IT Lab Assignment – 10BM60005

IT Lab Assignment
[LP models and Formulations]

1. WYNDOR GLASS CO. produces high quality glass products,

including windows and glass doors. It has three plants. Aluminum
frames and hardware are made in Plant 1, wood frames are made
in Plant 2 and Plant 3 produces the glass and assembles the
products.
Because declining earnings, top management has decided to
revamp the company’s product line. Unprofitable products are
being discontinued, releasing production capacity to lunch two
new products having large sales potential :

Product 1: An 8-foot glass door with aluminum framing

Product 2: A 4 × 6 foot double-hung wood framed window.
Product 1 requires some of the production capacity in Plants 1
and 3, but none in plant 2. Product 2 needs only plant 2 and 3.

The marketing division has concluded that the company could

sell as much of either product as could be produced by these
plants. However, because both the products would be competing
for the same production capacity in Plant 3, it is not clear which
mix of the two products would be most profitable. Find out.

Data for Wyndor Glass Co problem

Plant Production time per Production time
batch, Hours available per week,
Product Hours
1 2
1 1 0 4
2 0 2 12
3 3 2 18
Profit per batch $3,000 $
5,000

Ans. Let x1 be the number of windows and x2 be the number of

doors

Objective Function:
Maximize Z = 3000*x1+5000*x2
IT Lab Assignment – 10BM60005

Subject to constraints:
1*x1+0*x2<=4
0*x1+2*x2<=12
3*x1+2*x2<=18

2. ICICI prudential life insurance co. Ltd is introducing two product

lines: special risk insurance and mortgages. The expected profit is
Rs 50/- per unit on special risk insurance and Rs 20/- per unit on
mortgages. Management wishes to establish sales quotas for the
new product lines to maximize total expected profit. The work
requirements are as follows:
Department Work Z- Hours per unit Work – Hours
Sp. Risk Mortgages Available
Underwriting 3 2 2400
Administration 0 1 800
Claims 2 0 1200

(a) Formulate LPP model for this problem and what is the
maximum profit.
(b) Use graphical method to solve this.
Ans.

Let x2 be the no of mortgage and x1 be the number of special risk

Objective Function:
Maximize Z = 50*x1+20*x2

Subject to constraints:
3*x1+2*x2<=2400
0*x1+1*x2<=800
2*x1+0*x2<=1200

3. Wild West produces two types of cowboy hats. Type 1 hat requires
twice as much labor time as type 2. If all the available labor time is
dedicated to type 2 alone, the company can produce a total of 400
type 2 hats a day. The respective market limits for the two types
are 150 and 200 per day. The profit is $ 8 per type 1 hat and $ 5
per type 2 hat. Determine the number of hats of each type to be
produced to maximize the profit.

Ans. Let x1 be the type 1 hat and x2 be the type 2 hat

Objective function:
Maximize Z= 8*x1+5*x2
IT Lab Assignment – 10BM60005

Subject to Constraints:
2*x1-x2=0
x1<=150
x2<=200

4. Two products require three sequential processes. The time

available for each procedure is 10 hour a day. The following table
summarizes the data of the table:
Minutes per unit
Product Process 1 Process 2 Process 3 Unit Profit
1 10 6 8 $2
2 5 20 10 $3

Determine the optimal mix of the two products.

Ans. Let x1 be the no of units of product 1 and x2 be the number of

units of product2

Objective Function:
Maximize Z = 2x1*+3*x2

Subject to constraints:
10*x1+5*x2<=600
6*x1+20*x2<=600
8*x1+10*x3<=600

5. Berger Paints produces both interior and exterior paints from three
raw materials,
M1, M2, M3. The following table provides the basic data of the
problem:
Tons of Raw material per ton of
Exterior paint Interior paint Max. daily
availability
Raw 6 4 24
material,M1 1 2 6
Raw material 3 2 3
M2 5 4
Raw material
M3
Profit per
ton($ 1000)

The market survey indicates that the daily demand for interior paint
cannot exceed that of exterior paint by more than 1 ton. Also the
maximum daily demand of interior paint is 2 ton. Determine the
IT Lab Assignment – 10BM60005

optimum product mix of interior and exterior paints that maximizes the
total daily profit.

Ans. Let x2 be the no of tons of interior paint and x1 be the number

of tons of exterior paints

Objective function:
Maximize Z = 5*x1+4*x2

Subject to constraints:
6*x1+4*x2<=24
1*x1+2*x2<=6
3*x1+2*x2<=3
x2-x1<=1
x2<=2

6. A gambler plays a game that requires dividing bet money among

four choices. The game has three outcomes. The following table
gives the corresponding gain or loss per dollar for different options
of the game.

