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# LP PROBLEMS FOR PRACTICE BY GIRISH PHATAK Q.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 products in assembly department where only 100 man – hours are available daily to assemble the products. The following additional information is available. Type of product A B C Profit contribution per Assembly time per unit of product (Rs) product (hrs) 12 0.8 20 1.7 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. Q.2 A company has two plants, each of which produces and supplies two products A and B. The plants can each 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 of B. In plant 2, it takes two hours to prepare and pack 1,000 gallons of A and 1.5 hours to prepare and pack one quintal B. In Plant 1 it costs Rs. 15,000 to prepare and pack a thousand gallons of A, and RS. 28,000 to prepare and pack a quintal of B, whereas these costs are Rs 18,000 and Rs 26,000, respectively in plant 2. The company is obliged to produce daily at least 10 thousand 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 the required amounts of the two products be obtained at minimum cost. Q.3 An electronic company is engaged in the production of two components C1 and C2 used in radio sets. Each unit of C1 costs the company Rs 5 in wages and RS 5 in material, while each of C2 costs the company Rs 25 in wages and RS 15 in material. The company sells both products on one – period credit terms, but the company’s labour and material expenses must be paid in cash. The selling price of C1 is Rs 30 per unit and of C2 it is Rs 70 per unit. Because of the strong monopoly of the company for these

Rs 10 and Rs 14. 2 hours of machine time and 2 hours of assembly time. It purchases casting of the parts from a local foundry and then finishes the part on drilling. whereas the production of each C2 requires 2 hours of machine time and 3 hours of assembly time. the company requires production of each C1 . limited by two considerations.000 pieces be inspected per 8 hour day. Castings for parts A. respectively are Rs 8. The capacities (parts per hour) for each part on each machine are shown in the following table : Machine Capacity per hour Part A Part B Part C Drilling 25 40 25 . All parts made can be sold. who are to be assigned for a quality control inspection. It is required that at least 2. B and C. Formulate this problem as an LP model so as to maximize the total profit to the company. however. An error made by an inspector costs Rs 3 to the company. the company has an initial balance of Rs 4. with an accuracy of 97 per cent. Total machine time available is 2000 hrs whereas total assembly time available 1400 hrs in the given period. Costs per hour to run each of the three machines are Rs 20 for drilling. B and C. The wage rate of a Grade 1 inspector is Rs 5 per hour while that of a Grade 2 inspector is Rs 4 per hour. shaping and polishing machines. There are only nine Grade 1 inspectors and eleven Grade 2 inspectors available in the company. it is assumed that the company can sell at the prevailing prices as many units as it produces. The shop possesses only one of each type of machine. The company wishes to assign work to the available inspectors so as to minimize the total cost of the inspection.components.5 An electronic company produces three types of parts for automatic washing machines. Q. Rs 30 for shaping and RS 30 for polishing. Grade 2 inspector checks at the rate of 30 pieces per hour with an accuracy of 95 per cent. The selling prices of parts A. Formulate this problem as an LP model so as to minimize daily inspection cost. respectively cost Rs 5. Rs 6 and Rs 10. Q. at the beginning of period . Second.000 (cash plus bank credit plus collections from past credit sales). First. The company’s production capacity is. Grade 1 inspector can check pieces at the rate of 40 per hour.4 A company has two grades of inspectors 1 and 2.

