1. The Xyz Company wishes to schedule the production of two items namely chairs and tables.

The management of the company has to decide as to how many chairs and tables to be produced
per day to maximize the profit. The following information is available to the management. The
profit per item is `35 and `55, respectively. In order to produce the two items that requires re-
sources wood, manpower and machine hour. The supply of wood is restricted to 1500 kg/day.
The manpower available per day is 75 carpenters. Also the maximum of 120 machine hours
available per day. The production formula is as given in the following table.

Requirement Per Unit

Wood (kg) Manpower (persons) Machine (hr)
Chair 6 2 4
Table 12 3 6

Formulate an LP model to determine the daily production rate of various models in order to
maximize the profit.

2. A firm manufactures three products A, B and C. The profits are `3, `2 and `4, respectively. The
firm has two machines. The processing time in minutes for each machine on each product is
given below.

Products
A B C
Machines D 4 3 5
E 2 2 4

Machines D and E have 2000 and 2500 machine minutes, respectively. The firm must manu-
facture at least 100 A’s; 200 B’s and 50 C’s but not more than 150 C’s. Formulate a linear pro-
gramming model to maximize the total profit.
```

3. Formulate the following problem as an LP model:

A co-operative farm owns 100 acres of land and has `25,000 in funds available for investment.
The farm members can produce a total of 3500 man hours worth of labour during the months
September−May and 4000 man hours during June−August. If any of these man-hours are not need-
ed, some members of the farm will use them to work on a neighbouring farm for `2/hour during
September−May and `3/hour during June−August. Cash income can be obtained from the three
main crops and two types of livestock: dairy cows and laying hens. No investment funds are
needed for the crops. However, each cow will require an investment outlay of `3200 and each hen
will require `15.
Moreover, each cow will require 1.5 acres of land, 100 man-hours of work during Septem-
ber−May and another 50 man-hours during June−August. Each cow will produce a net annual
cash income of `3500 for the farm. The corresponding figures for each hen are: no acreages, 0.6
man-hours during September−May, 0.4 man-hours during June−August, and an annual netcash
income of `200. The chicken house can accommodate a maximum of 4000 hens and the size of
the cattle-shed limits the members to a maximum of 32 cows.
Estimated man-hours and income per acre planted in each of the three crops are:

Man-hours Paddy Bajra Jowar

September−May 40 20 25
June−August 50 35 40

Net Annual Cash 200 800 850

Income (`)

The co-operative farm wishes to determine how much acreage should be planted in each of the
crops and how many cows and hens should be kept to maximize its net cash income.
4. Relax and Enjoy Lake Development Corporation is developing a lake side community at a
privately owned lake and in the business of selling property for vacation and rent cottages. The
primary market for these lakeside lots are middle and upper income families within 100 miles
of the development. Relax and Enjoy has employed the advertising firm Philippines Jackson to
design the promotional campaign for the project.
After considering possible advertising media and the market to be covered, the agency has
made the preliminary recommendations to restrict the first month’s advertising to five sources.
At the end of this month, the agency will re-evaluate the strategy based upon the month’s results.
The agency has collected data on the number of potential purchase families reached, the cost
per advertisement, the maximum number of times each medium is available and the expected
exposure for each of the five media. The expected exposure is measured in terms of an exposure
unit, a management judgement measure of the relative value of one advertisement in each of the
media. The measures based on agency’s experience in the advertising business take into account
such factors as audience profile (age, income and education of the audience reached), image
presented and quality of the advertisement. The information collected is presented in Table 1.

Table 1
Advertising media alternative for relax and enjoy lake development corporation.

Number of Po- Cost Per Maximum Expected

tential Purchase Adver- Time Available Exposure
No. Advertising Media Families Reached tisement Per Month Units
1 Day time TV (1 min) 1000 5000 15 65
2 prime time TV (seconds) 2000 5000 10 90
3 Daily newspapers 1500 4000 25 40
4 Sunday magazines 2500 3000 4 60
5 Radio (30 seconds) 800 1500 30 20

Relax and Enjoy has provided with an advertising budget of `300,000 for the first month’s
campaign.
In addition, the company has a wish to have at least 10 television commercials, and atleast
50,000 potential purchasers must be reached during the month. Formulate the problem of media
selection.
```

