52x59 + 42x68 + 46x69 + 33x78 + X26 = 0
X27 = 250
49x79
2. 0.000000 x14 + x15 + x16 + x17 <=750; X15 = 220.0000
3. 650.0000 x24 + x25 + x26 + x27 <=900; X16 = 0.000000
 15

Verification of Solution
Equati Slack or Constraints Values of variables
on Surplus
4. 300.0000 x34 + x35 + x36 + x37 <=670; X17 = 0.000000
5. 0.000000 x15 + x25 + x35 <=320; X24 = 0.000000
6. 100.0000 x14 + x24 + x34 <=530; X25 = 0.000000
7. 80.00000 x16 + x26 + x36 <=450; X26 = 0.000000
8. 0.000000 x17 + x27 + x37 <=250; X27 = 250.0000
9. 0.000000 x48 + x58 + x68 + x78 = 620; X34 = 0.000000
10. 0.000000 x49 + x59 + x69 + x79 = 750; X35 = 0.000000
 16

Verification of Solution
Equati Slack or Constraints Values of variables
on Surplus
11. 0.000000 x14 + x24 + x34 - x48 - x49=0; X36 = 370.0000
12. 0.000000 x15 + x25 + x35 - x58 - x59=0; X37 = 0.000000
13. 0.000000 x16 + x26 + x36 - x68 - x69=0; X48 = 150.0000
14. 0.000000 x17 + x27 + x37 - x78 - x79=0; X49 = 380.0000
15. 530.0000 x14>=0; X58 = 220.0000
16. 220.0000 x15>=0; X59 = 0.000000
17. 0.000000 x16>=0; X68 = 0.000000
 17

Verification of Solution
Equati Slack or Constraints Values of variables
on Surplus
18. 0.000000 x17>=0; X69 = 370.0000
19. 0.000000 x24>=0; X78 = 250.0000
20 0.000000 x25>=0; X79 = 0.000000
21. 0.000000 x26>=0;
22. 250.0000 x27>=0;
23. 0.000000 x34>=0;
24. 0.000000 x35>=0;
25. 370.0000 x36>=0;
 18

Verification of Solution
Equation Slack or Surplus Constraints Values of variables
26. 0.000000 x37>=0;
27. 150.0000 x48>=0;
28. 380.0000 x49>=0;
29. 220.0000 x58>=0;
30. 0.000000 x59>=0;
31. 0.000000 x68>=0;
32. 370.0000 x69>=0;
33. 250.0000 x78>=0;
34. 0.000000 x79>=0;
Solution of Sensitivity Analysis 19
If capacities of machine 8 and 9 in stage 3 becomes equal to 750 each, then:
Multiple optimal solutions found.
Variable Value
Objective value: Stage 2
Z = 90,780 dollars
X14 530
Stage 1 4 X35 50
530 Stage 3

1
230 X48 230
220
5
8 X69 450
270
300 X49 300
2 50
x15 220
6
450
9
x58 270
450 250 250 x78 250
3
7 x27 250
x36 450
 20

Verification of Solution
Equation Slack or Surplus Constraints Values of variables
1. 90780.00 Z = 18x14 + 23x15 + 25x16 + 26x17 + X14 = 530.0000
20x24 + 26x25 + 24x26 + 19x27 + 24x34 +
24x35 + 22x36 + 23x33 + 36x48 + 41x49 +
40x58 + 52x59 + 42x68 + 46x69 + 33x78 +
49x79
2. 0.000000 x14 + x15 + x16 + x17 <=750; X15 = 220.0000
3. 650.0000 x24 + x25 + x26 + x27 <=900; X16 = 0.000000
 21

Verification of Solution
Equati Slack or Constraints Values of variables
on Surplus
4. 170.0000 x34 + x35 + x36 + x37 <=670; X17 = 0.000000
5. 0.000000 x15 + x25 + x35 <=320; X24 = 0.000000
6. 50.0000 x14 + x24 + x34 <=530; X25 = 0.000000
7. 0.000000 x16 + x26 + x36 <=450; X26 = 0.000000
8. 0.000000 x17 + x27 + x37 <=250; X27 = 250.0000
9. 0.000000 x48 + x58 + x68 + x78 = 620; X34 = 0.000000
10. 0.000000 x49 + x59 + x69 + x79 = 750; X35 = 50.00000
 22

Verification of Solution
Equati Slack or Constraints Values of variables
on Surplus
11. 0.000000 x14 + x24 + x34 - x48 - x49=0; X36 = 450.0000
12. 0.000000 x15 + x25 + x35 - x58 - x59=0; X37 = 0.000000
13. 0.000000 x16 + x26 + x36 - x68 - x69=0; X48 = 230.0000
14. 0.000000 x17 + x27 + x37 - x78 - x79=0; X49 = 300.0000
15. 530.0000 x14>=0; X58 = 270.0000
16. 220.0000 x15>=0; X59 = 0.000000
17. 0.000000 x16>=0; X68 = 0.000000
 23

Verification of Solution
Equati Slack or Constraints Values of variables
on Surplus
18. 0.000000 x17>=0; X69 = 450.0000
19. 0.000000 x24>=0; X78 = 250.0000
20 0.000000 x25>=0; X79 = 0.000000
21. 0.000000 x26>=0;
22. 250.0000 x27>=0;
23. 0.000000 x34>=0;
24. 0.000000 x35>=0;
25. 450.0000 x36>=0;
 24

Verification of Solution
Equation Slack or Surplus Constraints Values of variables
26. 0.000000 x37>=0;
27. 230.0000 x48>=0;
28. 300.0000 x49>=0;
29. 270.0000 x58>=0;
30. 0.000000 x59>=0;
31. 0.000000 x68>=0;
32. 450.0000 x69>=0;
33. 250.0000 x78>=0;
34. 0.000000 x79>=0;
 25

Conclusion
Comparison of Normal vs Sensitivity analysis 26
Normal Sensitivity Analysis
Variable Value Variable Value
x14 530 X14 530
x48 150 X35 50
x69 370 X48 230
x49 380 X69 450
x15 220 X49 300
x58 220 x15 220
x78 250 x58 270
x27 250 x78 250
x36 370 x27 250
x36 450
Comparison of Normal vs Sensitivity analysis 27
Normal Sensitivity Analysis
Equation Slack or Surplus Equation Slack or
1. 82540.00 Surplus
3. 650.0000 1. 90780.00
4. 300.0000 3. 650.0000
6. 100.0000 4. 170.0000
7. 80.0000 6. 50.0000
15. 530.0000 15. 530.0000
16. 220.0000 16. 220.0000
22. 250.0000 22. 250.0000
25. 370.0000 25. 450.0000
27. 150.0000 27. 230.0000
28. 380.0000 28. 300.0000
29. 220.0000 29. 270.0000
32. 370.0000 32. 450.0000
33. 250.0000 33. 250.0000
 28

Thank You!
Any Questions?