Operations Management and Decision Making

OMDM PROJECT
GROUP-9
LINEAR PROGRAMMING PROBLEM WITH BIG M METHOD

(WITH ARTIFICIAL VARIABLE)
Submitted to: Prof. Alok Kumar
Submitted by:
Aditi Arora (301003)
Ankit Kumar Singh (301012)
Divanshu Nagi (301019)
Manglam Farsaiya (301024)
Kaushik Kachare (301028)
Kirti Goel (301029)
ADITI ARORA
301003
Problem Statement
The MakeCars Company offers automobile production. They manufacture, assemble, and rebuild vehicle parts
used in the production of automobiles. One such vehicle is assembled from four components: an engine, a
chassis, two doors, and a roof. MakeCars’s production schedule calls for 4500 cars to be made next month.
MakeCars purchases the engines from an outside supplier, but the chassis, doors and roofs may be either
manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per
unit are shown below:
Component Manufacturing Cost ($) Purchasing Cost ($)

Chassis $ 34.20 $ 45.90
Doors $ 10.35 $ 13.50
Roof $ 5.85 $ 6.75
Three departments are involved in the production of these components. The time (in minutes per unit) required
to process each component in each department and the available capacity (in hours) for the three departments
are as follows:
Component Stamping Welding Mounting
Chassis 3.15 1.20 2.80
Doors 1.15 1.50 2.35
Roof 0.70 - 1.50
Capacity (hours) 315 380 610

Information from the given problem
Decision variables: -
● C1 = Number of chassis to manufacture
● C2 = Number of chassis to purchase
● D1 = Number of doors to manufacture
● D2 = Number of doors to purchase
● R1 = Number of roofs to manufacture
● R2 = Number of roofs to purchase
The objective is to minimize the cost of production,

{$34.20*C1 + $45.90*C2 + $10.35*D1 + $13.50*D2 + $5.85*R1 + $6.75*R2} subject to constraints.
Constraint 1: Each vehicle needs 1 unit of the chassis and we need exactly 4500 cars. Therefore, we may
write C1 + C2 = 4500.
Constraint 2: Each vehicle needs 2 units of doors.
Therefore, we may write D1 + D2 = (2*4500) = 9000.
Constraint 3: Each vehicle master needs 1 unit of the roof.
Therefore, we may write R1 + R2 = 4500.
Constraint 4: Availability of time constraint in the stamping of chassis, doors and roofs may be written as
3.15*C1 + 1.15*D1 + 0.70*R1 ≤ (315*60).
Constraint 5: Availability of time constraint in the welding of chassis, doors and roofs may be written as
1.20*C1 + 1.50*D1 ≤ (380*60).
Constraint 6: Availability of time constraint in the mounting of chassis, doors and roofs may be written as
2.80*C1 + 2.35*D1 + 1.50*R1 ≤ (610*60).
Inequality constraints: C1, C2, D1, D2, R1, R2 ≥ 0
Solution (Manual Method)
MIN Z = 34.20C1 + 45.90C2 + 10.35D1 + 13.50D2 + 5.85R1 + 6.75R2

subject to
C1 + C2 = 4500
D1 + D2 = 9000
R1 + R2 = 4500
3.15C1 + 1.15D1 + 0.70R1 <= 18900
1.20C1 + 1.50D1 <= 22800
2.80C1 + 2.35D1 + 1.50R1 <= 36600
and C1,C2,D1,D2,R1,R2 >= 0
The problem is converted to canonical form by adding slack and artificial variables as follows:
1. As the constraint-1 is of type '=' we should add artificial variable A1
4. As the constraint-4 is of type '≤' we should add slack variable S1
After introducing slack and artificial variables:

MIN Z = 34.20C1 + 45.90C2 + 10.35D1 + 13.50D2 + 5.85R1 + 6.75R2 + 0S1 + 0S2 + 0S3 + MA1 + MA2
+ MA3
subject to
C1 + C2 + A1 = 4500
D1 + D2 + A2 = 9000
R1 + R2 + A3 = 4500
3.15C1 + 1.15D1 + 0.70R1 + S1 = 18900
1.20C1 + 1.50D1 + S2 = 22800
2.80C1 + 2.35D1 + 1.50R1 + S3 = 36600
and C1,C2,D1,D2,R1,R2,A1,A2,A3,S1,S2,S3 >= 0
Iteration
Cj 34.2 45.9 10.35 13.5 5.85 6.75 0 0 0 M M M
-1
C S S S A A A MinRatio
B XB C1 C2 D1 D2 R1 R2
B 1 2 3 1 2 3 XBR1
450
A1 M 1 1 0 0 0 0 0 0 0 1 0 0 ---
0
900
A2 M 0 0 1 1 0 0 0 0 0 0 1 0 ---
0
450
A3 M 0 0 0 0 (1) 1 0 0 0 0 0 1 4500/1=4500
0
189 18900/0.7=2
S1 0 3.15 0 1.15 0 0.7 0 1 0 0 0 0 0
00 7000
228
S2 0 1.2 0 1.5 0 0 0 0 1 0 0 0 0 ---
00
366 36600/1.5=2
S3 0 2.8 0 2.35 0 1.5 0 0 0 1 0 0 0
00 4400
Z=1800
Zj M M M M M M 0 0 0 M M M
0M
Zj- M- M- M- M- M- M-
0 0 0 0 0 0
Cj 34.2 45.9 10.35 13.5 5.85 6.75
Positive maximum Zj-Cj is M-5.85 and its column index is 5. So, the entering variable is R1.
Minimum ratio is 4500 and its row index is 3. So, the leaving basis variable is A3.
∴ The pivot element is 1.
Entering =R1, Departing =A3, Key Element =1

5. 6.
34. 45. 13.
Iteration-2 Cj 10.35 8 7 0 0 0 M M
2 9 5
5 5
C R R S S S A A MinRatio
B XB C1 C2 D1 D2
B 1 2 1 2 3 1 2 XBD1
45
A1 M 1 1 0 0 0 0 0 0 0 1 0 ---
00
90
A2 M 0 0 (1) 1 0 0 0 0 0 0 1 9000/1=9000
00
5.
45
R1 8 0 0 0 0 1 1 0 0 0 0 0 ---
00
5
15 -
3.1
S1 0 75 0 1.15 0 0 0. 1 0 0 0 0 15750/1.15=13695.6522
5
0 7
22
S2 0 80 1.2 0 1.5 0 0 0 0 1 0 0 0 22800/1.5=15200
0
29 -
S3 0 85 2.8 0 2.35 0 0 1. 0 0 1 0 0 298502.35=12702.1277
0 5
5. 5.
Z=13500M
Zj M M M M 8 8 0 0 0 M M
+26325
5 5
M- M- M- -
Zj- M-
34. 45. 13. 0 0. 0 0 0 0 0
Cj 10.35
2 9 5 9
Positive maximum Zj-Cj is M-10.35 and its column index is 3. So, the entering variable is D1.
Entering =D1, Departing =A2, Key Element =1

5. 6.
10. 13.
Iteration-3 Cj 34.2 45.9 8 7 0 0 0 M
35 5
5 5
C X R R S S S A MinRatio
B C1 C2 D1 D2
B B 1 2 1 2 3 1 XBC1
45
A1 M 1 1 0 0 0 0 0 0 0 1 4500/1=4500
00
10. 90
D1 0 0 1 1 0 0 0 0 0 0 ---
35 00
5.8 45
R1 0 0 0 0 1 1 0 0 0 0 ---
5 00
- -
54 (3.15
S1 0 0 0 1.1 0 0. 1 0 0 0 54003.15=1714.2857
00 )
5 7
93 -
S2 0 1.2 0 0 0 0 0 1 0 0 9300/1.2=7750
00 1.5
- -
87
S3 0 2.8 0 0 2.3 0 1. 0 0 1 0 8700/2.8=3107.1429
00
5 5
5. 5.
Z=4500M+1 10. 10.
Zj M M 8 8 0 0 0 M
19475 35 35
5 5
- -
Zj- M- M-
0 3.1 0 0. 0 0 0 0
Cj 34.2 45.9
5 9
Positive maximum Zj-Cj is M-34.2 and its column index is 1. So, the entering variable is C1.
Minimum ratio is 1714.2857 and its row index is 4. So, the leaving basis variable is S1.
∴ The pivot element is 3.15.
Entering =C1, Departing =S1, Key Element =3.15

