CHAPTER 3: INTRODUCTION TO LINEAR PROGRAMMING

Contents
3.0 Aims and Objectives
3.1 Introduction
3.2 Linear Programming Models
3.3 Formulating Lp Models
3.4 Solution Approaches to Linear Programming Problems

3.0 OBJECTIVES AND AIMS

At the end of this chapter students will be able to apply the knowledge of linear programming to

solve managerial problems, they will be able to use linear programming models to solve

managerial problems having quantitative application.

3.1 Introduction

Linear programming- is an optimization method which shows how to allocate scarce resources
in the best possible way subject to more than one limiting condition expressed in the form of
inequalities and /or equations. It
- enables users to find optional solution to certain problems in which the solution must
satisfy a given set of requirements or constraints.
- Optimization in linear programming implies either maximization (max) Profit, revenue,
We can’t
max/min two sales, market share or minimization (min) Cost, time, distance, or a certain objective
quantities in one
model.
function.
- Involves linearly related multi-variety functions i.e. functions with more than one
independent variables.
- The goal in linear programming is to find the best solution given the constraints imposed
by the problem, hence the term constrained optimization.

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3.2 Linear programming models

LP models are mathematical representation of LP problems. Some models have a specialized

format where as others have a more generalized format. Despite this, LPMs have certain
characteristics in common knowledge of these characteristics enables us to recognize problems
that are amenable to a solution using LP models and to correctly formulate an LP model. The
characteristics can be grouped into two categories: Components and assumptions. The
components relate to the structure of a model, where as the assumptions describe the conditions
under which the model is valid.

Components Assumptions
1. Objective function 1. Linearity
2. Decision variables Model 2. Divisibility
Model
3. Constraints Structure 3. Certainty
Validity
4. Parameters and Right. 4. Non-negativity
Hand Side Values

3.2.1 Components of LP Model

a) The Objective function: is the mathematical/ quantitative expression of the objective of

the company/ model. The objective in problem solving is the criterion by which all

decisions are evaluated. In LPMs a single quantifiable objective must be specified by the

decision maker. For example, the objective might relate to profits, or costs or market

share, best to only one of these. Moreover, because we are dealing with optimization, the

objective will be either maximization or minimization, but not both at a time

b) The Decision Variables: represent unknown quantities to be resolved for. These decision

variables may represent such things as the:

- number of units of different products to be sold

- the # of dollars to invest in various projects

- the # of ads to place with different media

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 Since the decision maker has freedom of choice among actions, these decision variables are

controllable variables.

c) The constraints: are restrictions which define or limit the attainability (achievability)

feasibility of a proposed course of action. They limit the degree to which the objective

can be pursued.

A typical restriction embodies scarce resources (such as labor supply, RMs, production capacity,

machine time, storage space), legal or contractual requirements (leg. Product standards, work

standards), or they may reflect other limits based on forecasts, customer orders, company

policies etc.

d) Parameters- are fixed values that specify the impact that one unit of each decision

variable will have on the objective and on any constraint it pertains to as well as to the

numerical value of each constraint.

The components are the building blocks of an LP model. We can better understand their meaning

by examining a simple LP model as follows.

Example:

Maximize:

Maximize: 4X1 + 7X2 + 5X3 (profit)… objective function subject to

2X1 + 3X2 + 6X3  300 labor hrs

System
5X1 + 4X3  200 raw mata.
Constraints
3X1 + 5X2 + 2X3  360

X1 = 30 Individual
X1 – qty of product 1 X2  40
Variables

Constraints
Decision

X2 qty of product 2 X1, X2, X3  0 Non negativity constructs

X3 qty of product 3

System constraints- involve more than one decision variables

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Individual constraint- involve only one decision variable.

None-negativity constrains- specify that no variable will be allowed to take on a negative value.

The non negativity constraints typically apply in an LP model, whether they are explicitly stated

or not.

3.2.2 Assumption of LP models

a) Linearity
The linearity requirement is that each decision variable has a linear impact on the objective

function and in each constraint in which it appears. Taking the above example, producing one

more unit of products add br 4 to the total profit. This is true over the entire range of possible

values of x1. The same applies (true) to each of the constraints.

b) Divisibility: The divisibility requirement pertains to potential values of decision variables. If

is assumed that non-integer values are acceptable. For example: 3.5 TV sets/ hr would be

acceptable 7TV sets/ 2hr.

c) Certainty: The parameters are known and constant. The certainty requirement involves two

aspects of LP models. The constraint equations do not change.

(1) With respect to model parameters (i.e. the numerical values) –If is assumed that these

values are known and constant. Eg. In the above example each unit of product 1 requires 2

labor hours is known and remain constant, and also the 300 labor available is deemed to be

known and constant.