Shaping Polishing 25 40 20 30 20 40 The management of the shop wants to know how many parts of each type it should produce per hour in order to maximize profit for an hour’s run. Q. Rs 40 and RS 60. 4 and 2 and for a dozen units of model Q. no time is used in producing C. B and C which have profit contributions per unit of Rs 15. The company gets 3 units of C for each unit of B produced. Production of both products requires the same process. The plant operates on a three – shift basis and the following data is available from the production records : Requirment Grade Venus Diana Aurora Availability of resource (capacity/month) . Formulate this problem as an LP model to determine the quantity of A and B which should be produced. The weekly minimum production requirements are 25 units for model. the remainder has to be destroyed and the destruction cost is Re 1 per unit. respectively. Q. Some of this by – product can be sold at a unit profit of Rs 2. for assembling and for packing. A.7 A tape recorder company manufacturers models A. The production of B results also in a by – product C at no extra cost. I and II. A and B. respectively. Formulate this problem as an LP model so as to maximize total profit to the company. 3 hours for assembling and 1 hour for packaging. Because the product C results from producing B.8 ABC company manufactures three grades of paint Venus.6 A pharmaceutical company produces two pharmaceutical products. Specifically a dozen units of model A require 4 hours for manufacturing. and 4 hours and 5 hours per unit for B on process I and II. The product A can be sold at a profit of Rs 3 per unit and B at a profit of Rs 8 per unit. 130 units for model B and 55 units for model C. keeping C in mind. Forecasts show that up to 5 units of C can be sold. The available times are 18 and 21 hours of process I and II. respectively. Each type of recorder requires a certain amount of time for the manufacturing of component parts. Diana and Aurora. The manufacturing times are 3 hours per unit for A on process I and II. respectively.5. to make the highest profit to the company. The corresponding figures for a dozen units of model B are 2.

Rs. an offer was received from a nearby competitor for hiring 40 machine shifts per month of milling capacity for grinding Dianna paint.00 (kilolitres per machine shift) Packing 12. 300 grams of dacron thread. However. The manufacturer make the net profit of Rs.75 600 tonnes 3.50 on Style I .00 5. that could be spared for at least a year. Q.9 A garment manufacturer has production line making two styles of shirts.500 2.000 Due to commitments already made.30 additive (kg/litre) Milling 2. His immediate problem is to determine the production . due to additional handling at the competitor’s facility. Style 1 require 200 grams of cotton thread. and 22 kg of liner thread. Style II require 200 grams of cotton thread. Just as the company was able to finalise the monthly production programme for the next 12 months. and 300 grams of liner thread.15 0.26kg of dacron thread. 200 grams of dacron thread and 100 gram of liner thread. a minimum of 200 kiloliters per month of Aurora has to be necessarily supplied the next year.Special 0.000 (Rs/kilolitre) 3. 15.00 80 shifts There are no limitations on other resources. Venus 100 Diana 400 Aurora 600 Maximum possible sales per month (kilolitres) Contribution 4.90 on Style II. The particulars of sales forecasts and estimated contribution to overheads and profits are given below.00 (kiloliters per shift) 0.00 12. Formulate this problem as an LP model for determining the monthly production programme to maximise contribution. the contribution from Dianna will get reduced by Re 1 per litre. Of cotton thread . 19. He has in hand inventory of 24kg.00 100 machine shifts 12.

20 Per chair and Rs 30 per table.11 The ABC manufacturing company can make two products p1 and p2. Both products are processed on three machines M1.12 A company make two kinds of leather belts.5 hours and in addition a craftsman has to work for 2 hours. The contribution of each product as calculated by accounting department is Rs.40 and re. the company could make 1000 per day. T here are only 700 buckles a day available for belt B. and belt B is of low quality.0.a certain machine has to be worked for 1. Each belt of type A requires twice as much time as a belt of type B.To manufacture the article B. Per unit) 6 4 Maximum Sales(Unit Per 200 Week) The number of cutting hours available per week is 390 and number of finishing hours available per week is 810.schedule given the current inventory to make a maximum profit. The supply of leather is sufficient for only 800 belts per day (both A & B combined).To manufacture the article A.The time required by each product and total time available per week on each machine are as follow: Machine Chair Table Available Hours M1 3 3 36 M2 5 2 50 M3 2 6 60 How should the manufacturer his production in order to maximize contribution? Q.Each of the product requires time on a cutting machine and a finishing machine. and if all belts were of type B. But Belt A requires a fancy buckle & only 400 per day are available. the machine has to be worked for 2. Relevant data are: P1 P2 Cutting Hours(Per Unit) 2 1 Finishing Hours(Per Unit) 3 3 Profit (Rs.5 hours in a week the factory can avail of 80 hours of machine time and 70 hours of craftsman time. First Topic Linear Programming Problems for Practice PROBLEM 1: XYZ factory manufactures two articles A and B. What should be the daily production of each type of belt? Formulate the LPP. Belt A is a high quality belt. Formulate the LPP Model Q.How much should be produced of each product in order to achieve the profit for the company? Q.5 hours and in addition the craftsman has to work for 1.30 per belt.M2 and M3. The respective profits are re.The profit on each article A is .10 A firm makes two types of furniture: Chairs and tables.

