Answer for multiple choice

1. C 2. E 3. C 4. C 5. B 6. B 7. B 8. D 9. D 10. B 11. A 12. B 13. B

14. D 15. B 16. C 17. B 18. B 19. A 20. A 21. C

Workout part
1. Discuss the properties and assumptions of linear programming problems

Assumptions of linear programming

Assumptions
(i) There are a number of constraints or restrictions- expressible in quantitative terms.
(ii) The prices of input and output both are constant.
(iii) The relationship between objective function and constraints are linear.
(iv) The objective function is to be optimized i.e., profit maximization or cost minimization
Linear programming model problems have several properties and assumptions in common.
The seven basic properties of linear programming are:
(1) One objective function, meaning problems seek to maximize or minimize an objective. (2)
One or more constraints, meaning constraints limit the degree which the objective can be
obtained.
(3) Alternative courses of action, meaning there must be more than one course of action offered
as optional paths.
(4) Objective function and constraints are linear “proportionally and divisibility, meaning that
each variable is equally multiple and divisible in relation to the quantity.
(5) Certainty, meaning the number in the objective and constraints are known with certainty and
do not change during the period being studied.
(6) Divisibility, meaning solutions are divisible and may take any fractional value.
(7) Nonnegative variables, meaning negative values of physical quantities are impossible.
2.  Consider the Following Linear Program

Max 5x1 + 7x2 S.T.

X1 ≤ 6 2
X1 + 3x2 ≤ 19 s
X1 + X2 ≤ 8
X1 X2 ≥ 0
The Graphical Solution To The Problem Is Shown Below. From The Graph, We See That The
Optimal Solution Occurs At X1 = 5, X2 = 3, And Z = 46. Shadow Price Of The Second
Constraint Is:
The answer
Consider the following linear program: Max 5x1 + 7x2 s.t.
X1 ≤ 6
2x1 + 3x2 ≤ 19
X1 + x2 ≤ 8
X1, x2 ≥ 0
The graphical solution to the problem is shown below.
From the graph, we see that the optimal solution occurs at x1 = 5, x2 = 3, and z = 46.

Shadow price of the second constraint  

Consider the following transportation problem

Store 1 Store 2 Store 3 Store 4 Supply

Plant 1 19 30 50 10 7
Plant 2 70 30 40 60 9
Plant 3 40 8 70 20 18
Demand 5 8 7 14 34
Use North-West Corner (NWC) Method

Store 1 Store 2 Store 3 Store 4 Supply

Plant 1 19 5 30 50 10 2 7
Plant 2 70 30 6 40 3 60 9
Plant 3 40 8 70 4 20 14 18
Demand 5 8 7 14 34
Transportation cost: - 19(5) +30(2) +30(6) +40(3) +70(4) +20(14) =1015

Least Cost Method (LCM),

Store 1 Store 2 Store 3 Store 4 Supply

Plant 1 19 30 50 10 7 7

Plant 2 2 30 40 60 9
70 7

Plant 3 40 8 8 70 20 7 18
3
Demand 5 8 7 14 34

Transportation cost:-70(2) +40(3) +8(8) +40(7) +10(7) +20(7) =814

Vogel’s Approximation (or penalty) Method (VAM)

Store 1 Store 2 Store 3 Store 4 Supply

Plant 1 19 5 30 50 10 2 7
Plant 2 70 30 40 7 60 2 9
Plant 3 40 8 8 70 20 10 18
Demand 5 8 7 14 34

Transportation cost: - 19(5) +8(8) +60(2) +40(7) +10(2) +20(10) =779

Use stepping stone

Store 1 Store 2 Store 3 Store 4 Supply

Plant 1 19 5 30 50 10 2 7
Plant 2 70 30 40 7 60 2 9
Plant 3 40 8 8 70 20 1 18
0
Demand 5 8 7 14 34
Transportation cost:-19(5) +8(8) +60(2) +40(7) +10(2) +20(10) =779
 S1 S2 S3 S4
Empty Evaluation loop formation Change in cost -(opportunity cost)
PCells
1 19 30 50 10 2
5 2
PP2 1S2 +P1S70
2-P1S4+P3S4-P3S 302 +30-10+20-8=32
40 7 60 -32
PP3 1S3 +P1S40
3 -P S
1 4 +P S
2 4 -P S
8
2 3 +50-10+60-40=60
70 20 -60
12-1
P2S1 +P2S1-P1S1+P1S4-P2S4 6 +70-19+10-60=1
P2S2 +P2S2-P3S2+P3S4-P2S4 +30-8+20-60=-18 +18
P3S1 +P3S1-P1S1+P1S4-P3S4 +40-19+10-20=11 -11
P3S3 +P3S3-P2S3+P2S4-P3S4 +70-40+60-20=70 -70

