#1 Use the simple method to find the values of x1, x2 and x3 which maximize the function

Z = 3x1 + 5x2 + 4x3

Subject to
2x1 + 3x2  8
3x1 + 2x2 + 4x3  15
2x2 + 5x3  10
where x1, x2, x3  0

Ans: Z = , x1 = , x2 = , x3 = , S1 = 0, S2 = 0, S3 = 0
#2 A ompy
e mk hr ee pr oducts , A, B and C, each of which is pr oduced fr om thr
ee main elements, E 1,
E2 and E3. The pr odrr e pkedR R100 kgs. The contr ibution fora bag of A is Rs. 30, fora bag of b Rs. 50 and fora bag C
R. e 0. h prod olizes the numberof kg. of each elements shown.
Product Element
E1 E2 E3
A 2 0 3
B 3 2 2
C 0 5 4

There are following limits on the amounts of the elements available.

E1 800 kgs.
E2 1,000 kgs.
E3 1,500 kgs.
How will you determine how much of each product should be produced to maximize contribution?
Ans:
Maximum contribution (Z) =
X1 = ; X 2 =
X 3 = S1 = S 2 = S 3 = 0
#3 A manufacturing company manufactures two different products. The demand for both the products is strong
enough so that the firm can sell as many units of either product, or of both, as it can produce and at such a price as to
realize a per unit profit contribution of Rs. 16 on product A and Rs. 10 on product B. Unfortunately, the production
capacity of the company's plant is severely limited. This limitation stems from the fact that the manufacture of the
products involves the utilization of three scarce resource: raw material, labour and machine time. Each unit of product A
requires four units of raw material, three units of labour and two units of machine time. Each of product B requires two
units of raw material, three units of labour and five units of machine time. The firm has a daily supply of 24 units of raw
material, 21 units of labour and 30 units of machine time.
Formulate a linear programming model and determine how much of each product should be manufactured to maximize
total profit contribution by using simplex method.
Ans
 Z = Rs. 100, X1 = 5, X2 = 2, S3 = 10

Minimization Case
Solve the given LPP by simplex method
Min. C = 9x1 + 12x2 + 15x3
Subject to 2x1 + 2x2 + x3  10
2x1+ 3x2 + x3  12
x1+ x2 + 5x3  14
where, x1, x2, x3  0
Ans: C = 72; x1 = 2, x2 = 2, x3 = 2, S1 = S2 = S3 = 0, A1 = A2 = A3 = 0

#4 Solve the following problem by the simplex method.

Min. C = 4X1 + 5X2
Subject to
2X1 + 3X2 = 12
X1 + 2X2 = 6
and X1, X2 > 0
324 Production and Operations Management
Ans
 Cost (C) = 24
X1 = 6, X2 = 0