Rs. at the beginning of period 1. 20.each working a 7-hour day. First.Because of the strong monopoly of the company for these components .40. Information about the resources required to produce the two models has been obtained from the production department and the accounts department. the company has an initial balance of Rs. sets. Each unit of C1 costs the company Rs. 25 in wages and Rs. The company’s production capacity is.while Model B requires 42 hours.The company sells both products on one-period credit terms.150 per unit and of C2 it is Rs 350 per unit. however. PROBLEM 3: IMC manufactures a variety of computing and computer. 125 in wages and Rs 75 in material. 20 .One such product is a monitor for use with business computer systems and IMC currently has plans to produce two models of the same monitor: Model A which is the basic .After assembly each computer is then tested in the inspection department to ensure it is working satisfactorily. 100 people are presently employed in the inspection department but they work an 8 hour day.and the firm’s desire to maintain good quality the control. If all the articles produced can be sold away. therefore.Formulate the problem as LP model. but the company’s labour and material expenses must be paid in cash.The company is not actually involved in manufacture directly but rather buys the various component parts which are required for the two models from outside suppliers.50 and that on each article B is Rs.IMC then sells the two models under its own brand name.related equipment. At present the company employs 400 people in the assembly department.find how many of each kind should be produced to earn the maximum profit per week. limited by two considerations.the assembly of the components and the inspection of the final product.it is assumed that the company can sell at the prevailing prices as many units as it produces.Formulate this problem as an LP model so as to maximize the total profit of the company.the inspection test is time-consuming. the company has available in each period 4.low-price monochrome monitor and Model B which is a more sophisticated and expensive colour graphics monitor.while each unit of C2 costs the company Rs.The components are then assembled by IMC to produce Model A and Model B and each unit produced is then thoroughly inspected for quality and performance.The production of each C1 requires 6 hours of machine time and 4 hours of assembly time. There are. Second .with Model A requiring 12 hours of inspection although Model B requires only 6 hours as more care and time is taken in the assembly stage .whereas the production of each C2 requires 4 hours of machine time and 6 hours of assembly time.000(cash plus bank credit plus collections from past cedit sales).Model A requires 28 hours of labour to assemble from component parts. two basic stages to the production process within the firm.Because of the technical complexity of the product.Current wage rates are Rs.V.The company presently operates a 6-day working week. 25 in material.The selling price of C1 is Rs. PROBLEM 2: An electric company is engaged in the production of two components C1 and C2 used in T.800 hours of assembly time.000 hours of machine time and 2.