1
3 5
0
4 45. .
Iteration-4 Cj . 13.5 6.75 0 0 0 M
. 9 8
3
2 5
5
C C D R S S A MinRatio
B XB C2 D2 R2 S1
B 1 1 1 2 3 1 XBC2
278
0.222 2785.71431=2785.
A1 M 5.71 0 (1) 0 0.3651 0 -0.3175 0 0 1
2 7143
43
1
0
900
D1 . 0 0 1 1 0 0 0 0 0 0 ---
0
3
5
5
. 450
R1 0 0 0 0 1 1 0 0 0 0 ---
8 0
5
3
171 -
4
C1 4.28 1 0 0 -0.3651 0 0.222 0.3175 0 0 0 ---
.
57 2
2
724
0.266
S2 0 2.85 0 0 0 -1.0619 0 -0.381 1 0 0 ---
7
71
-
390
S3 0 0 0 0 -1.3278 0 0.877 -0.8889 0 1 0 ---
0
8
1
3 5 -
Z=2785.7143 0 0.3651 0.222
4 . 0.3175
M+178103.57 Zj M . M- 2M- 0 0 M
. 8 M+10.8
14 3 2.1357 1.75
2 5 571
5
-
M- 0.3651 0.222
Zj- 0.3175M
0 45. 0 M- 0 2M- 0 0 0
Cj +10.857
9↑ 15.6357 8.5
1
Positive maximum Zj-Cj is M-45.9 and its column index is 2. So, the entering variable is C2.
Minimum ratio is 2785.7143 and its row index is 1. So, the leaving basis variable is A1.
Entering =C2, Departing =A1, Key Element =1

3 4 10 5.
Iteration-
Cj 4. 5. .3 13.5 8 6.75 0 0 0
5
2 9 5 5
C C C D R S S MinRatio
B XB D2 R2 S1
B 1 2 1 1 2 3 XBR2
-
45 2785. 0.36 0.22
C2 0 1 0 0 0.31 0 0 2785.7143/0.2222=12535.714
.9 7143 51 22
75
10
D1 .3 9000 0 0 1 1 0 0 0 0 0 ---
5
5.
R1 4500 0 0 0 0 1 (1) 0 0 0 4500/1=4500
85
- -
34 1714. 0.31
C1 1 0 0 0.36 0 0.22 0 0 ---
.2 2857 75
51 22
- -
7242. 0.26
S2 0 0 0 0 1.06 0 0.38 1 0 7242.8571/0.2667=27160.714
8571 67
19 1
- - -
S3 0 3900 0 0 0 1.32 0 0.87 0.88 0 1 ---
78 78 89
3 4 10 5. -
Z=305967 14.6
Zj 4. 5. .3 8 8.45 3.71 0 0
.8571 214
2 9 5 5 43
-
1.12
Zj-Cj 0 0 0 0 1.7↑ 3.71 0 0
14
43
Positive maximum Zj-Cj is 1.7 and its column index is 6. So, the entering variable is R2.
Minimum ratio is 4500 and its row index is 3. So, the leaving basis variable is R1.
Entering =R2, Departing =R1, Key Element =1

3 4 10 6.
Iteration-
Cj 4. 5. .3 13.5 5.85 7 0 0 0
6
2 9 5 5
C C C D R S S MinRatio
B XB D2 R1 S1
B 1 2 1 2 2 3 XBD2
- -
45 1785. (0.3
C2 0 1 0 0.22 0 0.31 0 0 1785.7143/0.3651=4891.3043
.9 7143 651)
22 75
10
D1 .3 9000 0 0 1 1 0 0 0 0 0 9000/1=9000
5
6.
R2 4500 0 0 0 0 1 1 0 0 0 ---
75
-
34 2714. 0.22 0.31
C1 1 0 0 0.36 0 0 0 ---
.2 2857 22 75
51
- - -
6042.
S2 0 0 0 0 1.06 0.26 0 0.38 1 0 ---
8571
19 67 1
- -
0.87
S3 0 7850 0 0 0 1.32 0 0.88 0 1 ---
78
78 89
3 4 10 6. -
Z=298317 14.6
Zj 4. 5. .3 4.15 7 3.71 0 0
.8571 214
2 9 5 5 43
-
1.12
Zj-Cj 0 0 0 -1.7 0 3.71 0 0
14↑
43
Positive maximum Zj-Cj is 1.1214 and its column index is 4. So, the entering variable is D2.
Minimum ratio is 4891.3043 and its row index is 1. So, the leaving basis variable is C2.
Entering =D2, Departing =C2, Key Element =0.3651

34. 10.3 13. 6.7
Iteration-7 Cj 45.9 5.85 0 0 0
2 5 5 5
S S MinRat
B CB XB C1 C2 D1 D2 R1 R2 S1
2 3 io
- -
4891.304 2.739
D2 13.5 0 0 1 0.608 0 0.869 0 0
3 1
7 6
-
10.3 4108.695 0.608 0.869
D1 0 2.739 1 0 0 0 0
5 7 7 6
1
R2 6.75 4500 0 0 0 0 1 1 0 0 0
C1 34.2 4500 1 1 0 0 0 0 0 0 0
-
11236.95 2.908 -
S2 0 0 0 0 0 1.304 1 0
65 7 0.913
3
-
14344.56 0.069
S3 0 0 3.637 0 0 0 2.043 0 1
52 6
5
-
Z=292832.60 34. 42.82 10.3 13. 4.832 6.7
Zj 2.739 0 0
87 2 83 5 5 6 5
1
- - -
Zj-Cj 0 3.071 0 0 1.017 0 2.739 0 0
7 4 1
Since all Zj-Cj ≤ 0
Hence, optimal solution is arrived with value of variables as:
C1=4500, C2=0, D1=4108.6957, D2=4891.3043, R1=0, R2=4500
Min. Z=292832.6087
Solution (Excel Solver)
Sensitivity Report
Interpretation
Considering the 6 decision variables and 6 constraints given in the problem statement, we were able to arrive
at the optimal solution after 7 iterations. Through the optimal solution we can interpret the minimum cost of
production of 4500 cars as well as the optimal number of the components needed for it. We can deduce the
number of chassis, doors and roofs that need to be manufactured or purchased to arrive at the optimal solution,
hence providing us the least cost of production of the specified number of cars.
Managerial Implication
Using the optimal solution, we can deduce that in order to incur the least cost of production for 4500 cars, we
need to manufacture 4500 chassis and purchase 0 of them, i.e., all the required 4500 chassis need to be
manufactured and none of them needs to be purchased. Similarly, around half the number of total required
doors, i.e., 4109 need to be manufactured whereas 4891 of them need to be purchased. As for the number of
roofs, none of them should be manufactured and all of them, i.e., 4500 roofs should be purchased.
All of these would help us in arriving at the least cost of automobile production, $ 292832.6087.
Conclusion
We were able to arrive at the optimal solution for the given problem of car production after 7 iterations. With
the help of this solution, we were able to decipher the exact number of chassis, doors and roofs that need to
be manufactured and purchased to give us the least cost of producing 4500 cars under these conditions.
In conclusion, the least cost of automobile production is $ 292832.6087 that can be achieved if all the required
4500 chassis are manufactured and none of them is purchased, 4109 doors are manufactured and 4891 of them
are purchased, and none of the roofs are manufactured instead all 4500 of them are purchased.
ANKIT KUMAR SINGH
301012
1. Problem Statement: -
Maximize Z = 3x1 – x2 + 2x3
Subject to the following constraints: -
x1 + 3x2 + x3 ≤ 5
2x1 – x2 + x3 ≥ 2
4x1 + 3x2 - 2x3 = 5
where x1, x2, x3 ≥ 0
2. Solution to the above problem: -
I. Manual Method: -
Converting inequalities to equalities:

x1 + 3x2 + x3 + s1 = 5
2x1 – x2 + x3 – s2 = 2
4x1 + 3x2 - 2x3 = 5
x1, x2, x3, x4, x5 ≥ 0
where, x4 is a slack variable, x5 is a surplus variable.

