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# Universal Mines, Inc. operates three mines in Luzon.

The ore from each mine is separated into two grades before it is shipped. The daily production capacities of the mines, as well as their daily operating costs, are as follows: High-Grade Ore, tons/day Low-Grade Ore, tons/day Operating Cost,P1,000/day Mine I 4 4 20 Mine II 6 4 22 Mine III 1 6 18 Universal has committed itself to deliver 54 tons of high grade ore and 65 tons of low-grade ore by the end of the week. It also has labor contracts that guarantee employees in each mine a full day's pay for each day or fraction of a day the mine is open. Prepare a mathematical model of this scenario to determine the number of days each mine should be operated during the upcoming week if Universal Mines is to fulfill its commitment at minimum cost. Let: x1 = no. days days Mine I will operate x2 = no. days days Mine II will operate x3 = no. days days Mine III will operate z=20x1 + 22x2 + 18x3

Min

Subject to: 4x1 + 6x2 + x3 >= 54 4x1 + 4x2 + 6x3 >= 65 x1 <= 7 x2 <= 7 x3 <= 7 x1,x2,x3 >= 0

A rural bank has P650,000 in assets to allocate among investments in bonds, home mortgages, car loans, and personal loans. Bonds are . expected to produce a return of 10%, mortgages 8.5%, car loans 9.5%, and personal loans 12.5% To make sure the portfolio is not too risky, the bank wants to restrict personal loans to no more than 25% of the portfolio. The bank also wants to ensure that more money is invested in mortgages than personal loans. They also want to invest more in bonds than personal loans. Let: X1= bonds X2=mortgages X3=car loans x4=personal loans Max Z = Subject to: X2 >/= X4 X1>/=X4 X1+X2+X3+X4= \$650,000 X1,X2,X3,X4 >/= 0 Amount Invested Bonds Home Mortgages Car Loans Personal Loans Maximum Return 10.00% 8.50% 9.50% 12.50% .10X1+.085X2+.095X3+.125X4

\$ 162,500.00 TOTAL

## Assumptions: Total Investment Total Available Personal Loan </=

\$ \$

650,000.00 25%

A furniture manufacturer produces two types of tables (country and contemporary) using three types of machines. The time required to produce the tables on machine is given in the following table: Machine Country Contemp[orary Machine Time Available Per Week Router 1.50 2.00 1,000 Sander 3.00 4.50 2,000 Polisher 2.50 1.50 1,500 Country tables sell for P3,500 and contemporary tables sell for P4,500. Management has determined that at least 20% of the tables made should be country an 30% should be contemporary. How many of each type of table should the company produce if it wants to maximize its revenue? Let : X1 = country tables X2 = contemporary tables 350 x1 + 450 x2

Max Z =

Subject to: 1.5 X1 +2.0 X2 <= 1,000 3.0 X1 + 4.5 X2 <= 2,000 2.5 X1 + 1.5 X2 <= 1,500 0.80 X1 0.20 X2 >= 0 -0.30 X1+ 0.70 X2 >= 0 X1, X2 >= 0