Material Procurement - Handbook

Type: LP (Linear Programming)

This handbook explains the Material Procurement sample problem in the LP Black Box platform.

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The Problem

Scenario

A manufacturing company needs to purchase two materials: Steel and Aluminum.

Material	Cost per Unit ($)	Weight per Unit (kg)
Steel	25	1.0
Aluminum	40	0.5

Your Goal

Minimize total purchase cost while meeting operational requirements.

The Constraints

1. Budget: Cannot spend more than $2000

   Formula: 25×steel + 40×aluminum ≤ 2000

2. Weight Limit: Total weight cannot exceed 80 kg

   Formula: 1×steel + 0.5×aluminum ≤ 80

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How to Use

Step 1: Load the Sample

Select Material Procurement from the "Load Sample Problem" dropdown.

Step 2: Examine the Problem

Variables:

Name	Type	Lower Bound
steel	Continuous	0
aluminum	Continuous	0

Objective: Minimize cost (steel=25, aluminum=40)

Constraints:

• budget: 25×steel + 40×aluminum ≤ 2000
• weight: 1×steel + 0.5×aluminum ≤ 80

Step 3: Solve and Interpret

The solver finds the optimal mix that minimizes cost while staying within budget and weight limits.

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Try It Yourself

• Change the budget to $3000 and see how the solution changes
• Add a constraint requiring at least 50 units of steel

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This sample demonstrates cost minimization with resource constraints.