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LPP Questions-1

Mr. Krishnamurty wants to maximize return by investing funds across several investment alternatives like government securities, company deposits, equity shares, etc. subject to constraints on average risk, lock-up period

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44 views2 pages

LPP Questions-1

Mr. Krishnamurty wants to maximize return by investing funds across several investment alternatives like government securities, company deposits, equity shares, etc. subject to constraints on average risk, lock-up period

Uploaded by

mat19 1372
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Q1. Amy is a college student who works two jobs on campus.

She must work at least 5 hours per week at


the library and two hours per week as a tutor, but she cannot work more than 20 hours per week. Amy gets
15 per hour at the library and 20 per hour at tutoring. She prefers working at the library, so she wants to
have at least as many library hours as tutoring. If Amy needs to make 360 dollars, what is the minimum
number of hours she can work at each job this week to meet her goals and preferences?
Q2. Solve the following problem using both the graphical method and the simplex method.
𝑀𝑀𝑀𝑀𝑀𝑀 𝑧𝑧 = 4𝑥𝑥 + 6𝑦𝑦
Subject to
−𝑥𝑥 + 𝑦𝑦 ≤ 11,
𝑥𝑥 + 𝑦𝑦 ≤ 27,
2𝑥𝑥 + 5𝑦𝑦 ≤ 90,
𝑥𝑥 ≥ 0, 𝑦𝑦 ≥ 0.
Q3. Mr. Krishnamurty, a retired government officer, has recently received his retirement benefits, viz.,
provident fund, gratuity, etc. He is contemplating how much funds he should invest in various alternatives
open to him to maximize return on investment. The investment alternatives are government securities, fixed
deposits of a public limited company, equity shares, time deposits in banks, national saving certificates, and
real estate. He has subjectively estimated the risk involved on a five-point scale. The data on the return on
investment, the number of years for which the funds will be blocked to earn this return on investment, and
the subjective risk involved are as follows:

Investment Alternatives Return Number of years Risk


Govt. Securities 6% 15 1
Company Deposits 15% 3 3
Equity shares 20% 6 7
Time deposits 10% 3 1
NSC 12% 6 1
Real Estate 25% 10 2

He wondered what percentage of funds he should invest in each alternative to maximize the return on
investment. He decided that the average risk should be less than 4, and funds should not be locked up for
more than 15 years. He would necessarily invest at least 30% in real estate. Formulate a linear programming
model for the problem and solve it.

Q4. Fred Jonasson manages a family-owned farm. Fred also raises pigs for the market to supplement several
food products grown on the farm. He now wishes to determine the quantities of the available types of feed
(corn, tankage, and alfalfa) that should be given to each pig. Since pigs will eat any mix of these feed types,
the objective is to determine which mix will meet certain nutritional requirements at a minimum cost. The
number of units of each type of basic nutritional ingredient contained within a kilogram of each feed type
is given in the following table, along with the daily nutritional requirements and feed costs:
Nutritional Kg of Corn Kg of Takage Kg of Alfalfa Minimum Daily
Ingredient Requiremnt
90 20 40 200
Carbohydrate
Protein 30 80 60 180
Vitamins 10 20 60 150
Cost $2.10 $1.80 $1.50

(a) Formulate a linear programming model for this problem.


(b) Solve using the Simplex method.

Q5. Solve the following maximization problem


𝑀𝑀𝑀𝑀𝑀𝑀 𝑃𝑃 = 20𝑥𝑥 + 10𝑦𝑦 + 15𝑧𝑧
𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑡𝑡𝑡𝑡: 3𝑥𝑥 + 2𝑦𝑦 + 5𝑧𝑧 ≤ 55
2𝑥𝑥 + 𝑦𝑦 + 𝑧𝑧 ≤ 26
𝑥𝑥 + 𝑦𝑦 + 3𝑧𝑧 ≤ 30
5𝑥𝑥 + 2𝑦𝑦 + 4𝑧𝑧 ≤ 57
𝑥𝑥, 𝑦𝑦, 𝑧𝑧 ≥ 0
Q6. A pharmaceutical company produces two pharmaceutical products: A and B. Production of both
requires the same process – I and II. The production of B also results in a by-product, C, at no extra cost.
Product A can be sold at a profit of Rs 3 per unit and B at a profit of Rs 8 per unit. Some quantity of this
by-product can be sold at a unit profit of Rs 2, the remainder has to be destroyed, and the destruction cost
is Re 1 per unit. Forecasts show that only up to 5 units of C can be sold. The company gets three units of C
for each unit of B produced. The manufacturing times are 3 hours per unit for A on the process I and II,
respectively, and 4 hours and 5 hours per unit for B on the process I and II. Because product C is a by-
product of B, no time is used in producing C. The available times are 18 and 21 hours for process I and II,
respectively. Formulate this problem as an LPP model to determine the quantity of A and B which should
be produced, keeping C in mind, to make the highest total profit to the company.

Q7. For the given linear programming, perform sensitivity analysis in all cases discussed in the class.

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