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Profit Maximization with Constraints

The document describes maximizing profit from producing two products subject to constraints on resources. It sets up the profit and constraint equations and solves the linear program using the simplex method, finding the optimal quantities of each product are 24 units of product 1 and 8 units of product 2, for a maximum profit of 1360.

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Angelo Roque
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0% found this document useful (0 votes)
9 views22 pages

Profit Maximization with Constraints

The document describes maximizing profit from producing two products subject to constraints on resources. It sets up the profit and constraint equations and solves the linear program using the simplex method, finding the optimal quantities of each product are 24 units of product 1 and 8 units of product 2, for a maximum profit of 1360.

Uploaded by

Angelo Roque
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Maximize Profit 40 X1 + 50 X2

Constraints 1 X1 + 2 X2 ≤ 40
4 X1 + 3 X2 ≤ 120
X1 ≥ 0
X2 ≥ 0

Let X1=# of Bows to be produced


Let X2=# of mugs to be produced

Constraints calculations
1 X1 + 2 X2 = 40
Constraints 1
1 X1 + 2 X2 = 40
4 X1 + 3 X2 = 120
Constraints 2
4 X1 + 3 X2 = 120
X1 X2 =
Constraints 3
X1 X2 =
X1 X2 =
Constraints 4
X1 X2 =
X1 ≥ 0
Constraints 3
X1 ≥ 0
X2 ≥ 0
Constraints 4
X2 ≥ 0
X1 X2
Maximize Profit 40 50
Constraints 1 2 ≤ 40
4 3 ≤ 120

X1 24
X2 8
Maximize Profit 40 X1

X1
Point A 0
Point B 0
Point C 24
Point D 30
Point E
Point F
Point G
Point H
Point I
Point J

X1 X2 50
0 20 48
40 0 46

0 40 44
42
30 0
40
0 0
38
0 0 36
0 0 34
0 0 32
0 0 30

100 0 28
26
0 100
24
0 0
22
20
18
16
14
12
10
8
18
16
14
12
10
8
6
4
2
0
-10 -8 -6 -4 -2 0 2 4 6 8 10 12 14
-2
-4
-6
-8
-10

Constraints 1 Constraints 2 Column J Colum

? Quantity
Products Manpower / Labour Clay
Bowls 1 4
Mug 2 3
Available Resources 40 Hours 120 lbs
+ 50 X2 Checking
X1 X2
X2 Profit 1 24 2 8
0 0 4 24 3 8
20 1000
8 1360
0 1200
0
0
0
0
0
0
8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 4

Column J Column J Column J Column J Column J Constraints 3 Constraints 4

our Clay Profit


4 40$
3 50$
120 lbs
SIMPLEX METHOD
Maximize Profit

≤ 40 40 Constraints
≤ 120 120
0 ENTERING VARIABLE
0 LEAVING VARIABLE =
0 Tableau 1
0 Cj
0
0 PIVOT ROW 0
0

Tableau 2
Cj

50
0

Tableau 3
Cj

40
50

x1
40 42 44 46 48 50

traints 3 Constraints 4
SIMPLEX METHOD
Maximize Profit 40 X1 + 50 X2

Constraints 1 X1 + 2 X2 ≤ 40
4 X1 + 3 X2 ≤ 120
ENTERING VARIABLE = LARGEST NON NEGATIVE VALUE IN CJ-ZJ
LEAVING VARIABLE = LOWEST NON NEGATIVE VALUE
Tableau 1 PIVOT COLUMN PIVOT NUMBER
40 50 0 0
Solution Mix X1 X2 S1 S2 QTY
S1 1 2 1 0 40 20
S2 4 3 0 1 120 40
Zj 0 0 0 0 0
Cj-Zj 40 50 0 0

Tableau 2
40 50 0 0
Solution Mix X1 X2 S1 S2 QTY
X2 0.5 1 0.5 0 20 40
S2 2.5 0 -1.5 1 60 24
Zj 25 50 25 0 1000
Cj-Zj 15 0 -25 0

Tableau 3
40 50 0 0
Solution Mix X1 X2 S1 S2 QTY
X1 1 0 -0.6 0.4 24
X2 0 1 0.8 -0.2 8
Zj 40 50 16 6 1360
Cj-Zj 0 0 -16 -6
40 X1 + 50 X2 + 0 S1 + 0 S2

1 X1 + 2 X2 + S1 = 40
4 X1 + 3 X2 + S2 = 120

1 X1 + 2 X2 + 1 S1 + 0 S2 = 40
4 X1 + 3 X2 + 0 S1 + 1 S2 = 120
S1=40
S2=120
Maximize Profit 7 X1 + 5 X2

Constraints 2 X1 + 1 X2 ≤ 100
4 X1 + 3 X2 ≤ 240
X1 ≥ 0
X2 ≥ 2

Constraints calculations
X1 + X2 =
Constraints 1
X1 + X2 =
X1 + X2 =
Constraints 2
X1 + X2 =
X1 =
Constraints 3
X1 =
X2 =
Constraints 4
X2 =
X1 X2
Maximize Profit
Constraints ≤

X1 ###
X2 ###

X1 ###
X2 ###
Maximize Profit X1

X1
Point A
Point B
Point C
Point D
Point E
Point F
Point G
Point H
Point I
Point J

X1 X2 110
0 0 105
0 0 100

0 0 95

0 0 90

0 0 85
80
100 0
75
0 100
70
0 0
65
60
55
50
45
40
35
30
25
20
15
10
30
25
20
15
10
5
0
-10 -5 0 5 10 15 20 25 30 35 4
-5
-10

Constraints 1 Constrain
+ X2 Checking
X1 X2
X2 Profit
0
0
0
0
0
0
0
0
0
0
25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105

Constraints 2 Constraints 3 Constraints 4


Maximize Profit

≤ 0 Constraints
≤ 0
0
0
0 Table 1
0 Cj
0
0

Table 2
Cj

Table 3
Cj
90 95 100 105 110

onstraints 4
Maximize Profit X1 + X2

Constraints X1 + X2 ≤
X1 + X2 ≤

Solution Mix QTY

Zj
Cj-Zj

Solution Mix QTY


X1
S2
Zj
Cj-Zj

Solution Mix X1 X2 S1 S2 QTY

Zj
Cj-Zj
X1 + X2 + +

X1 + X2 + =
X1 + X2 + =

X1 + X2 + + =
X1 + X2 + + =

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