Costs per hour to run each of the three machines are Rs.100 for drilling.000 for each station wagon.50.355 and Model B Rs.Currently the two models sel for Rs. 15 per hour in inspection.Rs. The shop possesses only one of each type of machine. 30 and Rs. 1.50.the firm faces .295 and Rs.a microchip that forms part of the monitor’s memory. The expected . Rs. FORMULATE a linear programming problem which allows the production manager to determine how many units of Models A and B should be produced weekly in order to maximize profits. 1.per hour in assembly and Rs. shaping and polishing machines.745 respectively.50 and Rs.000 for these purchases. 2.The accounts department has calculated that in terms of the components and parts.70 . Because the heavy air travel. The Board of Directors has authorized a maximum amount of Rs. Castings for part A. PROBLEM 4: XYZ Electronics company produces three types of parts for automatic washing machine . 50. 25. 1.565 to produce.00.It purchases casting of the parts from a local foundry and then furnishes the part of drilling.The purchase price would be Rs. minibuses and large buses. Rs. Model A costs Rs.There are three vehicles under consideration: station wagons. Formulate the problem as an LP model.00.150 for shaping and Rs.45.000 for the large bus.40.All parts made can be sold. 150 for polishing. The selling prices of part A. 4.Rs.B and C respectively are Rs.B and C respectively cost Rs. is that each model requires a particular component. The supplier of these chips can provide no more than 600 in any one working week. The capacities(parts per hour) for each part on each machine are shown in the adjoining table: Machine Drilling Shaping Polishing Part A 25 25 40 Capacity per hour Part B 40 20 30 Part C 25 20 40 The management of the shop wants to know how many parts of each type it should produce per hour in order to maximize profit for an hour’s run. the new vehicles would be utilized at maximum capacity regardless of the type of vehicles purchased.000 for the minibus and Rs. PROBLEM 5: Ex-servicemen Airport Services Company is considering the purchase of new vehicle for the transportation between the Delhi airport and hotels in the city.An additional aspect of the problem .

The minimum daily requirements(for a person) of vitamin V and W is 40 and 50 units respectively.. The ingredients contain the following percentage by weight: Ingredients Protein Fat Carbohydrates Sugar Filler . One unit of food F1 and F2 cost Rs. FORMULATE the problem as LP model. the company has to supply at least 200 units of product B to its regular customers.S T and U which cost Rs.000 for the minibus and Rs. FORMULATE the problem as a linear programming problem.net annual profit would be Rs. 250 kilos of fat. The order will require 1000 Kg. PROBLEM 6: Vitamins V and W are found in two different foods F1 and F2. 30 and 25 respectively.000 for the large bus. respectively.Rs. The company wants to minimize the cost of production b satisfying the given requirements. The batch must contain a minimum of 400 Kilos of protein. 300 kilos of carbohydrates and 50 Kilos of sugar.000 for the station wagon .Total machine hours available for product A are 400 hours.Rs. PROBLEM :7 A company is making two products A and B .One unit of food F1 contains 2 units of vitamin V and 5 units of vitamin W. One unit of food F2 contains 4 units of vitamin V and 2 units of vitamin W. PROBLEM :8 Frontier bakery has received order from a company M/s Bodhraj Ltd. of biscuits mix which is made from 4 ingredients R. 15. find out the optimal mixture of food F1 and F2 at the minimum cost which meets the daily minimum requirement of vitamins V and W. 45. They are qualified drivers for all three types of vehicles.Rs. 4.2per Kg. Determine the optimal number of vehicles to be purchased in order to maximize profit. 6 and Rs. 35. FORMULATE this as a Linear Programming model. One unit of product A requires one machine hour whereas product B has machine hours available abundantly within the company. A minibus is equivalent of 5/3 wagon stations and each large bus is equivalent to 2 station wagons in terms of their use of the maintenance department.As per the agreement. for the supply of high protein biscuits.16. One unit each of product A and B requires one labour hour each and total of 500 labour hours are available.T he cost of producing one unit of A and B is Rs 60 and Rs 80 respectively . Assuming that anything in excess of daily minimum daily requirement of vitamin V and W is not harmful. The maintenance department has the capacity to handle an additional 80 wagon stations. The company has hired 30 new drivers for the new vehicles.

