Practice Problems on LP Formulation (Solve graphically wherever possible)

1. A manufacturer employs three inputs, man-hours, machine-hours, and cloth material to manufacture two
types of dresses, type A and type B. A dress type A fetches a profit of Rs. 160 per piece while a type B dress
fetches a profit of Rs. 180 per piece. The manufacturer has enough man-hours to manufacture 50 pieces of
type a or 20 pieces of type B dress per day, while the machine hours available will suffice only for 36 pieces
type A or 24 pieces of type B dress. The cloth material is only sufficient for 30 pieces of either type of dress.
Formulate the problem as LPP.
2. A firm manufactures three products A, B, C. Time required to manufacture product A is twice that for B and
thrice that for C. The products are to be manufactured in the ratio 3:4:5. The raw material requirement and
their availabilities are given in the table below. If the whole time available is engaged in manufacturing
product A, 1600 units of this product can be produced. The firm has to supply at least 300, 250, and 200 units
of products A, B, and C, and the profit earned per unit is Rs. 50, Rs. 40, and Rs. 70 respectively. Formulate
the problem as LPP.
3. A diet is to contain at least 20 ounces of protein and 15 ounces of carbohydrates. There are three food items
A, B and C costing Rs. 2, Re 1 and Rs. 3 per unit respectively. Each unit of A contains 2 ounces of protein
and 4 ounces of carbohydrates; each unit of B contains 3 ounces of protein and 2 ounces of carbohydrates;
and each unit of C contains 4 ounces of protein and 2 ounces of carbohydrates. Formulate the problem as LPP
to determine the minimum cost diet.
4. A company produces two products A and B. The sales volume for product A is at least 60% of the total sales
of the two products. Both products use the same raw material at the rates of 2 lb/ unit and 4 lb/unit
respectively, and the availability of this R.M. is The sales price for the two products are $ 20 and $ 40 per
unit. Formulate the problem as LPP to determine the optimal allocation of the raw material to the two
products.
5. A dealer in used car wishes to stock up his lot to maximize his profit. He can select cars A, B and C which are
valued at wholesale rates at $ 500, $ 700 and $ 800 respectively. These can be sold at $ 600, $ 850 and $ 1050
respectively. For each car type, the probability of sale is: Type A: 0.7, Type B: 0.8, Type C: 0.6. For every
two cars of B type, he must buy one car of type A or C. If he has $ 20, 000 to invest, how should he invest in
the three types cars? Formulate the problem as LPP.
6. A bank is in the process of formulating a loan policy involving a total of $ 12 millions. Being a service
facility, the bank is obliged to grant loans to different clients. The following table provides the type of loan,
the interest rate charged by the bank, and the probability of bad debt as estimated from the past experience

Type of loan Interest rate % Probability of bad debt

Personal 14 0.10
Car 13 0.07
Home 12 0.03
Farm 12.5 0.05
Commercial 10 0.02

D debts are assumed unrecoverable, and hence, produce no interest revenue. Competition with other financial
institutions requires that the bank allocate at least 40% of the total funds to farms and commercial loans. To assist the
housing industry, the home loan must equal at least 50% of the personal, car and home loans taken together. The bank
also has a stated policy that the overall ratio for bad debts on all loans must not exceed 0.04. Formulate the problem as
LPP to maximize the revenue earnings of the bank.

7. An individual wishes to invest $5000 over the next year in two types of investments: Investment A yields 5%
and investment B yields 8%. Market research recommends an allocation of at least 25% in A and at most 50%
in B. Moreover, investment in A should be at least half the investment in B. How should the fund be allocated
to the two investments?
Use Simplex Method to solve the following LPPs and comment on the solutions obtained

(i) Maximize Z = 2x1 + 2x2 (vi) Maximize Z = 3x1 + 2x2

s.t. x1 + x2 ≤ 3 s.t. 2x1 + x2 ≤ 2
x1 ≤ 2 3x1 + 4x2  12
x2 ≤ 2 x1, x 2  0
x 1, x 2  0
(vii) Maximize Z = 3x1 + 2x2+8x3
(ii) Maximize Z = 5x1 + 3x2
s.t. 4x1 - 3x2 +12 x3  12
s.t. x1 + x2 ≤ 2
x1 + x3 ≤ 6
5x1 + 2x2 ≤ 10
x 1 – x2 = 2
3x1 + 8x2 ≤ 12
x1, x 2  0
x1, x 2  0
(viii) Maximize Z = 2x1 + 3x2 +10x3
(iii) Maximize Z = 3x1 - x2
s.t. x1 + 2x2 = 0
s.t. 2 x1 + x2  2 x2 + x3 = 1
x1 + 3x2 ≤ 3 x1, x 2  0
x2  4
x1, x 2  0 (ix) Maximize Z = 6x1 +3x2
s.t. 2 x1 + x2 ≤ 8
(iv) Maximize Z = 5x1 - 2x2 + 3x3
3x1 + 3x2 ≤ 18
s.t. 2 x1 + 2x2 - x3  2
x2 ≤ 3
3x1 - 4x2 ≤ 3
x1, x2 , x3  0
x1 + 3x3 ≤ 5
x1, x2 , x3  0 (x) Minimize Z = 2x1 + 8x2
s.t. 5x1 + x2  10
(v) Maximize Z = 3x1 + 5x2
2x1 + 2x2  14
s.t. x1 - 2x2 ≤ 6
x1 + 4x2  12
x1 ≤ 10
x1, x 2  0
x2  1
x1, x 2  0
(xi) Minimize Z = 5x1 + 2x2 + 10x3 (xii) Minimize Z = 5x1 + 2x2 + 10x3
s.t. x1 - x3 ≤ 10 sub. to: x1 - 2x2 + x3≤ 11
x2 + x3  10 -4x1 + x2 +2 x3  3
x1, x2 , x3  0 -2x1 + x3 = 1
x 1, x 2 , x 3  0
(xiii) Maximize Z = 3x1 + 6x2
(xiv) Minimize Z = 4x1 + x2
s.t. 3x1 + 4x2  12 sub. to: 3x1 + x2 = 3
-2x1 + x2 ≤ 4 4x1 + 3x2  6
x1, x 2  0 x1 + 2x2 ≤ 4
x1, x2 , x3  0
(xv) Maximize Z = 2x1 + 1.5x2
s.t. x1 - x2 ≤ 2
2x1 - x3 ≤ 4
x1 + x2 + x3 ≤ 3
x1, x2 , x3  0