SEN301previousexamquestions PDF
SEN301previousexamquestions PDF
SEN301previousexamquestions PDF
1. A company is involved in the production of two items (X and Y). The resources need to produce X and Y
are twofold, namely machine time for automatic processing and craftsman time for hand finishing. The
table below gives the number of minutes required for each item:
Machine time Craftsman time
Item X 13 20
Item Y 19 29
The company has 40 hours of machine time available in the next working week but only 35 hours of
craftsman time. Machine time is costed at £10 per hour worked and craftsman time is costed at £2 per
hour worked. Both machine and craftsman idle times incur no costs. The revenue received for each item
produced (all production is sold) is £20 for X and £30 for Y. The company has a specific contract to
produce 10 items of X per week for a particular customer.
Formulate the problem of deciding how much to produce per week as a linear program.
4. Use the revised simplex algorithm manually to solve the following problem.
min 5x1 + 2x2 + 4x3
s.t. 3x1 + x2 + 2x3 ≤ 4
6x1 + 3x2 + 5x3 ≤ 10
x1, x2, x3 ≤ 0
5. Maçka Police Station employs 30 police officers. Each officer works for 5 days per week. The crime rate
fluctuates with the day of week, so the number of the police officers required each day depends on
which day of the week it is: Monday, 18; Tuesday, 24; Wednesday, 25; Thursday, 16; Friday, 21;
Saturday, 28; Sunday, 18. The Police Station wants to schedule police officers to minimize the number
whose days off are not consecutive. Formulate an LP that will accomplish this goal.
6. Turkish national swimming team coach is putting together a relay team for the 400 meter relay. Each
swimmer must swim 100 meters of breaststroke, backstroke, butterfly, or free style. The coach believes
that each swimmer will attain the times (seconds) given in the Table below. To minimize the team’s time
for the race, assign each swimmer for a stroke.
Free Breast Fly Back
Derya 54 54 51 53
Murat 51 57 52 52
Deniz 50 53 54 56
Ceyhun 56 54 55 53
7. A shoe company forecasts the following demands during the next three months: 200, 260, 240. It costs
$7 to produce a pair of shoes with regular time labor (RT) and $11 with overtime labor (OT). During each
month regular production is limited to 200 pairs of shoes, and overtime production is limited to 100 pairs.
It costs $1 per month to hold a pair of shoes in inventory. Formulate a balanced transportation problem
to minimize the total cost of meeting the next three months of demand on time (Do not try to solve it!).
8. Suppose that you only have the “range (sensitivity) analysis” part of a Lindo output for a minimization
problem.
a. What is the reduced cost of a non-basic variable?
b. What is the surplus quantity for a constraint that is not binding?
9. For the following LP show the starting basis (bfs) of the Big M method (form the initial tableau only!). At
the initial tableau, show the leaving and entering variables. (PS: Please do not try to solve the problem,
optimal solution can be found at iteration 5.)
min 4 x1 + x2
s.t. 3 x1 + x2 ≥ 10
x1 + x2 ≥ 5
x1 ≥ 3
x1, x2 ≥ 0
10. A freight plane has three large compartments to carry cargo. Weight and volume limitations of these
compartments are:
Compartment Weight Volume
(Tons) (m3)
Front 10 6800
Center 16 8700
Rear 8 5300
There are four cargos waiting to be loaded in this plane. Properties of these cargos are shown on the
table below:
Total Weight Total Volume
Cargo Profit (TL/ton)
(Tons) (m3)
K1 18 8640 310
K2 15 9750 380
K3 23 13340 350
K4 12 4680 285
Furthermore, the weight of the cargo in the respective compartments must be the same proportion of
that compartment's weight capacity to maintain the balance of the plane. Any proportion of these
cargoes can be accepted.
Formulate a linear programming model to maximize the profit by choosing how many tons of which cargo
to load on the plane under these circumstances.
11. Answer the following questions related with the model given below:
min x1 + x2
s.t. x1 ≤ 5
x2 ≤ 4
∀ xi urs
a. Use the Graphical Method to solve the model.
b. Use the Simplex Algorithm to solve the model.
c. Find the dual of the model.