1. Solve the following linear programming using simplex method.

(i) Maximize Z = 3X1 + 4X2 (ii) Maximize Z = 3X1 + 4X2 + 5X3
Subject to Subject to
X1 + X2 < 20 2X1 + 3X2 + 4X3 < 90
2X1 + 3X2 < 50 X2 + X3 < 40
and X1, X2 > 0 and X1, X2, X3 > 0
(iii) Maximize Z = A + 2B + 3C (iv) Maximize Z = 10X1 + 15X2 + 20X3
Subject to Subject to
3A + 4B + 5C < 60 0 < X1 < 20
10A + 15B + 17C < 420 X2 + X3 < 30
A + 2B + 5C < 80 0 < X2 < 15
and A, B, C > 0 0 < X3 < 10
(v) Maximize Z = 2X1 + 3X2 (vi) Maximize Z = 3X1 + 4X2 + 5X3
Subject to Subject to
X1 + 2X2 > 50 6X1 + 7X2 + 3X3 < 600
10X1 + 20X2 < 175 10X1 + 15X2 + 20X3 > 500
and X1, X2 > 0 X1 + X2 + X3 > 50
and X1, X2, X3 > 0
(vii) Maximize Z = 3X1 + 4X2 + 5X3 (viii) Maximize Z = 5X1 + 6X2 + 7X3
Subject to Subject to
X1 + X2 + X3 = 50 X1 + X2 + X3 = 30
10X1 + 15X2 + 20X3 > 500 7X1 + 8X2 + 9X3 = 240
6X1 + 7X2 + 3 × 3 < 600 and X1, X2, X3 > 0
and X1, X2, X3 > 0
(ix) Maximize Z = 6X1 + 18X2 + 20X3 (x) Maximize Z = 6X1 + 5X2
Subject to Subject to
X1 + X2 + X3 = 60 3X1 + 4X2 < 120
10X1 + 15X2 + 20X3 = 900 2X1 + X2 < 40
2X1 + 3X2 + 3X3 < 100 X1 > 10
and X1, X2, X3 > 0 X1 + X2 = 30
and X1, X2 > 0
(xi) Maximize: Z = x1 – x2 + 3x3 (xii) Maximize: Z = 3x1 + 2x2 + 5x3
Subject to x1 + x2 + x3  10 Subject to the constraints,
2x1 –x3  2 x1 + x2 + x3  9
2x1 –2x2 + 3x3  6 2x1 + 3x2 + 5x3  30
and x1, x2, x3  0 [TU 2042 MBA] 2x1  x2  x3  8
(xiii) Maximize Z = 2x1 + 4x2 + 3x3 and x1, x2, x3  0 [TU 2065]
Subject to the constraints,
3x1 + 4x2 + 2x3  60
2x1 + x2 + 2x3  40
x1 + 3x2 + 2x3  80
All variables  0 [TU 2066]
2. The Nepal Electric Corporation manufacturers two electrical products: washing machine and large fans. The
assembly process for each is similar in that both require a certain amount of wiring and drilling. Each
washing machine takes 3 hours of wiring and 2 hours of drilling. Each fan must go through 2 hours of
wiring and 1 hour of drilling. During the next production period, 240 hours of wiring time are available and
up to 140 hours of drilling time may be used. Each washing machine sold yields a profit of Rs. 5250. Each
fan assembled may be sold for a Rs. 2150 profit. Formulate and solve this LP production mix situation to
find the best combination of washing machine and fans that yields the highest profit.
3. The Syakar Company manufacturers two lines of bathtubs, called model A and model B. Every tub requires
blending a certain amount of steel and zinc; the company has available a total of 25,000 pounds of steel and
6,000 pounds of zinc. Each model A bathtub requires a mixture of 125 pounds of steel and 20 pounds of zinc,
and each yields a profit to the firm of Rs. 90. Each model B tub produced can be sold for a profit of Rs. 70; it
in turn requires 100 pounds of steel and 30 pounds of zinc. Find by simplex method the best production mix
of bathtubs.
4. A manufacturer makes two products P 1 and P2 using two machines M1 and M2. Product P1 requires 5 hours
on machine M1 and no time on machine M2, product P2 requires 1 hour on machine M1 and 3 hour on
machine M2. There are 16 hours of time per day available on machine M 1 and 30 hours on M 2. Profit margin
from P1 and P2 is Rs. 2 and Rs. 10 per unit respectively. What should be the daily production mix to