Now, if we let x1, x2 and x3 equal to zero in the initial solution, we will have x4 = 5 and x5 = -2, which is not
possible because a surplus variable cannot be negative. Therefore, we need artificial variables.
x1 + 3x2 + x3 + s1 = 5
2x1 – x2 + x3 – s2 + A1 = 2
4x1 + 3x2 - 2x3 + A2 = 5
x1, x2, x3, x4, x5, A1, A2 ≥ 0
where A1 and A2 are artificial variables.
Now we will solve the above-mentioned equalities through multiple iterations until the optimality condition is
satisfied in a particular iteration.
Optimality Condition: All Zj – Cj are >= 0
The iterations are as follows: -
Iteration-1 Cj 3 -2 2 0 0 -M -M
B CB XB x1 x2 x3 S1 S2 A1 A2 Min-Ratio
(XB / x1)
S1 0 5 1 3 1 1 0 0 0 5/1=5
A1 -M 2 (2) -1 1 0 -1 1 0 2/2=1→
A2 -M 5 4 3 -2 0 0 0 1 5/4=1.25
Z=-7M Zj -6M -2M M 0 M -M -M
Zj-Cj -6M-3↑ -2M+2 M-2 0 M 0 0
Negative minimum Zj-Cj is -6M-3 and its column index is 1. So, the entering variable is x1.
Key Column: 1
For key element, we divide all XB / X1, Minimum ratio is 1 and its row index is 2. So, the leaving basic variable is A1.
Key Element: 2
The cell adjustments will be done as follows: -

R2(new)=R2(old)÷2
R1(new)=R1(old) - R2(new)
R3(new)=R3(old) - 4R2(new)
Iteration-2 Cj 3 -2 2 0 0 -M
B CB XB x1 x2 x3 S1 S2 A2 Min-Ratio
(XB/ x2)
S1 0 4 0 3.5 0.5 1 0.5 0 4/3.5=1.1429
x1 3 1 1 -0.5 0.5 0 -0.5 0 ---
A2 -M 1 0 (5) -4 0 2 1 1/5=0.2→
Z=-M+3 Zj 3 -5M-1.5 4M+1.5 0 -2M-1.5 -M
Zj-Cj 0 -5M+0.5↑ 4M-0.5 0 -2M-1.5 0
Negative minimum Zj-Cj is -5M+0.5 and its column index is 2. So, the entering variable is x2.
Key Column: 2
For key element, we divide all XB / X2, Minimum ratio is 0.2 and its row index is 3. So, the leaving basic variable
is A2.
Key Element: 5
R3(new)=R3(old)÷5
R1(new)=R1(old) - 3.5R3(new)
R2(new)=R2(old) + 0.5R3(new)
Iteration-3 Cj 3 -2 2 0 0
B CB XB x1 x2 x3 S1 S2 Min-Ratio
(XB/ S2)
S1 0 3.3 0 0 3.3 1 -0.9 ---
x1 3 1.1 1 0 0.1 0 -0.3 ---
x2 -2 0.2 0 1 -0.8 0 (0.4) 0.2/0.4=0.5→
Z=2.9 Zj 3 -2 1.9 0 -1.7
Zj-Cj 0 0 -0.1 0 -1.7↑
Negative minimum Zj-Cj is -1.7 and its column index is 5. So, the entering variable is S2.
Key Column: 5
For key element, we divide all XB / S2, Minimum ratio is 0.5 and its row index is 3. So, the leaving basic variable
is X2.
Key Element: 0.4
R3(new)=R3(old)÷0.4
(XB/X3)
S1 0 3.75 0 2.25 (1.5) 1 0 3.75/1.5=2.5→
x1 3 1.25 1 0.75 -0.5 0 0 ---
S2 0 0.5 0 2.5 -2 0 1 ---
Z=3.75 Zj 3 2.25 -1.5 0 0
Zj-Cj 0 4.25 -3.5↑ 0 0
Negative minimum Zj-Cj is -3.5 and its column index is 3. So, the entering variable is X3.
Key Column: 3
For key element, we divide all XB / X3, Minimum ratio is 2.5 and its row index is 1. So, the leaving basic variable
is S1.
Key Element: 1.5
R1(new)=R1(old)÷1.5
R3(new)=R3(old) + 2R1(new)
x3 2 2.5 0 1.5 1 0.6667 0
x1 3 2.5 1 1.5 0 0.3333 0
S2 0 5.5 0 5.5 0 1.3333 1
Z=12.5 Zj 3 7.5 2 2.3333 0
Zj-Cj 0 9.5 0 2.3333 0
The optimality condition is satisfied in Iteration – 5. Since, all Zj – Cj >= 0.

The values of variables are: -
X1 = 2.5
X2 = 0
X3 = 2.5
Max. Z = 3*2.5 + 2*2.5

= 7.5 + 5
= 12 (Answer).
II. Excel Solver: -
The problem sum, solved with the help of Excel Solver along with the sensitivity report has been attached below.
Solution of the problem via Excel along with the formulas mentioned
Sensitivity Report
3. Interpretation of the above solution: -

Based on the solution it can be interpreted that the maximum value which the objective function (Z) can attain is
12.5 with x1=2.5, x2=0 and x3=2.5. If the objective function represented the profitability of the firm, with Z being
the total profit a firm can earn by selling the products – x1, x2 and x3 then it would have sold 2.5 pieces of x1 and
x2 each to earn a maximum profit of ₹12.50.
The allowable increase and decrease for each variable show the range of values that variable can take before any
change in the objective value.
4. Managerial Implication: -
Simple method helps to overcome the major disadvantage of the graphical method in that it can solve managerial
problems with respect to more than 2 products. It provides tremendous help to the managers in solving problems
associated with product pricing decision, profit planning decision etc.
Taking the help of the problem and the interpretation of the solution mentioned, the solution will clearly indicate to
the manager that in order to achieve maximum profitability, the manager should eliminate the product x2 from
manufacturing operations and sell 2.5 quantity of each commodity to optimize their profit earning capacity. The
values in real time scenarios are very big, the problem mentioned makes use of smaller numbers but has been solved
on similar lines with the normal trend.
DIVANSHU NAGI
301019
1. Problem Statement: -
Maximize Z = - 2x1 - x2
Subject to the following constraints: -
3x1 + x2 = 3
4x1+ 3x2 ≥ 6
x1 + 2x2 ≤ 4
where x1, x2 ≥ 0
2. Solution to the above problem: -
I. Manual Method: -
Converting inequalities to equalities:

3x1 + x2 + A1 = 3
4x1 + 3x2 – s1 + A2 = 6
x1 + 2x2 + s2 = 4
x1, x2, x3, s1, s2, A1, A2 ≥ 0
where A1 and A2 are artificial variables.
Now we will solve the above-mentioned equalities through multiple iterations until the optimality condition is
satisfied in a particular iteration.
Optimality Condition: All Zj – Cj are >= 0
The iterations are as follows: -

Iteration
Cj -2 -1 0 0 -M -M
-1
Min-
B CB XB x1 x2 S1 S2 A1 A2 Ratio
(XB / x1)
A1 -M 3 (3) 1 0 0 1 0 3/3=1
6/4=1.5
A2 -M 6 4 3 -1 0 0 1
→
S2 0 4 1 2 0 1 0 0 4/1=4
Z=-9M Zj -7M -4M M 0 -M -M
Zj-Cj 2-7M↑ 1-4M M 0 0 0
Negative minimum Zj-Cj is 2-7M and its column index is 1. So, the entering variable is x1.
Key Column: 1
For key element, we divide all XB / X1, Minimum ratio is 1 and its row index is 1. So, the leaving basic variable is A1.
Key Element: 3

R1(new)=R2(old)÷3
R3(new)=R3(old) – R1(new)
Iteration-
Cj -2 -1 0 0 -M
2
Min-Ratio
B CB XB x1 x2 S1 S2 A2
(XB / x2)
X1 -2 1 1 1/3 0 0 0 1/1/3=3
2/5/3=6/5
A2 -M 2 0 (5/3) -1 0 1
→
S2 0 3 0 5/3 0 1 0 3/5/3=9/5
Z=-2-2M Zj -2 -2/3-5/3M M 0 -M
(-
Zj-Cj 0 M 0 0
5M+1)/3
Negative minimum Zj-Cj is (-5M+1)/3 and its column index is 2. So, the entering variable is x2.
Key Column: 2
For key element, we divide all XB / X2, Minimum ratio is 6/5 and its row index is 2. So, the leaving basic variable
is A2.
Key Element: 5/3
R2(new)=R2(old)÷5/3
R3(new)=R2(old) – 5/3R3(new)
Iteration
Cj -2 -1 0 0
-3
Min-Ratio
B CB XB x1 x2 S1 S2
(XB / x1)
X1 -2 3/5 1 0 1/5 0
X2 -1 6/5 0 1 -3/5 0
S2 0 1 0 0 1 1
Z=-12/5 Zj -2 -1 1/5 0
Zj-Cj 0 0 1/5 0
The optimality condition is satisfied in Iteration – 3. Since, all Zj – Cj >= 0.