12. Answer the following questions related with the model given below:
max x1 + x2
s.t. x1 ≤ 5
x2 ≤ 4
∀ xi urs
a. Use the Simplex Algorithm to solve the model.
b. Find the dual of the model.
14. Please fill in the blanks below at the story of the given LP model:
Dorian makes luxury cars and jeeps for high-income men and women. It wishes to advertise with 1
minute spots in comedy shows and football games. Each comedy spot costs $................. and is seen by
.............. high-income women and .............. high-income men. Each football spot costs $................. and
is seen by .............. high-income women and .............. high-income men. How can Dorian reach
.............. high-income women and .............. high-income men at the least cost?
15. Please fill in the blanks below at the report (executive summary):
The minimum cost of reaching the target audience is $.................. , with .............. comedy spots
and .............. football spots.
16. Find the dual of the LP model given. What is the economic interpretation of the dual model (define
decision variables and constraints as well as objective function in the dual model)?
17. What is the optimal solution of the dual model? (Please do not solve the dual model, only submit the
optimal values for the objective function and the decision variables of the dual model)
18. What is the allowable range for the objective function coefficient of x2 in which current solution (basis)
remains optimal? (Hint: Use the relation of Duality-Sensitivity)
19. What are the reduced costs for the decisions variables in the primal model? Why?
20. What is the allowable range for RHS of the first constraint in the primal model in which current solution
(basis) remains optimal?
21. Please fill in the blanks at the Lindo output given below:
OBJECTIVE FUNCTION VALUE
1) ..............
VARIABLE VALUE REDUCED COST
X1 .............. ..............
X2 .............. ..............
ROW SLACK OR SURPLUS DUAL PRICES
2) .............. ..............
3) .............. ..............
RANGES IN WHICH THE BASIS IS UNCHANGED:
OBJ COEFFICIENT RANGES
VARIABLE CURRENT ALLOWABLE ALLOWABLE
COEF INCREASE DECREASE
X1 .............. 1.111111 30.000000
X2 .............. .............. ..............
RIGHTHAND SIDE RANGES
ROW CURRENT ALLOWABLE ALLOWABLE
RHS INCREASE DECREASE
2 .............. .............. ..............
3 .............. INFINITY 5.333333
22. If the cost of a comedy spot is $40K, what would be the new optimal solution to the problem?
23. If the cost of a comedy spot is $25K, what would be the new optimal solution to the problem?
24. If Dorian wishes to reach 13M high income men, what would be the new optimal solution to the problem?
25. Assume that Dorian wishes to make additional advertisements with 1 minute spots in a reality show which
is seen by 6M high income women and 9M high income men. What should be the cost of the reality show
spot that would make it reasonable to be selected (to be recommended in the solution)?
28. Recall that the optimal solution for Powerco problem was z=$1,020 and the optimal tableau was:
City 1 City 2 City 3 City 4 Supply
ui/vj 6 6 10 2
8 6 10 9
Plant 1 0 10 25 35
9 12 13 7
Plant 2 3 45 5 50
14 9 16 5
Plant 3 3 10 30 40
Demand 45 20 30 30
a) For what range of values of the cost of shipping 1 million kwh of electricity from plant 3 to city 3 will
the current basis remain optimal?
b) Suppose we increase both s3 and d3 by 3. Find the new value of the cost and new values of the
decision variables.
29. Nicole Kidman, Jennifer Lopez, Catherine Zeta Jones, and Cameron Diaz are marooned on a desert island
with Brad Pitt, Antonio Banderas, Robin Williams, and Tom Cruise. The “compatibility measures” in the
table given below indicate how much happiness each couple would experience if they spent all their time
together. Determine the partner for each person.
NK JL CZJ CD
BP 7 5 8 2
AB 7 8 9 4
RW 3 5 7 9
TC 5 7 6 9
30. The dean of a college must plan the school’s course offerings for the fall semester. Student demands
make it necessary to offer at least 30 undergraduate and 20 graduate courses in the term. Faculty
contracts also dictate that at least 60 courses be offered in total. Each undergraduate course taught
costs the college an average of $2500 in faculty wages, and each graduate course costs $3000.
Formulate an LP model to identify number of undergraduate and graduate courses that should be taught
in the fall so at total faculty salaries are kept to a minimum (What are the decision variables, objective,
and the constraints? Indicate sign restrictions if any. Please do not solve the problem).
