Worksheet One for Agricultural Economics III Year Students

1. The following partial initial simplex tableau is given:

X1 X2 X3 S1 S2 S3
CBV BV 5 20 25 0 0 0
2 1 0 1 0 0 40
0 2 1 0 1 0 30
3 0 -1/2 0 0 1 15
Zj
Cj-Zj

(a) Complete the initial tableau.

(b) Write the problem in tableau form
(c) What is the initial basic variable, does this correspond to the origin? Explain.
(d) What is the value of the objective function at this initial solution?
(e) For the next iteration, what variable should enter the basis, and what variable should
leave the basis?

2. A manufacturer can produce two different products A and B during a given period time. Each
of these products requires four different manufacturing operations grinding, turning, assembly,
and testing. The manufacturing requirement in hours per unit of product A are 1 grinding, 3 in
turning, 6 in assembly, and 5 in testing and that of B are 2,1,3 and 4 in grinding, turning,
assembly and testing respectively. The available capacity of these operations in hours for the
given time period are, 30 for grinding, 60 for turning, 200 for assembly and 150 for testing. The
contribution to profit is 2 birr each unit of A and 3 Birr each unit of B. The firm can sell all that
it produces at the prevailing market prices.
A. formulates the problem as LPP to maximize profit.
B. set up the initial simplex tableau.
C. determines the optimum productive.
 2. A retail store stocks two types of shirts A and B. These are packed in attractive cardboard
boxes. During a week the store can sell a maximum of 400 shirts of type A and a
maximum of 300 shirts of type B. The storage capacity, however, is limited to a
maximum of 600 of both types combined. Type A shirt fetches a profit of Rs. 2/- per unit
and type B a profit of Rs. 5/- per unit. How many of each type the store should stock per
week to maximize the total profit? Formulate a mathematical model of the problem.
3. A company manufactures two products, X and Y by using three machines A, B, and C.
Machine A has 4 hours of capacity available during the coming week. Similarly, the
available capacity of machines B and C during the coming week is 24 hours and 35 hours
respectively. One unit of product X requires one hour of Machine A, 3 hours of machine
B and 10 hours of machine C. Similarly one unit of product Y requires 1 hour, 8 hour and
7 hours of machine A, B and C respectively. When one unit of X is sold in the market, it
yields a profit of Rs. 5/- per product and that of Y is Rs. 7/- per unit. Formulate a
mathematical model of the problem? Solve the problem by using graphical method to
find the optimal product mix and interpret the result.
4. Given, Min c= 4x1+3x2
S. t.
2x1 +x2 ≥8
2x1 +2x2 ≥10
X1, x2 >0

Solve the problem using graphics method and interpret the result.

5. Max Z= 3x1+2x2
s.t
x1 +x2 ≤4
2x1 +x2 ≤6
X1, x2 >0
a. Solve the problem using graphical method and interpret the result.
b. Identify binding and non binding resources
5. Convert the following in to dual and solve it using simplex approach
 Min Z=2x1 +8x2

Subject to:

5x1+ x2 > 10

2x1+ 2x2 > 14

X1+ 4x2 > 14

X1, x2 > 0

6. Assume the following maximization problem with mixed constraints.

Max z= 6X1+8X2
s.t.
X2 ≤4
X1+X2=9
6X1+2H2 ≥24
X1, x2 >o
Solve the problem
a. change into standard form
b. Set up the initial simple tableau.
c. Solve the problem and interpret the result
7. The crumb and Custard bakery makes cakes and pies. The main ingredients are flour and
sugar. The following linear programming model has been developed for determining the number
of cakes and pies (x1 and x2 to produce each day to maximize profit.
Max Z=x1 + 5x2
Subject to:
8x1+10x2< 25(flour, lb)
2x1+4x2< 16(sugar, lb)
x1< 5(demand for cakes)
x1,x2 >0
Solve this model using graphical and simplex method and compare the answers.
8. Formulate the dual of this LP model.

Maximize z =
1 ¿¿
50x ¿ + 80x2

Subject to:

1
C¿
¿¿ 1 ¿¿
3x ¿ + 5x2 ≤ 45

C2
1 ¿¿
4x ¿ + 2x2 ≥16

C3
1 ¿¿
6x ¿ +6x2 = 30

1 ¿¿
x ¿ ,x2 ≥ 0

9. Convert the following in to dual and solve it using simplex approach

A. Min Z= 4x1 +x2

Subject to:

3 x1+ x2 = 3

4x1+ 3x2 > 6

x1+ 2x2 < 3

x1, x2 > 0

B. Min Z=2x1 +8x2

Subject to:

5x1+ x2 > 10

2x1+ 2x2 > 14

X1+ 4x2 > 14

 X1, x2 >0

10. Max z= 2x1 +x2

s.t.