1500.MIDNGHT 7 20 14 20 10 5 TABLE 2: SHIFT SCHEDULE SHIFT STARTING ENDING TIME TIME 1 MIDNIGHT 8AM 2 4AM NOON 3 8AM 4PM 4 NOON 8PM 5 4PM MIDNIGHT 6 8PM 4AM Shift 1 follows immediately after shift 6.1250 and Rs. Rs. The personnel manager wants to determine how many officers should work each shift in order to minimize the total number of officers employed while still satisfying the staffing requirement. 50000. PROBLEM :10 A media specialist plans to allocate advertising expenditure in three media whose unit costs of a message are Rs.The first medium is a monthly magazine and it . starting at the beginning of one of the six periods. PROBLEM :9 A 24-hour supermarket has the following minimal requirements for security officers: Table 1: STAFFING REQUIREMENTS TIME OF DAY MINIMUM NUMBER OF CASHIERS REQUIRED MIDNIGHT – 4AM 4 AM – 8 AM 8 AM . Formulate the problem as a linear programming problem.NOON NOON – 4PM 4 PM – 8 PM 8 PM .1000 respectively. The total advertising budget available for the year is Rs.R S T U 50% 10% 30% 0% 30% 15% 5% 5% 15% 50% 30% 5% 5% 15% 30% 30% 0% 10% 5% 60% Only 150 kilos of S and 200 kilos of T are immediately available. An officer works 8 consecutive hours. Draft a suitable LP model.

PROBLEM :12 In a chemical industry two products A and B are made involving two operations.000 Formulate a linear programming problem to find the optimal allocation of advertisement in three media that would maximize the total effective audience. Forecasts show that upto 5 units of C can be sold.000 25.000 40.000. FORMULATE LP model for this problem.is desired to advertise not more than once in one issue. the available times are 18 hrs and 21 hrs of operation one and two respectively. FORMULATE the above as linear programming problem. 3 per unit and B at a profit of Rs.18 The investor wants at least 35 per cent of his investment in government bonds.16 0. . the product A can be sold at a profit of Rs. The company desires to know that how much A and B should be produced keeping C in mind to make the highest profit. The by-product C has a profit of Rs.085 0.5. The investment choices and expected rates of return on each one of them are :Investment Mutual Fund A Mutual Fund B Money Market Fund Government Bonds Share Y Share X Projected Rate of Returns 0. PROBLEM :11 A person is interested in investing Rs.000 in a mix of investments. The investor has also specified that atleast 20 per cent of investment should be in the money market fund and that the amount of money invested in share should not exceed the amount invested in mutual fund. Because of the higher perceived risk of the two shares.12 0. 8 per unit. no time is used in producing C. The manufacturing times are 3 hrs per unit for A on each of the operation one and two and 4 hrs and 5 hrs per unit for B on operations one and two respectively.80. His final investment condition is that the amount invested in mutual fund A should be no more than the amount invested in mutual fund B. 2 per unit. he has specified that the combined investment in these not to exceed Rs. the problem is to decide the amount of money to invest in each alternative so as to obtain the highest annual total return. The company gets 3 units of C for each unit of B produced.08 0. Because the product C results from producing B. At least five advertisements should appear in the second medium and the no of advertisement in the third medium should strictly lie between 6 and 10. The production of B also results in a by-product C.00.09 0.The effective audience for unit advertisement in the three media is given below: Medium: 1 2 3 Expected effective audience: 50.

14 A mutual fund has cash resources of Rs.5 8. Debentures are to be repaid on face value.01 0.20. considering the following policy guidelines: Investment type Bank Deposits Treasury notes Corporate Deposits Blue-chip Stocks Speculative Stocks Real Estate Annual Yield (%) 9.08 0.25 0. to be paid annually while the cost of equity is estimated as 20%.0 15.’000) A B C (100) (50) (60) (10) (70) (40) Year 0 1 2 D (40) (60) 50 E (120) 100 F (30) (10) 20 .40 Time period (years) 6 4 3 5 3 10 All the funds available may be invested Weighted average period of at least 5 years as planning horizon. also the amount of term-loan must be at least 50% of the debenture amount. PROBLEM.5 35. Weighted average risk factor not to exceed 0.5 12. their estimated annual yields. interest rate is payable half yearly and annualized cost of issue of debenture is ½ %. FORMULATE a suitable LP model to find the optimal portfolio that will maximize returns. PROBLEM.02 0.45 0.0 32. Investment in real estate and speculative stocks to be not more than 25 % of the money invested in total. risk factors and term period details.0 Risk factors 0. 15 % debentures and term-loans. Table below shows the opportunities available. Interest on term-loan is 18% p. FORMULATE a suitable LP model so as to minimize average cost of capital of the company.PROBLEM :13 A public limited company is planning its capital structure that will consist of equity capital. 200 million for investment in diversified portfolio. It is decided not to have outsiders funds not more than 2 times of equity fund.15 A company has the following independent projects available: Project cash flows (Rs.a.

