Date: 26th August 2020 Day: 30 Session: 15

LPP solution using Simplex for 3 variables

Example 2:
(Refer QT by N D Vora Example 3.2)

• A firm produces three products A, B and C, each of which passes through three departments:
Fabrication, Finishing and Packaging. Each unit of product A requires 3, 4 and 2; a unit of
product B requires 5, 4 and 4, while each unit of product C requires 2, 4 and 5 hours
respectively in the three departments. Everyday, 60 hours are available in the fabrication
department, 72 hours in the finishing department and 100 hours in the packaging
department. The unit contribution of product A is Rs. 5, of product B is Rs. 10 and of product
C is Rs. 8.

• Required:

a) Formulate the problem as an LPP and determine the number of units of each of the
products, that should be made each day to maximize the total contribution. Also determine
if any capacity would remain unutilized.

b) If the optimal solution obtained does not require the production of some product, explain as
to why such product would not be produced. In this context, indicate the quantity
(quantities) of other products that would be foregone for producing such a product.

c) What would be the effect on the solution of each of the following:

1) Obtaining an order for 6 units of product A, which has to be met.

2) An increase of 20 per cent capacity in the fabrication department

Solution:

Formulated LPP

Max Z = 5x + 10y + 8z

Subject to

3x + 5y + 2z ≤ 60 (1) Fabrication department

4x + 4y + 4z ≤ 72 (2) Finishing department

2x + 4y + 5z ≤ 100 (3) Packaging department

X, y, z ≥ 0

Solve it using Simplex method

Step1: RHS should be +ve

Step2: Write the standard form of LPP

Max Z = 5x + 10y + 8z + 0S1 + 0S2 + 0S3

3x + 5y + 2z + S1 = 60

4x + 4y + 4z +S2 = 72
 2x + 4y + 5z + S3 = 100

X, y, z, S1, S2, S3 ≥ 0

Step 3: Get the IBFS

Put x = 0, y = 0 and z=0

S1 = 60

S2 = 72

S3 = 100

Z=0

Step 4: Construct initial simples table

Cj 5 10 8 0 0 0
CSV Cb X Y Z S1 S2 S3 bj Ө=bj/key
col el
S1 0 3 5 2 1 0 0 60 60/5 = 12
S2 0 4 4 4 0 1 0 72 72/4 =18
S3 0 2 4 5 0 0 1 100 100/4=25
Zj 0 0 0 0 0 0 Z=0
Δj=cj- 5 10 8 0 0 0
Zj

Step 5: Perform optimality test

Since 3 Δj>0, it is non-optimum

Choose most positive Δj as incoming variable and minimum positive ratio is outgoing
variable as marked above in the table

5 is the key element

Go to step 6 for the improvement in the solution n

Step 6: Improvement in the solution

(a) Convert key element unity

X Y Z S1 S2 S3 bj
3 5 2 1 0 0 60
4 4 4 0 1 0 72
2 4 5 0 0 1 100
R1->r1/5

X Y Z S1 S2 S3 bj
3/5 1 2/5 1/5 0 0 12
4 4 4 0 1 0 72
2 4 5 0 0 1 100
R2->r2-4r1 R3->r3-4r1

X Y Z S1 S2 S3 bj
3/5 1 2/5 1/5 0 0 12
8/5 0 12/5 -4/5 1 0 24
-2/5 0 17/5 -4/5 0 1 52
Step 7: Construct second simplex table

Cj 5 10 8 0 0 0
CSV Cb X Y Z S1 S2 S3 bj Ө=bj/key col el
y 10 3/5 1 2/5 1/5 0 0 12 12*5/2=30
S2 0 8/5 0 12/5 -4/5 1 0 24 24*5/12=10
S3 0 -2/5 0 17/5 -4/5 0 1 52 52*5/17=260/17
Zj 6 10 4 2 0 0 Z = 120
Δj=cj-Zj -1 0 4 -2 0 0

Since there is one Δj >0 the solution is non-optimum, move to step 8 for further improvement in the
solution

Step 8

Choose the incoming variable corresponding to most +ve Δj our case it is Z

X Y Z S1 S2 S3 bj
3/5 1 2/5 1/5 0 0 12
8/5 0 12/5 -4/5 1 0 24
-2/5 0 17/5 -4/5 0 1 52

