Exercise Problems 02 (ORL)

Simplex Method (of solving LPPs)

1. XYZ firm manufactures and sells two products Alpha and Beta. Each unit of Alpha requires
1 hour of machining and 2 hours of skilled labour, where as each unit of Beta uses 2 hours of
machining and 1 hour of labour. For the coming month the machine capacity is limited to 720
machine hours and the skilled labour is limited to 780 hours. Not more than 320 units of Alpha
can be sold in the market during a month.
(i) Develop a suitable model that will enable determination of the optimal product-
mix.
(ii) Determine the optimal product mix and the maximum contribution. Unit
contribution from Alpha is Rs.6 and from Beta is Rs.4
(iii) What will be the incremental contribution per unit of machine hour, per unit labour,
per unit of Alpha saleable?
2. Roma Pharmaceutical company produces two popular drugs A and B which are sold at the
rate of Rs.9.60 and Rs.7.80 respectively. The main ingredients are X, Y, Z and they are required
in the following proportions:

Drugs X Y Z
A 50% 30% 20%
B 30% 30% 40%
The total available quantities (grms.) of different ingredients are 1,600 in X, 1,400 in Y and
1,200 in Z. The costs of X, Y, Z per gram are Rs.8, Rs.6, Rs.4 respectively. Estimate the most
profitable quantities of A and B to be produced using the simplex method.

3. A company produces three products A, B and C. These products require three ores O1 , O2
and O3 . The maximum quantities of the ores O1 , O2 , O3 available are 22 tonnes, 14 tonnes and
14 tonnes respectively. For one tonne of these products, the ore requirements are:

Product O1 O2 O3 Profit per

tonne (in
Rs.'000)
A 3 1 3 1
B 0 2 2 4
C 3 3 0 5

How many tonnes of each product A, B and C should company produce to maximize
the profit?
4. A manufacturer produces A, B, C and D, each of which is processed on three machines X,
Y, and Z. The time required to manufacture one of each of the four products and the capacity
of each of the three machines are indicated in the following table:
Product Processing Time (in hrs.)
Machine X Machine Y Machine Z
A 1.5 4 2
B 2 1 3
C 4 2 1
D 3 1 2
Capacity (hours) 550 700 200

The profit contribution per unit of the four products A, B, C and D is rupees 4, 6, 3 and 1
respectively. The manufacturer wants to determine its optimal product-mix:
a) Formulate the above as a linear programming problem.
b) Solve it with the simple method.
c) Find out the optimal product mix and the total maximum profit contribution.

5. A diet for sick person must contain at least 4,000 units of vitamins, 50 units of minerals and,
1,400 units of calories. Two foods A and B are available at a cost of Rs. 4 and Rs. 3 per unit
respectively. If one unit of A contains 200 units of vitamins, 1 unit of mineral and 40 units
of calories and one unit of food B contains 100 units of vitamins, 2 units of minerals and 40
units of calories, find by simplex method, what combination of food be used to have least
cost?
6. An animal feed company must produce 200 kg of a mixture consisting of ingredients X1 and
X2 daily. X1 costs Rs. 3 per kg. and X2 Rs. 8 per kg. No more than 80 kg of X1 can be used,
and at least 60 kg of X2 must be used. Find how much of each ingredient should be used if the
company wants to minimize cost?
7. Solve the following LPP using simplex method
Max Z = 30 X1 + 20 X2 + 12 X3
Subject to
8 X1 + 4 X2 + 3 X3 ≤ 640
4 X1 + 6 X2 + 2 X3 ≤ 540
X1 + X2 + X3 ≤ 100
X2 ≥ 50
 X1 , X2 , X3, ≥ 0