35. ) 1. ) 60 50 25 Profit per tonne ( Rs.20. 1. EXPRESS the above problem in LP format.500 Volume (in cubic Ft. Commodity A B C Weight (tons) 6.00.000 Year 2 Nil Year 3 Nil Cash generated from these investments can be re-invested in other projects in the same year. PROBLEM :16 A ship has three cargo loads--. after and center.000 2.000 Forward Center After The following cargos are offered.000 Volume (in cubic Ft.000 1. PROBLEM :17 The PQR stone company sells stones secure from any of the three adjacent quarries.00.‘000) 10 5 New capital for these projects is limited to : Year 0 Rs. The shipowner may accept all or any part of each commodity. assuming the objective of the company is to maximize NPV and the projects are divisible. The cargo is to be distributed so as to maximize the profit.3 70 10 (80) 10 (10) Cash flows extend beyond year 3 but all are cash inflows for each project NPV 20 15 10 30 10 (Rs. 2.000 Year 1 Rs.) 150 200 125 In order to preserve the trim of the ship. The capacity limits are : Weight (tons) 2. FORMULATE the problem as LP model.000 1.Forward. the weight in each load must be proportional to the capacity in tones. The stone sold by the company must conform to the following specifications: Material X equal to 30% .000 4.000 30.000 3.

= 6 x1 + 8 x2 Subject to Constraints : 2 x1 + 3 x2 < 16 4 x1 + 2 x2 < 16 PROBLEM 20 Use simplex method to solve the following LP Problem Max Z = 4 x1 + 5x2+8x3 Subject to : X1 + X2 + X3 + < 100 3 x1 + 2x2 + 4x3 < 500 x1. x3. x2.Z = 6x1 + 8x2 Subject to : 30x1 + 20x2 <300 5x1 + 10x2 < 110 x1 + x2 >0 PROBLEM 19 Use simplex method to solve the following L P problem : Max.Z. 120 per tonne and has the following properties: Material X – 40% Material Y – 30% Material Z – 30% Stone from quarry C costs Rs. 150 per tonne and has the following properties: Material X – 10% Material Y – 40% Material Z – 50% From what quarries should PQR stone company secure rocks in order to minimize cost per tonne of rocks? PROBLEM 18 Use Simplex Method to solve the following L.Material Y equal to or less than 40% Material Z between 30% and 40% Stone from quarry A costs Rs.P. Problem Max. >0 . 100 per tonne and has the following properties: Material X – 20% Material Y – 60% Material Z – 20% Stone from quarry B costs Rs.

000 (!!!) at least advertising unit be brought on prime day and two units on prime time.8. The owner wishes to reach families with income both over and under Rs.50000. magazine .it is further require that (!) at least 2 million exposures take place among women . radio .00.000 for advertising in the coming month.000 exposure to families with income under than 50000 . Prime TV prime Radio magazi day time ne Cost of an advertising unit 40000 75000 30000 15000 No of potential customers reached 400000 900000 500000 200000 per unit No of woman customers reached 300000 400000 200000 100000 per unit The co. Results of market study are as given below T. The purpose of advertising is to reach as many potential customers as possible . which will appear 4 times during the coming month. The amount of exposure to families of each type and the cost of the each of the media is shown below Media Cost of Exposure to families with annual Exposure to families advertisement income over 50000 with annual income under50000 Television 40000 200000 300000 Radio 20000 500000 700000 News 15000 300000 150000 paper Magazine 5000 100000 100000 To have balanced campaign.00. 5. wishes to plan an advertising campaign in three different media television . He is considering 4 types of advertising (!) 30 seconds television commercial (!!) 30 seconds radio commercials (!!!) half page advertisement in news paper (!V) full page advertisement in a weekly magazine. (!V) the no.000 exposure to families with income over than 50000 (!!!) there must be 45. the owner has determined the following restrictions (!) no more than 4 TV Ads. (!!) no more than 60% of all advertisement in news paper and magazine.Case 1 Advertising media mix An advertising co.V.00.00.000 on advertising. of advertising units on radio and magazine should each be between 5 and 10.00. (!!) advertising on television be limited to Rs. Formulate this problem as a lp model to maximise customer reach Case 2 Advertising media mix A businessman opening a new restaurant and has budgeted Rs 8. (!!!) there must be 30. does not want to spend more than Rs.