The values of variables are: -
X1 = 3/5
X2 = 6/5
Max. Z = -2*3/5-6/5
= -6/5-6/5
= -12/5 (Answer).
II. Excel Solver: -
The problem sum, solved with the help of Excel Solver along with the sensitivity report has been attached below.
Solution of the problem via Excel along with the formulas mentioned
Sensitivity Report
3. Interpretation of the above solution: -

Based on the solution it can be interpreted that the maximum value which the objective function (Z) can attain is -
12/5 with x1=3/5 and x2=6/5 and. If the objective function represented the deterioration of the surrounding
environment using x1 and x2 machines, with Z being the impact on the environment a firm can make through
production by using x1 and x2 machine.
The allowable increase and decrease for each variable show the range of values that variable can take before any
change in the objective value.
4. Managerial Implication: -
Simplex method helps to overcome the major disadvantage of the graphical method in that it can solve managerial
problems. It provides tremendous help to the managers in solving problems associated with product pricing
decisions, profit planning decisions etc.
Taking the help of the problem and the interpretation of the solution mentioned, the solution will clearly indicate to
the manager that in order to reduce the impact of the production on the environment, the manager should use 3/5 no.
of x1 and 6/5 no, of x2. The values in real-time scenarios are very big, the problem mentioned makes use of smaller
numbers but has been solved on similar lines with the normal trend.
MANGLAM FARSAIYA
301024
Problem Statement
Frandec Company manufactures, assembles, and rebuilds material

handling equipment used in warehouses and distribution centers. One
product, called a Liftmaster, is assembled from four components: a frame,
a motor, two supports, and a metal strap. Frandec’s production schedule
calls for 5000 Lift masters to be made next month. Frandec purchases
the motors from an outside supplier, but the frames, supports, and straps
may be either manufactured by the company or purchased from an
outside supplier. Manufacturing and purchase costs per unit are shown
below,
Three departments are involved in the production of these components.

The time (in minutes per unit) required to process each component in
each department and the available capacity (in hours) for the three
departments are as follows:
Source - https://towardsdatascience.com/applications-of-linear-programming-problem-lpp-
385bc3bb9621
● F1 = Number of frames to manufacture
● F2 = Number of frames to purchase
● SU1 = Number of supports to manufacture
● SU2 = Number of supports to purchase
● ST1 = Number of straps to manufacture
● ST2 = Number of straps to purchase
The objective is to minimize the cost of application,

{$38*F1 + $51*F2 + $11.50*SU1 + $15*SU2 + $6.50*ST1 + $7.50*ST2}
subject to constraints.
Constraint-1: Each lift master needs 1 unit of the frame and we need exactly
5000 lift masters. So we may write, F1 + F2 = 5000.
Constraint-2: Each lift master needs 2 units of support. So we may write,

SU1 + SU2 = (2*5000) = 10000.
Constraint-3: Each lift master needs 1 unit of the strap. So we may write,
ST1 + ST2 = 5000.
Constraint-4: Availability of time constraint in the cutting of frames, support,

and strap. So we may write, 3.5*F1 + 1.3*SU1 + 0.8*ST1 ≤ (350*60).
Constraint-5: Availability of time constraint in milling of frames, support, and

strap. So we may write, 2.2*F1 + 1.7*SU1 ≤ (420*60).
Constraint-6: Availability of time constraint in the shaping of frames, support,

and strap. So we may write, 3.1*F1 + 2.6*SU1 + 1.7*ST1 ≤ (680*60).
Inequality constraints: F1, F2, SU1, SU2, ST1, ST2 ≥ 0

Solution (manually)
MIN Z = 38F1 + 51F2 + 11.5SU1 + 15SU2 + 6.5ST1 + 7.5ST2

subject to
F1 + F2 = 5000
SU1 + SU2 = 10000
ST1 + ST2 = 5000
3.5F1 + 1.3SU1 + 0.8ST1 <= 21000
2.2F1 + 1.7SU1 <= 25200
3.1F1 + 2.6SU1 + 1.7ST1 <= 40800
and F1,F2,SU1,SU2,ST1,ST2 >= 0
The problem is converted to canonical form by adding slack, surplus and artificial
variables as appropriate
After introducing slack, artificial variables

MIN Z = 38F1 + 51F2 + 11.5SU1 + 15SU2 + 6.5ST1 + 7.5ST2 + 0S1 + 0S2
+0S3 + MA1 + MA2 + MA2
subject to
F1 + F2+ A1= 5000
SU1 + SU2+ A2 = 10000
ST1 + ST2 +A3= 5000
3.5F1 + 1.3SU1 + 0.8ST1 + S1<= 21000
2.2F1 + 1.7SU1+ S2 <= 25200
3.1F1 + 2.6SU1 + 1.7ST1 + S3<= 40800
and F1,F2,SU1,SU2,ST1,ST2,A1,A2,A3,S1,S2,S3 >= 0
Iteration-
Cj 38 51 11.5 15 6.5 7.5 0 0 0 M M M
1
B XB F1 F2 SU1 SU2 ST1 ST2
B 1 2 3 1 2 3 XBST1
A1 M 5000 1 1 0 0 0 0 0 0 0 1 0 0 ---
1000
A2 M 0 0 1 1 0 0 0 0 0 0 1 0 ---
0
A3 M 5000 0 0 0 0 (1) 1 0 0 0 0 0 1 5000/1=5000→
2100
S1 0 3.5 0 1.3 0 0.8 0 1 0 0 0 0 0 21000/0.8=26250
0
2520
S2 0 2.2 0 1.7 0 0 0 0 1 0 0 0 0 ---
0
4080
S3 0 3.1 0 2.6 0 1.7 0 0 0 1 0 0 0 40800/1.7=24000
0
Z=20000
M
M- M- M- M- M- M-
Zj-Cj 0 0 0 0 0 0
38 51 11.5 15 6.5↑ 7.5
Positive maximum Zj-Cj is M-6.5 and its column index is 5. So, the entering variable is ST1.
∴ The pivot element is 1
Entering =ST1, Departing =A3, Key Element =1
Iteration-
Cj 38 51 11.5 15 6.5 7.5 0 0 0 M M
2
C S S S A A MinRatio
B XB F1 F2 SU1 SU2 ST1 ST2
B 1 2 3 1 2 XBSU1
A1 M 5000 1 1 0 0 0 0 0 0 0 1 0 ---
1000
A2 M 0 0 (1) 1 0 0 0 0 0 0 1 10000/1=10000→
0
6.
ST1 5000 0 0 0 0 1 1 0 0 0 0 0 ---
5
1700 17000/1.3=13076.923
S1 0 3.5 0 1.3 0 0 -0.8 1 0 0 0 0
0 1
2520 25200/1.7=14823.529
S2 0 2.2 0 1.7 0 0 0 0 1 0 0 0
0 4
3230 32300/2.6=12423.076
S3 0 3.1 0 2.6 0 0 -1.7 0 0 1 0 0
0 9
Z=15000
Zj M M M M 6.5 6.5 0 0 0 M M
M+32500
M-
Zj-Cj M-38 M-11.5 M-15 0 -1 0 0 0 0 0
51
Positive maximum Zj-Cj is M-11.5 and its column index is 3. So, the entering variable is SU1.
Entering =SU1, Departing =A2, Key Element =1
11.
Iteration-3 Cj 38 51 15 6.5 7.5 0 0 0 M
5
SU SU ST ST S S S A MinRatio
B CB XB F1 F2
1 2 1 2 1 2 3 1 XBF1
A1 M 5000 1 1 0 0 0 0 0 0 0 1 5000/1=5000
11. 1000
SU1 0 0 1 1 0 0 0 0 0 0 ---
5 0
ST1 6.5 5000 0 0 0 0 1 1 0 0 0 0 ---
-
S1 0 4000 (3.5) 0 0 -1.3 0 1 0 0 0 4000/3.5=1142.8571
0.8
S2 0 8200 2.2 0 0 -1.7 0 0 0 1 0 0 8200/2.2=3727.2727
-
S3 0 6300 3.1 0 0 -2.6 0 0 0 1 0 6300/3.1=2032.2581
1.7
11. 11.
Z=5000M+147500 Zj M M 6.5 6.5 0 0 0 M
5 5
M- M-
Zj-Cj 0 -3.5 0 -1 0 0 0 0
38 51
Positive maximum Zj-Cj is M-38 and its column index is 1. So, the entering variable is F1.