31. A company must deliver 𝑑𝑖 units of its product at the end of the 𝑖th month (for i= 1,..5, 𝑑𝑖 values are
given in the following table). Material produced during a month at a cost of $100 can be delivered at the
end of the same month or can be stored as inventory and delivered at the end of a subsequent month;
however, there is a storage cost of 5 dollars per month for each unit of product held in inventory. At the
beginning of month 1, 3 products are available. If the company produces 𝑥𝑖 units in month 𝑖 and 𝑥𝑖+1 units
in month 𝑖 + 1, it incurs a cost of 40|𝑥𝑖+1 − xi | dollars, reflecting the cost of switching to a new
production level. Formulate a linear programming problem whose objective is to minimize the total cost of
the production and inventory schedule over a period of five months. Assume that inventory left at the
end of the year has no value and does not incur any storage cost. (What are the decision variables,
objective, and the constraints? Indicate sign restrictions if any. Please do not solve the problem).
Aylar 1 2 3 4 5
𝑑𝑖 15 17 19 11 7
34. Silicon Valley Corporation (Silvco) manufactures transistors. An important aspect of the manufacture of
transistors is the melting of the element germanium (a major component of a transistor) in a furnace.
Unfortunately, the melting process yields germanium of highly variable quality.
Two methods can be used to melt germanium; method 1 costs $50 per transistor, and method 2 costs
$70 per transistor. The qualities of germanium obtained by methods 1 and 2 are shown in Table 1. Grade
1 is poor while grade 4 is excellent. The quality of the germanium dictates the quality of the
manufactured transistor.
Silvco can refire melted germanium in an attempt to improve its quality. It costs $25 to refire the
melted germanium for one transistor. The results of the refiring process are shown in Table 2. Silvco has
sufficient furnace capacity to melt or refire germanium for at most 20,000 transistors per month.
Silvco’s monthly demands are for 1,000 grade 4 transistors, 2,000 grade 3 transistors, 3,000 grade 2
transistors, and 3,000 grade 1 transistors. Formulate an LP model in general form (with ∑ ve ∀) to
minimize the cost of producing the needed transistors.
Table 1. Percent yielded by melting (%)
Grade of Melted Melting Methods
Germanium Method 1 Method 2
Defective 30 20
1 30 20
2 20 25
3 15 20
4 5 15
Lindo Output:
Answer the following questions according to the optimal tableau and the lindo output. (Each question is
independent from the others, give necessary information about your answers, and show your calculations in
details):
a) What are the values of A, B, C and D on the Lindo output?
b) What are the values of E and F on the Lindo output?
c) If the objective function coefficient of x3 (currently -2) would be -1, what would be the new z?
d) If the right hand side value of the second constraint (current 9) would be 16, what would be the new z?
e) If the right hand side value of all constraints changed as b = [3, 10, 4.5] T, does the current optimal basis
change? If not, what would be the new z?
36. Graphically solve the following LP. Indicate the values of 𝑧, 𝑥1, 𝑥2 and 𝑥3 in the optimal solution. (Hint:
Use the Theorem of Complementary Slackness)
a. Show that the basic solution with basic variables 𝑥1, 𝑥2 and 𝑥3 is optimal. Find the optimal solution.
b. Show that if we multiply the right hand side of each constraint by a non-negative constant k, then
the new optimal solution is obtained simply by multiplying the value of each variable in the original
optimal solution by k.
c. Find the range of values for the right hand side of the second constraint for which the current basis
remains optimal.
d. A new decision variable (𝑥4) is added and model is changed as following. What would be the new
optimal solution?
1
1 0 1 −1 2
−12 1
2
Hint: [0
1 1
1 1] = [−12 2 2
]
1 1 0 1
2
1 1
−
2 2
38. Web Mercantile sells many household products through an on-line catalog. 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. Just how much space will be required in each of these months is known.
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 5 months. Another option is the intermediate approach
of changing the total amount of space leased (by adding a new lease and/or having an old lease expire) at
least once but not every month.
The space requirement and the leasing costs for the various leasing periods are given at the table.
The objective is to minimize the total leasing cost for meeting the space requirements. Formulate a
linear programming model for this problem.
Leasing
Required Cost per Sq.
