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Winston Chapter 3.4, Page 73, Number 1 (Linear Programming).

Problem Statement: There are three factories on the Momiss River (1, 2, and 3). Each
emits two types of pollutants (1 and 2) into the river. If the waste from each factory is
processed, the pollution in the river can be reduced. It costs $15 to process a ton of
factory 1 waste, and each ton processed will reduce the amount of pollutant 1 by 0.10 ton
and the amount of pollutant 2 by 0.45 ton. It costs $10 to process a ton of factory 2
waste, and each ton processed will reduce the amount of pollutant 1 by 0.20 ton and the
amount of pollutant 2 by 0.25 ton. It costs $20 to process a ton of factory 3 waste, and
each ton processed will reduce the amount of pollutant 1 by 0.40 ton and the amount of
pollutant 2 by 0.30 ton. The state wants to reduce the amount of pollutant 1 in the river
by at least 30 tons and the amount of pollutant 2 in the river by at least 40 tons.
Formulate an LP that will minimize the cost of reducing pollution by the desired
amounts. Do you think that the LP assumptions (Proportionality, Additivity, Divisibility,
and Certainty) are reasonable for this problem?

A. Summarize the problem in a table format.

B. Formulate the problem. Explain your decision variables and details of your
formulation.
C. Create the first simplex tableau for this problem. Do not solve manually.
D. Use Quant software to solve this problem. Print the input data as free format. Print
the solution as summary reports for the variables and the constraints.
E. Write a report of your solution for a hypothetical manager. Use a language
understandable to most people. Do not use mathematical abbreviations.

A. Problem Summarized in Table Format:

Factory Cost (per Pollution 1, P1 Pollution 2, P2 Limitations

(Tons) ton) Reduction (tons) Reduction (tons)
F1 $15 0.10 0.45 None
F2 $10 0.20 0.25 None
F3 $10 0.40 0.30 None
P1 to be reduced by P2 to be reduced by
at least 30 tons at least 40 tons

B. Problem Formulation:

1. Decision Variables:
F1 = Waste of Factory 1 to be Processed, Tons, Positive
• F2 = Waste of Factory 2 to be Processed, Tons, Positive
• F3 = Waste of Factory 3 to be Processed, Tons, Positive
• P1 = 0.10F1 + 0.20F2 + 0.40F3, Reduction of Pollution 1, Positive
P2 = 0.45F1 + 0.25F2 + 0.30F3, Reduction of Pollution 2, Positive
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   2

The Fx decision variables are the unknowns that are needed to complete a formulation to
help minimize the cost of reducing pollution by the desired amounts. P1 and P2 are used
only for a better understanding of this problem.

2. Objective Function: Since costs are being minimized, the objective function is created
in the form of the sum of all costs. The objective function to minimize the cost of
reducing pollution by the desired amounts is:

o.f.: Min Z = 15F1 + 10F2 + 20F3.

3. Constraints: There are five constraints for this problem. Pollution 1 must be reduced
by at least 30 tons and Pollution 3 must be reduced by at least 40 tons. Additionally, all
factories must process a non-negative amount of pollution.

s.t.: 0.10F1 + 0.20F2 + 0.40F3 ≥ 30

0.45F1 + 0.25F2 + 0.30F3 ≥ 40
F1, F2, F3 ≥ 0

C. Initial Simplex Tableau:

Row Z F1 F2 F3 Art1 Art2 Ex1 Ex2 RHS

0 1 15 10 20 0 0 0 0 0
1 0 0.10 0.20 0.40 1 0 -1 0 30
2 0 0.45 0.25 0.30 0 1 0 -1 40

D. Quant Input and Output:

Quant Input:
Free Format Model for 0073N01

Min 15F1+ 10F2+ 20F3

Subject to
(1) .1F1+ .2F2+ .4F3 >= 30
(2) .45F1+ .25F2+ .3F3 >= 40
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  
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   3

Quant Output:
|------------------------------------------------------------------------------|
| Summarized Report for 0073N01 Page : 1 |
|------------------------------------------------------------------------------|
| | | |Opportunity| Objective | Minimum | Maximum |
|Number | Variable | Solution | Cost |Coefficient|Obj. Coeff.|Obj. Coeff.|
|-------+----------+-----------+-----------+-----------+-----------+-----------|
| 1 | F1 | +7.6923099| 0 | +15.000000| +5.0000000| +18.000000|
| 2 | F2 | +146.15384| 0 | +10.000000| +8.3333340| +12.666666|
| 3 | F3 | 0 | +6.1538458| +20.000000| +13.846154| + Infinity|
|------------------------------------------------------------------------------|
| Minimized OBJ = 1576.923 Iteration = 4 Elapsed CPU second = 0 |
|------------------------------------------------------------------------------|

|------------------------------------------------------------------------------|
| Summarized Report for 0073N01 Page : 2 |
|------------------------------------------------------------------------------|
| | | | Shadow | Slack or | Minimum | Maximum |
|Constr.| Status | RHS | Price | Surplus | RHS | RHS |
|-------+---------+------------+-----------+-----------+-----------+-----------|
| 1 | Tight | >+30.000000| +11.538460| 0 | +8.8888893| +32.000000|
| 2 | Tight | >+40.000000| +30.769232| 0 | +37.500000| +135.00000|
|------------------------------------------------------------------------------|
| Minimized OBJ = 1576.923 Iteration = 4 Elapsed CPU second = 0 |
|------------------------------------------------------------------------------|

E. Report for a Manager:

The minimum amount of funding to be spent in this scenario is $1,576.92 as seen by

Quant’s minimized objective value. This minimized cost can be obtained when the
optimum amount of each factory’s pollution is processed.

Quant shows that 7.69 tons of Factory 1 pollution should be processed, 146 tons of
Factory 2 pollution should be processed, and zero tons of Factory 3 pollution should be
processed.

Factory 3 pollution is undesirable to process because the overall results are too costly.
Additionally, the objectives of treating the pollution with minimum cost can be
successfully obtained without treating Factory 3’s pollution.

Since it costs $15 to process one ton of Factory 1 pollution, it will cost $115.35 to
process all 7.69 tons. Additionally, since it costs $10 to process one ton of Factory 2
pollution, it will cost $1461.50 to process all 146 tons. No pollution from Factory 3
should be processed. The total cost for processing the pollution is approximately
$1,576.85, the lowest possible cost of treating the pollution while abiding to the
constraints.