REGUNAYAN, MARCO PAUL C.

CBET – 01 – 602P

ACTIVITY 3C – Maximization of Profit (Simplex Method)

The Metal Company produces aluminum frying pans and aluminum casserole dishes. Each frying pan
and each casserole dish requires 10 oz. aluminum. The company’s daily aluminum supply is limited to 140 oz.
Each frying pan and each casserole dish requires 20 minutes and 40 minutes respectively on the casting
machine which is available for 400 minutes a day. Each frying pan requires an insulated handle and only 12 of
this are available each day. Each casserole dish requires 2 special pick-up handles and only 16 of this are
available daily. Each frying pan contributes P150 to profit and each casserole dish contributes P200 to profit.
The man is good and the company can sell all it can produce. Determine the best combination of frying pans
and casserole dishes which the company must produce and sell to maximize profit. What is this profit?

Step 1: Formulate the Linear Program, that is, restate in mathematical form.
Maximize Z = P150 x 1 + P200 x 2
Subject to: 10 x 1 + 10 x 2 < 140
20 x 1 + 40 x 2 < 400
1 x1 + 0 x 2 < 12
0 x 1 + 2 x2 < 16
x 1, x 2 > 0

Step 2: Convert the inequalities to equalities by adding slack variables.

10 x 1 + 10 x 2 + S1= 140
20 x 1 + 40 x 2 + S2= 400
1 x1 + 0 x 2 + S3= 12
0 x 1 + 2 x2 + S4 = 16

Step 3: Modify the objective function and constraints so as to contain all variables including the slack and
artificial variables added in converting them in equality. Enter the equalities in the simplex table.
Z = P150 x 1 + P200 x 2 + P 0 S 1 + P 0 S 2 + P 0 S 3 + P 0 S 4
140 = 10 x 1 + 10 x 2 + S1 + 0 S2 + 0 S3 + 0 S4
400 = 20 x 1 + 40 x 2 + 0 S1 + S2 + 0 S3 + 0 S4
12 = 1 x1 + 0 x 2 + 0 S1 + 0 S2 + S3 + 0 S4
16 = 0 x 1 + 2 x2 + 0 S1 + 0 S2 + 0 S3 + S4

First Solution
Cj P150 P200 P0 P0 P0 P0
PM Qty. X1 X2 S1 S2 S3 S4

P0 S1 140 10 10 1 0 0 0 14
P0 S2 400 20 40 0 1 0 0 10
 P0 S3 12 1 0 0 0 1 0 U
P0 S4 16 0 2 0 0 0 1 8
Zj 0 0 0 0 0 0 0
Cj - Zj 150 200 0 0 0 0
↑
Entering row = that variable having the highest Cj - Zj Value.

Replaced Row = divide the quantity column by their corresponding IE and choose the one with the smallest
positive quotient.
S1 = 140 / 10 = 14
S2 = 400 / 40 = 10
S3 = 12 / 0 = undefined
S4 = 16 / 2 = 8

Replacing Row ( X 2 ) = Divide each and every element of the replaced row by its IE.
16 / 2 = 8, 0 / 2 = 0, 2 / 2 = 1, 0 / 2 = 0, 0 / 2 = 0, 0 / 2 = 0, 1 / 2 = 0.5

Remaining Rows
S1 Row S2 Row S3 Row

140 – 10 (8) = 60 400 – 40 (8) = 80 12 – 0 (8) = 12

10 – 10 (0) = 10 20 – 40 (0) = 20 1 – 0 (0) = 1
10 – 10 (1) = 0 40 – 40 (1) = 0 0 – 0 (1) = 0
1 – 10 (0) = 1 0 – 40 (0) = 0 0 – 0 (0) = 0
0 – 10 (0) = 0 1 – 40 (0) = 1 0 – 40 (0) = 0
0 – 10 (0) = 0 0 – 40 (0) = 0 1 – 0 (0) = 1
0 – 10 (0.5) = -5 0 – 40 (0.5) = -20 0 – 0 (0.5) = 0

Second Solution
Cj P150 P200 P0 P0 P0 P0
PM Qty. X1 X2 S1 S2 S3 S4

P0 S1 60 10 0 1 0 0 -5 6
P0 S2 80 20 0 0 1 0 -20 4
P0 S3 12 1 0 0 0 1 0 12
P200 X2 8 0 1 0 0 0 0.5 U
Zj 1,600 0 200 0 0 0 100
 Cj - Zj 150 0 0 0 0 -100
↑
Entering row = that variable having the highest Cj - Zj Value.