5. The River Falls Textile Company can use any or all of three different processes for weaving its
standard white polyester fabric. Each of these production processes has a weaving machine set-
up cost and per-square-meter processing cost. These costs and the capacities of each of the three
production processes are as follows:

Processing Weaving Machine Maximum Daily

Number Set-Up Cost (`) Processing Cost `/M 2 Capacity (M2)
1 50 0.06 20,000
2 80 0.04 30,000
3 100 0.03 35,000

The company forecasts daily demand for its white polyester fabric of 40,000 square meters. The
company’s production manager wants to make a decision concerning which production pro-
cesses to utilize to meet the daily demand forecast, and at what capacity, to minimize the total
production costs. Formulate the suitable mathematical model for the above situation.

6. The River Falls Textile Company can use any or all of three different processes for weaving its
standard white polyester fabric. Each of these production processes has a weaving machine set-
up cost and per-square-meter processing cost. These costs and the capacities of each of the three
production processes are as follows:

Processing Weaving Machine Maximum Daily

Number Set-Up Cost (`) Processing Cost `/M 2 Capacity (M2)
1 50 0.06 20,000
2 80 0.04 30,000
3 100 0.03 35,000

The company forecasts daily demand for its white polyester fabric of 40,000 square meters. The
company’s production manager wants to make a decision concerning which production pro-
cesses to utilize to meet the daily demand forecast, and at what capacity, to minimize the total
production costs. Formulate the suitable mathematical model for the above situation.
7. Mathura Bank has to formulate the loan policy for the financial year 1997−1998. The total
loanable amount is `1000 crores. The bank grants loan to different types of client to maximize
the return subject to the constraints of RBI and the market. The following table provides the
interests rate charged by the bank for various type of loans and the probability of the bad debts
as estimated from the past records. Bad debts are assumed to be unrecoverable and also do not
produce any revenue.

Type of Loan Interest Rate Likely Proportion of Bad Debts

Jewel Loan 15% 0.001
Car Loan 22% 0.10
Housing Loan 16% 0.04
Agricultural Loan 12% 0.06
Industry Loan 17% 0.09

As per RBI guidelines atleast 15% of funds must be loaned to agricultural sector. Industry and
agricultural loan should be more than 50%. Jewel loan should not exceed 10% of funds. Hous-
ing loan should be greater than jewel loan and car loan put together. The overall bad debt on all
loans should not exceed 0.05.

8. A factory has decided to diversify their activities and data collected by sales and production is
summarized below:
Potential demand exists for 3 products A, B and C. Market can take any amount ofA
and C whereas the share of B for this organization is expected to be not more than 400 units a
month.
For every three units of C produced, there will be one unit of a by-product which sells
at a contribution of `3 a unit and only 100 units of this by-product can be sold per
month. Contribution per unit of products A, B and C is expected to be `6, `8 and `4,
respectively.
These products require three different processes and time required per unit production is
given in the following table:

Product (Hr/Unit)
Process A B C Available Hours
I 2 3 1 900
II − 1 2 600
III 3 2 2 1200
Determine the optimum product mix for maximizing the contribution.
```

9. A certain farming organization operates three farms of comparable productivity. The output of
each form is limited both by the usable acreage and by the amount of water available for irriga-
tion. The data for the upcoming season are the following.

Farm Usable Acreage Water Available in Acre Feet

1 400 1500
2 600 2000
3 300 900

The organization is considering three crops for planting which differ primarily in their expected
profit/acre and in their consumption of water. Furthermore, the total acreage that can be devoted
to each of the crops is limited by the amount appropriate harvesting equipment available.

Water Consumption in Acre

Crop Available Acreage Feet/Acre Expected Profit/Acre
A 700 5 400
B 800 4 300
C 300 3 100

In order to maintain uniform workload among the farms, it is the policy of the organization that
the percentage of the usable acreage planted must be the same at each farm. However, any com-
bination of the crops may be grown at any of the farms. The organization wishes to know how
much of each crop should be planted at the respective farms in order to maximize the expected
profit. Formulate this as an LPP.

10. A local hospital administration wishes to determine a work schedule for registered nurses
(RNs). The union contract specifies that nurses work a normal day of six hours. The
administrator hasdetermined a daily work schedule in which the day is divided into eight three-
hours shifts. Thefollowing table indicates the estimated minimum requirement for nurses per
shift. The nurses will start work each day at the beginning of one of these shifts and end work
at the end of the following shift.

Period
12-3 3-6 6-9 9-12 12-3 3-6 6-9 9-12
Shifts a.m. a.m. a.m. a.m. p.m. p.m. p.m. p.m.
Minimum number 30 20 40 50 60 50 40 40
of required RNs
The administration must specify the number of nurses that is to begin work each shift, so that the
required number of nurses is available for each three-hours period.
The objective is to minimize the total number of nurses employed NP.
 11.A toy company manufactures two types of dolls a basic version: doll A and a delux ver-
sion: doll B. Each type of doll B takes time twice as long as one type A, and the com-pany
would have time to make maximum of 2000 in type A per day. The supply of plas-tic is sufficient
to produce 1500 dolls per day (both A and B combined). The deluxeversion requires a fancy
dress of which there are only 600 per day available. If the company makes a profit of `3 and
`5 per doll, respectively, on doll A and doll B, then howmany of each doll should be produced
per day in order to maximize the total profit. Formulate it.

12.A company has two grades of inspectors 1 and 2 to undertake quality control inspection. At least
1500 pieces must be inspected in an 8 hour day. Grade 1 inspector can check 20 pieces inan hour with
an accuracy of 96%. Grade 2 inspector checks 14 pieces an hour with an accuracyof 92%. The daily
wages of Grade 1 inspectors are `5/hr, while those of Grade 2 inspectors are `4/hr. Any error made
by an inspector costs `3 to the company. If the company is having 10 grade 1 and 15 grade 2
inspectors, find the optimal assignment of inspectors that minimizes the daily inspection cost.
Formulate this problem as an LPP.

13. A firm manufactures two items. It purchases castings which are then machined (M), bored (B)
and polished (P). Castings for items A and B cost `3 and `4, respectively, and are sold at `6
and `7 each, respectively. Running cost of the three machines are `20/hr, `14/hr and `17.50/hr,
respectively. What product mix maximizes the profit. Formulate a LP Model, solution is not
necessary. Capacities of the machines are as follows:

Particulars Part A Part B

Machining Capacity 25/hr 40/hr
Boring Capacity 28/hr 35/hr
Polishing Capacity 35/hr 25/hr
 ```

14. An advertising company wishes to plan an advertising campaign in three different Media: TV,
Radio and Magazines. The aim of the advertising program is to reach as many potential cus-
tomers as possible. Research of a market study is given below:

Television
Particulars Day Time Prime Time Radio Magazines

Cost of an advertising unit ` 40,000 80,000 35,000 17,000

Number of Customers reached/unit 500,000 900,00 500,00 250,00
0 0 0
No. of women Customers reached/unit 350,000 425,00 200,00 100,00
0 0 0

The Company does not want to spend more than `750,000 on advertising. It also requires that
a. atleast 2.5 million exposures take place among women, (ii) advertising on TV be limited
to `450,000, (iii) atleast 4 advertising units be bought on daytime TV and two during prime time
and (iv) the number of advertising units on radio and magazine should each be between 4 and
10.

15. The Xyz Paper Company produces paper rolls with standard width of 210 cm, special cus- tomers
orders with different widths are produced by slitting the standard rolls. The orders aresummarized
in the following table:

Order Required Required Number of

Width Rolls
1 100 cm 210
2 50 cm 130
3 30 cm 100
Formulate the above problem as an LPP in order to minimize the wastage.

16. The Manager of an Oil Company must decide on the optimal mix of two possible blending
processes of which the inputs and outputs per production run are as follows:

Input (units) Output (units)

Proce Crud Crud Gasoline Gasoline
ss eA eB X Y
1 5 3 5 8
2 4 5 4 4
The maximum amounts available for orders A and B are 200 units and 150 units, respectively. The
market requirements show that atleast 100 units of Gasoline X and 80 units of Gasoline y mustbe
produced. The profit per production run from process 1 and process 2 are ` 300 and ` 400,
respectively. Form the LPP.