Entering =F1, Departing =S1, Key Element =3.5
3 5 11.
Iteration-4 Cj 15 6.5 7.5 0 0 0 M
8 1 5
F F SU S S A MinRatio
B CB XB SU2 ST1 ST2 S1
1 2 1 2 3 1 XBF2
3857. (1 3857.14291=
A1 M 0 0 0.3714 0 0.2286 -0.2857 0 0 1
1429 ) 3857.1429
11. 1000
SU1 0 0 1 1 0 0 0 0 0 0 ---
5 0
ST1 6.5 5000 0 0 0 0 1 1 0 0 0 0 ---
1142.
F1 38 1 0 0 -0.3714 0 -0.2286 0.2857 0 0 0 ---
8571
5685.
S2 0 0 0 0 -0.8829 0 0.5029 -0.6286 1 0 0 ---
7143
2757.
S3 0 0 0 0 -1.4486 0 -0.9914 -0.8857 0 1 0 ---
1429
-
Z=3857.1429 0.2286
3 11. 0.3714M 0.2857
M+190928.571 Zj M 6.5 M- 0 0 M
8 5 -2.6143 M+10.8
4 2.1857
571
M -
- 0.3714M 0.2286M 0.2857M
Zj-Cj 0 0 0 0 0 0
5 -17.6143 -9.6857 +10.857
1 1
Positive maximum Zj-Cj is M-51 and its column index is 2. So, the entering variable is F2.

Entering =F2, Departing =A1, Key Element =1
3 5 11. 6.
Iteration-5 Cj 15 7.5 0 0 0
8 1 5 5
F F SU ST S S MinRatio
B CB XB SU2 ST2 S1
1 2 1 1 2 3 XBST2
-
3857.14
F2 51 0 1 0 0.371 0 0.2286 0.285 0 0 3857.1429/0.2286=16875
2
7
11.
SU1 10000 0 0 1 1 0 0 0 0 0 ---
5
ST1 6.5 5000 0 0 0 0 1 (1) 0 0 0 5000/1=5000→
1142.85 - - 0.285
F1 38 1 0 0 0 0 0 ---
7 0.371 0.2286 7
-
5685.71 - 5685.7143/0.5029=11306.8
S2 0 0 0 0 0 0.5029 0.628 1 0
4 0.882 1
6
-
2757.14 - -
S3 0 0 0 0 0 0.885 0 1 ---
2 1.448 0.9914
7
-
Z=387642.857 3 5 11. 16.32 6.
Zj 9.4714 3.714 0 0
1 8 1 5 8 5
3
-
1.9714
Zj-Cj 0 0 0 1.328 0 3.714 0 0
↑
3
Positive maximum Zj-Cj is 1.9714 and its column index is 6. So, the entering variable is ST2.
Minimum ratio is 5000 and its row index is 3. So, the leaving basis variable is ST1.

Entering =ST2, Departing =ST1, Key Element =1
3 5 11. 7.
Iteration-6 Cj 15 6.5 0 0 0
8 1 5 5
F F SU ST S S MinRatio
B CB XB SU2 ST1 S1
1 2 1 2 2 3 XBSU2
- -
2714.285 (0.371 2714.28570.3714=7307.69
F2 51 0 1 0 0.228 0 0.285 0 0
7 4) 2
6 7
11.
SU1 10000 0 0 1 1 0 0 0 0 0 10000/1=10000
5
ST2 7.5 5000 0 0 0 0 1 1 0 0 0 ---
2285.714 - 0.228 0.285
F1 38 1 0 0 0 0 0 ---
3 0.3714 6 7
- -
3171.428 -
S2 0 0 0 0 0.502 0 0.628 1 0 ---
6 0.8829
9 6
-
7714.285 - 0.991
S3 0 0 0 0 0 0.885 0 1 ---
7 1.4486 4
7
-
Z=377785.71 3 5 11. 16.328 4.528 7.
Zj 3.714 0 0
4 8 1 5 6 6 5
3
- -
1.3286
Zj-Cj 0 0 0 1.971 0 3.714 0 0
↑
4 3
Positive maximum Zj-Cj is 1.3286 and its column index is 4. So, the entering variable is SU2.
Minimum ratio is 7307.6923 and its row index is 1. So, the leaving basis variable is F2.
Entering =SU2, Departing =F2, Key Element =0.3714
Iteration-7 Cj 38 51 11.5 15 6.5 7.5 0 0 0

B CB XB F1 F2 SU1 SU2 ST1 ST2 S1 S2 S3
SU2 15 7307.6923 0 2.6923 0 1 -0.6154 0 -0.7692 0 0
11. -
SU1 2692.3077 0 1 0 0.6154 0 0.7692 0 0
5 2.6923
ST2 7.5 5000 0 0 0 0 1 1 0 0 0
F1 38 5000 1 1 0 0 0 0 0 0 0
S2 0 9623.0769 0 2.3769 0 0 -1.0462 0 -1.3077 1 0
S3 0 18300 0 3.9 0 0 0.1 0 -2 0 1
Z=368076.923 47.423
Zj 38 11.5 15 5.3462 7.5 -2.6923 0 0
1 1
-
Zj-Cj 0 0 0 -1.1538 0 -2.6923 0 0
3.5769
Since all Zj-Cj≤0
Hence, optimal solution is arrived with value of variables as :

F1=5000, F2=0, SU1=2692.3077, SU2=7307.6923, ST1=0, ST2=5000
Min Z=368076.923 (3,68,077)

Solution in Excel
Sensitivity Report
Since only 55% of the available time has been used in the Shaping
department, the shadow price corresponding to the constraint is also $0.
This implies one additional minute of shaping time would not help any
further to reduce the current cost of production. Hence Frandec should
not pay any dollars for additional shaping time.
Interpretation
To minimize the cost of producing 5000 liftmasters, Frandec Company
should purchase 7038 supports and 5000 strap, and need to manufacture
5000 frames and 2692 supports by considering other constrain.
Managerial Implication & Conclusion

LP is applied for determining the optimal allocation of such resources as
materials, machines, manpower, etc. by a firm. It is used to determine the
optimal product- mix of the firm to maximize its revenue. It is also used
for product smoothing and assembly line balancing. It helps management
in various aspect to optimize their resources to increase their efficiency
and effectiveness.
KAUSHIK KACHARE
301028
ABC apparels manufactures are famous for their clothing’s and apparels. This
winter they came up with their new product “XYZ" t-shirt. ABC for production of
the XYZ t-shirt needs Velcro straps, 2 elastic ribs and detachable hoody. 5500
XYZ t-shirts were schedule to be made next month. ABC apparels can
manufacture or outsource Velcro, elastic ribs and detachable hoody. The cost per
unit of manufacturing and outsourcing are given below.
Elements Manufacturing Outsourcing
Velcro Straps $ 41.80 $ 56.10
Elastic Ribs $ 12.65 $ 16.50
Detachable Hoodies $ 7.15 $ 8.25
three elements required for making of XYZ t-shirts. the time (in mins per unit)
required to make each element in each stage and the capacity (in hours) for the
three elements are as followed.
Elements Cutting Shaping Stitching

Velcro Straps 3.85 2.42 3.41
Elastic Ribs 1.43 1.87 2.86
Detachable Hoodies 0.88 NA 1.87
Capacity (in hours) 385 462 748

● x1 = Number of Velcro Straps to manufacture
● x2 = Number of Velcro Straps to outsource
● x3 = Number of Elastic Ribs to manufacture
● x4 = Number of Elastic Ribs to outsource
● x5 = Number of Detachable hoodies to manufacture
● x6 = Number of Detachable hoodies to outsource
SOLUTION
MIN Z = 41.8x1 + 56.1x2 + 12.65x3 + 16.5x4 + 7.15x5 + 8.25x6

subject to
x1 + x2 = 5500
x3 + x4 = 11000
x5 + x6 = 5000
3.8x1 + 1.43x3 + 0.88x5 <= 23100
2.42x1 + 1.87x3 <= 27720
3.41x1 + 2.86x3 + 1.87x5 <= 44880
and x1, x2, x3, x4, x5, x6 >= 0
Solution:
The problem is converted to canonical form by adding slack, surplus and artificial
variables as appropriate
After introducing slack, artificial variables