(2) All the relevant constraints identified and represented in the model are as they are.

e) Non-negativity- The non-negativity constraint is that negative values of variables are

unrealistic and, therefore, will not be considered in any potential solutions, only positive

values and zero will be allowed.

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3.3 FORMULATING LP MODELS

Once a problem has been defined, the attention of the analyst shifts to formulating a model. Just

as it is important to carefully formulate the model that will be used to solve the problem. If the

LP model is ill formulated, ill-structured, it can easily lend to poor decisions.

Formulating linear programming models involves the following steps:

1) Define the problem/ problems definition: to determine the no. of type 1 and type 2

products to be produced per month so as to maximize the monetary profit given the

restriction.

2) Identity the decision variables or represent unknown quantities.

* Let X1 and X2 be the monthly quantities of type 1 and type 2 products.

3) Determine the objective function: Once the variables have been identified, the objective

function can be specified. It is necessary to decide if the problem is a maximization or a

minimization problem and the coefficients of each decision variable.

4) Identify the constraints

- system constraints- more than one variable

- individual constraints- one variable

- non-negativity constraints.

Q(1) Check Your Progress Question

1. A firm that assembles computers computer equipment is about to start production of two new

micro computers. Each type of microcomputer will require assembly time, inspection time, and

storage space. The amount of each of there resources that can be devoted to the production of

micro computers is limited. The mgnager. Of the firm would like to determine the quantity of

each micro computer to produce in order to maximize the profit generated by sales of these

micro computers.

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Additional information

In order to develop a suitable model of the problem, the manager has met with the design and

manufacturing personnel. As a result of these meetings, the manager has obtained the following

information:

Type 1 Type 2

Profit per unit $ 60 $ 50

Assembly time per unit 4hrs 10hrs

Inspection time per unit 2hrs 1hr

Storage space per unit 3 cubic ft 3 cubic ft

The manager also has acquired information on the available company resources. These (weekly)

amounts are:

Resource Resource available

Assembly time 100hrs

Inspection time 22hrs

Storage space 39cubic feet

The manager has also met with the firms marketing manager and learned that demand for the

micro computers was such that what ever combination of these two types of micro computers is

produced, all of the out put can be sold.

Answer for the above check your progress question

Step 1: Problem definition

- To determine the no. of two types of microcomputers to be produced (and sold) per week

so as to maximize the weekly profit given the restrictions.

Step 2: Variable representation

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

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Step 3: Develop the objective function

Maximize or Z max = 60X1 + 50X2

Step 4: Constraint identification

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

2X1 + X2  22hrs Inspective

3X1 + 3X2  39 cub Feet Storage

 Individual constraints ….No

 Non-negativity constraint ….X1, X2  0

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

Z max = 60X1 + 50X2

Subject to

4X1 + 10X2  100

2X1 + X2  22

3X1 + 3X2  39

X1, X2  0

Q(2) Check your progress

2. An electronics firm produces three types of switching devices. Each type involves a two-step

assembly operation. The assembly times are shown in the following table:

Assembly time per unit (minutes)

Station 1 Station 2

Model A 2.5 3.0

Model B 1.8 1.6

Model C 2.0 2.2

7.5hr 7.5hr

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Each workstation has a daily working time of 7.5 hrs. The manager want to obtain the greatest

possible profit during the next five working days. Model A yields a profit of br. 8.25 per unit,

Model B a profit of br 7.5 per unit and model C a profit of Br 7.8 per unit. Assume that the firm

can sell all it produces. During this time, but it must fill outstanding orders for 20 units of each

model type.

Required. Formulate the linear programming model of this problem.

Solution for check your progress question number 2.

Step 1: Problem definition: to determine the number of three types of searching devices to be

produced to be produced and sold for the next 5 days (working) so as to maximize the 5 days

profit.

2. Variable representation

Let X1, X2, and X3 be the number of model A, B and C sketching devices to be produced and

sold.

3. Develop objective function

Z max = 8.25X1 + 7.50X2 + 7.80X3

4.Constraint identification
System
2.5X1 + 1.8X2 + 2.0X3  450minutes…Assembly time station 1
Constraints
3.0X1 + 1.6X2 + 2.2X3  450minutes…. Assembly time station2

X1  20 …. Model A
Individual
X2  20 ….Model B Constraints

X3  20….Model C

X1, X2, X3  0 ….no negativity

Summary

Z max = 8.25X1 + 7.50X2 + 7.8X3

Subject to: 2.5X1 + 1.8X2 + 2X3  450

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 3X1 + 1.6X2 + 2.2X3  450

X1  20

X2  20

X3  20

X1 X2 X3  0

3.4 SOLUTION APPROACHES TO LINEAR PROGRAMMING PROBLEMS

There are too approaches to solve linear programming problems.

