Linear Programming using the simplex method

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SUMMARY

The discussion focuses on optimizing oil distribution from Southwestern Oil to two distributors, D1 and D2, using the simplex method in linear programming. The constraints include minimum supply requirements of 3000 barrels for D1 and 5000 barrels for D2, with shipping costs of $30 and $20 per barrel for S1 to D1 and D2, respectively, and $25 and $22 for S2. Additionally, shipping taxes of $2 and $6 for S1 to D1 and D2, and $5 and $4 for S2 apply, with a total shipping tax budget of $40,000. The objective function for minimizing costs is established as Min z = 32x11 + 26x12 + 30x21 + 26x22.

PREREQUISITES
  • Understanding of linear programming concepts
  • Familiarity with the simplex method
  • Knowledge of formulating objective functions and constraints
  • Basic proficiency in mathematical notation and variables
NEXT STEPS
  • Learn how to set up and solve linear programming problems using the simplex method
  • Explore the interpretation of slack and surplus variables in optimization problems
  • Study the impact of shipping costs and taxes on supply chain optimization
  • Investigate software tools for linear programming, such as LINDO or MATLAB
USEFUL FOR

Students, operations researchers, and supply chain analysts seeking to optimize distribution logistics and minimize shipping costs using linear programming techniques.

arl2267
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Southwestern Oil supplies two distributors in the Northwest from two outlets. S1 and S2. Distributor S1 needs at least 3000 barrels of oil, and D2 needs at least 5000 barrels. The two outlets can each furnish exactly 5000 barrels of oil. The cost per barrel to ship the oil are:S1: D1=$30, D2=$20
S2: D1=$25, D2=$22There is also a shipping tax per barrel:S1: D1=$2, D2=$6
S2: D1=$5, D2=$4Southwestern Oil is determined to spend no more than $40,000 on shipping tax.a) How should the oil be supplied to minimize cost?
b) Find and interpret the values of any nonzero slack or surplus variableOkay so my attempt at coming up with the constraints is this:

Minimum: W=
30x1+20x2>=3000
25x3+22x4>=5000
x1+x2=50,000I think what is throwing me off is the shipping tax. I understand that the forum rules are that we need to make an attempt, but I am having such a hard time with this, and would really appreciate some help.
 
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arl2267 said:
Southwestern Oil supplies two distributors in the Northwest from two outlets. S1 and S2. Distributor D1 needs at least 3000 barrels of oil, and D2 needs at least 5000 barrels. The two outlets can each furnish exactly 5000 barrels of oil. The cost per barrel to ship the oil are:S1: D1=$30, D2=$20
S2: D1=$25, D2=$22There is also a shipping tax per barrel:S1: D1=$2, D2=$6
S2: D1=$5, D2=$4Southwestern Oil is determined to spend no more than $40,000 on shipping tax.a) How should the oil be supplied to minimize cost?
b) Find and interpret the values of any nonzero slack or surplus variableOkay so my attempt at coming up with the constraints is this:

Minimum: W=
30x1+20x2>=3000
25x3+22x4>=5000
x1+x2=50,000I think what is throwing me off is the shipping tax. I understand that the forum rules are that we need to make an attempt, but I am having such a hard time with this, and would really appreciate some help.

Hi arl2267, :)

Welcome to Math Help Boards! :)

First define your variables as,

\(x_{ij}\) - The number for barrels supplied from \(S_{i}\) to distributor \(D_{j}\) where \(i,j=1,2\)

So the total cost will be, \(z=(30+2)x_{11}+(20+6)x_{12}+(25+5)x_{21}+(22+4)x_{22}\). Hence the objective function is,

\[\mbox{Min }z=32x_{11}+26x_{12}+30x_{21}+26x_{22}\]

Since \(D1\) needs at least \(3000\) barrels of oil we have,

\[x_{11}+x_{21}\geq 3000\]

Can you try to obtain the rest of the constraints? :)

Kind Regards,
Sudharaka.
 

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