Presented by :

Gourav Aggarwal (91134)

Harmanpreet Bhatti (91135)
Huned Ali (91136)
Candy Counter
 The company offering the following:
 Regular mix candy ( equal parts of cashew, raisins, caramels and
chocolates)
 Deluxe mix (equal parts of cashew and chocolates)
 Cashew
 Raisins
 Caramel
 Chocolates

 Storage capacity for ingredients (in pounds):

 Cashew 120
 Raisins 200
 Caramels 100
 Chocolates 160
Profit per box
Item Profit per Box (in $)
Regular 0.80
Deluxe 0.90
Cashew 0.70
Raisins 0.60
Caramels 0.50
Chocolates 0.75
Decision Variables

Item Number of boxes

sold per day
Regular X1
Deluxe X2
Cashew X3
Raisins X4
Caramels X5
Chocolates X6
Objective Function
 Maximize profit:

Z = 0.80X1 + 0.90X2 + 0.70X3 + 0.60X4 + 0.50X5 + 0.75X6

 Constraints:

S.T.

¼ X1 + ½ X2 + X3 <= 120 (Cashew)

¼ X1 + X4 <= 200 (Raisin)

¼ X1 + X5 <=100 (Caramel)

¼ X1 + ½ X2 +X6 <=160 (Chocolate)

X1, X2, X3, X4, X5, X6 >= 0 (non negative constraints)

 X1
¼ ½ 1 0 0 0 1 0 0 0 120
X2
¼ 0 0 1 0 0 0 1 0 0 X3 200

¼ 0 0 0 1 0 0 0 1 0 X4 100

X5 160
¼ ½ 0 0 0 1 0 0 0 1
X6
 Initial Iteration
Cj 0.8 0.9 0.7 0.6 0.5 0.7 0 0 0 0
5
B.V. CB X1 X2 X3 X4 X5 X6 S1 S2 S3 S4 XB X B/
Yij
X3 0.7 ¼ ½ 1 0 0 0 1 0 0 0 120 240

X4 0.6 ¼ 0 0 1 0 0 0 1 0 0 200 --

X5 0.5 ¼ 0 0 0 1 0 0 0 1 0 100 --

X6 0.7 ¼ ½ 0 0 0 1 0 0 0 1 160 320

5
Cj - Zj 0.1 0.17 0 0 0 1 0 0 0 1
625 5
 First Iteration
Cj 0.8 0.9 0.7 0.6 0.5 0.75 0 0 0 0

B.V. CB X1 X2 X3 X4 X5 X6 S1 S2 S3 S4 XB X B/
Yij

X2 0.9 ½ 1 2 0 0 0 2 0 0 0 120 480

X4 0.6 ¼ 0 0 1 0 0 0 1 0 0 20 800
0
X5 0.5 ¼ 0 0 0 1 0 0 0 1 0 100 400

X6 0.75 0 0 -1 0 0 1 -1 0 0 1 40 --

Cj - Zj 0.0 0 - 0 0 0 - -0.6 -0.5 -

75 0.35 1.05 0.75
 Final Iteration
Cj 0. 0.9 0.7 0.6 0.5 0.75 0 0 0 0
8
B.V. CB X1 X2 X3 X4 X5 X6 S1 S2 S3 S4 XB

X2 0.9 0 1 2 0 -2 0 2 0 -1 0 40

X4 0.6 0 0 0 1 -1 0 0 1 -1/2 0 100

X1 0.8 1 0 0 0 4 0 0 0 4 0 400

X6 0.75 0 0 -1 0 0 1 -1 0 0 1 40

Cj - Zj 0 0 - 0 -0.5 0 - -0.6 -2.0 -

0.35 1.05 0.75
Optimal decision variables:
X1 = 400 X4 = 100
X2 = 40 X5 = 0
X3=0 X6 = 40

Maximum Profit ($):

Z= 0.8(400) + 0.9(40) + 0.7(0) + 0.6(100) + 0.5(0) +
0.75(40)
= 446