Institute of Management Studies

Course : MCA IIyr

Subject: Computer Based Optimization Techniques

ASSIGNMENT-1

Date of Submission :17 August, 2019

Formulation & Graphical Solution of Linear Programming Problem

1. (PRODUCTION ALLOCATION PROBLEM)

A firm produces three products. These products are processed on three different machines. The time
required to manufacture one unit of each of the three products and the daily capacity of the three
machines are given in the table below:
Time per unit (Minutes) Machine Capacity
Machine Product 1 Product 2 Product 3 (minutes/day)
M1 2 3 2 440
M2 4 - 3 470
M3 2 5 - 430
It is required to determine the daily number of units to be manufactured for each product. The profit
per unit for product 1, 2 and 3 is Rs. 4, Rs.3 and Rs.6 respectively. It is assumed that all the amounts
produced are consumed in the market. Formulate the mathematical (L.P.) model that will maximise
the daily profit.
2. PRODUCT MIX PROBLEM
A factory manufactures two products A and B. To manufacture one unit of A, 1.5 machine hours and
2.5 labour hours are required. To manufacture product B, 2.5 machine hours and
1.5 labour hours are required. In a month, 300 machine hours and 240 labour hours are
available.Profit per unit for A is Rs. 50 and for B is Rs. 40. Formulate as LPP.
3. A company produces three products A, B, C. For
manufacturing three raw materials P, Q and R are used.
Profit per unit A - Rs. 5, B - Rs. 3, C - Rs. 4
Resource requirements/unit
Raw Material P Q R
Product
A - 20 50
B 20 30 -
C 30 20 40
Maximum raw material availability:
P - 80 units; Q - 100 units; R - 150 units. Formulate LPP.
4. PORTFOLIO SELECTION (INVESTMENT DECISIONS)
An investor is considering investing in two securities 'A' and 'B'. The risk and return associated with
these securities is different.Security 'A' gives a return of 9% and has a risk factor of 5 on a scale of
zero to 10. Security 'B' gives return of 15% but has risk factor of 8.
Total amount to be invested is Rs. 5, 00, 000/- Total minimum returns on the investment should be
12%. Maximum combined risk should not be more than 6. Formulate as LPP.
5. INSPECTION PROBLEM
A company has two grades of inspectors, I and II to undertake quality control inspection. At least 1,
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500 pieces must be inspected in an 8-hour day. Grade I inspector can check 20 pieces in an hour with
an accuracy of 96%. Grade II inspector checks 14 pieces an hour with an accuracy of 92%.Wages of
grade I inspector are Rs. 5 per hour while those of grade II inspector are Rs. 4 per hour. Any error
made by an inspector costs Rs. 3 to the company. If there are, in all, 10 grade I inspectors and 15
grade II inspectors in the company, find the optimal assignment of inspectors that minimize the daily
inspection cost.
6. TRIM LOSS PROBLEM
A manufacturer of cylindrical containers receives tin sheets in widths of 30 cm and 60 cm
respectively. For these containers the sheets are to be cut to three different widths of 15 cm, 21 cm and
27 cm respectively. The number of containers to be manufactured from these three widths are 400,
200 and 300 respectively. The bottom plates and top covers of the containers are purchased directly
from the market. There is no limit on the lengths of standard tin sheets. Formulate the LPP for the
production schedule that minimizes the trim losses.
7. MEDIA SELECTION
An advertising agency is planning to launch an ad campaign. Media under consideration are T.V., Radio
& Newspaper. Each medium has different reach potential and different cost.
Minimum 10, 000, 000 households are to be reached through T.V. Expenditure on newspapers should
not be more than Rs. 10, 00, 000. Total advertising budget is Rs. 20 million. Following data is
available:
Medium Cost per Unit Reach per unit (No.
(Rs.) of households)
Television 2, 00, 000 20, 00, 000
Radio 80, 000 10, 00, 000
Newspaper 40, 000 2, 00, 000
8. DIET PROBLEM
Vitamins B1 and B2 are found in two foods F1 and F2. 1 unit of F1 contains 3 units of B1 and 4 units of
B2. 1 unit of F2 contains 5 units of B1 and 3 units of B2 respectively.
Minimum daily prescribed consumption of B1 & B2 is 50 and 60 units respectively. Cost per unit of
F1 & F2 is Rs. 6 & Rs. 3 respectively.
Formulate as LPP.
9. BLENDING PROBLEM
A manager at an oil company wants to find optimal mix of two blending processes. Formulate LPP.
Data:
Process Input (Crude Oil) Output (Gasoline)
Grade A Grade B X Y
P1 6 4 6 8
P2 5 5 4 5
Profit per operation: Process 1 (P1) = Rs. 4,500
Process 2 (P2) = Rs. 6, 000 Maximum
availability of crude oil: Grade A = 500 units
Grade B = 400 units
Minimum Demand for Gasoline: X = 315 units
Y = 250 units
10. FARM PLANNING
A farmer has 200 acres of land. He produces three products X, Y & Z. Average yield per acre for X, Y
& Z is 4000, 6000 and 2000 kg. Selling price of X, Y & Z is Rs. 2, 1.5 & 4 per kg respectively. Each
product needs fertilizers. Cost of fertilizer is Rs. 1 per kg. Per acre need for fertilizer for X, Y & Z is
200, 200 & 100 kg respectively. Labour requirements for X, Y & Z is 10, 12 & 10 man hours per acre.
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Cost of labour is Rs. 40 per man hour. Maximum availability of labour is 20, 000 man hours.Formulate
as LPP to maximise profit.

11. PORTFOLIO SELECTION (INVESTMENT DECISIONS)

An investor wants to identify how much to invest in two funds, one equity and one debt. Total amount
available is Rs. 5, 00, 000. Not more than Rs. 3, 00, 000 should be invested in a single fund. Returns
expected are 30% in equity and 8% in debt. Minimum return on total investment should be 15%.
Formulate as LPP.

12. A company manufactures two products P1 and P2. Profit per unit for P1 is Rs. 200 and for P2 is
Rs. 300. Three raw materials M1, M2 and M3 are required. One unit of P1 needs 5 units of M1
and 10 units of M2. One unit of P2 needs 18 units of M2 and 10 units of M3. Availability is 50
units of M1, 90 units of M2 and 50 units of M3. Formulate as LPP.
13. A firm produces two products X and Y. Minimum 50 units of X should be produced. There is no
limit for producing Y. Profit per unit is Rs. 100 for X and Rs. 150 for Y.
Product Resource Requirement Resource Availability
X 20 Machine Hours Machine Hours = 2500
10 Labour Hours Labour Hours = 3000
Y 10 Machine Hours
15 Labour Hours
Formulate as LPP.
14. A patient has been recommended two nutrients N1 and N2 everyday. Minimum intake is 10g for
N1 and 15g for N2 everyday.These nutrients are available in two products P1 and P2. One unit of
P1 contains 2g of N1 and 3g of N2. One unit of P2 contains 1g of N1 and 2g of N2. Cost per unit
is Rs. 200 for P1 and Rs. 150 for P2.Formulate as LPP such that nutrient requirement can be
fulfilled at the lowest cost.
15. Two vitamins A and B are to be given as health supplements on daily basis to students. There are
two products Alpha & Beta which contain vitamins A and B. One unit of Alpha contains 2g of A
and 1g of B. One unit of Beta contains 1g of A and 2g of B. Daily requirements for A and B are
atleast 10g each. Cost per unit of Alpha is Rs. 20 and of Beta is Rs. 30. Formulate as LPP to
satisfy the requirements at minimum cost.