1.

Consider the following LP:

Min P=6 x2 y7 z
subject to:
z2
x 10
3 x+2 z 20
2 x + y 14
x, y ,z 0
Set up the initial simplex table for solving the LP. Clearly identify the
basic, non-basic, slack, artificial, and surplus variables. (There is no
need to actually solve the simplex, just set up the table). Also
identify the entering and leaving basic variables.
We can convert the LP to the following equations:
MaxP=6 x +2 y+ 7 zMbMf

za+ b=2
x+ c=10
3 x+2 z +d=20
2 x + y e+ f =14
Slack variables: c,d
Artificial variables: b,f
Surplus variables: a,e
Starting basic variables: b,c,d,f
Starting non-basic variables: x,y,z,a,e
Starting Simplex table:
Basic P x y z a b c d e f RHS
-1 6 -2 -7 0 M 0 0 0 M 0
b 0 0 0 1 -1 1 0 0 0 0 2
c 0 1 0 0 0 0 1 0 0 0 10
d 0 3 0 2 0 0 0 1 0 0 20
f 0 2 1 0 0 0 0 0 -1 1 14

Simplex table after normalization: R 1 R1MR 2 ; R 1 R 1MR 5

Basic P x y z a b c d e f RHS
-1 6-2M -2-M -7-M M 0 0 0 M 0 -16M
b 0 0 0 1 -1 1 0 0 0 0 2
c 0 1 0 0 0 0 1 0 0 0 10
 d 0 3 0 2 0 0 0 1 0 0 20
f 0 2 1 0 0 0 0 0 -1 1 14

Entering BV: x (coefficient 6-2M)

Leaving BV: d (ratio 20:3)
2. The following is a transportation table showing demand in four markets
and supply from three factories, as well as the transport cost per unit
from each factory to each market.

Factory| 1 2 3 4 Supply:
Market
A (4) (3) (5) (7) 400
B (3) (6) (5) (3) 300
C (8) (6) (3) (4) 400
Demand: 200 100 300 200

(a) Calculate the transport assignments and minimum transport cost

for fulfilling the demand using excel.
The above transportation problem can be expressed as an LP with
the following equations:

( )
4 3 5 7
c ij = 3 6 5 3 ; S i={ 400,300,400 } ; D j ={200,100,300,200 }
8 6 3 4
3 4
Min Z= cij x ij
i=1 j=1

subject
4

x ij S i , for i=1,2,3 ;
j=1

x ij=D j , for j=1,2,3,4 ;

i=1

x ij 0 for all i , j ;
Solving the above LP in excel sheet QTM-2 Quiz 1, we get the
following value for x:

( )
100 100 0 0
x= 100 0 0 200
0 0 300 0
 3 4
The cost of trasportation Z= c ij x ij=2500
i =1 j=1

(b)How does the solution change if the demand for Market 2 goes from
100 to 150?
Changing the market 2 demand to 150, the new value of x:

( )
100 150 0 0
x= 100 0 0 200
0 0 300 0

The cos t of trasportation Z=2650

3. A corporation has three production lines. Each production line uses a
certain amount of labor l (in rupees) and a certain amount of raw
materials r (in rupees). The earnings for each production line are as
follows:
Line 1: 2l 1 +3 r 130
Line 2: 5 l 2+10 r 280

Line 3: 6 l 3+ 7 r 240

The total amount of labor ( l 1+l 2 +l 3 ) cannot exceed a budget of 300,

and the total amount of raw materials ( r 1 +r 2 +r 3 ) has a budget of 400.

Also, for any production line, the labor and raw materials each must
have a minimum value of 30. Finally, for any production line, the gap
between raw materials and labor (r il i ) cannot exceed 40.
The objective is to maximize total earnings, the sum of all three
production lines.
(a) Write the equations to express above information as an LP problem.
(b)Solve it using Solver and right down the labor and raw material of
each line.
(c) For the constraint (l 1+ l2 +l 3 ) 300 , what is the shadow price?

LP problem:
Max P=2l 1 +3 r 1 +5 l 2+10 r 2 +6 l 3 +7 r 2150

subject to:
l i , r i 30, i=1,2,3 ;
 l 1+l 2 +l 3 300 ;

r 1 +r 2 +r 3 400;

r il i 40,i=1,2,3 ;

Solving the LP in excel, using Solver. Solver uses the Simplex LP method. We
also choose to generate a sensitivity report.
Maximum earnings: 4730
l 1=30 ; l 2=240 ; l 3=30 ; r 1=50 ; r 2=280 ; r 3 =70

From the sensitivity report, the constraint (l 1+ l2 +l 3 ) 300 has a shadow price
of 12.