Quantitative Analysis for

Management
Goa Institute of Management
PGDM-FT 2023-2024

27-09-2023 Deepti Mohan | Goa Institute of Management

 Problem A (System of linear equations)
• An animal feed company 𝑥𝐴 + 𝑥𝐵 = 200
must produce 200 kg of a 3𝑥𝐴 + 8𝑥𝐵 = 1100

mixture consisting of
ingredients A and B daily.
Ingredient A costs Rs. 3 per
kg, and ingredient B costs
Rs. 8 per kg. If the total cost
of the mixture is Rs. 1100,
determine how much of
each ingredient should be
used.

27-09-2023 Deepti Mohan | Goa Institute of Management

 Problem A (System of linear equations)
• An animal feed company 𝑥𝐴 + 𝑥𝐵 = 200
must produce 200 kg of a 3𝑥𝐴 + 8𝑥𝐵 = 1100

mixture consisting of
ingredients A and B daily.
Ingredient A costs Rs. 3 per
kg, and ingredient B costs
Rs. 8 per kg. If the total cost
of the mixture is Rs. 1100,
determine how much of
each ingredient should be
used.

27-09-2023 Deepti Mohan | Goa Institute of Management

Problem B (LPP)
• An animal feed company must produce 200 kg
of a mixture consisting of ingredients A, and B
daily. A costs Rs. 3 per kg and B Rs. 8 per kg.
Not more than 80 kg A can be used and at
least 60 kg of B must be used. Find how much
of each ingredient should be used if the
company wants to minimize the cost.
Maximize 3𝑋1 + 8𝑋1
s.t.
𝑋1 + 𝑋2 =200
𝑋1 ≤ 80
𝑋2 ≥ 60
𝑋1 , 𝑋2 ≥ 0

27-09-2023 Deepti Mohan | Goa Institute of Management

Problem B (LPP)
• An animal feed company must produce
200 kg of a mixture consisting of
ingredients A, and B daily. A costs Rs. 3 per
kg and B Rs. 8 per kg. Not more than 80 kg
A can be used and at least 60 kg of B must
be used. Find how much of each ingredient
should be used if the company wants to
minimize the cost.
Maximize 3𝑋1 + 8𝑋1
s.t.
𝑋1 + 𝑋2 =200
𝑋1 ≤ 80
𝑋2 ≥ 60
𝑋1 , 𝑋2 ≥ 0

27-09-2023 Deepti Mohan | Goa Institute of Management

Plotting an inequality
•𝑥≤3 Tip: Put x=0 and y=0
and see if the
• 𝑥+𝑦 ≤5 inequality is satisfied. If
• 𝑥−𝑦 ≥3 yes, origin(0,0) is part
of the inequality, hence
• 2𝑥 − 3𝑦 ≤ −3 it is the half plane that
includes the origin. If
no, it is the half plane
that does not include
the origin.

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 1
Maximize
Z = 10x1 + 15x2
Subject to
2x1 + x2 ≤ 26
2x1 + 4x2 ≤ 56
1x1 – 1x2 ≥ -5
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 1
Maximize
Z = 10x1 + 15x2
Subject to
2x1 + x2 ≤ 26
2x1 + 4x2 ≤ 56
1x1 – 1x2 ≥ -5
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 1
Maximize
Z = 10x1 + 15x2
Subject to
2x1 + x2 ≤ 26
2x1 + 4x2 ≤ 56
1x1 – 1x2 ≥ -5
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 1
Maximize
Z = 10x1 + 15x2
Subject to
2x1 + x2 ≤ 26
2x1 + 4x2 ≤ 56
1x1 – 1x2 ≥ -5
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 1
Maximize
Z = 10x1 + 15x2 A bounded feasible region is
composed of:
Subject to
1) Interior points
2x1 + x2 ≤ 26 2) Boundary points (excluding
corner points)
2x1 + 4x2 ≤ 56
3) Corner points
1x1 – 1x2 ≥ -5
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 1
Maximize
Z = 10x1 + 15x2 A bounded feasible region is
composed of:
Subject to
1) Interior points
2x1 + x2 ≤ 26 2) Boundary points
(excluding corner points)
2x1 + 4x2 ≤ 56
3) Corner points
1x1 – 1x2 ≥ -5
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 1
A bounded feasible region is
composed of:
Maximize 1) Interior points
Z = 10x1 + 15x2 2) Boundary points
(excluding corner points)
Subject to 3) Corner points
2x1 + x2 ≤ 26
Irrespective of the objective
2x1 + 4x2 ≤ 56 function, either E or F has better
objective function value than that
1x1 – 1x2 ≥ -5
of I and either G or H has a better
& x1, x2 ≥0 objective function value than that
of I. Interior points are always
dominated by boundary points.