3x1 +2x2≤12 (labor constraint)

X1+ 3x2≤9 machine constraint)

X1+2x2≤6 (material constraints)

X1, x2≥0

i. Solve using simplex method

ii. Which one if any of the resource are binding or limiting
iii. Which one of if any the resources are not fully utilized? If so how much of
the idle capacity exist?
iv. How much of machine hours will be used to make all the two products
given in the optimal solution.
v. What are the shadow prices of the resources? What it indicate if any?
vi. Find the opportunity cost and marginal loss value of if any? What does
marginal loss value mean in the tableau if any?

OR Work sheet 2

1. Obtain the initial basic feasible solution using least cost method (LCM) of the following
problem whose cost and rim requirement table is given below.

D1 D2 D3 SS
S1 2 7 4 5
S2 3 3 1 8
S3 5 4 7 7
S4 1 6 2 14
DD 7 9 18
2. A company has three production facilities S 1, S2 and S3 with production capacity of 7, 9 and
18 units per week of a product, respectively. These units are to be shipped to four
warehouses D1, D2, D3 and D4 with requirements of 5, 8, 7 and 14 units per week,
respectively. The transportation cost (in birr) per unit between the warehouses in the table
below.

D1 D2 D3 D4
S1 19 30 50 10
S2 70 30 40 60
S3 40 8 70 20
Obtain the initial basic feasible solution using NWC method and VAM method

3. Determine an initial basic feasible solution for the following transportation problem by
using NWC, MCM and VAM.

D1 D2 D3 D4 SS
A 11 13 17 14 250
B 16 18 14 10 300
C 21 24 13 10 400
DD 200 225 275 250
4. Using the following cost matrix , determine:

a. Optimal job assignment and b. The cost of assignments

Job

Machinist 1 2 3 4 5

A 10 3 3 2 8

B 9 7 8 2 7

C 7 5 6 2 4

D 3 5 8 2 4

E 9 10 9 6 10

5. A company has 4 machines to do 3 jobs. Each job can be assigned to one machine. The cost
of doing the job in different machine is given below. Determine the optimal job assignment
which minimizes the total cost.

Machine

Jobs A B C D

1 18 24 28 32

2 8 13 17 18

3 10 15 19 22
 6. Five jobs are to be assigned to 5 machines to minimize the total time required to process the
job on machines. The times in hours for processing each job on each machine are given in
the matrix below. By using assignment algorithm make the assignment for minimizing the
time of processing.

Machines (time in hours)

Jobs VWXYZ
A 24354
B 74684
C 2 9 8 10 4
D 8 6 12 7 4
E 28588

7. A transportation problem involves the following costs, supply, and demand.

To
From 1 2 3 4 Supply
1 $500 750 300 450 12
2 650 800 400 600 17

3 400 700 500 550 11

Demand 10 10 10 10

a. Find the initial solution using the northwest corner method, the minimum cell cost
method, and Vogel's Approximation Method. Compute total cost for each.

a. Using the VAM initial solution, find the optimal solution using the stepping stone
method.
 8. Below is a linear programming problem.
minimize Z = 17x11 + l0x12 + 15x13 + llX21 + 14x22 + l0x23 + 9x31 + 13x32 + llx33 + 19x41 + 8x42 +
12x43

Subject to
x11 + x 12 + x 13 = 120
x 21 + x 22 + x 23 = 70
x 31 + x 32 + x 33 = 180
x 41 + x 42 + x 43 = 30
x l1 + x 21 + x 31 + x 41 = 200
x 12 + x 22 + x 32 + x 42 = 120
x 13 + x 23 + x 33 + x 43 = 80

a. Set up the transportation tableau for this problem and determine the initial solution
using VAM.
b. Solve using the stepping-stone method.
c. Calculate the optimal allocation and total cost
9. A company has 4 machines to do 3 jobs. Each job can be assigned to one and only one
machine. The cost of each job on each machine is given below. Determine the job
assignments which will minimize the total cost.

Machine

W X Y Z

A 18 24 28 32

Job B 8 13 17 18

C 10 15 19 22
10. Solve the following assignment problem and obtain the minimum cost at which all the jobs
can be performed.

Job (cost in ’00 Br.)