maximize profit?
5. A dealer wishes to purchase a number of fans and electric iron. He has only Rs. 5760 to invest and has space
for at most 20 items. A fan costs him Rs. 360 and a electric iron Rs. 240. His expectation is that he can sell a
fan at a profit of Rs. 22 and electric iron at a profit of Rs. 18. Assuming that he can sell all the items the he
can buy, how should he invest his money in order to maximize his profit?
6. A firm has two grades of cashew nuts: Grade 1-750 kg. and Grade II-1,200 kg. These are to be mixed in two
types of packets of 1 kg. each-economy and special. The economy pack consists of Grade I and Grade II in
the proportion of 1:3, while the special pack combines the two in equal proportion. The contributions of the
economy and the special packs are Rs. 5 and Rs. 8 per pack respectively. Formulate this as a linear
programming problem to maximize contribution and solve it by simplex method.
7. A manufacturing company manufactures two different products. The demand for both the products is
strong enough so that the firm can sell as many units of either product or of both, as it can produce and at
such a price as to realize a per unit profit contribution of Rs. 16 on product A and Rs. 10 on product B.
Unfortunately, the production capacity of the company's plant is several limited. This limitation items from
the fact that the manufacture of the products involves the utilization of three scarce resource: raw material,
labor and machine time. Each unit of product A requires four units of raw materials, three units of labor and
two units of machine time. Each units of product B requires two units of raw materials, three units of labors
and five units of machine time. The firm has a daily supply of 24 units of raw materials, 21 units of labors
and 30 units of machine time.
Formulate a linear programming model and determine how much of each product should be manufactured
to maximize total profit contribution by using simplex method. [TU 2046 MBA]
8. A firm produces three types of clothes P, Q and R with three kinds of wools: red, green and blue. One unit
of length of P needs 2 metres of red wool, and 3 metres of blue wool, one unit length of Q needs 3 metres of
red wool, 2 metres of green wool and 2 metres of blue wool and one unit length of R needs 5 metres of green
wool and 4 metres of blue wool. There are only 8 metres of red wool, 10 metres of green wool and 13 metres
of blue wool. The profit expected from a unit length are: Rs. 3 from P, Rs. 5 from Q and Rs. 4 from R.
Formulate the above problem in a linear programming model and find the optimal solution to it using the
approximate method.
9. A Gear Manufacturing Company, received an order for three special type of gears for regular supply. The
management is considering to devote the available excess capacity to one or more of the three types, say A,
B and C. The available capacity one the machines which might limit output and the numbers of hours
required for each unit of the respective gear is also given below:
Productivity is M/C hrs. /unit
Machine Type Available machine Hrs. /week
Gear A Gear B Gear C
Gear Hobbing Machine 250 8 2 3
Gear Shaping Machine 150 4 3 0
Gear Grinding Machine 50 2 – 1