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 1
A bounded feasible region is
composed of:
Maximize 1) Interior points
Z = 10x1 + 15x2 2) Boundary points
(excluding corner points)
Subject to 3) Corner points
2x1 + x2 ≤ 26
2x1 + 4x2 ≤ 56
A boundary point which is
1x1 – 1x2 ≥ -5 not a corner point is
& x1, x2 ≥0 dominated by one of the
two corner points on its
either side.

27-09-2023 Deepti Mohan | Goa Institute of Management

LPP – key ideas
• Every point inside the feasible region is dominated by a boundary
point.
• Every boundary point is dominated by a corner point (At best, a
boundary point can only be as good as a corner point).
• Hence optimal solution is one of the corner points.

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 1
Maximize
Objective Function
Z = 10x1 + 15x2 Corner points Value
10X1+ 15X2
Subject to
(8,10) 10(8)+ 15(10) = 230
2x1 + x2 ≤ 26
2x1 + 4x2 ≤ 56 (13,0) 10(13)+ 15(0) = 130

1x1 – 1x2 ≥ -5
(6,11) 10(6)+ 15(11) = 225
& x1, x2 ≥0
(0,5) 10(0)+ 15(5) = 75

(0,0) 10(0)+ 15(0) = 0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 1
Objective Function
Coordinates
Point Value
Maximize (X1,X2)
10X1+ 15X2
Z = 10x1 + 15x2
A (8,10) 10(8)+ 15(10) = 230
Subject to
2x1 + x2 ≤ 26 B (13,0) 10(13)+ 15(0) = 130

2x1 + 4x2 ≤ 56
C (6,11) 10(6)+ 15(11) = 225
1x1 – 1x2 ≥ -5
D (0,5) 10(0)+ 15(5) = 75
& x1, x2 ≥0

E (0,0) 10(0)+ 15(0) = 0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 2
Minimize
Z = 3x1 + 5x2
Subject to
-3x1 + 4x2 ≤ 12
2x1 + 3x2 ≥ 12
2x1 – 1x2 ≥ -2
x1 ≤ 4
x2 ≥ 2
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 2
Minimize
Z = 3x1 + 5x2
Subject to
-3x1 + 4x2 ≤ 12
2x1 + 3x2 ≥ 12
2x1 – 1x2 ≥ -2
x1 ≤ 4
x2 ≥ 2
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 2
Minimize
Z = 3x1 + 5x2
Subject to
-3x1 + 4x2 ≤ 12
2x1 + 3x2 ≥ 12
2x1 – 1x2 ≥ -2
x1 ≤ 4
x2 ≥ 2
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 2
Minimize
Objective
Coordinates
Z = 3x1 + 5x2 Point Function Value
(X1,X2)
3X1+ 5X2
Subject to
-3x1 + 4x2 ≤ 12 A (4/5,18/5)
3(4/5)+ 5(18/5) =
102/5=20.4
2x1 + 3x2 ≥ 12
2x1 – 1x2 ≥ -2 B (4,6) 3(4)+ 5(6) = 42

x1 ≤ 4 C (3/4,7/2)
3(3/4)+ 5(7/2) =
79/4=19.75
x2 ≥ 2
D (3,2) 3(3)+ 5(2) = 19
& x1, x2 ≥0
E (4,2) 3(4)+ 5(2) = 22

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 3
Maximize
Z = 6x1 + 8x2
Subject to
2x1 + 3x2 ≥ 15
4x1 + 2x2 ≥ 8
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 3
Maximize
Z = 6x1 + 8x2
Subject to
2x1 + 3x2 ≥ 15
4x1 + 2x2 ≥ 8
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 3
Maximize
Z = 6x1 + 8x2
Unbounded feasible region
Subject to Unbounded solution

2x1 + 3x2 ≥ 15
4x1 + 2x2 ≥ 8
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 4
Minimize
Z = 6x1 + 8x2
Subject to
2x1 + 3x2 ≥ 15
4x1 + 2x2 ≥ 8
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 4
Minimize
Z = 6x1 + 8x2
Subject to
2x1 + 3x2 ≥ 15
4x1 + 2x2 ≥ 8
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 4
Minimize
Z = 6x1 + 8x2 Unbounded feasible region
Unique optimal solution
Subject to
2x1 + 3x2 ≥ 15
4x1 + 2x2 ≥ 8
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 5
Maximize
Z = 2000x1 + 4000x2
Subject to
1x1 - 2x2 ≥ 10
1x1 + 2x2 ≤ 30
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 5
Maximize
Z = 2000x1 + 4000x2
Subject to
1x1 - 2x2 ≥ 10
1x1 + 2x2 ≤ 30
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 5
Maximize Objective
Coordinates Function Value
Z = 2000x1 + 4000x2 (X1,X2) 2000X1+
4000X2
Subject to
2000(20)+
(20,5) 4000(5) =
1x1 - 2x2 ≥ 10 60000
1x1 + 2x2 ≤ 30 2000(10)+
(10,0) 4000(0) =
& x1, x2 ≥0 20000
2000(30)+
(30,0) 4000(0) =
60000

