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Worksheet

1. Sony, a television company, has three major departments for the manufacture of its two

models, A and B. The monthly capacities are given as follows:

Model A Model B Hours Available this

Month

Department I 4.0 2.0 1,600

Department II 2.5 1.0 1,200

Department III 4.5 1.5 1,600

The marginal profit per unit from model A is Birr 400 and that of model B is Birr 100.

Assuming that the company can sell any quantity of either product due to favorable market

conditions, determine the optimum output for both the models, the highest possible profit for

this month and the slack time in the three departments

Required

a) Formulate the problem as LPM

b) Solve the LPM using graphical method.

2. JOY leather, a manufacturer of leather Products, makes three types of belts A, B and C

which is processed on three machines M1, M2 and M3. Belt A requires 2 hours on machine

(M1) and 3 hours on machine (M 2) and 2 hours on machine (M 3). Belt B requires 3 hours on

machine (M1), 2 hours on machine (M2) and 2 hour on machine (M 3) and Belt C requires 5

hours on machine (M2) and 4 hours on machine (M3). There are 8 hours of time per day

available on machine M1, 10 hours of time per day available on machine M2 and 15 hours

of time per day available on machine M3. The profit gained from belt A is birr 3.00 per unit,

from Belt B is birr 5.00 per unit, from belt C is birr 4.00 per unit. What should be the daily

production of each type of belt so that the profit is maximum?

a) Formulate the problem as LPM

b) Solve the LPM using simplex algorithm.

c) Determine the range of feasibility, optimality and insignificance

d) Interpret the shadow prices

3. A manufacturing firm has discontinued production of a certain unprofitable product line.

This has created considerable excess production capacity. Management is considering to

devote this excess capacity to one or more of three products: product 1, 2 and 3. The

available capacity on the machines which might limit output is summarized in the

following table:

Machine Type Available Time

(in Machine- hours per Week)

Milling Machine 250

Lather 150

Grinder 50

The number of machine-hour required for each unit of the respective product is as follows

Product 1 Product 2 Product 3

Milling Machine 8 2 3

Lathe 4 3 0

Grinder 2 - 1

The profit per unit would be Birr 20, Birr 6, and Birr 8 respectively for product 1, 2 and 3. Find

how much of each product the firm should produce in order to maximize profit.

a) Formulate the problem as LPM

b) Solve the LPM using simplex algorithm.

c) Determine the range of feasibility, optimality and insignificance

d) Interpret the shadow prices

4. Determine an initial basic feasible solution to the following transportation problem by

using (a) the least cost method, and (b) Vogel’s approximation method. Based the initial

basic feasible solution that is relatively small conduct a modified distribution method to

determine the optimum solution to the problem.

D1 D2 D3 D4

S1 1 2 1 4 30

S2 3 3 2 1 50

S3 4 2 5 9 20

Demand 20 40 30 10

using (a) NWCM, (b) LCM. And (c) VAM. (b) Based the NWCM solution, carryout a

stepping stone method of post optimality analysis to arrive at the optimum solution.

Source D1 D2 D3 D4 Supply

A 11 13 17 14 250

B 16 18 14 10 300

C 21 24 13 10 400

Demand 200 225 275 200

(a) Optimal job assignment, and

(b) The cost of assignments.

Job

Machinist 1 2 3 4 5

A 10 3 3 2 8

B 9 7 8 2 7

C 7 5 6 2 4

D 3 5 8 2 4

E 9 10 9 6 10

7. A solicitor’s firm employs typists on hourly piece-rate basis for their daily work. There are

five typists and their charges and speed are different. According to an earlier understanding,

only one job is given to one typist and the typist is paid for a full hour even when s/he

works for a fraction of an hour. Find the least cost allocation for the following data:

A 5 12 P 199

B 6 14 Q 175

C 3 8 R 145

D 4 10 S 298

E 4 11 T 178

Assume that the typist is to be paid @ birr 5 per hour, the elements of the cost matrix are

7

obtained as follows. To illustrate, if typist A is given job P, he would require 199/12 =16

12

hours and, hence, be paid for 17 hours. This results in a cost of Birr 85(17 X 5) for this

combination.

8. A farmer is attempting to decide which of three crops he should plant on his 100 acre farm.

The profit from each crop is strongly dependent on the rainfall during the growing season.

He has categorized the amount of the rainfall as substantial, moderate or light. He estimates

his profit for each crop as shown in the table below:

Crop A Crop B Crop C

Substantial 7,000 2,500 4,000

Moderate 3,500 3,500 4,000

Light 1,000 4,000 3,000

Based on the weather in previous seasons and the current projection for the coming season, he

estimates the probability of substantial rainfall as 0.2, that of moderate rainfall as 0.3 and that of

light rainfall as 0.5.

rainfall prospects as shown in the table.

Crop B Crop C

Substantial 0.70 0.25 0.05

Moderate 0.30 0.60 0.10

Light 0.10 0.20 0.70

(a) From the available data, determine the optimal decision as to which crop to plant under

condition of uncertainty

(b) From the available data, determine the optimal decision as to which crop to plant under

condition of risk EMV and EOL

(a) Optimal job assignment, and

(b) The cost of assignments.

Job

Machinist 1 2 3 4 5

A 10 3 3 2 8

B 9 7 8 2 7

C 7 5 6 2 4

D 3 5 8 2 4

E 9 10 9 6 10

10. Considering data shown below, find the optimal value of X1 and X2 ( Use simplex

approach)

Subject to:

2x1+4x2 < 12

2x1+ 2x2 = 10

5x1+ 2x2 > 10

x1, x2 > 0

11. Consider the following Transportation problem and answer questions indicated below.

Destination

R S T SS

A 1 2 3 100

Origin

B 4 1 5 110

21

DD 80 120 60 0

260

A. Obtain the basic feasible solution using minimum cell cost method

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