Month Period
Space (Sq.Ft.) Ft. Leased
(Months)
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
39. A company is taking bids on four construction jobs. Three people have placed bids on the jobs. Their bids
(in thousands of dollars) are given in the table (a * indicates that the person did not bid on the given
job). Person 1 can do only one job, but persons 2 and 3 can each do as many as two jobs.
a) built an assignment table to determine the minimum cost assignment of persons to jobs,
b) use Hungarian method to find the assignment of persons to jobs.
Job
Person 1 2 3 4
1 50 46 42 40
2 51 48 44 *
3 * 47 45 45
Z x1 x2 x3 x4 s1 s2 RHS BV
1 3 0 2 0 1 1 9 Z=9
0 1 1 -1 0 1 -1 1 x2 = 1
0 2 0 3 1 -1 2 3 x4 = 3
For each of the following independent changes in the original primal model, you now are to conduct sensitivity
analysis by directly investigating the effect on the dual problem and then inferring the complementary
effect on the primal problem.
a) Find the allowable range in the objective function coefficient of y1 to remain the current basis
optimal.
b) If the objective function coefficient of y1 is changed to 3, what would be the new optimal W?
c) Find the allowable range in the right hand side of the first constraint to remain the current basis
optimal.
d) If the right hand side of the first constraint is changed to 5, what would be the new optimal W?
41. Basic variables of a solution of the following transportation problem are x11 , x12 , x23, x31, x33, x43 and x44 .
1 2 3 4 𝑠i
9 7 12 8
18
1
15 12 12 15
4
2
8 9 6 12
6
3
14 12 11 12
12
4
𝑑j 6 14 15 5
a) Is the solution basic?
b) Show that the solution is optimal.
c) Give the original linear programming problem and its dual.
d) Derive the optimal solution to the dual problem.
e) Suppose that 𝑐43 is increased from 11 to 13. Is the solution still optimal? If not, find the new
optimal solution.
f) If the supply of 2 and demand of 4 increase by 2 units, what will be the optimal solution?
42. FSK manufactures three products P1, P2, and P3 on two machines M1 and M2. Each of the products must
be processed on both machines in arbitrary order. Operators are required to operate the machines. 0.5
hours of operator hour is required to operate a machine for one hour. The unit profits of the products
are 8TL, 11TL, and 7TL, respectively. The machine capacities are 40 and 30 hours per planning period. 30
operator hours are available per planning period. The following table indicates how many units of the
products can be made each hour.
P1 P2 P3
M1 4 6 9
M2 7 3 13
Additionally, it is required that at least fifteen units of the second product are made. Formulate a profit-
maximizing LP model (What are the decision variables, objective, and the constraints? Indicate sign
restrictions if any. Please do not try to solve the problem).
43. Solve the LP model given below using the Simplex Method and submit an executive summary for your
solution.
max z = 4x1 + x2
s.t. 2x1 + 3x2 ≤ 4
x1 + x2 ≤ 1
4x1 + x2 ≤ 2
x1, x2 ≥ 0
44. Solve the LP model given below utilizing two-phase simplex method and submit an executive summary for
your solution.
min z = 3x1
s.t. 2x1 + x2 ≥ 6
3x1 + 2x2 = 4
x1, x2 ≥ 0
45. A bank employs both full-time and part-time tellers. The bank is open from 9 to 17. Full-time tellers work
from 9 to 17, except for 1 hour off for lunch, and they are paid 64 TL per day. Lunch for full time tellers
may be between 12 and 13 or between 13 and 14. Part-time tellers work at least 3 hours and at most 4
hours each working day without lunch break and they are paid 5 TL per hour. The number of part-time
tellers should not exceed 5. Teller requirement of the bank is shown in the table below. Formulate an LP
model to minimize the cost. (What are the decision variables, objective, and the constraints? Indicate
sign restrictions if any. Please do not try to solve the problem).
47. ATK-Sugar can manufacture three types of candy bar. Each candy bar consists totally of sugar and
chocolate. The first type of candy bar is composed of one units of sugar and two units of chocolate. The
second type is composed of one units of sugar and three units of chocolate and the third type is
composed of one unit of sugar and one unit of chocolate. Profits earned from sales of one unit of each
candy are 3 TL, 6 TL and 4 TL, respectively. Fifty units of sugar and 80 units of chocolate are available.