The unit profit would be Rs. 20, Rs. 6 and Rs. 8 respectively for the Gears A, B and C. Find how much of
each gear the company should produce in order to maximize profit?
326 Production and Operations Management
10. A tape recorder company manufacturers models A, B and C which have profit contribution per unit of Rs.
15, Rs. 40 and Rs. 60 respectively. Each type of recorder requires a certain amount of time for the
manufacturing of component parts, for assembling and for packaging, Specifically, a dozen units of model A
require 4 hours for manufacturing, 3 hours for assembling and 1 hour for packaging. The corresponding
figures for a dozen units of model B are 5, 4 and 2 for a dozen units model C are 6, 9 and 4. During the
forthcoming week, the company has available 130 hours of manufacturing, 170 hours of assembling and 52
hours of packaging time. Formulate this problem of production scheduling as an LP model so as to
maximize profit.
11. A manufacturer produces four products A, B, C and D, each of which is processed on three machines X, Y
and Z. The time required to manufacture one of each of the four products and the capacity of each of the
three machines are indicated in the following table:

Product Processing Time (in hrs.)

Machine X Machine Y Machine Z
A 1.5 4 2
B 2 1 3
C 4 2 1
D 3 1 2
Capacity (hours) 550 700 200
The profit contribution per unit of the four products A, B, C and D is Rs. 4, 6, 3 and 1 respectively. The
manufacturer wants to determine its optimal product-mix:
a. Formulate the above as a linear programming problem.
b. Solve it with the simplex method.
c. Find out the optimal product-mix and the total maximum profit contribution.
d. Which constraints are binding?
12. A printing company makes three grades of wall posters. The better quality posters sells for Rs. 2.50,
intermediate quality for Rs. 2.00 and the poorer quality poster for Rs. 1.50. Paper costs Rs. 0.75 for each of
better quality posters and Rs. 0.50 and Rs. 0.25 for each of intimidates and poorer quality poster respectively.
Because of poor quality paper, however, the less expensive posters requires two minutes of printing time
while other two require 1 minute of printing time only. The department is allocated
Rs. 150 per day for paper. There are 480 minutes of printing time available daily and each minute that is
used to estimate to cost the company Rs. 0.25. In addition, department incurs fixed daily cost of Rs. 125,
which are not affected by the quantity and quality of papers produced. You are asked to suggest as to how
much of each type of posters to produce in order to maximize daily profit?
13. The Agro production bank is trying to select investment portfolio for a cotton farmer. The bank has chosen a
set of three investment alternatives with subjective estimates of rates of return and risk, as follows:
Investment Proportion Amount rate of return Risk
Tax-free municipal bonds X1 6.0 1.3
Corporate bonds X2 8.0 1.5
High grade common stock X3 5.0 1.9
The bank officer in charge of the portfolio would like to maximize the average annual rate of return on the
portfolio. However, the wealthy investor has specified that the average risk of the portfolio should not
exceed 2.0 and does not want more than 20% of the investment to put into high grade common stock.
Formulate L.P. model for the problem and solve by simplex method.
[Hints: Subject to Max. Z = 6X1 + 8X2 + 5X3; 1.3X1 + 1.5X2 + 1.9X3 < 2; X3 < 20; X1 + X2 + X3 < 100; and X1, X2, X3 > 0]

14. ABC Company has three departments: assembly, painting and packaging with the capacity of making three
types of products. A product of type I requires one hour of assembly, 40 minutes of painting and 20 minutes
of packaging time respectively. A product of type II needs 80 min; 20 min; and one hour respectively and the
last type requires 40 minutes each of assembly, painting and packaging time. The total time available at
assembly, painting and packaging departments are 600 hours, 400 hours and 800 hours respectively.
 Determine the numbers of each type of products that should be produced in order to maximize the profits.
The unit profits for types I, II and III are Rs. 40, Rs. 80 and Rs. 60 respectively.
15. Solve the following linear programming using simplex method.
(i) Minimize C = 6x + 8y (ii) Minimize Z = 10X1 + 15X2 + 20X3
Subject to Subject to
4x + 3y  120 X1 + 2X2 + 3X3 > 60
3x + 6y 120 5X1 + 6X2 + 7X3 > 180
where, x, y  0 10X1 + 15X2 + 20X3 > 450
and X1, X2, X3 > 0
(iii) Minimize Z = 3X1 + 4X2 + 5X3 (iv) Minimize Z = X1 + 5X2 + 6X3
Subject to Subject to
X1 + X2 + X3 > 30 X1 + X2 + X3 = 40
10X1 + 15X2 + 20X3 < 600 5X1 + 6X2 + 7X3 = 250
and X1, X2, X3 > 0 and X1, X2, X3 > 0
(v) Minimize C = 3X1 + 4X2 (vi) Minimize Z = X1 + 5X2 + 6X3
Subject to Subject to
4X1 + X2 > 30 X1 < 20
- X1 – X2 < - 18 X2 >40
X1 + 3X2 > 28 X1 + X2 + X3 < 100
X1, X2 > 0 and X1, X2, X3 > 0
(vii) Minimize Cost = 20A + 10B (viii) Minimize Z = X1 + 2X2 + 3X3
Subject to Subject to
A + 2B < 40 X1 + X2 + X3 > 30
4A + 3B > 60 10X1 + 15X2 + 20X3 < 600
3A + B > 30 5X2 + 6X3 < 120
A, B > 0 and X1, X2, X3 > 0
(ix) Minimize Z = X1 + 2X2 + 3X3
Subject to
- X1 + 2X2 + 2X3 = 10
- X1 + 2X2 + 3X3 = 15
and X1, X2, X3 > 0
16. Nepali Television Company operates two assembly lines line 1 and line 2. Each line is used to assemble the
components of three types of television: colour, standard, and economy. The expected daily production on
each line is as follows:
TV model Line 1 Line 2
Colour 3 1
Standard 1 1
Economy 2 6