Min Z= 41.8 x1+ 56.1 x2 +12.65 x3 + 16.5 x4 + 7.15 x5 + 8.25 x6 + 0S1 +0S2 + 0S3 +
MA1 +MA2 + MA3
Subject to
x1+ x2 +A1 = 5500

x3+x4+A2=11000
x5+x6+A3=5000
3.8x1+1.43x3+0.88x5+S1=23100
2.42x1+1.87x3+S2=27720
3.41x1+2.86x3+1.87x5+S3=44880
and x1,x2,x3,x4,x5,x6,S1,S2,S3,A1,A2,A3 >= 0
Iteratio
Cj 41.8 56.1 12.65 16.5 7.15 8.25 0 0 0 M M M
n1
B XB x1 x2 x3 x4 x5 x6
B 1 2 3 1 2 3 XBx5
550
A1 M 1 1 0 0 0 0 0 0 0 1 0 0 ---
0
110
A2 M 0 0 1 1 0 0 0 0 0 0 1 0 ---
00
500
A3 M 0 0 0 0 (1) 1 0 0 0 0 0 1 5000/1=5000
0
231 23100/0.88=
S1 0 3.8 0 1.43 0 0.88 0 1 0 0 0 0 0
00 26250
277
S2 0 2.42 0 1.87 0 0 0 0 1 0 0 0 0 ---
20
448 44880/1.87=
S3 0 3.41 0 2.86 0 1.87 0 0 0 1 0 0 0
80 24000
Z=2150
0M
Zj - M- M- M- M- M- M-
0 0 0 0 0 0
Cj 41.8 56.1 12.65 16.5 7.15↑ 8.25
Positive maximum Zj-Cj is M-7.15 and its column index is 5. So, the entering variable is x5.
Mi
minimum ratio is 5000 and its row index is 3. So, the leaving basis variable is A3
7.
8.
Iteration 2 Cj 41.8 56.1 12.65 16.5 1 0 0 0 M M
25
5
C S S S A A MinRatio
B XB x1 x2 x3 x4 x5 x6
B 1 2 3 1 2 XBx3
55
A1 M 1 1 0 0 0 0 0 0 0 1 0 ---
00
11
A2 M 00 0 0 (1) 1 0 0 0 0 0 0 1 11000/1=11000
0
7.
50
x5 1 0 0 0 0 1 1 0 0 0 0 0 ---
00
5
18 -
18700/1.43=130
S1 0 70 3.8 0 1.43 0 0 0. 1 0 0 0 0
76.9231
0 88
27
27720/1.87=148
S2 0 72 2.42 0 1.87 0 0 0 0 1 0 0 0
23.5294
0
35 -
35530/2.86=124
S3 0 53 3.41 0 2.86 0 0 1. 0 0 1 0 0
23.0769
0 87
7.
Z=16500M+ 7.
Zj M M M M 1 0 0 0 M M
35750 15
5
M- -
Zj - M- M- M-
12.65 0 1. 0 0 0 0 0
Cj 41.8 56.1 16.5
↑ 1
Entering =x3, Departing =A2, Key Element =1
12. 16. 7. 8.2

Iteration-3 Cj 41.8 56.1 0 0 0 M
65 5 15 5
S S S A MinRatio
B CB XB x1 x2 x3 x4 x5 x6
1 2 3 1 XBx1
550
A1 M 1 1 0 0 0 0 0 0 0 1 5500/1=5500
0
12. 110
x3 0 0 1 1 0 0 0 0 0 0 ---
65 00
7.1 500
x5 0 0 0 0 1 1 0 0 0 0 ---
5 0
- -
297 2970/3.8=781.5
S1 0 (3.8) 0 0 1.4 0 0.8 1 0 0 0
0 789
3 8
-
715 7150/2.42=2954
S2 0 2.42 0 0 1.8 0 0 0 1 0 0
0 .5455
7
- -
407 4070/3.41=1193
S3 0 3.41 0 0 2.8 0 1.8 0 0 1 0
0 .5484
6 7
Z=5500M+17 12. 12. 7. 7.1
Zj M M 0 0 0 M
4900 65 65 15 5
-
Zj - M- M- -
0 3.8 0 0 0 0 0
Cj 41.8↑ 56.1 1.1
5
Entering =x1, Departing =S1, Key Element =3.8
4 1 7
1 56. 2. .
Iteration-4 Cj 16.5 8.25 0 0 0 M
. 1 6 1
8 5 5
C x x S S A MinRatio
B XB x2 x3 x4 x6 S1
B 1 5 2 3 1 XBx2
4718
-
A1 M .421 0 (1) 0 0.3763 0 0.2316 0 0 1 4718.42111
0.2632
1
1
2. 1100
x3 0 0 1 1 0 0 0 0 0 0 ---
6 0
5
7.
x5 1 5000 0 0 0 0 1 1 0 0 0 0 ---
5
4
781.
x1 1. 1 0 0 -0.3763 0 -0.2316 0.2632 0 0 0 ---
5789
8
5258
-
S2 0 .578 0 0 0 -0.9593 0 0.5604 1 0 0 ---
0.6368
9
1404
-
S3 0 .815 0 0 0 -1.5768 0 -1.0803 0 1 0 ---
0.8974
8
4 1 7
-
Z=4718.421 1 2. 0.3763 . 0.2316
Zj M 0.2632 0 0 M
1M+207570 . 6 M-3.08 1 M-2.53
M+11
8 5 5
M- 0.3763 0.2316 -
Zj-Cj 0 56. 0 M- 0 M- 0.2632 0 0 0
1↑ 19.58 10.78 M+11
4 5 7.
12.
Iteration-5 Cj 1. 6. 16.5 1 8.25 0 0 0
65
8 1 5
S S MinRatio
B CB XB x1 x2 x3 x4 x5 x6 S1
2 3 XBx6
-
56. 4718.4 0.37 0.23 4718.4211/0.2316=2
x2 0 1 0 0 0.26 0 0
1 211 63 16 0375
32
12.
x3 11000 0 0 1 1 0 0 0 0 0 ---
65
7.1
x5 5000 0 0 0 0 1 (1) 0 0 0 5000/1=5000→
5
- -
41. 781.57 0.26
x1 1 0 0 0.37 0 0.23 0 0 ---
8 89 32
63 16
- -
5258.5 0.56 5258.5789/0.5604=9
S2 0 0 0 0 0.95 0 0.63 1 0
789 04 383.2645
93 68
- - -
1404.8
S3 0 0 0 0 1.57 0 1.08 0.89 0 1 ---
158
68 03 74
4 5 7. -
Z=472273. 12. 18.0 10.4
Zj 1. 6. 1 3.76 0 0
4211 65 313 616
8 1 5 32
-
1.53 2.21
Zj-Cj 0 0 0 0 3.76 0 0
13 16↑
32
Positive maximum Zj-Cj is 2.2116 and its column index is 6. So, the entering variable is x6.
Minimum ratio is 5000 and its row index is 3. So, the leaving basis variable is x5.
Entering =x6, Departing =x5, Key Element =1
4 5 8.
12.
Iteration-6 Cj 1. 6. 16.5 7.15 2 0 0 0
65
8 1 5
S S MinRatio
2 3 XBx4
- -
56. 3560.5 (0.37 3560.5263/0.3763=946
x2 0 1 0 0.23 0 0.26 0 0
1 263 63) 1.5385
16 32
12.
x3 11000 0 0 1 1 0 0 0 0 0 11000/1=11000
65
8.2
x6 5000 0 0 0 0 1 1 0 0 0 ---
5
-
41. 1939.4 0.23 0.26
x1 1 0 0 0.37 0 0 0 ---
8 737 16 32
63
- - -
2456.4
S2 0 0 0 0 0.95 0.56 0 0.63 1 0 ---
737
93 04 68
- -
6806.3 1.08
S3 0 0 0 0 1.57 0 0.89 0 1 ---
947 03
68 74
4 5 8. -
Z=461215. 12. 18.0 4.93
Zj 1. 6. 2 3.76 0 0
5263 65 313 84
8 1 5 32
- -
1.53
Zj-Cj 0 0 0 2.21 0 3.76 0 0
13↑
16 32
Positive maximum Zj-Cj is 1.5313 and its column index is 4. So, the entering variable is x4.
Minimum ratio is 9461.5385 and its row index is 1. So, the leaving basis variable is x2.
Entering =x4, Departing =x2, Key Element =0.3763
41 12. 16 8.
Iteration-7 Cj 56.1 7.15 0 0 0
.8 65 .5 25
S S MinRat
2 3 io
- -
16. 9461.538 2.657
x4 0 0 1 0.615 0 0.699 0 0
5 5 3
4 3
-
12. 1538.461 0.615 0.699
x3 0 2.657 1 0 0 0 0
65 5 4 3
3
8.2
x6 5000 0 0 0 0 1 1 0 0 0
5
41.
x1 5500 1 1 0 0 0 0 0 0 0
8
- -
11533.07 2.549
S2 0 0 0 0 1.150 0 1.307 1 0
69 2
8 7
S3 0 21725 0 4.19 0 0 0.11 0 -2 0 1
-
Z=446726.92 41 52.03 12. 16 5.880 8.
Zj 2.692 0 0
31 .8 08 65 .5 8 25
3
- - -
Zj-Cj 0 4.069 0 0 1.269 0 2.692 0 0
2 2 3
Since all Zj-Cj≤0