After defining xi to be the number of Type i candy bars manufactured, ATK-Sugar should solve the
following LP:
max z = 3x1 + 6x2 + 4x3
S.t. x1 + x2 + x3 50 (sugar constraint)
2x1 +3x2 + x3 100 (chocolate constraint)
x1, x2, x3 0
The optimal solution of the given LP is on the basic feasible solution where x 2 and x3 are basic variables
and Z= 260, x1 = 0 , x2 = 30, x3 = 20. Answer the following questions using simplex method:
1 1 −1 −1/2 1/2
Hint : [ ] =[ ]
3 1 3/2 −1/2
a) If the profit for a Type 1 candy bar were 4TL, what would be the new optimal solution to the
problem?
b) For what values of Type 3 candy bar profit would the current basis remain optimal? If the profit for
a Type 3 candy bar were 7 TL, then what would be the new optimal solution to the problem?
c) For what amount of available sugar would the current basis remain optimal?
d) If 70 units of sugar were available, what would be ATK-Sugar’s profit? How many of each candy bar
should the company make?
e) Suppose ATK-Sugar develops a new candy bar, which is composed of 2 units sugar and 1 unit
chocolate and its marginal profit is 5 TL. Is it profitable to produce this new product? If it is
profitable, find the new production plan. If it is not profitable, what should be the marginal profit of
the new product to make it profitable?
48. A person who has established a new search engine, plans to earn his revenues by advertisement on his
site. This person has obtained advertisements from 3 local retailer companies, namely A, B and C, and has
decided to broadcast their advertisements. On the other hand, A, B and C have declared that their
advertisements should appear on the site if one of these words are searched in the engine: market -
shopping - retail - discount
The site owner predicts that the word "market" will get 35000 hits, the word "shopping" will get 25000
hits, the word "retail" will get 15000 hits and the word "discount" will get 5000 hits. Furthermore,
according to his predictions, 20% of the users who see an advertisement, will click on the advertisements
shown. A,B and C make their payments show in the table below for each advertisement that is clicked on:
Market Shopping Retail Discount
A 2 3 11 7
B 1 2 6 1
C 5 8 15 9
The websites of A, B and C have different capacities. A can get maximum 6000 visitors, B can get
maximum 2000 visitors and C can get maximum 9000 visitors.
For each word searched, only one advertisement for one firm can be shown on the search engine. The
site owner wants to maximize his revenue by deciding on which word and how many of that word should
result in showing advertisement of each firm.
a) Model this problem as a transportation problem by constructing a balanced transportation table.
b) Find an initial basic feasible solution using Vogel's Approximation Method (VAM).
49. The chair of the ITU Industrial Engineering Department will assign two professors (A and B) to the new
three courses. One professor will be assigned at most two courses. The professors ranked the courses in
a 1-10 scale. A rating of 10 means that the professor wants to teach that course and a ranking of 1 means
that he or she does not want to teach that course. The cell including (--) in the table indicates that the
chair of the department will not assign the related course to the related professor.
Courses
Professors
END500 END501 END502
A 8 10 7
B 4 8 --
a) Formulate an assignment problem to assign professors to courses that maximizes the total
satisfaction of the professors (formulate the assignment table).
b) Solve the assignment problem you have formulated in part (a) using Hungarian Method. Determine an
assignment of professors to courses. What will be the total satisfaction?
50. A company manufactures four products (1,2,3,4) on two machines (X and Y). The time (in minutes) to
process one unit of each product on each machine is shown below:
52.
Max –2x1 –3x2 +x3 +3x5 +2x6
Subject to 2x1 +x2 +x3 +3x4 +2x5 +4x6 =6
2x1 –x2 –2x3 +5x4 +3x5 +2x6 =2
–x1 +x2 +3x3 +5x4 +x5 –x6 =1
x1, x2, x3, x4, x5, x6 0
For the above given LP, the revised simplex tableau related to the BV={x1, x2, x3} is as follows:
-3 4 4 -6
1 2 3 4 Supply
1 3 4 3 3
60
2 6 5 9 4
70
3 3 2 1 2
90
Demand 100 60 40 20
a) A basic feasible solution for the given transportation is given as BV: {x11, x13, x21, x24, x32, x33}. Find
the values of the basic variables. Prove that this solution is not optimal.
b) Find the optimal solution using transportation simplex method starting from the basic feasible
solution given in part a.
c) Find the range of values of the c24 (the cost related to x24ı) for which the current basis remains
optimal.