Worker 1 2 3 4 5

A 25 18 32 20 21

B 34 25 21 12 17

C 20 17 20 32 16

D 20 28 20 16 27

11. A company plans to assign 5 salesmen to 5 districts in which it operates. Estimates of sales
revenue in thousands of birr for each salesman in different districts are given in the
following table. In your opinion, what should be the placement of the salesmen if the
objective is to maximize the expected sales revenue?

District

Salesman D1 D2 D3 D4 D5

S1 40 46 48 36 48

S2 48 32 36 29 44

S3 49 35 41 38 45

S4 30 46 49 44 44

S5 37 41 48 43 47

12. A university department head has five instructors to be assigned to four different
 courses. All of the instructors have taught the courses in the past and have been
evaluated by the students. The rating for each instructor for each course is given in the
following table (a perfect score is 100).

Course
Instructor A B C D
1 80 75 90 85
2 95 90 90 97
3 85 95 88 91
4 93 91 80 84
5 91 92 93 88

The department head wants to know the optimal assignment of instructors to courses that
will maximize the overall average evaluation. The instructor who is not assigned to teach a
course will be assigned to grade exams. Solve this problem using the assignment method.

13. A company has three operational departments weaving, processing, and packing with
a capacity to produce three different types of clothes namely, suiting, shirting, and
woolens yielding the profit birr 2, 4 and 3 per meter respectively. One meter suiting
requires 3 minute in weaving, 2 minute in processing and 1 minute in packing.
Similarly, one meter of shirting requires 4 minute in weaving, 1 minute in processing
and 3 minute in packing while one meter woolen requires 3 minute in each
department. In a week, total run time of each department is 60, 40 and 80 hours of
weaving, processing, woolen department respectively.

a. Formulate the LPP to find the product mix to maximize the profit.

b. Solve the problem by using graphics method and interpret the result.
Worksheet 3.

1. Formulate the dual of this LP model.

Maximize z =
1
50x ¿ + 80x2
¿ ¿¿
Subject to:

1
C¿
¿ ¿¿ 1 ¿ ¿¿
3x ¿ + 5x2 ≤ 45

C2
1 ¿ ¿¿
4x ¿ + 2x2 ≥16

C3
1 ¿ ¿¿
6x ¿ +6x2 = 30

¿ ¿¿
1
x ¿ ,x2 ≥ 0

2. A transportation problem involves the following costs, supply, and demand.

To
From 1 2 3 4 Supply
1 $500 750 300 450 12
2 650 800 400 600 17

3 400 700 500 550 11

Demand 10 10 10 10

a. Find the initial solution using the northwest corner method, the minimum cell cost
method, and Vogel's Approximation Method. Compute total cost for each.
b. Using the VAM initial solution, find the optimal solution using the modified
distribution method (MODI).
 3. Below is a linear programming problem.
minimize Z = 17x11 + l0x12 + 15x13 + llX21 + 14x22 + l0x23 + 9x31 + 13x32 + llx33 + 19x41 + 8x42 +
12x43

Subject to
x11 + x 12 + x 13 = 120
x 21 + x 22 + x 23 = 70
x 31 + x 32 + x 33 = 180
x 41 + x 42 + x 43 = 30
x l1 + x 21 + x 31 + x 41 = 200
x 12 + x 22 + x 32 + x 42 = 120
x 13 + x 23 + x 33 + x 43 = 80

a. Set up the transportation tableau for this problem and determine the initial solution
using VAM.
b. Solve using the stepping-stone method.
c. Calculate the optimal allocation and total cost

4. Solve the following assignment problem and obtain the minimum cost at which all the
jobs can be performed.

Job (cost in ’00 Br.)

Worker 1 2 3 4 5
A 25 18 32 20 21
B 34 25 21 12 17
C 20 17 20 32 16
D 20 28 20 16 27

5. Four factories, A, B, C and D produce sugar and the capacity of each factory is given below:
Factory A produces 10 tons of sugar and B produces 8 tons of sugar, C produces 5 tons of sugar
and that of D is 6 tons of sugar. The sugar has demand in three markets X, Y and Z. The demand
of market X is 7 tons, that of market Y is 12 tons and the demand of market Z is 4 tons. The
following matrix gives the returns the factory can get, by selling the sugar in each market.
Formulate a transportation problem and solve for maximizing the returns by using VAM method
and test its optimality by MODI method.
Profit in birr per ton in markets
X Y Z
Factory A 4 3 2
Factory B 5 6 1
Factory C 6 4 3
Factory D 3 5 4