x1=5500,x2=0,x3=1538.4615,x4=9461.5385,x5=0,x6=5000
Min Z=446726.9231
Solution (Excel solver)
Sensitivity Report
Variable Cells
Final Reduced Objective Allowable Allowable
Nam Coefficien
Cell e Value Cost t Increase Decrease
4.06923076
$B$1 X1= 5500 0 41.8 9 1E+30
4.06923076 4.06923076
$B$2 X2= 0 9 56.1 1E+30 9
1538.46153 1.53131578
$B$3 X3= 8 0 12.65 2.0625 9
9461.53846 1.53131578
$B$4 X4= 2 0 16.5 9 2.0625
1.26923076 1.26923076
$B$5 X5= 0 9 7.15 1E+30 9
1.26923076
$B$6 X6= 5000 0 8.25 9 1E+30
Constraints
Final Shadow Constraint Allowable Allowable
Nam
Cell e Value Price R.H. Side Increase Decrease
-
$D$1 52.0307692 3560.52631 578.947368
1 = 5500 3 0 6 4
$D$1 9461.53846
2 = 11000 -16.5 0 2 1E+30
$D$1
3 = 5000 -8.25 0 5000 1E+30
$D$1 2.69230769 8819.41176
4 <= 23100 2 0 2200 5
$D$1 11533.0769
5 <= 27720 0 0 2 1E+30
$D$1
6 <= 44880 0 0 21725 1E+30
Interpretation
The given problem statement consists of 6 variables and 6 constraints. and through 7
iterations we can come to an optimal solution to minimize the cost. From the solution, we get
the optimal minimum cost as well as the optimum number of components needed. The
solution helps in providing the optimal number of Velcro straps, Elastic Ribs, Detachable
Hoodies to be manufactured or to be outsourced, thus providing us the least cost of
production for XYZ T-shirt.
Managerial Implication
Linear programming helps in achieving the optimum use of the production resources. It
helps the manager to allocate optimum number of resources for the production thus saving
the cost and increasing the profitability and productivity i: e manager can effectively allocate
and select the production factors. This technique is reliable and improves the quality decision
of the manager.
In the given case of ABC apparels. Utilizing the optimal solution, we can derive that to
bring about the least expensive for production of 5500 units of XYZ t-shirt, we need to
manufacture 5500 units of Velcro straps with zero being outsourced, 1538 units of elastic
ribs need to be manufactured and 9462 units need to outsource, coming to detachable
hoodies it is recommended to manufacture zero hoodies and outsource 5000 units of hoodies,
Selecting the specific numbers of elements mentioned above will help us to reach the optimal
solution which will give us the minimum cost of $446727.
KIRTI GOEL
301029
PROBLEM STATEMENT (DIET PROBLEM)
Breath takers, a health and fitness centre, operates a morning fitness program for senior citizens. Breath
taker’s dietitian wants to develop a breakfast that will high in calories, calcium, protein, and fibre, which is
especially important for senior citizens, but low in fats and cholesterol. She also wants to minimize cost.
She has selected the following possible food items to develop a standard breakfast menu as shown in the
following table.
Breakfast food Fat Cholesterol Iron Protein Fiber cost

(g) (mg) (mg) (g) (g)
Dry cereal 2 0 4 4 2 0.22
Oatmeal 2 0 2 5 3 0.10
Egg 5 270 1 7 0 0.10
Bacon 3 8 0 2 0 0.09
Milk 4 12 0 9 0 0.16
Wheat toast 1 0 1 3 3 0.07
The dietitian wants the breakfast to include at least 5 milligrams of iron, 20 grams of protein, and 12 grams
of fiber. Furthermore, she wants to limit fat to no more than 20 grams and cholesterol to 30 milligrams.
MANUAL METHOD
● DECSION VARIABLES
This problem includes 6 decision variables, representing the number of standard units of each
food items that can be included in the breakfast.
X1= cups of dry cereal
X2= cups of oatmeal
X3= eggs
X4= slices of bacon
X5= cups of milk
X6= slices of wheat toast
● OBJECTIVE FUNCTION
The dietitian objective is to minimize the cost of a breakfast. The total cost is the sum of the
individual costs pf each food items.
Minimize Z= $0.22x1+ 0.10x2+ 0.10x3+ 0.09x4+ 0.16x5+ 0.07x6
● MODEL CONSTRAINTS
The constraints are the requirements for the nutrition items:
2x1+ 2x2+ 5x3+ 3x4+ 4x5+ 1x6 <=20 g of fat
270x3+ 8x4+ 12x5 <= 30 mg of cholesterol
4x1+ 2x2+ 1x3+ 1x6 >= 5 mg of iron
4x1+ 5x2+ 7x3+ 7x4+ 3x6 >= 20 of protein
2x1+ 3x2+ 3x6 >= 12 g of fiber
● MODEL SUMMARY
The linear programming model for this problem can be summarized as follows:
Minimize Z= $0.22x1+ 0.10x2+ 0.10x3+ 0.09x4+ 0.16x5+ 0.07x6
Subject to:
2x1+ 2x2+ 5x3+ 3x4+ 4x5+ 1x6 <=20
270x3+ 8x4+ 12x5 <= 30
4x1+ 2x2+ 1x3+ 1x6 >= 5
4x1+ 5x2+ 7x3+ 2x4+ 9x5+ 3x6 >= 20
2x1+ 3x2+ 3x6 >= 12
The problem is converted to canonical form by adding slack, surplus and artificial variables as appropiate

3. As the constraint-3 is of type '≥' we should subtract surplus variable S3 and add artificial variable A1
After introducing slack, surplus, artificial variables
Cj 0.22 0.1 0.1 0.09 0.16 0.07 0 0 0 0 0 M M M

