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Midterm Solution

The document describes two linear programming problems. The first involves an publishing company that distributes two types of magazines - a restaurant guide and real estate guide. The objective is to maximize total advertising revenue by determining the optimal number of each magazine to print each month given constraints like a printing budget and distribution capacity. The second problem involves a lawn service business deciding how many residential and commercial lawns to contract given constraints like available work time, weekly budget, and profits from each type of customer. The objective is to maximize total profits.

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Giddel Ann Kristine Velasquez
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146 views3 pages

Midterm Solution

The document describes two linear programming problems. The first involves an publishing company that distributes two types of magazines - a restaurant guide and real estate guide. The objective is to maximize total advertising revenue by determining the optimal number of each magazine to print each month given constraints like a printing budget and distribution capacity. The second problem involves a lawn service business deciding how many residential and commercial lawns to contract given constraints like available work time, weekly budget, and profits from each type of customer. The objective is to maximize total profits.

Uploaded by

Giddel Ann Kristine Velasquez
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
Download as pdf or txt
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VELASQUEZ, Giddel Ann Kristine E.

BSA 2A
1. Island Publishing Company publishes two types of magazines on a monthly basis: a
restaurant and entertainment guide and a real estate guide. The company distributes the
magazines free to businesses, hotels, and stores on Hilton Head Island in South Carolina.
The company's profits come exclusively from the paid advertising in the magazines. Each
of the restaurant and entertainment guides distributed generates $0.50 per magazine in
advertising revenue, whereas the real estate guide generates $0.75 per magazine. The
real estate magazine is a more sophisticated publication that includes color photos, and
accordingly, it costs $0.25 per magazine to print, compared with only $0.17 for the
restaurant and entertainment guide. The publishing company has a printing budget of
$4,000 per month. There is enough rack space to distribute at most 18,000 magazines
each month. In order to entice businesses to place advertisements, Island Publishing
promises to distribute at least 8,000 copies of each magazine. The company wants to
determine the number of copies of each magazine it should print each month in order to
maximize advertising revenue.
a. Formulate a linear programming model (objective functions and constraints).
P = 0.5X1 + 0.75X2

b. Attach the screenshot of the sensitivity report

c. How many magazines on real estate the company should produce to maximize the
profit?
>8,000 magazines should be produced to maximize profit
d. What is the maximum profit?
>The maximum profit is 10,000 dollars
e. How many magazines on restaurant and entertainment guide the company should
produce to maximize the profit?
>8,000 magazines should be produced to maximize profit
f. How much is the profit when the company decided to increase the cost in advertising
the restaurant and entertainment guides to maximum possible cost?
>N/A
h. What is the sensitivity range for advertising restaurant and entertainment guides?
> 0 < q3 < 10,000
I. What is the sensitivity range for advertising real estate guides?
> 0 < q4 < 10,000

2. During the winter WeeMow Lawn Service contracts with customers for cutting lawns
starting in the spring. WeeMow provides service to residential and commercial
customers. The service has identified 50 possible residential customers and 15 potential
commercial customers it has contacted. WeeMow services a customer once every 2
weeks during the growing season. A residential lawn on average takes 1.2 hours to cut,
and a commercial property requires 5 hours to cut; the service’s available work time is 8
hours, 6 days per week. The profit for a residential lawn is $23, and the profit for a
commercial property is $61. The service has established a weekly budget of $350 for
management, gas, and other materials, plus equipment repair. A residential lawn
averages $12 in management, gas, material, and repair costs, and a commercial property
averages $20 in costs.
a. Formulate a linear programming model for this problem.

b. Attach the screenshot of the sensitivity report


c. How many residential properties should the company contract for from among its
potential customers in order to maximize profits?
> 2.5
d. How many commercial properties should the company contract for from among its
potential customers in order to maximize profits?
>1
e. What is the maximum profit at the optimal solution?
> 118.5 dollars
f. What is the allowable decrease in the profit for the residential can the company allow
that will not affect the optimal solution?
> N/A
g. What is the sensitivity range for the commercial property?
> N/A
h. How much is the total profit when the company will have an additional 12 hours of
work in cutting lawns?
> 112.83 dollars
i. What is the sensitivity range for the weekly budget?
> 448 < q1 < 1120
j. What is the sensitivity range for the work-time (time for cutting lawns)?
> 60 < q2 < 150

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