S1 S2 S3 S4
P1 19 30 50 10 2
5
P2 70 30 2 40 7 60
P3 40 8 70 20 12
6

Empty Evaluation loop Change in cost

Cells formation
P1S2 +P1S2-P1S4+P3S4-P3S2 +30-8+20-10=32 -32
P1 S 3 +P1S3-P1S4+P2S 4-P2S3 +50-10+20-8+30-40=42 -42
P2 S 1 +P2S 1-P1S1+P1S 4-P2S 4 +70-19+10-20+8-30=19 -19
P2 S 2 +P2S2-P3S2+P3S 4-P2S 4 +60-20+8-30=18 -18
P3 S 1 +P3S 1-P1S 1+P1S 4-P3S 4 +40-20+10-19=11 -11
P3 S 3 +P3S 3-P2S3+P2S 4-P3S4 +70-40+30-8=52 -52
Transportation cost:-19(5) +10(2) +30(2) +40(7) +8(6) +20(12) =743
Modified distribution (MODI)

S1 S2 S3 S4

P1 19 30 50 2 10
5
P2 70 30 740 2 60
P3 40 8 70 20
8 1
Ui+vj = cij
Assume u1= 0
C12=30+0 +2=32
U1=0 V1=-19
C13=50+0 +10=60
Ui+vj = cij U2=-50 V2=2
Assume u1= 0 C21=70+ (-50) + (-19) =1
C12=30+0 +2=32 U3=-10 V3=10
C22=30+ (-50) +2=-18
C13=50+0 + (-8) =42 V4=-10 C31=40+ (-10) + (-19) =11
C21=70+ (-32) + (-19) =19 C33=70+ (-10) +10=70
C22=60+ (-32) + (-10) =18
C31=40+ (-10) + (-19) =11 U1=0 V1=-19

C33=70+ (-10) + (-8) =52 U2=-32 V2=2

U3=-10 V3=-8
V4=-10
Transportation cost: - 19(5) +10(2) +30(2) +40(7) +8(6) +20(12) =743

5. A manager has prepared a table that shows the cost of performing each of four jobs by each of
four employees. According to this table, Job 1 will cost $15 if done by Employee A, $20 if it is
done by Employee B, and so on. The manager has stated that his goal is to develop a set of job
assignments that will minimize the total cost of getting all four jobs done. It is further required
that the jobs be performed simultaneously, thus requiring one job being assigned to each
employee. Although the manager recognizes that this problem can be solved using the simplex
routine, he also knows that he can solve the problem by hand using the assignment method.

Job Costs for Each Possible Pairing

Employees
Abdella Bontu Chanie Debela
Job M1 $15 20 18 24
M2 12 17 16 15
M3 14 15 19 17
M4 11 14 12 13
Required:

Formulate a linear Programming problem

Which salesperson should be assigned to each region to minimize total time?
Identify the optimal assignments and compute total minimum time. Use the Hungarian Method

Employees
Abdella Bontu Chanie Debela
Job M1 $15 20 18 24
M2 12 17 16 15
M3 14 15 19 17 Step 1, the given matrix is Square Matrix
M4 11 14 12 13
it is not necessary to add Dummy

Step 2, Select the smallest Value from the row and subtract it from the others

Employees
Abdella Bontu Chanie Debela
Job M1 0 5 3 9
M2 0 5 4 3
M3 0 1 5 3
 M4 0 3 1 2

Step 3, Select the smallest Value from the column and subtract it from the others
Employees
Abdella Bontu Chanie Debela
Job M1 0 4 2 7
M2 0 4 3 1
M3 0 0 4 1
M4 0 2 0 0

Step 4,
Employees
Abdella Bontu Chanie Debela
Job M1 0 3 1 6
M2 0 3 2 0
M3 1 0 4 1
M4 1 2 0 0

Employees
Abdella Bontu Chanie Debela
Job M1 00 3 1 6

M2 0 3 2 0

M3 1 0 4 1

M4 1 2 0 0
M1A=15
M2D=15
M3B=15
M4C=12
Total =57

A firm makes two types of furniture chairs and tables. The contribution for each product to
objective function is birr 20 per chair and birr 30 per table respectively. Both products are
processed on three Machines M1, M2 and M3. The time required (in hours) by each product and
total time available per week on each machine are as follows:
Machine Chair Table Available time
M1 3 3 36
M2 5 2 50
 M3 2 6 60
How should the manufacturer schedule his production in order to maximize contribution?