50 Product p Rs 240. These agencies have decided that their target customer should have following characteristics with importance as given below Characteristics Weightage Age 25-40 yr.00 20.000 formulate this problem as a IP model for the agency to maximise the total no of effective exposure. No. 20 Annual income Above 60000 30 Female Married 50 The agency has made a careful analysis of three media and has compiled the following data Data item Woman’s magazine Radio Television Age 25-40 yr.50 10. Agency is preparing an adv. Case 4 For XYZ Ltd the following data are relevant to its products L and P: Per unit Selling Price Costs: Direct materials Direct wages: Department 1 2 3 Variable overhead Product L Rs 200. 20 10 10 Allowed Audience size(1000) 750 1000 1500 The budget for launching the Adv. 80 % 70 % 60 % Annual income 60 % 50 % 45 % above 60000 Females / married 40 % 35 % 25 % Min.50 .formulate the LP model to determine the no of each type of advertisement to pursue so as to maximise the total no of exposure Case 3 Advertising agency Campaign An adv.50 30 11.00 50.00 13. No. of adv.00 6. Campaign for a group of agencies. Of Adv. 10 5 5 Allowed Cost per 9500 25000 100000 advertisement Max.00 45.00 22. Campaign is RS 10.00.00 16.

50 1. Raw materials is available in abundance at Rs.10 1. Given the following information. Relevant data for each department are: Number of Hours per employees employee per week Department: 1 20 40 2 15 40 3 18 40 Formulate as LP to maximize contribution Case 5 Wage rate per hour (Rs) 2.00 30.00 48. 2.40 per hour as variable overheads.00 0. 5. The selling commission is 10 percent of the product price. Production facilities can produce all the products. Orange cream (OC). in above situation.00 36.00 Labour hours required per unit 1.00 44. 6 per Kg. Formulate LPP to decide about the overtime working.50 a) A firm produces 5 different products from a single raw material.Fixed overhead is budgeted at Rs 275000 per annum. 3500 hours of overtime working is possible.60 per hour as fixed overheads and Rs. It will result in additional fixed overheads of Rs 20000 a doubling of labour rates and a 50 percent increase in variable overheads. 8 per hour.00 2.80 1. The plant capacity is 21000 labour hours for the budget period.25 2. Chocolate cream (CC) and Wafers (W). The factory overhead rate is Rs.The labour rate is Rs. Product Market demands(uni ts) 4000 3600 4500 6000 5000 Selling price per units(Rs) 32.40 Raw material required per unit (in gms) 700 500 1500 1300 1500 A B C D E B) Assume. formulate LPP to maximize the Company’s profits. Case 6 A manufacturer of biscuits is considering four types of gift packs containing three types of biscuits. 8 per hour for all products. comprising Rs. A market research study conducted recently to assess the preference of the consumers shows the following types of assortments to be in good demand : .

the manufacturing capacity and costs are given below : Type of biscuit Plant capacity (kg/day) Manufacturing cost (Rs/kg) OC CC W 200 200 150 8 9 7 Formulate this problem as an LP model to find the production schedule which maximizes the profit.Assortments A Contents Not less than 40% of OC Not more than 20% of CC Selling price per Kg (Rs) 20 B Not less than 20% of OC Not more than 40% of CC Any quantity of W 25 C Not less than 50% of OC Not more than 10% of CC Any quantity of W 22 D No restrictions 12 For the basics. . assuming that there are no market restrictions.