1.

A company makes two products (say, P and Q) using two

machines (say, A and B). Each unit of P that is produced requires
50 minutes processing time on machine A and 30 minutes
processing time on machine B. Each unit of Q that is produced
requires 24 minutes processing time on machine A and 33 minutes
processing time on machine B. Machine A is going to be available
for 40 hours and machine B is available for 35 hours. The profit
per unit of P is $25 and the profit per unit of Q is $30. Company
policy is to determine the production quantity of each product in
such a way as to maximize the total profit given that the available
resources should not be exceeded.
Let us first create a table using the above data
Machine A Machine B Profit
Product P 50 min 30 min $25
Product Q 24 min 33 min $30
40 hrs (2400 35 hrs (2100
min) min)

Step 1: Identify the decision variable

Let X1 be the number of units of Product P
Let X2 be the number of units of Product Q
Step 2: Objective Function:
Since in the problem, it is mentioned as maximize the total profit.
Hence this is a Maximization Problem.
Max Z = 25X1 + 30X2
Step 3: Constraints
Processing time constraint on Machine A: 50X1+24X2 ≤ 2400
Processing time constraint on Machine B: 30X1+33X2 ≤ 2100

Step 4: Non Equality Constraint:

X1, X2 ≥ 0

2. An operations manager is trying to determine a

production plan for the next week. There are three
products (say, P, Q, and R) to produce using four
machines (say, A and B, C, and D). Each of the four
machines performs a unique process. There is one
machine of each type, and each machine is available
for 2400 minutes per week. The unit processing
times for each machine is given in Table 1.
Table 1: Machine Data Unit Processing Time (min)
Machine Product P Product Q Product R Availabilit
y (min)
A 20 10 10 2400
B 12 28 16 2400
C 15 6 16 2400
D 10 15 0 2400
Total 57 59 42 9600
processi
ng time
The unit revenues and maximum sales for the week are
indicated in Table 2. Storage from one week to the next
is not permitted.

Table 2: Product Data

Item Product P Product Q Product R
Revenue per $90 $100 $70
unit
Material cost $45 $40 $20
per unit
Profit per unit $45 $60 $50
Maximum sales 100 40 60

Here we seek the “optimal” product mix-- that is, the

amount of each product that should be manufactured
during the present week in order to maximize profits.
Formulate this as an LP.
Solution:
Step 1: Identify the decision variable
Let x1 be the number of units of product P
Let x2 be the number of units of product Q
Let x3 be the number of units of product R

Step 2: Objective Function:

Max Z = 45x1 + 60x2 + 50x3

Step 3: Constraints
Availability of Machine A: 20x1 + 10x2 + 10x3 ≤ 2400
Availability of Machine B: 12x1 + 28x2 + 16x3 ≤ 2400
Availability of Machine C: 15x1 + 6x2 + 16x3 ≤ 2400
Availability of Machine D: 10x1 + 15x2 ≤ 2400
Sales Constraint
x1 ≤ 100
x2 ≤ 40
x3 ≤ 60
Step 4: Non Equality Constraint:
X1, X2, X3 ≥ 0

3. A manufacturing company is engaged in producing three types of

products: A, B and C. The production department produces, each
day, components sufficient to make 50 units of A, 25 units of B
and 30 units of C. The management is confronted with the problem
of optimizing the daily production of the products in the assembly
department, where only 100 man hours are available daily for
assembling the products. The following additional information
available.
 Type of Product Profit Contribution Assembly Time per
per Unit of Product product (hrs)
(Rs)
A 12 0.8
B 20 1.7
C 45 2.5
The company has a daily order commitment for 20 units of products A
and a total of 15 units of products B and C. Formulate this problem as an
LP model so as to maximize the total profit.
Solution
Re-writing the above problem in table format with all the necessary
information.
Profit Assembly
Type of Contribution Time per Production Order
Product per Unit of product Limitation Commitment
Product (Rs) (hrs)
A 12 0.8 50 20
B 20 1.7 25
15
C 45 2.5 30
Total available hours 100

Step 1: Identify the decision variable

Let x1 be the number of products to be produced in product A
Let x2 be the number of products to be produced in product B
Let x3 be the number of products to be produced in product C
Step 2 : Objective Function:
Max Z = 12x1 + 20x2 + 45x3
Step 3: Constraints
Assembly Time Constraint: 0.8x1 + 1.7x2 + 2.5x3 ≤ 100
Production Constraint: x1 ≤ 50
x2 ≤ 25
x3 ≤ 30

