Example

1. A firm that assembles computer and computer equipment is about to start production of
two new microcomputers. Each type of micro-computer will require assembly time,
inspection time and storage space. The amount of each of these resources that can be
devoted to the production of microcomputers is limited. The manger of the firm would
like to determine the quantity of each microcomputer to produce in order to maximize
the profit generated by sales of these microcomputers.

Additional information
In order to develop a suitable model of the problem, the manager has met with design
and manufacturing personnel. As a result of these meetings, the manger has obtained
the following information:

Type 1 Type 2

Profit per unit Birr 60 Birr 50

Assembly time per unit 4hrs 10hrs
Inspection time per unit 2hrs 1hr
Storage space per unit 3cubic ft 3cubic ft

The manager also has acquired information on the availability of company resources.
These weekly amounts are:

Resource Resource available

Assembly time 100hrs
Inspection time 22hrs
Storage space 39 cubic feet

The manger also meet with the firm’s marketing manger and learned that demand for
the microcomputers was such that whatever combination of these two types of
microcomputer is produced, all of the output can be sold.

Required: Formulate the Linear programming model.

Solution:

Step 1: Problem Definition

 - To determine the number of two types of microcomputers to be produced
(and sold) per week so as to maximize the weekly profit given the
restriction.

Step 2: Variable Representation

- Let X1 and X2 be the weekly quantities of type 1 and type 2 microcomputers,
respectively.

Step 3: Develop the Objective Function

Maximize or Zmax = 60X1 + 50X2

Step 4: Constraint Identification

System constraints: 4X1 + 10X2  100hrs Assembly time

2X1 + X2  22hrs inspector time
3X1 + 3X2  39 cubic feet Storage space

Individual constraint No
Non-negativity constraint X1, X2  0

In summary, the mathematical model for the microcomputer problem is:

Zmax = 60X1 + 50X2

Subject to: 4X1 + 10X2  100
2X1 + X2  22
X1 + 3X2  39
X1, X2  0

Taking the microcomputer problem its standard form is as follows:

Zmax = 60X1 + 50X2 Zmax = 60X1 + 50X2 + 0S1 + S2 + 0S3

: 4X1 + 10X2  100 : 4X1 + 10X2 + S1 = 100

2X1 + X2  22 2X1 + X2 + S2 = 22

3X1 + 3X2  39 3X1 + 3X2 + S3 = 39

X 1, X 2  0 X1, X2, S1, S2, S3  0

1. Develop the initial tableau: the initial tableau always represents the “Do Nothing” strategy, so
that the decision variables are initially non-basic.

a) List the variables across the top of the table and write the objective function
coefficient of each variable jut above it.

b) There should be one row in the body of the table for each constraint. List the
slack variables in the basis column, one per raw.
c) In the Cj column, enter the objective function coefficient of zero for each slack
variable. (Cj - coefficient of variable j in the objective function)
d) Compute values for row Zj
e) Computer values for Cj – Zj.

Sol/n Cj 60 50 0 0 0
basis
X1 X2 S1 S2 S3 RHSV Øj = bj/xj (aij)

S1 0 4 10 1 0 0 100 100/4 = 25

S2 0 2* 1 0 1 0 22 22/2 = 11 Leaving
variable
S3 0 3 3 0 0 1 39 39/3 = 13

Zj 0 0 0 0 0 0
Entering
Cj-Zj 60 50 0 0 0 0 variable
Pivot column
Pivot row
* Pivot Element

2. Develop subsequent tableaus

3.1. Identify the entering variable - a variable that has a largest positive value
is the Cj – Zj raw.
3.2. Identify the leaving variable - Using the constraint coefficients or substitution
rates in the entering variable column divide each one into the corresponding
quantity value. However do not divide by a zero or negative value. The smallest
non-negative ratio that results indicate which variable will leave the solution.

3. Find unique vectors for the new basic variable using row operations on the pivot
element.
 Sol/n Cj 60 50 0 0 0
basis
X1 X2 S1 S2 S3 RHSV Øj = bj/xj (aij)

S1 0 0 8 1 -2 0 56 56/8 = 7

X1 60 1 1/2 0 1/2 0 11 11/. 5 = 22

S3 0 0 3/2 0 -3/2 1 6 6/1.5 = 4

Zj 60 30 0 30 0 660 Leaving
variable
Cj-Zj 0 20 0 -30 0 0

Entering Variable

Sol/n Cj 60 50 0 0 0
basis
X1 X2 S1 S2 S3 RHSV Øj = bj/xj (aij) Optimal
solution:
S1 0 0 0 1 6 -16/3 24 X1 = 9
X1 60 1 0 0 1 -1/3 9

X2 50 0 1 0 -1 2/3 4

Zj 60 50 0 10 40/3 740

Cj-Zj 0 0 0 -10 -40/3

X2 = 4
S1 = 24 hrs
Z = Birr 740

4. Compute the Cj – Zj raw

5. If all Cj – Zj values are zeros and negatives you have reached optimality.
6. If this is not the case (step 6), rehear step 2to5 until you get optimal solution.

“A simplex solution is a maximization problem is optimal if the Cj – Zj row consists

entirely of zeros and negative numbers (i.e., there are no positive values in the bottom
row).”

Note: The variables in solution all have unit vectors in their respective columns for
the constraint equations. Further, note that a zero appears is raw c - z in every column
whose variable is in solution, indicating that its maximum contribution to the
objective function has been realized.