54. Gimignano Company produces a hot dog mixture in 1000 pound batches. The mixture contains two
ingredients: chicken and beef. The cost per pound of chicken is $3; the cost per pound of beef is $5.
The ratio of chicken to beef must be at least 2 to 1. Each batch has the following recipe requirements:
At least 500 pounds of chicken
At least 200 pounds of beef
The company wants to know the optimal mixture of ingredients that will minimize cost.
a) Formulate an LP model (What are the decision variables, objective, and the constraints? Indicate
sign restrictions if any).
b) Assume that there is no recipe requirement. Solve the modified problem utilizing two phase method.
55. Write down the closed form LP formulation of the problem given in GAMS code below.
sets
i plants / p1,p2,p3 /
j screning plant / s1, s2 /;
parameters
U(i) plant capacity
/ p1 700
p2 600
p3 200/
positive variable
X(i,j) transportation between plant i to screning plant j;
variable
Z total cost;
equations
obj objective function
plantConstraint(i) total transportaion from each plant
ScreningConstraint(j) total transportaion to each screning plant;
The roadway is divided into nine sections. For example; 10 x 103 m3 of fill is required in section 1; 28 x
103 m3 of cut in section 2; and so on. The cost for cutting including loading is $8 per m 3 and that for
filling including compaction is $12 per m3.The unit cost of transporting earth by trucks from one section
to another is $2 per m3 per section (for instance if 3 m3 of earth is moved from section 2 to section 6,
transportation cost will be 2*3*4=$24).
Formulate an LP to determine how much earth should be moved from where to where with minimum cost.
b) Name an objective function for which the optimal solution would be (𝑥1 , 𝑥2 ) = (1, 4).
c) Name an objective function for which (𝑥1 , 𝑥2 ) = (2,1) would be an optimal solution.
58. Consider the LP Model and solution of Oranj Juice example in the Lecture notes.
a. Write down the dual of the given LP.
b. Find the optimal solution of the dual model (values of the decision variables and objective
function) using the complementary slackness theorem.
Oranj Juice example, LP Model:
Let x1 and x2 be the quantity of ounces of orange soda and orange juice (respectively) in a bottle of Oranj.
min z = 2x1 + 3x2
s.t. 0.5 x1 + 0.25 x2 ≤ 4 (sugar const.)
x1+ 3 x2 ≥ 20 (vit. C const.)
x1+ x2 = 10 (10 oz in bottle)
x1, x2 ≥ 0
Optimal Solution:
x1=5, x2=5, Z = 25.
59. ATK Beyaz produces three products using two resources, namely labor and a special machine tool. Data
related to the production process are given in the following table.
60. Three electric power plants with capacities of 25, 40, and 30 million kWh supply electricity to three
cities. The maximum demands at the three cities are estimated at 30, 35, and 25 million kWh. The price
per million kWh at the three cities is given in Table, below. During the month of August, there is a 20%
increase in demand at each of the three cities, which can be met by purchasing electricity from another
network at a premium rate of $1000 per million kWh. The network is not linked to city 3, however. The
utility company wishes to determine the most economical plan for the distribution and purchase of
additional energy.
City
1 2 3
1 $600 $700 $400
Plant 2 $320 $300 $350
3 $500 $480 $450
a) Formulate the problem as a transportation model (Show LP formulation and form the transportation
tableau).
b) Determine an optimal distribution plan for the utility company using transportation simplex method
(Use Vogel to find initial solution).
61. Consider the shortest path problem from node 1 to node 6 defined in the following network (related
costs - cij - are given on each arc) . Solve the problem using Dijkstra Algorithm (show your calculations
in details for each iteration).