Order Constraint: x1 ≥ 20
x2 + x3 ≥ 15

Step 4: Non negativity constraint

x1, x2, x3 ≥ 0

4. A company has two plants, each of which produces and supplies

two products: A and B. The plants can work up to 16 hours a day.
In plant 1, it takes three hours to prepare and pack 1,000 gallons of
A and one hour to prepare and pack one quintal of B. In plant 2, it
takes two hours to prepare and pack 1,000 gallons of A and 1.5
hours to prepare and pack a quintal of B. In plant 1, it costs Rs
15,000 to prepare and pack 1,000 gallons of A and Rs 28,000 to
prepare and pack a quintal of B, where as in plant 2 these costs are
Rs 18,000 and Rs 26,000 respectively. The company is obliged to
produce daily at least 10 thousand gallons of A and 8 quintals of B.
 Formulate this problem as an LP model to find out as to how the
company should organize its production so that the required
amounts of the two products be obtained at the minimum cost.

Solution:
Creating a table with all the information

Plant Product A Product B Maximum

(1000 (Quintal) work time
Gallons)
Preparation Plant 1 3 hrs 1 hr 16 hrs
time Plant 2 2 hrs 1.5 hrs 16 hrs
Cost of Plant 1 Rs 15,000 Rs 28,000
Production Plant 2 Rs 18,000 Rs 26,000
Target 10 8
Production

Step 1: Identify the decision variable

Let x1 be the quantity of Product A produced in Plant 1
Let x2 be the quantity of Product B produced in Plant 1
Let x3 be the quantity of Product A produced in Plant 2
Let x4 be the quantity of Product B produced in Plant 2

Step 2 : Objective Function:

Since we have to obtain the minimum cost, this is a Minimization
Problem.
(Minimize Cost) Min Z = 15,000x1 + 28,000 x2 + 18,000 x3 + 26000 x4
Step 3: Constraints
Preparation Time Constraint:
3x1 + x2 ≤ 16
2x3 + 1.5 x4 ≤ 16
Target Production Constraint:
x1 + x3 ≥ 10
x2 + x4 ≥ 8

Step 4: Non negativity constraint

x1, x2, x3 & x4 ≥ 0

5. An advertising company wishes to plan an advertising campaign

for three different media: Television, Radio and a Magazine. The
Purpose of the advertising is to reach as many potential customers
as possible. The following are the results of a market study:
 Television
Prime Prime Radio Magazine
Day Time (Rs.) (Rs.)
(Rs.) (Rs.)
Cost of an
40,000 75,000 30,000 15,000
advertising unit
Number of
potential 4,00,00
9,00,000 5,00,000 2,00,000
customers 0
reached per unit
Number of
women 3,00,00
4,00,000 2,00,000 1,00,000
customers 0
reached per unit

The company does not want to spend more than Rs. 8,00,000 on
advertising. It is further required that
(i) At least 2 million exposures take place amongst women,
(ii) The cost of advertising on television be limited to Rs. 5,00,000,
(iii) At least 3 advertising units be bought on prime day and two units
during prime time
(iv) The number of advertising units on the radio and the magazine
should each be between 5 and 10.
Formulate this problem as an LP model to maximize potential customer
reach.
Solution:
Step 1: Identify the decision variable:
Let x1 be the number of advertising units bought in Television Prime
Day.
Let x2 be the number of advertising units bought in Television Prime
Time.
Let x3 be the number of advertising units bought in Radio.
Let x4 be the number of advertising units bought in Magazine.
Step 2: Objective Function:
Since it is mentioned to maximize potential customer reach, this is a
maximization problem.

Max Z = 4,00,000x1 + 9,00,000x2 + 5,00,000x3 + 2,00,000x4

Step 3: Constraints
Advertising Budget:
40,000x1 + 75,000x2 + 30,000x3 + 15,000x4 ≤ 8,00,000
Women Customer exposure:
3,00,000x1 + 4,00,000x2 + 2,00,000x3 + 1,00,000x4 ≥ 20,00,000
Cost of advertising on television
40,000x1 + 75,000x2 ≤ 5,00,000
x1 ≥ 3
x2 ≥ 2
Advertising units on the radio and the magazine
5 ≤ X3 ≤ 10
5 ≤ X4 ≤ 10

Step 4: Non negativity constraint

x1, x2, x3 & x4 ≥ 0