Replaced Row = divide the quantity column by their corresponding IE and choose the one with the smallest
positive quotient.
S1 = 60 / 10 = 6
S2 = 80 / 20 = 4
S3 = 12 / 1 = 12
X 2 = 8 / 0 = undefined

Replacing Row ( X 1 ) = Divide each and every element of the replaced row by its IE.
80 / 20 = 4, 20 / 20 = 1, 0 / 20 = 0, 0 / 20 = 0, 1 / 20 = 0.05, 0 / 20 = 0, -20 / 20 = -1

Remaining Rows
S1 Row S3 Row

60 – 10 (4) = 20 12 – 1 (4) = 8
10 – 10 (1) = 0 1 – 1 (1) = 0
0 – 10 (0) = 0 0 – 1 (0) = 0
1 – 10 (0) = 1 0 – 1 (0) = 0
0 – 10 (0.05) = -0.5 0 – 1 (0.05) = -0.05
0 – 10 (0) = 0 1 – 1 (0) = 1
-5 – 10 (-1) = 5 0 – 1 (-1) = 1

Third Solution
Cj P150 P200 P0 P0 P0 P0
PM Qty. X1 X2 S1 S2 S3 S4

P0 S1 20 0 0 1 -0.5 0 5 4
P0 S3 8 0 0 0 -0.05 1 1 8
P150 X1 4 1 0 0 0.05 0 -1 -4
P200 X2 8 0 1 0 0 0 0.5 16
Zj 2,200 150 200 0 7.5 0 -50
Cj - Zj 0 0 0 -7.5 0 50
↑
Entering row = that variable having the highest Cj - Zj Value.
Replaced Row = divide the quantity column by their corresponding IE and choose the one with the smallest
positive quotient.
S1 = 20 / 5 = 4
S3 = 8 / 1 = 8
X 1 = 4 / -1 = -4
X 2 = 8 / 0.5 = 16

Replacing Row ( S4 ) = Divide each and every element of the replaced row by its IE.
20 / 5 = 4, 0 / 5 = 0, 0 / 5 = 0, 1 / 5 = 0.2, -0.5 / 5 = -0.1, 0 / 5 = 0, 5/5=1

Remaining Rows
S3 Row X 1 Row X 2 Row

8 – 1 (4) = 4 4 - -1 (4) = 8 8 - 0.5 (4) = 6

0 – 1 (0) = 0 1 - -1 (0) = 1 0 - 0.5 (0) = 0
0 – 1 (0) = 0 0 - -1 (0) = 0 1 - 0.5 (0) = 1
0 – 1 (0.2) = -0.2 0 - -1 (0.2) = 0.2 0 - 0.5 (0.2) = -0.1
-0.05 – 1 (-0.1) = 0.05 0.05 - -1 (-0.1) = -0.05 0 - 0.5 (-0.1) = 0.05
0 – 1 (0) = 0 0 - -1 (0) = 0 0 - 0.5 (0) = 0
1 – 1 (1) = 0 -1 - -1 (1) = 0 0.5 - 0.5 (1) = 0

Fourth Solution
Cj P150 P200 P0 P0 P0 P0
PM Qty. X1 X2 S1 S2 S3 S4

P0 S3 4 0 0 -0.2 0.05 0 0
P150 X1 8 1 0 0.2 -0.05 0 0
P200 X2 6 0 1 -0.1 0.05 0 0
P0 S4 4 0 0 0.2 -0.1 0 1
Zj 2,400 150 200 10 2.5 0 0
Cj - Zj 0 0 0 -2.5 0 0

If there is no positive Cj – Zj values, the optimum solution has been obtained.

Optimum Solution:
Produce and sell: Frying pans ( X 1 ) = 8 units
Casserole dishes ( X 2 ) = 6 units
Max. Profit: P150 x 1 + P200 x 2
P150(8) + P200(6)
P1,200 + P1,200
P2,400