6
2 4
6
11
4 5 4 6
1 13
7
3 8 5
35
62. Find the values of A, B, C, D, E, F, G and H by examining optimal tableau and Lindo output.
max z= -3x1 + x2 + 2x3
subject to
x2 + 2x3 ≤ 6
-x1 + 3x3 ≤ 4
-2x1 + 3x2 - x3 ≤ 9
x1, x2, x3 ≥ 0
Optimal tableau:
z x1 x2 x3 s1 s2 s3 ST
1 3 0 0 1 0 0 6
0 2/3 1 0 1 -2/3 0 10/3
0 -1/3 0 1 0 1/3 0 4/3
0 -13/3 0 0 -3 7/3 1 1/3
Lindo output:
LP OPTIMUM FOUND AT STEP 2
OBJECTIVE FUNCTION VALUE
1) 6.000000
VARIABLE VALUE REDUCED COST
X1 0.000000 A
X2 3.333333 0.000000
X3 B 0.000000
63. Currently we own 100 shares each of stocks 1 through 6. The original price we paid for these stocks,
today’s price, and the expected price in one year for each stock is shown in the following table. We need
money today and are going to sell some of our stocks.
The tax rate on capital gains is 30%. If we sell 50 shares of stock 1, then we must pay tax of 0.3 x 50 x
(30 - 20) = $150. We must also pay transaction costs of 1% on each transaction. Thus, our sale of 50
shares of stock 1 would incur transaction costs of 0.01 x 50 x 30 = $15.
After taxes and transaction costs, we must be left with $12,000 from our stock sales. Our goal is to
maximize the expected (before-tax) value in one year of our remaining stock. Formulate a linear program
to find what stocks we should sell. Assume it is all right to sell a fractional share of stock.
Stock Shares Owned Purchase Price Current Price Price in one year
1 100 20 30 36
2 100 25 34 39
3 100 30 43 42
4 100 35 47 45
5 100 40 49 51
6 100 45 53 55
64. Find the optimal solution of the following LP by using graphical solution technique (Hint: use
complementary slackness theorem).
max z = 3x1 + 4x2 + x3 + 5x4
s.t. x1 + 2x2 + x3 + 2x4 ≤ 5
2x1 + 3x2 + x3 + 3x4 ≤ 8
x1, x2, x3, x4 ≥ 0
65. A company has five jobs to be done. The following matrix shows the return in USD of assigning ith
machine (i=1,2,3,4,5) to the jth job (j=1,2,3,4,5). Assign jobs to the machines (utilize Hungarian method)
so as to maximize the expected profit
Jobs
1 2 3 4 5
1 5 11 10 12 4
Machines
2 2 4 6 3 5
3 3 12 5 14 6
4 6 14 4 11 7
5 7 9 8 12 8
66. Türker already saved up 300 TL cash. Additionally, at the beginning of each month Türker earns salary
and pays bills as shown in the table below. Any money left over will be invested for one month at the
interest rate of 0.1% per month; for two months at 1% per two months; for three months at 3% per
three months; or for four months at 8% per four months. Develop an LP model to determine an
investment strategy that maximizes the cash on hand at the beginning of month 5.
Month 1 2 3 4
Earnings (TL) 400 800 300 300
Bills (TL) 600 500 500 250
b) Find b1, b2 andb3values using revised simplex formulations (Please fill the following table and show
your work in details)
b1 b2 b3
c) Write down the dual of the given LP and find the solution of the dual model by using optimal solution
of the primal model. (Do not solve the dual model!)
d) Find ranges for the objective function coefficient of x2 in which the current basis remain optimal.
Find the new optimal solution if the coefficient of x2 is equal to -1 (use revised simplex or dual
simplex if necessary).
e) Find the ranges for b1 in which the current basis remain optimal. Find the new optimal
solution if b1 = 200 (use revised simplex or dual simplex if necessary).
71. The Airline Company builds commercial airplanes and 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 contracts to deliver airplanes in the near future, and the production of the jet
engines for these planes must now be scheduled for the next 4 months. To meet the contracted dates
for delivery, the company must supply engines for installation in the quantities indicated in the second
column of the Table. The facilities that will be available for producing the engines vary according to
works scheduled during this period. The resulting monthly differences in the maximum number that can
be produced and the cost (in millions of dollars) of producing each one are given in the third and fourth
columns of Table. Because of the 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
such engines must be stored until the scheduled installation (the airplane frames will not be ready early)
at storage cost of $100,000 per month for each engine.