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 5
Maximize
Infinite number of optimum
Z = 2000x1 + 4000x2 solutions
Subject to
1x1 - 2x2 ≥ 10
1x1 + 2x2 ≤ 30
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 6
Maximize
Z = 20x1 + 30x2
Subject to
2x1 + x2 ≤ 40
4x1 - x2 ≤ 20
x1 ≥ 30
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 6
Maximize
Z = 20x1 + 30x2
Subject to
2x1 + x2 ≤ 40
4x1 - x2 ≤ 20
x1 ≥ 30
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 6
Maximize
Z = 20x1 + 30x2 No feasible solution

Subject to
2x1 + x2 ≤ 40
4x1 - x2 ≤ 20
x1 ≥ 30
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 7
Maximize
Z = 6x1 + x2
Subject to
2x1 + 3x2 ≤ 16
4x1 + 2x2 ≥ 16
2x1 + x2 =16
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 7
Maximize
Z = 6x1 + x2
Subject to
2x1 + 3x2 ≤ 16
4x1 + 2x2 ≥ 16
2x1 + x2 =16
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Graphical Method: Example - 7
Maximize Feasible region is
a point (only one
Z = 6x1 + x2 feasible solution)
Subject to
2x1 + 3x2 ≤ 16
4x1 + 2x2 ≥ 16
2x1 + x2 =16
& x1, x2 ≥0

27-09-2023 Deepti Mohan | Goa Institute of Management

Convexity
▪ A set (or region) is convex if only if for any two points on the set, the
line segment joining those points lies entirely in the set.
▪ The feasible region of a linear programming problem is a convex set.

27-09-2023 Deepti Mohan | Goa Institute of Management

Convexity
▪ A set (or region) is convex if only if for any two points on the set, the
line segment joining those points lies entirely in the set.
▪ The feasible region of a linear programming problem is a convex set.

27-09-2023 Deepti Mohan | Goa Institute of Management

Convexity
▪ A set (or region) is convex if only if for any two points on the set, the
line segment joining those points lies entirely in the set.
▪ The feasible region of a linear programming problem is a convex set.

A non-convex
A convex set set

27-09-2023 Deepti Mohan | Goa Institute of Management

LPP – key ideas
Feasible region: The region containing all the feasible solutions of
a linear programming problem.
A bounded feasible region is composed of:
1) Interior points
2) Boundary points
3) Corner points (also called extreme points)
• Every point inside the feasible region is dominated by a boundary
point. Every boundary point is dominated by a corner point (At best, a
boundary point can only be as good as a corner point). Hence optimal
solution is one of the corner (extreme) points.
• The feasible region of an LPP is a convex set.

27-09-2023 Deepti Mohan | Goa Institute of Management

Solve the problem
• The Healthy Juices Co. is renowned for producing organic juices and
smoothies. The company recently decided to explore full-scale
production and selling of Orange Juice and Mixed Berry Smoothie.
They have inaugurated a new production unit which can operate for
48 hours per week. Preparing a batch of Orange Juice consumes 2
hours, whereas a batch of Mixed Berry Smoothie requires 3 hours.
The profit contribution from selling each batch of Orange Juice is Rs.
4000, while a batch of Mixed Berry Smoothie contributes Rs. 8000 to
the profits. The sales team, after extensive market analysis, concluded
that a maximum of 15 batches of Orange Juice and 10 batches of
Mixed Berry Smoothie can be sold each week.
27-09-2023 Deepti Mohan | Goa Institute of Management
𝑥1 = Number of batches of Orange Juice produced and sold each week.
𝑥2 = Number of batches of Mixed Berry Smoothie produced and sold
each week.
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 4000𝑥1 + 8000𝑥2
𝑆𝑢𝑏𝑗𝑒𝑐𝑡 𝑡𝑜:
2𝑥1 + 3𝑥2 ≤ 48[Time Constraint]
𝑥1 ≤ 15 [Orange Juice Demand Constraint]
𝑥2 ≤ 10[Smoothie Demand Constraint]
𝑥1 , 𝑥2 ≥ 0 [Non−negativity Constraint]

27-09-2023 Deepti Mohan | Goa Institute of Management

27-09-2023 Deepti Mohan | Goa Institute of Management
 C (0, 10) 80000
H (9, 10) 116000
G (15, 6) 108000
E (15, 0) 60000
I (0, 0) 0

27-09-2023 Deepti Mohan | Goa Institute of Management

27-09-2023 Deepti Mohan | Goa Institute of Management