Graphical Method

Simplex Method
Sensitivity Analysis

LINEAR PROGRAMMING

NB-629-BSDS
OPTIMIZATION
Lecturer
Hasitha Sanjeewa
LINEAR PROGRAMMING | Hasitha Sanjeewa

1. A manufacturer produced equipment E1, E2, and E3. Each E1 equipment requires 4 hours of
grinding, 2 hours of polishing, and 1 hours of finishing whereas E2 requires 2 hours of grinding, 5
hours of polishing, and 1.5 hours of finishing. E3 requires 3 hours of grinding, 3 hours of polishing,
and 1 hour of finishing. The manufacturer has 2 grinders, 3 polishers, and 1 finisher. Each grinder
works 40 hours per week while each polisher and finisher work 60 and 50 hours per week. Profits
from one unit of E1 is $30, E2 is $40 and E3 is $60. Whatever E2 produced in a week is sold in the
market whereas minimum and maximum demand for E1 and E3 are 5 units and 10 units respectively.
How should the manufacturer allocate his production capacity to the three types of equipment, so that
the profit is maximized.

2. A paper mill produces two types of papers namely A and B and production capacity is limited to 400
tons of grade A and 300 tons of grade B papers per sheet due to Capacity restriction. There are 160
production hours in a week, and it requires 0.2 and 0.4 hours to produce a ton of paper A and B
respectively with corresponding profit of $200 and $500 per ton. One ton of paper type A and B
require 2 and 2.5 tons of chemicals, 0.5 and 0.4 tons of raw materials. Paper type B production must
be less than or equals the twice the paper type A production. Formulate the above as a LPP to
maximize the profit and find the optimum product mix.

3. A company produces three products: A, B, and C. Each product must pass through three processes.
Each process has a limited number of available operating hours per week. Additionally, products
require raw materials, labor, and are subject to market demand constraints.

Product Stage 1 Stage 2 Stage 3 Raw Labor Cost Selling Max

(M1 (M2 (M3 Mat (hr/unit) (Rs.) Price Demand
min) min) min) (kg) (Rs.)
A 10 8 5 1.0 0.5 5 10 ∞
B 5 4 3 0.5 0.3 6 8 800
C 6 7 4 0.8 0.4 7 12 500
Availability 60 50 45 600 500

4. A fruit grower has 150 acres of land available to raise two crops, A and B. It takes one day to trim
an acre of crop A and two days to trim an acre of crop B, and there are 240 days per year available
for trimming. It takes 0.3 days to pick an acre of crop A and 0.1 days to pick an acre of crop B, and
there are 30 days per year available for picking. Find the number of acres of each fruit that should be
planted to maximize profit, assuming that the profit is $140 per acre for crop A and $235 per acre for
crop B.

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LINEAR PROGRAMMING | Hasitha Sanjeewa
5. A farming cooperative mixes two brands of cattle feed. Brand X costs $25 per bag and contains 2
units of nutritional element A, 2 units of element B, and 2 units of element C. Brand Y costs $20 per
bag and contains 1 unit of nutritional element A, 9 units of elements B, and 3 units of element C.
Find the number of bags of each brand that should be mixed to produce a mixture having a minimum
cost per bag. The minimum requirements for nutrients A, B and C are 12 units, 36 units, and 24 units
respectively.
6. Two gasoline, Type A and Type B, have octane ratings of 80 and 92, respectively. Type A costs
$0.83 per gallon and Type B costs $0.98 per gallon. Determine the blend of the minimum cost with
an octane rating of at least 90. [ Hint: Let x be the fraction of each gallon that is Type A and y be the
fraction that is Type B.
7. A company makes two products (X and Y) using two machines (A and B). Each unit of X that is
produced requires 50 minutes processing time on machine A and 30 minutes processing time on
machine B. Each unit of Y that is produced requires 24 minutes processing time on machine A and
33 minutes processing time on machine B.
At the start of the current week there are 30 units of X and 90 units of Y in stock. Available processing
time on machine A is forecast to be 40 hours and on machine B is forecast to be 35 hours.
The demand for X in the current week is forecast to be 75 units and for Y is forecast to be 95 units.
Company policy is to maximize the combined sum of the units of X and the units of Y in stock at the
end of the week.
a. Formulate the problem of deciding how much of each product to make in the current week as
a linear program.
b. Solve this linear program graphically.

8. A company produces both interior and exterior paints from two raw materials, RM1 and RM2. The
following table provides the basic production details.

Tons of material per ton of each paint type Maximum daily

Exterior Paint Interior Paint availability (tons)

RM1 6 4 24
RM2 1 2 6
Profit per ton (Rs.1000) 5 4

A market survey indicates that a daily demand for interior paint cannot exceed that of exterior paint
by more than 1 ton. Also, maximum daily demand of interior paint is 2 tons. The company wants to
determine the optimum production mix of interior and exterior paint that maximizes the total daily
profit.
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LINEAR PROGRAMMING | Hasitha Sanjeewa
9. The owner of a shop producing automobile trailers wishes to determine the best mix for his three
products: at-bed trailers, economy trailers, and luxury trailers. His shop is limited to working 24 days
per month on metalworking and 60 days per month on woodworking for these products. The
following table indicates the production data for the trailers. Find the optimum production plan which
gives maximum profit.

Flat –bed Economy Luxury Resource Avail.

Metalworking (days) 0.5 2 1 24

Woodworking (days) 1 2 4 60

Unit profit ($ H) 6 14 13

10. A company produces two models of electronic gadgets that resistors, capacitors & chips. The
following table summarizes the data of the situation. Determine the optimum production plan with
maximum profit.

Resource Model 1 (units) Model 2 (Units) Maximum availability

(units)

Resistor 2 3 1200

Capacitor 2 1 1000

Chips 0 4 800

Transistors 1 4 1000

Unit Profit ($) 3 4

11. A company makes three different products, A, B, C. Each product requires processing in a milling
machine and a lathe. Table shows the total processing times in minutes required by one unit of
product in each machine, the total machine time in minutes available per week and the cost per minute
of operating each machine. In addition, the raw material cost for each unit of the product is shown
along with the current product selling price. Demand for product B is limited and the company wants
to restrict the weekly production of this product to not more than 250 units. The company would like
to maximize the weekly profit from the manufacture of the products.

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LINEAR PROGRAMMING | Hasitha Sanjeewa
a) Formulate a linear-programming model to describe this problem.
b) Use the simplex method to determine the number of units of each product to manufacture for
maximum profit and calculate the value of this profit. Limit the precision of the calculations to
two decimal places.
c) Calculate the amount by which the selling price for product A may be increased without
changing the optimality of the solution in part b above and calculate the resulting increase in
profit. [ This will be discussed under sensitivity analysis]

Machine Product A Product B Product C Available time Machine

time (mins) time (mins) time (mins) mins/week Cost/min (£)

Mill 10 9 14 4000 0.05

Lathe 5 6 12 3000 0.1
Material Cost (£) 1.00 1.05 1.10
Product price (£) 4.35 5.10 5.85

12. A perfume company produces four types of perfume P1, P2, P3, P4 using three kinds of raw materials
R1, R2, R3. The amounts of raw material used to produce 1gm of each perfume and the resulting profit
are as follows:

R1 R2 R3 Profit ($/gm)

P1 3 1 4 19

P2 2 1 3 13

P3 1 1 3 12

P4 2 1 4 17

The company has 225 units of R1, 117 units of R2, and 420 units of R3 available. Find how much of
each perfume should be produced to maximize the profit.

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