Month Scheduled Maximum Unit Cost of Production
Installations Production (million $)
1 10 25 2.08
2 15 35 2.11
3 25 30 2.10
4 20 10 2.13
The production manager wants a schedule developed for the number of engines to be produced in each of
the 4 months so that the total of the production and storage costs will be minimized.
a) Formulate a balanced transportation model for the problem (Form the transportation tableau).
Answer one of the following questions (Indicate which one you choose);
b) Find a basic feasible solution to the transportation problem in part a using minimum cost method.
c) Find a basic feasible solution to the following transportation problem using Least-Cost method.
1 2 3
4 17 2
1 5
8 18 9
2 7
2 16 4
3 9
1 7 3
4 10
8 10 13
72. A company is involved in the production of two items (X and Y). The resources need to produce X and Y
are twofold, namely machine time for automatic processing and craftsman time for hand finishing. The
table below gives the number of minutes required for each item:
Machine time Craftsman time
Item X 13 20
Item Y 19 29
The company has 40 hours of machine time available in the next working week but only 35 hours of
craftsman time. Machine time costs 10 TL per hour worked and craftsman time costs 2 TL per hour
worked. Both machine and craftsman idle times incur no costs. The revenue received for each item
produced (all production is sold) is 20 TL for X and 30 TL for Y. The company has a specific contract to
produce 10 items of X per week for a particular customer.
Formulate the problem of deciding how much to produce per week as an LP (define decision variables,
indicate objective function, constraints, and sign restrictions).
73. Consider the following shortest path problem between nodes 1 and 5. cij parameters are given on each
arc. Convert the problem to an assignment problem and solve it using the Hungarian Method.
74. Consider the following balanced transportation tableau for a minimization problem.
1 2 3
4 15 2
1 6
8 12 9
2 8
2 10 4
3 10
1 7 3
4 12
8 13 15
a) Show that BV = {x11, x21, x22, x32, x42, x43} is a basic solution but not a feasible solution.
b) Show that BV = {x13, x22, x31, x33, x41, x42} is the optimal solution.
c) Find the ranges for c42 for which the current solution remains optimal.
d) Find the optimal solution if c42 = 5.
75. Beerco manufactures ale and beer from corn, hops, and malt. Currently 40 lb. of corn, 30 lb. of hop, and
40 lb. of malt are available. A barrel of ale sells for $40 and requires 1 lb. of corn, 1 lb. of hop, and 2 lb.
of malt. A barrel of beer sells for $50 and requires 2 lb. of corn, 1 lb. of hop, and 1 lb. of malt. Beerco
wants to maximize total sales revenue. Examine the given optimal tableau for the LP model of problem
and answer the following questions.
a) What are the optimal values of primal decision variables (ALE and BEER) and the optimal values of
dual decision variables (y1, y2, y3) ?
b) Suppose Beerco is considering manufacturing malt liquor. A barrel of malt liquor may be sold for $50
and requires 0.5 lb. of corn, 3 lb. of hop, and 3 lb. of malt. Should Beerco manufacture and sell any
malt liquor? (utilize “duality and sensitivity analysis”)
Optimal tableau:
z Ale Beer s1 s2 s3 RHS
1 0 0 20 0 10 1200
0 0 1 2/3 0 -1/3 40/3
0 0 0 -1/3 1 -1/3 10/3
0 1 0 -1/3 0 2/3 40/3
Optimal value of ALE: …………… Optimal value of BEER: ……………
Optimal value of y1: …………… Optimal value of y2: …………… Optimal value of y3: ……………
76. Find the values of A, B, C, D, E, F, G and H by examining optimal tableau and Lindo output.
max 3x1 + 2x2 + x3
s.t.
x2 + 2x3 ≤ 6
x1 - 3x3 ≤ 4
x 1 + x2 + x3 ≤ 3
x1, x2, x3 ≥ 0
Optimal tableau:
z x1 x2 x3 s1 s2 s3 RHS
1 0 1 2 0 0 3 9
0 0 1 2 1 0 0 6
0 0 -1 -4 0 1 -1 1
0 1 1 1 0 0 1 3
Lindo output:
OBJECTIVE FUNCTION VALUE
1) 9.000000
VARIABLE VALUE REDUCED COST
X1 A 0.000000
X2 0.000000 B
X3 0.000000 2.000000