Example exam questions for part LP

The following questions were asked on an exam of Linear Optimisation in January 2010
(in the Dutch version of Bachelor of Business Engineering, so I had to translate the
questions), which also served as an example exam for students of Business Engineering.
Notice that these questions do not involve Integer Programming (IP, which belongs to
another course in the programme Bachelor of Business Engineering). The points sum up
to 20 but on your exam, IP will also be questioned (I’ll try to prepare an example question
for this part later, but the present questions already give you an indication of the dif,iculty
level that you can expect on the exam). A possible partitioning of the points between LP
(= the biggest part) and IP (= the smallest part) can be 16 + 4 or 15 + 5 or 14 + 6 or …
(this is not decided yet).

The following formulae were given:

= ℬ ℬ + − ℬ ℬ
ℬ = ℬ − ℬ

Remember that this follows from the standard form: max/min = subject to =
and ≥ . The vector with (decision, slack, excess, and/or arti,icial) variables is split
into a vector ℬ with basic variables and a vector with nonbasic variables. The vector
with objective function coef,icients is correspondingly split into ℬ containing the
objective function coef,icients of the basic variables and containing the objective
function of the nonbasic variables. The matrix with technological coef,icients is
analogously partitioned into ℬ (an invertible square matrix) and . Moreover, =
in a basic solution (bs) and, in addition, ℬ ≥ in a basic feasible solution (bfs).

Disclaimer: The distribution of the points here, i.e. 6 + 3 + 8 + 3, is not necessarily

representative for the weights given to the LP-questions on your exam. Before asking
questions about the solutions to these problems, consult your fellow students, because I
will be very busy (and already am).
Question 1 (6 points)
The company “Kees!” markets three types of perfume: X, Y, and Z. To make these
perfumes, the company uses a raw material that it can purchase unlimitedly at 5 €/litre.
Each litre of purchased raw material can be used to produce substances A and B, which
serve as an intermediate product for making the perfumes.
More precisely, each litre of raw material can be processed up to 200 ml of A, subject
to an investment of 2 hours processing time and 2 € processing costs, or up to 300 ml of
B, provided 2 hours processing time and 4 € processing costs.
Two production processes are available to convert the intermediates into perfumes.
Process 1 takes 2 hours and requires 200 ml of A and 100 ml of B. It costs 1 € to perform
this process. Each time process 1 is performed, 100 ml of perfume X and 100 ml liquid
waste are produced. Process 2 takes 3 hours and requires 200 ml of B and 100 ml of A.
This process produces 100 ml of perfume Y and 80 ml liquid waste. Process 2 costs 7 € to
run.
“Kees!” can dump liquid waste in the river Zenne for free or use the waste to make
perfume Z. The government imposes restrictions and only allows 100 litres of liquid
waste to be dumped per week. The production process to make perfume Z requires 1 hour
of processing time and yields 100 ml of perfume Z. On the other hand, 50 ml A, 200 ml B,
and 120 ml liquid waste are consumed. Moreover, this production process costs 5 €.
A maximum of 500 litres of X and 500 litres of Y can be sold weekly. The weekly
demand for perfume Z, on the other hand, is unlimited. Perfumes X, Y, and Z sell at 18 €,
23 €, and 16 € per 100 ml, respectively. 6000 hours of processing time are available every
week.
Formulate (but do not solve) the LP that aims at maximising the weekly pro,it of the
company “Kees!”. Clearly describe the decision variables that you use. If the problem
seems ambiguous or not completely clear to you, make a reasonable assumption that
allows you to continue working, and justify your interpretation/choice.
Question 2 (3 points)
Solve the next LP with the two-phase simplex method:1
min 2 − +3 =0
s.t. + + ≤2
2 + ≤3
2 + +3 ≥3
, , ≥0

1In the original (example) exam, ≤ 0 and the signs of all coef,icients of are reversed. Moreover, the
problem was formulated as two multiple-choice questions, one about the ,inal dictionary of phase 1 and one
about the ,inal dictionary of phase 2. Four dictionaries (without notational difference between slack, excess,
and arti,icial variables) were given for each question, complemented with the answer choice “none of the
above”. Of course, multiple-choice questions can be evaluated faster …
Question 3 (8 points)
Consider the LINDO input:

Output of LINDO, with some missing values (followed by letters):

In your answers to the following questions, you are supposed not to use the simplex
method!
a. Fill in the missing values (A) to (L) in the grid below.
(A) (B) (C) (D)

(E) (F) (G) (H)

(I) (J) (K) (L)

b. Does this model have multiple optimal solutions? If yes, describe all optimal solutions.
If no, explain your answer.
c. Suppose a new variable & ≥ 0 is added to the model, with objective function
coef,icient 6 and technological coef,icients 1, 1, and 2 in the 1st, 2nd, and 3rd
constraints, respectively. Is the current basic solution still feasible and/or optimal?
Explain your answer.
Question 4 (3 points)
Consider the following LP:

min 6 −4 +5 −2 & =0
s.t. +2 + & ≥0
2 − +4 ≥2
−3 +4 & ≤3
, & ≥0
≤0

a. What is the formulation of the dual LP?

b. Consider the following solution for the given LP: , , , & = 2.5, 3, 0, 0 .
• What is the corresponding dual solution?
• Show whether the proposed solution for the given model is optimal or not.
Do not use the simplex method in your answer!