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AE4-Activity 3A Maximization of Profit - Simplex Method (Answer)

The document describes the steps to solve a linear programming problem using the simplex method. The problem is to maximize profit for a company producing two products given constraints on resources. The steps are: 1. Formulate the linear program with an objective function and constraints 2. Convert inequalities to equalities by adding slack variables 3. Modify the objective function and constraints to include all variables 4. Calculate values and determine the entering variable 5. Determine the row to replace based on smallest positive quotient 6. Compute new values for the replacing and remaining rows 7. Repeat steps 4-6 until no positive values remain, giving the optimal solution The optimal solution found was to produce 40 units

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Marco Regunayan
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179 views3 pages

AE4-Activity 3A Maximization of Profit - Simplex Method (Answer)

The document describes the steps to solve a linear programming problem using the simplex method. The problem is to maximize profit for a company producing two products given constraints on resources. The steps are: 1. Formulate the linear program with an objective function and constraints 2. Convert inequalities to equalities by adding slack variables 3. Modify the objective function and constraints to include all variables 4. Calculate values and determine the entering variable 5. Determine the row to replace based on smallest positive quotient 6. Compute new values for the replacing and remaining rows 7. Repeat steps 4-6 until no positive values remain, giving the optimal solution The optimal solution found was to produce 40 units

Uploaded by

Marco Regunayan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Maximization of Profit (Simplex Method)

Step 1: Formulate the Linear Program, that is, restate in mathematical form.
Gold Dust Co.
Maximize Z = P600x1 + P300x2
Subject to:
2x1 + 4x2 ≤ 320
3x 1 + x2 ≤ 180
2x1 + 0x2 ≤ 100
x 1,x2 ≥ 0
Step 2: Convert the inequalities to equalities by adding slack variables.
2x1 + 4x2 +S1 = 320
3x1 + x2 +S2 = 180
2x1 + 0x2 + S3 = 100
Step 3: Modify the objective function and constraints so as to contain all variables including the slack
and artificial variables added in converting them in equality. Enter the equalities in the simplex table
Z = P600x1 + P300x2 + P0S1 + P0S2 + P0S3
320 = 2x1 + 4x2 + S1 + 0S2 + 0S3
180 = 3x1 + x2 + 0S1 + S2 + 0S3
100 = 2x1 + 0x2 + 0S1 + 0S2 + S3
First solution

Cj     P600 P300 PO P0 P0
  PM Qty X1 X2 S1 S2 S3

P0 S1 320 2 4 1 0 0

P0 S2 180 3 1 0 1 0
→
P0 S3 100 2 0 0 0 1

  Zj 0 o o o o 0
Cj -Zj     600 300 0 0 0

↑
Step 4: Calculate the Zj and Cj - Zj values for this section

Step 5: Determine the entering variable (optimum column) by choosing the one with the highest
Cj – Zj values
Entering row = that variable having the highest Cj - Zj Value

Step 6: Determine the row to be replaced by dividing the quantity column values by their
corresponding optimum column values (intersectional elements) and choosing the smallest
positive quotient

Replaced row = divide the quantity column by their corresponding IE


and choose the one with the smallest positive quotient.
S1 = 320/2 =160 S2 = 180/3 =60 S3 =100/2 =50
Step 7: Compute the values for the replacing row
Replacing row (X1): Divide each and every element of the replaced row by its IE
100/2=50 1/2=1/
, 2/2=1, 0/2=0, 0/2=0 0/2=0, 2

Step 8: Compute the values for the remaining rows


Remaining rows
S1 Row S2 Row
320 - 2(50) =220 180 - 3(50) = 30
2 - 2(1) = 0 3 -3(1) = 0
4 -2(0) = 4 1 - 3(0) = 1
1 - 2(0) = 1 0 - 3(0) = 0
0 - 2(0) = 0 1 - 3(0) = 1
0 - 2(1/2) = -1 0 - 3(1/2) = -3/2

Second Solution

Cj     600 300 0 0 0
  PM Qty X1 X2 S1 S2 S3

0 S1 220 0 4 1 0 -1 55

0 S2 30 0 1 0 1 -3/2 → 20
0 undefine
600 X1 50 1 0 0 1/2 d

  Zj 30000 600 0 0 0 300


Cj -Zj     0 300 0 0 -300

Step 9: Compute the Cj – Zj values for this solution

Third Solution

Cj     600 300 0 0 0
  PM Qty X1 X2 S1 S2 S3

0 S1 100 0 0 1 -4 5 → 20

300 X2 30 0 1 0 1 -3/2 -20


600 X1 50 1 0 0 0 1/2 100

  Zj 39000 600 300 0 300 -150


Cj -Zj     0 0 0 -300 150

Step 10: If there is a positive Cj – Zj value, proceed as indicated in step 5 above

Fourth solution
Cj     600 300 0 0 0
  PM Qty X1 X2 S1 S2 S3
0 S3 20 0 0 1/5 -4/5 1
300 X2 60 0 1 3/10 -1/5 0
600 X1 40 1 0 -1/10 2/5 0
Zj 42000 600 300 30 180 0
Cj -Zj 0 0 -30 -180 0

Step 11: If there is no positive Cj – Zj values, the optimum solution has been obtained.

Optimum solution
Produce and sell:
Crown Auto lamp (X1) = 40 units
Corona Car Lamp (X2) = 60 units
Profit = P42,000
Unused Lampshades = 20 units

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