LINEAR PROGRAMMING -I

1. A factory manufactures two products A and B. to e manufacture one unit of A, 1.5

machine hours and 2.5 labour hours are required. To manufacture product B, 2.5
machine hours and 1.5 labour hours are required. In a month, 300 machine hours and
240 labour hours are available.
Profit per unit, for A is Rs.50 and for B is Rs.40. formulate as LPP.

2. A company produces three products A,B,C. For manufacturing three raw material P,Q,R
are used. Profit per unit:A-Rs.5,B-Rs.3,-Rs.4.
Resource requirements/unit:
Raw material
Product P Q R
__ 20 50
A
20 30 __
B

30 20 40
C
Maximum raw material availability:
P-80 units,Q-100 units,R-150 units. Formulate as LPP.

3. An investor is considering investing in two securities ‘A’ and ‘B’. The risk and return
associated with these securities is different. Security ‘A’ gives a return of 9% and has a
risk factor of 5 on a scale of zero to 10.Security ‘B’ gives return of 15% but has risk factor
of 8. Total minimum returns on the investment should be 12%. Maximum combined risk
should not be more than 6.
Formulates as LPP

4. Mr. Akshay wants to invest in two mutual funds A and B. His total investment is
Rs.10,00,000 and not more than Rs. 700,000 will be invested in a single fund. Fund A
gives returns of 15%p.a. & fund B gives returns of 20%p.a. The risk factor ratings on a
scale of 0-10 are, for A-4 and for B-8.
Minimum desired returns are 17.5% and maximum tolerable risk factor is 6 for
Mr. Akshay. Formulate as LPP.

5. An advertising agency is planning to launch an ad campaign. Media under consideration

are T.V., Radio & Newspaper. Each medium has different reach potential and different

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cost. Minimum 10,000,000 households are to be reached through T.V. Expenditure on

newspaper should not be more than Rs. 10.00 lacs. Total advertising budget is Rs. 20
million.
Following data is available:
Medium Cost per unit(Rs.) Reach per unit
(no. of household)
T.V 200,000 2000,000
Radio 80,000 1000,000
Newspaper 40,000 200,000

6. M/s. NMK Enterprises wish to launch an advertising campaign targeted at two sets of
target audience-Monthly income ≥ Rs.25,000 and monthly income ˂Rs.25,000. Total
adv. Budget is Rs. 500,000.The company plans to use two media- T.V. and Radio.
Cost per advertisement is Rs.100,000 for T.V and Rs. 40,000 for Radio minimum 4 T.V.
ads should be shown, whereas upper limit for Radio ad is 6.
Reach per ad is as below:
Income ≥ 25,000 Income < 25,000
T.V 450,000 50,000
Radio 120,000 180,000
Formulate as LPP to maximize reach for total number of target audience.

7. Vitamin B1, and B2 are found in two foods F1 and F2. 1 unit of F1 contains 3 units of B1
and 4 units of B2. 1unit of F2 contains 5 unit of B1 and 3 units of B2.
Minimum daily prescribed consumption of B1& B2is 50 and 60 units respectively Cost per
unit of F1 and F2 is Rs.6 & Rs.3 respectively. Formulate as LPP.

8. Two nutrients N1& N2 are recommended for athletes which are available in two
products P1& P2. Minimum daily intake for N1& N2 is 30 and 40 units respectively cost
for 1 unit for P1 & P2 is Rs.100 & Rs.150 respectively 1 unit of P1 contains 3 units of N1
and 5 units of N2.1 unit of P2 contains 5 units of N1 and 7 units of N2.Formulate as LPP.

9. A factory manufactures two products P and Q. To manufacture one unit of P, 3 machine

hours and 4 labour hours are required. To manufacture one unit of Q, 5 machine hours
and 3 labour hours are required. Profit per unit for P & Q is Rs. 10 & Rs. 8 respectively.
Availability of machine hours & labour hours (per week) is 160 & 140 respectively.
Formulate as LPP.

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10. A company produces three products X,Y,Z. For which it uses three raw material P,Q,R.

Resources requirement per unit:

Products Raw Materials

P Q R
X 4 6 ---
Y --- 4 10
Z 6 4 8
Maximum availability of raw material is:

P: 16 units, Q: 20 units, R: 30 units.

Profit per unit is:

X: Rs.6, Y: Rs.10, Z: Rs.8

Formulate as LPP.

11.) Nutrients A & B are to be given on daily basis to farm animals. Minimum daily requirement
of A & B is 80 & 100 units respectively. Two products P1 & P2 contain A & B. One unit of P1
contains 4 units of A and 6 units of B. One unit of P2 contains 8 units of A and 4 units of B. Cost
per unit for P1 & P2 is Rs. 10 & Rs. 5 respectively. Formulate as LPP tp minimize cost.

12. Two vitamins V1 and V2 are recommended for young adults in minimum quantity of 60 and
80 units per day. The vitamins are found in two foods F1 and F2. Cost per unit for F1 and F2 is
Rs. 20 and Rs. 30 respectively. Quantity of vitamins available per unit of F1 & F2 are:

F1: 5 units of V1 & 10 units of V2

F2: 10 units of V1 & 15 units of V2

Formulate as LPP to minimize cost.

13. A company produces two products P and Q. Profit per unit for P and Q is Rs. 400 and Rs.300
respectively. Both the products are processed on a machine having maximum capacity of
30,000 machine hours. Maximum demand for P and Q is estimated at 80 and 120 units
respectively. For one unit of P,300 machine hours are required. For one unit of P, 300 machine
hours are required. For one unit of Q, 100 machine hours are required. Formulate as LPP to
maximize total profit.

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14. Four investment options are available for Mr.X to invest his retirement funds. His principles
for investing are:

(1) Maximum total risk of 2 on a scale of 1-5.

(2) Minimum return on investment of 12%.

Investment options:

Investment Return on investment Risk factor

Equity 20% 5
Real Estate 20% 4
Bank TDR 10% 1
NSC 9% 1
Formulate as LPP to maximize return on investment.

Total funds available for investment=Rs.20 lacs.

15. An advertising agency wants to prepare media mix to launch advertising campaign of a
FMCG product. Three media are under consideration –T.V., Radio & Newpaper. Available data
regarding reach and cost of each media is as below:

Medium Cost/unit Reach/unit

T.V. Rs.200,000 1000’000 household
Radio Rs.50,000 300,000 household
Newspaper Rs.15,000 50,000 household
Total advertising budget is Rs. 1000,000.

Minimum 500,000 household should not be reached through Radio alone. Expending on T.V.
should not be more than Rs. 600,000.

Formulate as LPP to maximize reach.

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