Solution
Le x1 = Number of chairs to be produced
t x1 = Number of tables to be produced
Since the objective is to maximize the profit, the objective function is given by
Maximize Z = 20x1 + 30x2
Subject to constraints:
3x1 + 3x2 ≤ 36 (Total time of machine M1)
5x1 + 2x2 ≤ 50 (Total time of machine M2)
2x1 + 6x2 ≤ 60 (Total time of machine M3)
x1, x2 ≥ 0 (Non-negativity constraint)

Maximize Z = 20x1 + 30 X2 + 0 S1+0S2+ 0S3

3X1 + 3X2 +1S1+0S2+0S3

5X1 +2X2 + 0S1 +1S2 0S3

2X1 +6X2 +0S1 +0S2 + 1S3

Table 1
Variabl Profi Capacity Cj 20 30 0 0 0
e t a b S1 S2 S3 Replacement
Ratio
S1 0 36 3 3 1 0 0 36/3=12
S2 0 50 5 2 0 1 0 50/2=25
S3 0 60 2 6 0 0 1 60/6=10
Zj 0 0 0 0 0
Cj-zj 20 30 0 0 0

Table 2
Variable Profit Capacity Cj 20 30 0 0 0
a b S1 S2 S3 Replacement Ratio

S1 0 6 2 0 1 0 -0.5 6/2=3
S2 0 50 4.33 0 0 1 -0.33 30/4=6.93
b 30 60 0.33 1 0 0 0.167 10/0.33=30.30
Zj 10 0 0 0 5.01
Cj-zj 10 0 0 0 -5.01

Table 3
Variable Profit Capacity Cj 20 30 0 0 0
a b S1 S2 S3
a 20 3 1 0 0.5 0 -0.25
 b 30 9 0 1 -0.165 0 0.25
S2 0 17 0 0 -2.165 1 0.7525
Zj 20 30 5.05 0 2.5
Cj-zj 0 0 -5.05 0 -2.5
Zmax=20a+30b
20(3) +30(9)
60 +270
= 330
Table 4
To complete the wing assembly for a new helicopter,  Ethiopia has laid out the major steps and 
seven activities involved. These activities have been labeled A through G in the following table, 
which also shows their estimated completion times  (in weeks)  and immediate predecessors. 
Activity a m b Immediate
predecessor
A 1 2 3 -
B 2 3 4 -
C 4 5 6 A
D 8 9 10 B
E 2 5 8 C,D
F 4 5 6 B
G 1 2 3 E

The critical path for the entire activities earliest start time, earliest finish time, latest start
time, latest finis time and slack time can be determined by using critical path procedure.
Table 5

Activity
Activity ES EF LS LF Slack
A 0 2 5 7 5
B 0 3 0 3 0
C 2 7 7 12 5
D 3 12 3 12 0
E 12 17 12 17 0
F 3 8 14 19 11
G 17 19 17 19 0
Expected project length =19 weeks
 Variance of critical path = 1.33
Standard deviation of critical path = 1.155 weeks
Solve the problem using Excel solver

Table 4

Decision Variable
X1 X2 X3
0.115274 2.881844 0
Constraints
X1 X2 X3 Total   Limit
19 27 34 80 <= 80
22 13 12 40 <= 40

Objective
X1 X2 X3 Total
50 45 48 135.4467
6. using the maximal flow technique, determine the amount of fuel shipped through the network

The final step of maximum flow technique

The maximum flow through this network is 600 amount of fuel in gallon
Table 5
Path Flow amount of fuel in gallon
1-2-4-7 3000
1-2-5-7 1000
1-5-7 1000
1-3-6-7 1000
Total 6000

Maximize 50X 1 + 45X2 + 48X3

subject to 19X 1 + 27X 2 + 34X 3 ≤80
22X1 + 13X2 + 12X 3 ≤40
X 1 , X2 , X3 must be either 0 or 1
Solve the problem using Excel solver
Decision variable
x1 x2 x3
0.115274 2.881844 0
Constraints
x1 x2 x3 total   limit
19 27 34 80<= 80
22 13 12 40<= 40

Objective
x1 x2 x3 total
50 45 48 135.4467