Return per dollar deposited in given choice

Out come 1 2 3 4
1 -3 4 -7 15
2 5 -3 9 4
3 3 -9 10 -8

The gambler has total of $500, which may be played only once.
The exact outcome of the game is not known. Because of this
uncertainty, the gambler’s strategy is to maximize the minimum return
produced by the three outcomes. How should the gambler allocate the
$500 among the four choices? (Hint: his net return may be positive,
negative or zero)

Ans.
Return per dollar deposited in
given choice
Out come 1 2 3 4 Return
$1,164.
1 -3 4 -7 15 00
$3,440.
2 5 -3 9 4 00
$1,184.
3 3 -9 10 -8 00
Amount invested $0.00 $0.0 $288.0 $212.0
IT Lab Assignment – 10BM60005

0 0 0
Total Amount $500.0
Available 0
Total Amount $500.0
Invested 0

7. Solve the LPP

Max Z = 2 x1 + 5 x 2 + 7 x3
subject to 3 x1 + 2 x 2 + 4 x 3 ≤ 100
x1 + 4 x 2 + 2 x3 ≤ 100
x1 + x 2 + 3 x3 ≤ 100
x1 , x 2 , x3 ≥ 0
Ans. Objective function:
Maximize Z = 2*x1+5*x2+7*x3

Subject to constraints:
3x1+2x2+4x3<=100
1x1+4x2+2x3<=100
1x1+1x2+3x3<=100
x1+x2+x3>=0

8. Web Mercantile sells many household products through an online

catalogue. The company needs substantial warehouse space for
storing its goods. Plans now are being made for leasing warehouse
storage space over the next 5 months. However, since these
space requirements are quite different, it may be most economical
to lease only the amount needed each month on a month-by-
month basis. On the other hand, the additional cost for leasing
space for additional months is much less than for the first month,
so it may be less expensive to lease the maximum amount needed
for the entire months. Another option is the intermediate approach
for changing of changing the total amount of space leased at least
once but not every month.
The space requirement and the leasing costs for the various
leasing periods are as follows:

Month Require Leasing Cost per sq. ft.

d space period(month leased
(sq. ft) s)
1 30,000 1 $ 65
2 20,000 2 $ 100
3 40,000 3 $ 135
4 10,000 4 $ 160
5 50,000 5 $ 190
IT Lab Assignment – 10BM60005

Solve the model to minimize the total leasing cost for meeting the
space requirement.
Ans. Let x11,x12,x13,x14,x21,x23,x24,x31.x32.x33,x41,x42,
,x51,be the variables

Optimal Solution
Minimize Z =
65*(x11+x21+x31+x41+x51)+100*(x12+x22+x32+x42)+135*(x
13+x23+x33)+ 160*(x14+x24)+190*x15

Subject to Constraints
x11+x12+x13+x14+x15>=30000
x21+x22+x23+x24+x12+x13+x14+x15>=20000
x31+x32+x33+x22+x23+x24+x13+x14+x15>=40000
x41+x42+x32+x33+x23+x24+x14+x15>=10000
x51+x42+x33+x24+x15>=50000

9. The Northern Airplane Company builds commercial airplanes for

various airplane companies around the world. The last stage in the
production process is to produce the jet engines and then to install
them in the completed airplane frame. The company has been
working under some contacts to deliver a considerable number of
airplanes in the near future, and the production of the jet engines
for these planes must now be scheduled for next four months. To
met the contracted dates for delivery, company must supply
engines for installation in the quantities indicated in the table (2nd
column). Thus the cumulative number engines produced by the
end of the months 1,2,3,4 must be at least 10,25,50,70. The
facilities that will be available for producing the engines vary
according to other production, maintenance, the renovation work
scheduled during this period. The resulting monthly differences in
the maximum number that can be produced and the cost (in
Million dollars) of producing each one are given in the 3rd column
of table. Because of variations in production costs, it may well be
worthwhile to produce some of the engines a month or more
before they are scheduled for installation. The drawback is that
the engines must be stored until the scheduled installation at
storage cost of $15000 pm for each engine shown in the rightmost
column of the table. Develop a schedule for the number of engines
to be produced in each of the four months so that the total of the
production and storage cost will be minimized.

Production scheduling data for Northern Airplane company

Month Scheduled Maximum Unit cost of Unit cost of
Installation production production the storage
IT Lab Assignment – 10BM60005

1 10 25 1.08 0.015
2 15 35 1.11 0.015
3 25 30 1.10 0.015
4 20 10 1.13

Ans. Let x11,x12,x13,x14,,x22,x23,x24,x33,x34, x44 be the number of

machines produced in each period..

