Question 1.

A manufacturing firm has discontinued production of a certain unprofitable

product line. This created considerable excess production capacity. Management is
considering devoting this excess capacity to one or more of three products 1, 2 and 3. The
available capacity on the machines which might limit output is given below:

Machine type Available time (in machine hours per week)

Milling machine 250
Lathe 150
Grinder 50

The number of machine hours required for each units of the respective product is given
below;

Machine type Productivity (in machine hours per unit)

Product 1 Product 2 Product 3
Milling machine 8 2 3
Lathe 4 3 0
Grinder 2 0 1

The unit profit would be rupees 20, Rupees 6 and rupees 8 for products 1, 2 and 3
respectively. Find how much of each product the firm should produce in order to maximize
profit?
Solution:
The mathematical program for this problem will be
Maximize Z = 20 X1 + 6 X2 + 8 X3
Subject to the constraints
8 X1 + 2 X2 + 3 X3 ≤ 250
4 X1 + 3 X2 + 0 X3 ≤ 150
2X1 + 0 X2 + 1 X3 ≤ 50
X1, X2, X3 ≥ 0
Solution
Converting into equation form by introducing slack variables
8 X1 + 2X2 + 3 X3 + S1 = 250
4 X1 + 2 X2 + S2 = 150
 2 X1 + 1 X3 + S3 = 50
And Z – 20 X1 – 6 X2 – 8 X3 + 0S1 + 0S2 + 0S3 = 0
Writing into table form

X1 X2 X3 S1 S2 S3 bi ratio
S1 8 2 3 1 0 0 250 125/4
S2 4 3 0 0 1 0 150 75/2
S3 2 0 1 0 0 1 50 25
Zj- Cj -20 -6 -8 0 0 0 0
The table after first iteration

X1 X2 X3 S1 S2 S3 bi ratio
S1 0 2 -1 1 0 -4 50 25
S2 0 3 -2 0 1 -2 50 50/3
X1 1 0 1/2 0 0 1/2 25 -
Zj- Cj 0 -6 2 0 0 10 500

The table after second iteration

X1 X2 X3 S1 S2 S3 bi ratio
S1 0 0 1/3 1 -2/3 -8/3 50/3 50
X2 0 1 -2/3 0 1/3 -2/3 50/3 -
X1 1 0 1/2 0 0 1/2 25 50
Zj- Cj 0 0 -2 0 2 6 600

The table after third iteration

X1 X2 X3 S1 S2 S3 bi ratio
S1 0 0 0 1 -1/2 -3 25
X2 1 1 0 0 1/4 0 75/2
X3 2 0 1 0 0 1 50
Zj- Cj 2 0 0 0 2 8 625

Since all elements in the bottom row are positive, it is an optimal solution.
Therefore maximum Z = 625 with X1 = 0, X2 = 75/2, and X3 = 50 .
Question 2.
Write the dual of following problems:
a.
Maximize Z = 7X1 + 5X2
Subject to:
X1 + 2X2 ≤ 6
4X1 + 3X2 ≤ 12
X1, X2 ≥ 0
b.
Maximize Z= 3X1 + 4X2
Subject to:
5X1 + 4X2 ≤ 200
3X1 + 5X2 ≤ 150
8X1 + 4X2 ≥ 80
X1, X2 ≥ 0
Answer to terminal questions.
a. Minimize
W = 6Y1 + 12Y2
Subject to constraints:
Y1 + 4Y2 ≥ 7
2Y1 + 3Y2 ≥ 5
Y1, Y2 ≥ 0
b. Minimize
W = 200Y1 + 150Y2 – 80Y3
Subject to the constraints:
5Y1 + 3Y2 – 8Y3 ≥ 3
4Y1 + 5Y2 – 4Y3 ≥ 4
And Y1, Y2, Y3, Y4, ≥ 0
Question 3. Obtain an initial basic feasible solution to the following transportation
problem using Vogel’s approximation method.

D1 D2 D3 D4
A 5 1 3 3 34
B 3 3 5 4 15
C 6 4 4 3 12
D 4 -1 4 2 19
21 25 17 17 80

Solution
First find the total demand and supply
Total supply = 80
Total demand =80
The problem are balanced TP as the total supply is equal to total demand, we find the
initial basic feasible solution as given in the following table.
VAM
1. Find the penalty cost , namely the difference between the smallest and next smallest
cost in each row and column.
Penalty= F.M- S.M

2. Choose the maximum penalty

D1 D2 D3 D4 SS

A 5 1 3 3 34

B 3 3 5 4 15

C 6 4 4 3 12 P1 P2

D 4 -1 4 2 19

D 21 25 17 17 80
D
2 (3-1) 2

0 (3-3) 1
1 (4-3) 1
3 (2-(-1)) -

P1 1 2 1 1
P2 2 - 1 0
From the first 3 is maximum penalty
Second 2 is the maximum penalty
…………

Question 4. Four jobs are to be done on four different machines. The cost in rupees of
producing ith on the jth machine is given below. Assign the jobs to different machines so as to
minimise the total cost.

Jobs M1 M2 M3 M4
J1 15 11 13 15
J2 17 12 12 13
J3 14 15 10 14
J4 16 13 11 17

Solution
Here the number of rows and columns are equal.
The given assignment problem is balanced. Now let us find the solution
Step 1: select the smallest element in each row and subtract this from all the elements in its
row.
Jobs M1 M2 M3 M4
J1 4 0 2 4
J2 5 0 0 1
J3 4 5 0 4
J4 5 2 0 6

Step 2: select the smallest element in each column and subtract this from all the element in
its column.

Jobs M1 M2 M3 M4
J1 0 0 2 3
J2 1 0 0 0
J3 0 5 0 3
J4 1 2 0 5

Step 3: (assignment):
Examine the row with exactly one zero.
First three rows contain more than one zero. Go to row J4. There is exactly one zero. Mark
that zero by ⌂ (i.e) job J4 is assignment to machine 3. Mark other zeros in its column by
symbol X.
Then continue …………….
Question 5.

In a small town, there are two discount stores ABC and XYZ. They are the only stores that
handle the festival goods. The total number of customers is equally divided between the two
because the price and quality of goods sold are equal. Both stores have good reputations in
the community, and they render equally good customer services. Assume that a gain of
customer by ABC is a loss to XYZ and vice versa.

Both stores plan to run annual pre Christmas sale during the first week of December. Sales
are advertised through the local news paper, radio and television media. With the aid of
advertising the pay off for ABC store is constructed and given below.

XYZ store

News paper radio Television

News paper 30 40 -80

ABC radio 0 15 -20

Television 90 20 50

Find optimal strategies for both stores and the value of the game.

Solution

Maxi min principle : maximize the minimum gain of ABC

Mini max principle : minimize the maximum loses

Saddle point : maxi min value = mini max value

Then first find row minimum = -80

-20

20

Second find column maximum =

90 40 50

Third find minimum from maximum number of the given column =40

Forth find the maximum from the minimum number of the given row = 20

Maxi min ≠ mini max (40≠20)

So the game is not pure strategy we followed mixed strategy, hence the game have not
saddle point.