BM 512H: Operations Research
Assignment 01: Linear Programming Model
School of Business, IIT Guwahati
1. A manufacturing company is engaged in producing three types of products: A, B, and C.
The production department produces, each day, components sufficient to make 50 units
of A, 25 units of B and 30 units of C. The management is confronted with the problem of
optimizing the daily production of the products in the assembly department, where only
100 man-hours are available daily for assembly the products. The following additional
information is available: (10 Marks)
Profit contribution per Assembly time per
Type of product product (hrs)
unit of product (INR)
A 12 0.8
B 20 1.7
C 45 2.5
The company has a daily order commitment for 20 units of product A, and a total of 15
units of products B and C. Formulate this problem as an LP model so as to maximize the
total profit.
2. A company has two plants, each of which produces and supplies two products: A and B.
Each plant can work up to 16 hours a day. In plant 1, it takes three hours to prepare and
pack 1,000 gallons of A and one hour to prepare and pack one quintal (equivalent to 100
Kg) of B. In plant 2, it takes two hours to prepare and pack 1,000 gallon of A and 1.5
hours to prepare and pack a quintal of B. In plant 1, it costs INR 15,000 to prepare and
pack 1,000 gallons of A and INR 28,000 to prepare and pack a quintal of B, whereas in
plant 2 these costs are INR 18,000 and INR 26,000, respectively. The company is obliged
to produce daily at least 10 thousand of gallons of A and 8 quintals of B. Formulate this
problem as an LP model to find out as to how the company should organize its
production so that required amount of the two products to be obtained at the minimum
cost. (10 Marks)
3. An electronic company is engaged in the production of two components C1 and C2 that
are used in radio sets. Each unit of C1 costs the company INR 5 in wages and INR 5 in
material, while each of C2 costs the company INR 25 in wages and INR 15 in material.
The company sells both products on one-period credit terms, but the company’s labor and
material expenses must be paid in cash. The selling price of C1 is INR 30 per unit and of
C2 it is INR 70 per unit. Because of the company’s strong monopoly in these
components, it is assumed that the company can sell, at the prevailing prices, as many
units as it produces. The company’s production capacity is, however, limited by two
considerations. First, at the beginning of period 1, the company has an initial balance of
INR 4,000 (cash plus bank credit plus collections from past credit sales). Second, the
company has available in each period 2,000 hours of machine time and 1,400 hours of
assembly time. The production of each C1 requires 3 hours of machine time and 2 hours
of assembly time, whereas the production of each C2 requires 2 hours of machine time
and 3 hours of assembly time. Formulate this problem as an LP model so as to maximize
the total profit to the company. (10 Marks)
4. ABC foods company is developing a low-calorie high-protein diet supplement called Hi-
Pro. The specifications of Hi-Pro have been established by a panel of medical experts.
These specifications along with the calorie, protein and vitamins content of three basic
foods are given in the following table.
Nutritional Units of Nutritional Elements Basic foods Hi-
elements (Per 100 gm serving of basic foods) Pro
specifications
1 2 3
Calories 350 250 200 300
Proteins 250 300 150 200
Vitamin A 100 150 75 100
Vitamin C 75 125 150 100
Cost per serving 1.50 2.00 1.50
(Rs.)
Formulate this problem as an LP model to minimize cost of serving. (10 Marks)