Min
B C XB x1 x2 x3 x4 x5 x6 S S S3 S4 S5 A A A Ratio
B 1 2 1 2 3
S1 0 20 2 2 5 3 4 1 1 0 0 0 0 0 0 0 20/2=10
S2 0 30 0 0 270 8 12 0 0 1 0 0 0 0 0 0 ---
A1 M 5 4 (2) 1 0 0 1 0 0 -1 0 0 1 0 0 5/2=2.5→
A2 M 20 4 5 7 7 0 3 0 0 0 -1 0 0 1 0 2/05=4
A3 M 12 2 3 0 0 0 3 0 0 0 0 -1 0 0 1 12/3=4
Z=37 - - -
Zj 10M 10M 8M 7M 0 7M 0 0 M M M
M M M M
Zj - 10M- 10M- 8M- 7M- - 7M-
0 0 -M -M -M 0 0 0
Cj 0.22 0.1↑ 0.1 0.09 0.16 0.07
Positive maximum Zj-Cj is 10M-0.1 and its column index is 2. So, the entering variable is x2.
∴ The key element is 2.
R3(new)=R3(old)÷2
0. 0.1
Cj 0.22 0.1 0.09 0.07 0 0 0 0 0 M M
1 6
C S S Min Ratio
B XB x1 x2 x3 x4 x5 x6 S3 S4 S5 A A
B 1 2 2 3
S1 0 15 -2 0 4 3 4 0 1 0 1 0 0 0 0 153=5
S2 0 30 0 0 270 8 12 0 0 1 0 0 0 0 0 308=3.75
0.
x2 52 2 1 12 0 0 12 0 0 -12 0 0 0 0 ---
1
1527=1514=1.07
A2 M 152 -6 0 92 (7) 0 12 0 0 52 -1 0 1 0
14
A3 M 92 -4 0 -32 0 0 32 0 0 32 0 -1 0 1 ---
-
Z=12M+0. 0. 3M+0. 2M+0. 4M- - -
Zj 10M+0. 7M 0 0 0 M M
25 1 05 05 0.05 M M
2
-
Zj - -10M- 3M- 7M- 2M- 4M- - -
0 0.1 0 0 0 0
Cj 0.02 0.05 0.09↑ 0.02 0.05 M M
6
Positive maximum Zj-Cj is 7M-0.09 and its column index is 4. So, the entering variable is x4.
R4(new)=R4(old)÷7
0. 0.0
Cj 0.22 0.1 0.16 0.07 0 0 0 0 0 M
1 9
Min
B CB XB x1 x2 x3 x4 x5 x6 S1 S S3 S4 S5 A Ratio
2 3
1651
S1 0 47 0 2914 0 4 -314 1 0 -114 37 0 0 ---
4
S2 0 1507 487 0 18547 0 12 -47 0 1 -207 87 0 0 ---
x2 0.1 52 2 1 12 0 0 12 0 0 -12 0 0 0 521/2=5
0.0 1514/114
x4 1514 -67 0 914 1 0 114 0 0 514 -17 0 0 =15
9
A3 M 92 -4 0 -32 0 0
()32
0 0 32 0 -1 1 923/2=3
- - -
Z=9M2+0.3 0. 0.0 3M2+0 3M2- -
Zj 4M+0.12 3M2+0.10 0 0 0 0.012 M
464 1 9 .0564 0.0179 M
29 79 9
- 3M2- -
-4M- 3M2- -
Zj-Cj 0 3M2+0.00 0 -0.16 0.0136 0 0 0.012 0
0.0971 0.0179 M
79 ↑ 9
Positive maximum Zj-Cj is 3M2-0.0136 and its column index is 6. So, the entering variable is x6.

R5(new)=R5(old) ×23
Cj 0.22 0.1 0.1 0.09 0.16 0.07 0 0 0 0 0

B CB XB x1 x2 x3 x4 x5 x6 S1 S2 S3 S4 S5 Min Ratio
S1 0 877 0 0 137 0 4 0 1 0 17 37 -17
S2 0 1627 163 0 18507 0 12 0 0 1 -167 87 -821
x2 0.1 1 103 1 1 0 0 0 0 0 -1 0 13
x4 0.09 67 -23 0 57 1 0 0 0 0 27 -17 121
x6 0.07 3 -83 0 -1 0 0 1 0 0 1 0 -23
Z=0.3871 Zj 0.0867 0.1 0.0943 0.09 0 0.07 0 0 -0.0043 -0.0129 -0.009
Zj-Cj -0.1333 0 -0.0057 0 -0.16 0 0 0 -0.0043 -0.0129 -0.009
Since all Zj-Cj≤0

x1=0,x2=1,x3=0,x4=67,x5=0,x6=3
Min Z=0.3871
SOLUTION IN EXCEL
The solution is
X2= 1 cup of oatmeal

X4= 0.857 slices of bacon
X6= 3 slices of wheat toast
Z= 0.387 cost per meal
The result of this simplified version of a real menu planning model is interesting in that it suggests a very
practical breakfast menu. This would be a healthy breakfast for anyone.
SENSITIVITY ANALYSIS
Variable Cells
Final Reduced Objective Allowable Allowable
Nam Coefficien
Cell e Value Cost t Increase Decrease
0.13333333 0.13333333
$B$2 X1= 0 3 0.22 1E+30 3
0.02714285 0.00428571
$B$3 X2= 1 0 0.1 7 4
9.90571428 9.90571428
$B$4 X3= 0 6 10 1E+30 6
0.85714285
$B$5 X4= 7 0 0.09 0.015 0.09
$B$6 X5= 0 0.16 0.16 1E+30 0.16
0.00428571 0.01357142
$B$7 X6= 3 0 0.07 4 9
Constraints
Final Shadow Constraint Allowable Allowable
Nam
Cell e Value Price R.H. Side Increase Decrease
$D$1 12.4285714
1 <= 20 0 0 3 1E+30
$D$1 23.1428571
2 <= 30 0 0 4 1E+30
-
$D$1 0.00428571
3 >= 5 4 0 1 3
-
$D$1 0.01285714
4 >= 20 3 0 6 20.25
-
$D$1 0.00904761
5 >= 12 9 0 4.5 3
MANAGERIAL IMPLICATION
Using the optimal solution, dietitian can finally deduce the amount of meal to be taken by the
senior citizens in order to maintain good health. In this model, the dietitian must have felt a high
protein breakfast was needed because the senior citizens should take good amount of protein in
their diet. An alternative approach to a healthy diet is a high protein breakfast followed by low
protein, light meals and snacks the rest of the day.
CONCLUSION
Breath taker dietitian is able to arrive at the optimal solution for the given problem of diet after 4
iterations. With the help of this solution, dietitian is able to develop a breakfast meal that is
especially important to senior citizens. And also able to minimize cost.
All of these would help dietitian to arrive at the least cost of $0.3871 cost per meal.

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OMDM PROJECT

LINEAR PROGRAMMING PROBLEM WITH BIG M METHOD

Submitted to: Prof. Alok Kumar

Component Manufacturing Cost ($) Purchasing Cost ($)

Doors $ 10.35 $ 13.50

Roof $ 5.85 $ 6.75

Component Stamping Welding Mounting

Chassis 3.15 1.20 2.80

Doors 1.15 1.50 2.35

Roof 0.70 - 1.50

Capacity (hours) 315 380 610

The objective is to minimize the cost of production,

MIN Z = 34.20C1 + 45.90C2 + 10.35D1 + 13.50D2 + 5.85R1 + 6.75R2

1. As the constraint-1 is of type '=' we should add artificial variable A1

2. As the constraint-2 is of type '=' we should add artificial variable A2

3. As the constraint-3 is of type '=' we should add artificial variable A3

4. As the constraint-4 is of type '≤' we should add slack variable S1

5. As the constraint-5 is of type '≤' we should add slack variable S2

6. As the constraint-6 is of type '≤' we should add slack variable S3

After introducing slack and artificial variables:

∴ The pivot element is 1.

Entering =R1, Departing =A3, Key Element =1

∴ The pivot element is 1.

Entering =D1, Departing =A2, Key Element =1

∴ The pivot element is 3.15.

Entering =C1, Departing =S1, Key Element =3.15

∴ The pivot element is 1.

Entering =C2, Departing =A1, Key Element =1

∴ The pivot element is 1.

Entering =R2, Departing =R1, Key Element =1

∴ The pivot element is 0.3651.

Entering =D2, Departing =C2, Key Element =0.3651

Since all Zj-Cj ≤ 0

Hence, optimal solution is arrived with value of variables as:

C1=4500, C2=0, D1=4108.6957, D2=4891.3043, R1=0, R2=4500

Maximize Z = 3x1 – x2 + 2x3

Subject to the following constraints: -

where x1, x2, x3 ≥ 0

2. Solution to the above problem: -

Converting inequalities to equalities:

where, x4 is a slack variable, x5 is a surplus variable.

Optimality Condition: All Zj – Cj are >= 0

The iterations are as follows: -

The cell adjustments will be done as follows: -

Zj-Cj 0 -5M+0.5↑ 4M-0.5 0 -2M-1.5 0

Zj-Cj 0 0 -0.1 0 -1.7↑

Zj-Cj 0 4.25 -3.5↑ 0 0

Zj-Cj 0 9.5 0 2.3333 0

The optimality condition is satisfied in Iteration – 5. Since, all Zj – Cj >= 0.

Max. Z = 3*2.5 + 2*2.5

II. Excel Solver: -

3. Interpretation of the above solution: -

Subject to the following constraints: -

2. Solution to the above problem: -

Converting inequalities to equalities:

Optimality Condition: All Zj – Cj are >= 0

The iterations are as follows: -

The cell adjustments will be done as follows: -

The optimality condition is satisfied in Iteration – 3. Since, all Zj – Cj >= 0.

II. Excel Solver: -

3. Interpretation of the above solution: -

Frandec Company manufactures, assembles, and rebuilds material

Three departments are involved in the production of these components.

The objective is to minimize the cost of application,

Max. Z = 32.5 + 22.5