Arora, Introduction to Optimum Design, 4e
2.18________________________________________________________________________________
A vegetable oil processor wishes to determine how much shortening, salad oil, and margarine to
produce to optimize the use of his current oil stock supply. At the present time, he has 250,000 kg of
soybean oil, 110,000 kg of cottonseed oil, and 2000 kg of milk–base substances. The milk–base
substances are required only in the production of margarine. There are certain processing losses
associated with each product: 10 percent for shortening, 5 percent for salad oil, and no loss for
margarine. The producer’s back orders require him to produce at least 100,000 kg of shortening,
50,000 kg of salad oil, and 10,000 kg of margarine. In addition, sales forecasts indicate a strong
demand for all produces in the near future. The profit per kilogram and the base stock required per
kilogram of each product are given in Table E2.18. Formulate the problem to maximize profit over
the next production scheduling period. (created by J. Liittschwager).
Table E2.18 Data for the Vegetable Oil Processing Problem
Parts per kg of base stock
Requirements
Solution
Given: The current supply of soybean oil, cottonseed oil, and milk-base substances, milk–base
Step 1: Problem Statement
Shown above
Step 2: Data and Information Collection
Shown above
Step 3: Definition of Design Variables