Objective Function:
Minimize
Z
=1.08*x11+1.095x12+1.11*x13+1.25*x14+1.11*x21+1.125*x22+1.1
4*x23+1.1*x31+ 1.15*x32+1.13*x41

Subject to constraints:
x11+x12+x13+x14<=25
x24+x22+x23<=35
x33+x32<=30
x44<=10
x11=10
x12+x22=15
x13+x23+x33=25
x14+x24+x34+x44=10

10. The Versatech Corporation has decided to produce three new

products. Five branch plants now have excess product capacity.
The unit manufacturing cost of the first product would be
$31,$29,$32,$28, and $29 in plants 1,2,3,4 and 5 respectively.
The unit manufacturing of the second product would be $45, $41,
$46, $ 42, and $43 in plants 1,2,3,4 and 5 respectively. The unit
manufacturing of the third product would be $38, $35, $40, in
plants 1, 2, 3 respectively, whereas Plants 4 and 5 don’t have
capability for producing this product. Sales forecast indicates that
600, 1,000, 800 units of products 1, 2 and 3 respectively should be
produced per day. Plants 1,2,3, respectively should be produced
per day. Plants 1,2,3,4,and 5 have the capacity to produce
400,600, 400, 600, and 1,000 units daily., respectively, regardless
of the product or combination of products involved. Assume that
any plants having the capability and capacity to produce them can
produce any combination of the products in any quantity. How to
allocate the new products to the plants to minimize total
manufacturing cost?
(a) Formulate the transportation problem by constructing the
appropriate parameter table.
(b)Obtain the optimal solution.
IT Lab Assignment – 10BM60005

Ans. Let x11, x12,x13,x14,x15 be the number of units produced of

product 1 in plants1,2,3,4 and 5 respectively.
Similarly x21,x22,x23,x24,x25 be the number of units produced of
product 2 in plants1,2,3,4 and 5 respectively. and x31,x32,x33,x34,x35
be the number of units produced of product 2 in plants1,2,3,4 and 5
respectively.

Objective Function:
Minimize Z =
31*x11+29*x12+32*x13+28*x14+29*x15+45*x21+41*x22+46*x23+
42*x24+43*x25+38*x31+35*x32+40*x33

Subject to Constraints:

x 11+x12+x13+x14+x15=600
x 21+x22+x23+x24+x25=1000
x 31+x32+x33=800
x 11+x21+x31<=400
x 12+x22+x32<=600
x 13+x23+x33<=400
x 14+x24<=600
x15 +x25<=1000

Transportation Problems
11. The shipping cost ($) per truck load of a company is given
below.
Formulate a transportation problem by constructing appropriate
parameters and obtain the optimal solution using Excel Solver
shipping cost($)
Ware
house(destination)
1 2 3 Output(total shipped)
4
Sources
1 464 513 654 75
2 867 125
3 352 416 690 100
791
995 682 388
685
Allocation 80 65 70
85
IT Lab Assignment – 10BM60005

Ans. Let x11,x12,x13,x14 be the transportation cost from source 1 to

destinations 1,2,3 and 4 respectively.
Similarly x21,x22,x23,x24 be the transportation cost from source 2 to
destinations 1,2,3 and 4 respectively and x31,x32,x33,x34 be the
transportation cost from source 3 to destinations 1,2,3 and 4
respectively.

Objective Function:

Minimize Z =
(464*x11+513*x12+654*x13+867*x14+352*x21+416*x22+690*x23
+791*x24+995*x31+682*x32+388*x33+685*x34)

Subject to constraints

x11+x12+x13+x14=75
x21+x22+x23+x24=125
x31+x32+x33+x34=100
x11+x21+x31=80
x12+x22+x32=65
x13+x23+x33=70

12. The Versatech Corporation has decided to produce three new

products. Five branch plants now have excess product capacity. The unit
manufacturing cost of the first product would be $31,$29,$32,$28, and
$29 in plants 1,2,3,4 and 5 respectively. The unit manufacturing of the
second product would be $45, $41, $46, $ 42, and $43 in plants 1,2,3,4
and 5 respectively. The unit manufacturing of the third product would be
$38, $35, $40, in plants 1, 2, 3 respectively, whereas Plants 4 and 5 don’t
have capability for producing this product. Sales forecast indicates that
600, 1,000, 800 units of products 1, 2 and 3 respectively should be
produced per day. Plants 1,2,3, respectively should be produced per day.
Plants 1,2,3,4,and 5 have the capacity to produce 400,600, 400, 600, and
1,000 units daily., respectively, regardless of the product or combination
of products involved. Assume that any plants having the capability and
capacity to produce them can produce any combination of the products in
any quantity. How to allocate the new products to the plants to minimize
total manufacturing cost?
(a) Formulate the transportation problem by constructing the
appropriate parameter table.
(b) Obtain the optimal solution using Excel Solver.