The daily running for two lines average Rs 6,000 for line 1 and Rs 4,000 for line 2. It is given that the
company must produce at least 24 colour, 16 standard and 48 economy TV sets for which an order is
pending. You are required to formulate the above as LPP taking the objective function as the minimization
of total cost.
17. Vitamins A and B are found in food F 1 and F2. One unit of Food F1 contains 20 units of vitamin A and 30
units of vitamin B. One units of Food F 2 contains 60 units of vitamin A and 40 units of vitamin B. One unit of
each of foods F1 and F2 cost Rs. 3 and Rs. 4 respectively. The minimum daily requirement of vitamins A and
B is 80 units and 100 units respectively. Find out the optimum mixture of Foods F 1 and F2 at the minimum
cost which meets the daily minimum requirements of vitamins A and B.
328 Production and Operations Management
18. An animal feed company must produce 200 kg of a mixture consisting of ingredient x 1 and x2 daily. x1 costs
Rs. 3 per kg and x2 Rs. 8 per kg, Not more than 80 kg of x 1 can be used and at least 60 kg of x 2 must be used.
Find how much of each ingredient should be used if the company wants to minimize costs.
19. The Principal of the Kathmandu College of Business Studies must plan the school's course offerings for the
fall semester. Student demands make it necessary to offer at least 30 undergraduate and 20 graduate courses
in the term. Faculty contracts also dictate that at least 60 courses be offered in total. Each undergraduate
course taught costs the college an average of Rs. 2,500 in faculty wages, and each graduate course costs Rs.
3,000. How many undergraduate and graduate courses should be taught in the fall so that total faculty
salaries are kept to a minimum?
20. The Krishna and Son's Company produces two products: bed mattresses and box springs. A prior contract
requires that the firm produce at least 30 mattresses or box springs, in any combination. In addition, union
labor agreements demand that stitching machines be kept running at least 40 hours per week, which is one
production period. Each box spring takes 2 hours of stitching time, while each mattress takes 1 hour on the
machine. Each mattress produced costs Rs. 20 each box spring costs Rs. 24.
a. Formulate this problem so as to minimize total production costs.
b. Solve using the simplex method.
21. A finished product must weight exactly 150 grams. The two raw materials used in manufacturing the
product are X, with a cost of Rs. 2 per unit and Y with a cost of Rs. 8 per unit. At least 14 units of Y and not
more than 20 units of X must be used. Each unit of X and Y weighs 5 grams and 10 grams respectively.
How much of each type of raw material should be used for each unit of final product in order to minimize
the cost? Use simplex method.
22. A dietician in a teaching hospital is to arrange a special diet using three foods F 1, F2 & F3. Each gm of food F1
contain 20 units of calcium, 10 units of iron, 10 units of vitamin A, and 20 units of cholesterol. Each gm of
food F2 contains 10 units of calcium, 10 units of iron, 20 units of vitamin A and 24 units of cholesterol. Each
gm of F3 contains 10 units of calcium, 10 units of iron, 10 units of vitamin A and 18 units of cholesterol. If the
minimum daily requirements are 300 units of calcium, 200 units of iron, 240 units of vitamin A. How many
grams of each food should be used to meet the minimum requirements at the same time minimizing the
cholesterol intake. What is the minimum cholesterol intake?
23. Ramesh & Son's Company wants to manufacture a mixture containing three contents X, Y and Z. The costs
of X, Y and Z are Rs. 5, Rs. 4 and Rs. 3 respectively. The company prepares the mixture to meet out the
demand of the customers in the following manner. (i) the quantity of X cannot be more than 200 kgs. in the
mixture, (ii) the quantity of Y used should be at least 300 kgs, (iii) the content of Z cannot be more than 400
kgs. Find the optimal combination of the three contents for a mixture of 1,000 kgs. so that the total cost is
minimum.
24. Binod & Bro's Chemicals Ltd. must produce 10,000 kgs. of a special mixture for a customer. The mix consists
of ingredients A, B and C. Costs Rs. 8 per kg., B costs Rs. 10 per kg. and C costs Rs. 11 per kg. No more than
35,000 kgs. of A can be used and at least 1,500 kgs. of B must be used. Also, at least 2,000 kgs. Of C is
required.
Calculate the number of kgs. For each ingredient to use in order to minimize total costs for 10,000 kgs.