PROBLEM 2:

A manufacturer produces bicycles and motorcycles, each of  which must be

processed through two machine centers.  Machine Center 1 has a maximum of 120
hours availability and  Machine Center 2 has a maximum of 180
hours availability. A  bicycle requires six (6) hours in Machine Center 1 and three (3) 
hours in Machine Center  2. Manufacturing a motorcycle  requires
four (4) hours in Machine Center 1 and 10 hours in  Machine Center 2. If the profit is
P450 for each bicycle and  P2,500 for a motorcycle, determine the number of bicycles
and  the number
of motorcycles to produce to maximize the profit,  considering that the number of motor
cycles must not exceed 12  units and bicycles must be at least 10 units.

ANSWER-SOLUTION TO PROBLEM 2:

Let x = number of bicycles to produce to maximize the profit

Let y = number of motorcycles to produce to maximize the profit

Machine Center 1 Machine Center 2 Profit

Bicycles 6 3 450

Motorcycles 4 10 2500

Objective function :

Maximize P=450x+2500y 

Subject to:

6x+4y<=120                
3x+10y<=180              
x>=10                         
y<=12                          
y>=0                           

Reformulate:

6X+4Y+S1+0S2+OS3+OS4 = 120
3X + 10Y + 0S1 + S2+ OS3 + OS4=180 
X + OS1 +OS2+S3+OS4 = 10
Y + OS1 + OS2 + OS3 + S4 = 12
Initial Table:

Cj P450 P2,500 P0.00 P0.00 P.000 P0.00

Ci PM QNTY X Y S1 S2 S3 S4
0 S1 120 6 4 1 0 0 0
0 S2 180 3 10 0 1 0 0
0 S3 10 1 0 0 0 1 0
0 S4 12 0 1 0 0 0 1
Zj 0 0 0 0 0 0 0

CJ-ZJ 450 2500 0 0 0 0

Pivot Row:
S1 = 120/4 = 30
S2 = 180/10 = 18
S3 = 10/0 = 0
S4= 12/1 = 12

Replace Row
12/1= 12
0/1= 0
1/1= 1
0/1= 0
0/1 = 0
0/1 = 0
1/1 = 1

New set:

New S1 New S2 New S3

120 - (4(12)) = 72 180-(10(12)) = 60 10-(0(12)) = 10
6 - (4(0)) = 2 3-(10(0)) = 3 1-(0(0)) = 1
4 – (4(1)) = 0 10-(10(1) = 0 0-(0(1)) = 0
1 -(4(0)) = 1 0-(10(0) = 0 0-(0(0)) =0
0 - (4(0)) = 0 1-(10(0)) = 1 0-(0(0)) =0
0 - (4(0)) = 0 0-(10(0)) = 0 1-(0(0)) = 1
0 - (4(1)) = -4 0-(10(1)) = -10 0-(0(1)) = 0
Table 2

Cj P450 P2500 P0.00 P0.00 P0.00 P0.00

Ci PM QNTY X Y S1 S2 S3 S4
0 S1 72 2 0 1 0 0 -4
0 S2 60 3 0 0 1 0 0
0 S3 10 1 0 0 0 1 0
2,500 Y 12 0 1 0 0 0 1
Zj 0 30,000 0 2,500 0 0 0 2,500

Cj-Zj 450 0 0 0 0 -2,500

Pivot Row
S1 = 72/2 = 36
S2 = 60/3 = 20
S3 = 10/1 = 10
S4 = 12/0 = 0

Replace Row:
10/1 = 10
1/1 = 1
0/1= 0
0/1 = 0
0/1 = 0
1/1 = 1
0/1 = 0

New set:

New S1 New S2
72 - (2(10)) = 52 60-(3(10)) = 30
2 - (2(1)) = 0 3-(3(1)) = 0
0 -(2(0)) = 0 0-(3(0) = 0
1 -(2(0)) = 1 0-(3(0) = 0
0 - (2(0)) = 0 1-(3(0)) = 1
0 - (2(1)) = -2 0-(3(1)) = -3
-4 - (2(0)) = -4 0-(3(0)) = 0
Table 3:

Cj P450 P2500 P0.00 P0.00 P0.00 P0.00

Ci PM QNTY X Y S1 S2 S3 S4
0 S1 52 0 0 0 1 -2 -4
0 S2 30 0 0 0 1 -3 0
450 X 10 450 0 0 0 450 0
2,500 Y 12 0 1 0 0 0 1
Zj 0 34,500 0 2,500 0 0 0 2,500

Cj-Zj 0 0 0 0 -450 -2,500

Decision:
As there is no positive in Cj-Zj column, no further improvement is possible.
Therefore, the Manufactures should produce 10 bicycle and 12 motorcycle in order to
obtain a maximum profit of 34,500.