Ans. Let x11, x12,x13,x14,x15 be the number of units produced of

product 1 in plants1,2,3,4 and 5 respectively.
IT Lab Assignment – 10BM60005

Similarly x21,x22,x23,x24,x25 be the number of units produced of

product 2 in plants1,2,3,4 and 5 respectively. and x31,x32,x33,x34,x35
be the number of units produced of product 2 in plants1,2,3,4 and 5
respectively.

Objective Function:
Minimize Z =
31*x11+29*x12+32*x13+28*x14+29*x15+45*x21+41*x22+46*x23+
42*x24+43*x25+38*x31+35*x32+40*x33

Subject to Constraints:

x 11+x12+x13+x14+x15=600
x 21+x22+x23+x24+x25=1000
x 31+x32+x33=800
x 11+x21+x31<=400
x 12+x22+x32<=600
x 13+x23+x33<=400
x 14+x24<=600
x15 +x25<=1000

13. The move-it company has two plants producing fork lift trucks
that then shipped to three distribution centers. The production costs are
same at two plants, and the cost of shipping of each truck is shown for
each combination of plants and distribution centre.

Distribution Centre
1 2 3
Plant A $800 $700
$400
B
$600 $800
$500

A total of 60 forklifts are produced and shipped per week. Each plant can
produce and ship any amount up to a maximum of 50 trucks per weeks, so
there is no considerable flexibility on how to divide the total production
between the two plants so as to reduce shipping costs. However each
distribution centre must receive exactly 20 trucks per week. Managers
objective is to determine how many forklift trucks should be produced at
each plant, and then what is the over all shipping pattern should be to
minimize total shipping costs. Formulate the transportation problem and
solve by excel solver to find optimal solution

Ans. Let x11,x12 and x13 be the transportation cost from plant A to
destinations 1,2 and 3 respectively.
IT Lab Assignment – 10BM60005

Similarly x21,x22 and x23be the transportation cost from plant Bto
destinations 1,2 and 3 respectively

Objective Function
Minimize Z = x
11*800+x12*700+x13*400+x21*600+x22*800+x23*500

Subject to Constraints
x 11+x12+x13<=50
x 21+x22+x23<=50
x 11+x21=20
x 12+x22=20
x 13+x32=20

14. The Cost-Less Corp. supplies its four retail outlets from its four
plants. The shipping cost per shipment from each plant to each retail
outlet is given below.

Unit shipping cost retail Outlet($)

1 2 3
4
Plant 1 500 600 400
2 200
3 200 900 100
4 300
300 400 200
100
200 100 300
200

Plants 1,2 3, and 4 make 10,20,20, and 10 shipments per month,

respectively. Retail outlets 1,2, 3 and 4 need to receive 20,10,,10 and 20
shipments per month, respectively. The objective is to minimize the total
shipping cost. Formulate the transportation problem and find the optimal
solution.

Ans. Let x11,x12,x13,x14 be the shipping cost from plant 1 to retail

outlet 1,2,3 and 4 respectively.
Similarly x21,x22,x23,x24 be the shipping cost from plant 2 to retail
outlet 1,2, 3 and 4 respectively and x31,x32,x33,x34 be the shipping
cost from plant 3 to retail outlet 1,2 3 and 4 respectively.

Objective Function:
IT Lab Assignment – 10BM60005

Minimize Z =
x11*500+x12*600+x13*400+x14*200+x21*200+x22*900+x23*100+
x24*300+
x31*300+x32*400+x33*200+x34*100+x41*200+x42*100+x43*300+
x44*200

Subject to Constraints:

x 11+x12+x31+x41=10
x 21+x22+x32+x42=20
x 31+x32+x33+x43=20
x 41+x42+x43+x44=10
x 11+x21+x31+x41=20
x 21+x22+x23+x24=10
x 31+x32+x33+x43=10
x 41+x42+x43+x44=20

15. Consider the transportation problem having following

parameters and solve it for optimality.

Destination Supply
1 2 3 4
Source 1 3 7 6 4 4
2 2 4 3 2 3
3 4 3 8 5 2

Demand 3 3 2 2

Ans. Let x11, x12, x13, x14 be the transportation cost from source 1
to destinations 1,2,3 and 4 respectively.
Similarly x21,x22,x23,x24 be the transportation cost from source 2 to
destinations 1,2,3 and 4 respectively and x31,x32,x33,x34 be the
transportation cost from source 3 to destinations 1,2,3 and 4
respectively.

Objective Function:

Minimize Z =
x11*3+x12*7+x13*6+x14*4+x21*2+x22*4+x23*3+x24*2+x31*4+x3
2*3+x33*8+x34

Subject to Constraints
IT Lab Assignment – 10BM60005

x 11+x12+x13+x14=4
x 21+x22+x23+x24=3
x 31+x32+x33+x34=2
x 11+x21+x31=3
x 12+x22+x32=3
x 13+x23+x33=2
x 14+x24+x34=2