Convert the key element unity R2 - >5/12*R2

X Y Z S1 S2 S3 bj
3/5 1 2/5 1/5 0 0 12
2/3 0 1 -1/3 5/12 0 10
-2/5 0 17/5 -4/5 0 1 52
R1 - > R1 – 2/5 R2

X Y Z S1 S2 S3 bj
1/3 1 0 1/3 -1/6 0 8
2/3 0 1 -1/3 5/12 0 10
-2/5 0 17/5 -4/5 0 1 52
R3 - > R3 – 17/5 R2

X Y Z S1 S2 S3 bj
1/3 1 0 1/3 -1/6 0 8
2/3 0 1 -1/3 5/12 0 10
-8/3 0 0 1/3 -17/12 1 18
 Step 9: Construct third simplex table

Cj 5 10 8 0 0 0
CSV Cb X Y Z S1 S2 S3 bj
y 10 1/3 1 0 1/3 -1/6 0 8
Z 8 2/3 0 1 -1/3 5/12 0 10
S3 0 -8/3 0 0 1/3 -17/12 1 18
Zj 26/3 10 8 2/3 5/3 0 Z = 80+80+0
= 160
Δj=cj-Zj -11/3 0 0 -2/3 -5/3 0

Since all Δj ≤0 the solution is optimum.

X = 0, y = 8, z = 10 S1 = 0, S2 = 0, S3 = 18

Put all these values in the objective function Objective function Z = 5x + 10y+8z

we get Z = 5(0+ + 10(8) + 8(10) = 160

Since S1 = 0, S2 = 0 the fabrication and finishing departments are fully utilized hence constraint 1
and 2 are binding constraints

Since S3 = 18 => The packaging department is unutilized for 18 hrs. hence constraint 3 is non-binding
constraint

Date: 27th August 2020 Day: 31 Session: 16

b) If the optimal solution obtained does not require the production of some product,
explain as to why such product would not be produced. In this context, indicate the
quantity (quantities) of other products that would be foregone for producing such a
product.
(b) Solution: Sine x = 0 => product A is not being produced

Ans. (b) : According to optimum solution x1 = 0 , x2 = 8, x3 = 10, the production of product A

is not required to be produced.

Refer the third Simplex tableau (optimal solution), the production of one unit of A requires
giving up 1/3 units of B (x2) and 2/3 units of C (x3). With the unit profit rates as 10 and 8,
respectively, for these, the loss of profit would be 10*1/3 + 8*2/3 = 26/3. Reduction of x2
and x3, together with production of one unit of A, would cause a net release of 8/3 hours in
packaging department.

The total loss of profit necessitated by substitution = 26/3. With a profit contribution of per
unit product being Rs. 5, the net loss per unit equals 11/3, the difference of the two as given
by the Δj value.

c) What would be the effect on the solution of each of the following:

a. Obtaining an order for 6 units of product A, which has to be met.

b. An increase of 20 per cent capacity in the fabrication department

 (c) Solution: What would be the effect on the solution of each of the following:

1. Obtaining an order for 6 units of product A, which has to be met.

Variables bj (original X Change New

values) Value
Y 8 1/3 -(6*1/3) = 6
Z 10 2/3 -(6*2/3) = 6
S3 18 -8/3 -(6*(-8/3) = 34
Z 160 -11/3 -(6*11/3) = 138
If we fulfil the order of A with 6 units then the optimal solution changes as follows

X = 6, y = 6, z = 6 Z = Rs. 138

Since S3 = 34 => The packaging department remains unutilized for 34 hours

2) An increase of 20 per cent capacity in the fabrication department

Increase of 20% capacity of fabrication department means =.2*60 = 12 hrs.

Variables bj (original S1 Change New

values) Value
Y 8 1/3 +(12*1/3) = 12
Z 10 -1/3 +(12*(-1/3)) = 6
S3 18 1/3 +(12*(1/3) = 22
Z 160 2/3 +(12*2/3) = 168
Thus if the capacity of fabrication department is increased by 20% i.e. 12 hours then the output of
the product B raises by 4 units and output of product C decreased by 4 units and release of 4 hours
of packaging department and this would effect of increase in the profit by Rs. 8 i.e. the profit
becomes Rs. 168.