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Big M Method Example

M&D Chemicals produces two products, A and B, and needs to satisfy a customer's order of 125 gallons of product A and 200 gallons of product B using its available 600 processing hours. The objective is to maximize profits of $6 per gallon for product A and $3 per gallon for product B. This document formulates the problem as a linear program to determine the optimal production quantities to maximize total profit.

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0% found this document useful (0 votes)
23 views4 pages

Big M Method Example

M&D Chemicals produces two products, A and B, and needs to satisfy a customer's order of 125 gallons of product A and 200 gallons of product B using its available 600 processing hours. The objective is to maximize profits of $6 per gallon for product A and $3 per gallon for product B. This document formulates the problem as a linear program to determine the optimal production quantities to maximize total profit.

Uploaded by

hussein
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

M&D Chemicals produces two products that are sold as raw materials to companies

manufacturing laundry detergents. Product A requires 2 hours of processing time per


gallon and product B requires 1 hour of processing time per gallon. For the coming
month, 600 hours of processing time are available. A major customer’s order for 125
gallons of product A and 200 of product B must be satisfied. M&D’s objective is to
satisfy these requirements and achieve a maximum profit. The expected profits are $6
per gallon for product A and $3 per gallon for product B.

Data Arrangement

Product Time
Availability
𝐴 𝐵 (hr./month)
Processing Time (hr./gallon) 2 1 600
Demand Requirement (gallon/month): 125 200

Production Costs ($/gallon) 6 3

Formulating the Linear Programming Problem:

Decision Variables:

𝐴 ≡ number of gallons of product 𝐴


𝐵 ≡ number of gallons of product 𝐵

Constraints

Con. 1 2𝐴 + 𝐵 ≤ 600 (hr. / month) (300,0) (0,600)

Con. 2 𝐴 ≥ 125 (gallon / month) —

Con. 3 𝐵 ≥ 200 (gallon / month) —

Objective Function:

The objective is to maximize the profit

𝑍 = 6𝐴 + 3𝐵 ($/𝑚𝑜𝑛𝑡ℎ) → max

Non–Negative Variables:

𝐴 ≥ 0, 𝐵≥0

Page 1 / 4
The Augmented Form:

Constrains:

2𝐴 + 𝐵 + 𝑆1 = 600
𝐴+ 𝐴2 − 𝑆2 = 125
𝐵 + 𝐴3 − 𝑆3 = 200

Objective Function:

The coefficients of the slack variable in the objective function are zeros.

Maximize

𝑍 = 6𝐴 + 3𝐵 − 𝑀𝐴2 − 𝑀𝐴3

Or

𝑍 − 6𝐴 − 3𝐵 + 𝑀𝐴2 + 𝑀𝐴3 = 0

Non–Negative Variables:
𝑥 ≥ 0, 𝑦 ≥ 0, 𝑆1 ≥ 0, 𝑆2 ≥ 0, 𝑆3 ≥ 0

Initial Solution:

• Non–Basic Variables:
Put

𝐴 = 𝐵 = 0, 𝑆2 = 𝑆3 = 0

• Basic Variables:
Substituting in the constrains

𝑆1 = 600, 𝐴2 = 125, 𝐴3 = 200

Page 2 / 4
First Table
−𝟔 −𝟑 𝟎 𝟎 𝟎 𝑴 𝑴 0
B.V. A B 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑨𝟐 𝑨𝟑 R.H.S. Min. R.T.
𝟎 𝑺𝟏 2 1 1 0 0 0 0 600 300
𝑴 𝑨𝟐 1 0 0 −1 0 1 0 125 125
𝑴 𝑨𝟑 0 1 0 0 −1 0 1 200 —
−6 −3
𝒁 0 𝑀 𝑀 0 0 −325𝑀
−𝑀 −𝑀

Second Table
B.V. A B 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑨𝟐 𝑨𝟑 R.H.S. Min. R.T.
𝑺𝟏 0 1 1 2 0 −2 0 350 350
𝑨 1 0 0 −1 0 1 0 125 —
𝑨𝟑 0 1 0 0 −1 0 1 200 200
−3 6 750
𝒁 0 0 −6 𝑀 0
−𝑀 +𝑀 −200𝑀

Third Table
B.V. A B 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑨𝟐 𝑨𝟑 R.H.S. Min. R.T.
𝑺𝟏 0 0 1 2 1 -2 -1 150 75
𝑨 1 0 0 −1 0 1 0 125 —
𝑩 0 1 0 0 −1 0 1 200 —
𝒁 0 0 0 −6 −3 6+𝑀 3+𝑀 1350

Page 3 / 4
Fourth Table – 1st Solution
B.V. A B 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑨𝟐 𝑨𝟑 R.H.S. Min. R.T.
𝑺𝟐 0 0 1/2 1 1/2 −1 −1/2 75 150
𝑨 1 0 1/2 0 1/2 1/2 −1/2 200 400
𝑩 0 1 0 0 −1 0 1 200 —
𝒁 0 0 3 0 0 M M 1800

Fifth Table – 2nd Solution


B.V. A B 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑨𝟐 𝑨𝟑 R.H.S. Min. R.T.
𝑺𝟑 0 0 1 2 1 −2 −1 150
𝑨 1 0 0 −1 0 −1/2 −1 125
𝑩 0 1 1 2 0 −2 0 350
𝒁 0 0 3 0 0 M M 1800

Page 4 / 4

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