1. The graphic solution method

2. The algebraic solution/ simplex algorithm

3.4.1 Tve Graphic solution Method

It’s a relatively straight forward method for determining the optional solution to certain linear

programming problems.

It gives us a clear picture.

This method can be used only to solve problems that involve two decision variables. However,

most linear programming applications involve situations that have more than two decision

variables, so the graphic approach is not used to solve these.

Example 1. Solving the micro-computer problem with graphic approach.

Z max: 60X1 + 50X2

S.t: AX1 + 10X2  100

2X1 + X2  22

3X1 + 3X2  39

X1 X2  0

Steps

1. Plot each of the constraints and identify its region.

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 2. Identify the common region, which is all area that contains all of the points that satisfy

the entire set of constraints.

3. Determine the optional solution-identify the point which lead to maximum benefit or

minimum cost.

4X1 + 10X2 = 100 2X1 + X2 = 22 3X1 + 3X2 = 39

X1 0 25 X1 0 11 X1 0 13

X2 10 0 X2 22 0 X2 13 0

24 Region ABCDE is called feasible region point C = ?

(0 22)
2x1 + x2 = 22 x-3
20 3x1 + 3x2 = 39
-6x1 + 3x2 = -66
16 3x1 + 3x2 = 39
-3x1 = -27
12
x1 = -27/-3 = 9
2(9) + x2 = 22
8
x2 = 22 – 18 = 4
Point D = 3x1 + 3x2 = 39 x - 4
4 4x1 + 10x2 = 100x3
= -12x1 + 12x2 = -156
12x1 + 30x2 = 300
0
18x2 = 144
A 4 8 B 12 16 20 24 x2 = 8
3x1 + 3(8) = 39
3x1 = 39 – 24
x1 = 15/3 = 5

To identity the maximum (minimum) value we use the corner point approach or the extreme

point approach. The corner point/ extreme point approach has one theorem. It states that:

For problems that have optional solutions, a solution will occur at an extreme, or corner point.

Thus if a problem has a single optional solution, it will occur at a corner point. If it has multiple

optional solutions, at least one will occur at a corner point consequently, in searching for an

optional solution to a problem, we need any consider the extreme points because one of those

must be optional. Further, determining the value of the objective function at each corner point,

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we could identify the optional solution by selecting the corner point that has the best value (i.e.

maximum or minimum, depending on the optimization case) of the objective function. Extreme

points represent interactions of constraints.

Determine the values of the decision variables at each corner point. Some times, this can be done

by impaction (observation) and sometimes by simultaneous equation.

Substitute the value of the decision variables at each corner point into the objective function to

obtain its value at each corner point.

After all corner points have been so evaluated, select the one with the highest or lowest value

depending on the optimization case.

Value of the obi

Corner Coordinates How function Z = 60X1 + 50X2

Points X1 X2 determined?

A 0 0 observation 0 br

B 11 0 observation 660 br

C 9 4 Simultaneous 740 br
equation

D 5 8 Simultaneous 700 br
equation

E 0 10 Observation 500 br

BASIC SOLUTION
X1 = 9 X2 = 4 Z = 740 Br.
After we have got the optimal solution, we have to substitute the value of the decision variables
into the constraints and check whether all the resources available are used or not. If there is any
unused resources we can use it for any other purpose. The amount of unused resource is known
as slack- the amount of a scarce resource that is unused by a given solution. The slack can range
from zero, for a case in which all of a particular resource is used, to the original amount of the
resource that was available (i.e. none of it is used.)

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 Computing the amount of slack
Originally unused Amount of slack
Amount used available (Available-used)

Constraint X1 = 9X2 = 4
Assembly 4(9) + 10(4) = 76 100 100 – 76 = 24 hrs
Impective 2(9) 9+ 1(4) = 22 22 22 – 22 = 0 hr
Storage 3(9) + 3(4) = 39 39 39 – 39 = 0 hr
Constraints that have no slack are sometimes referred to as binding constraints since they limit or
bind the solution. In the above cases, inspection time and storage space are binding constraints,
while assembly time has slack.

Knowledge of unused capacity can be useful for planning. A manager may be able to use the
remaining assembly time for other products, or, perhaps to schedule equipment maintenance,
safety seminars, training sermons or other activities

Interpretation: The company is advised to produce 9 units of type 1 micro computer and 4 units
of type 2 micro computers per week to maximize its early profit to Br. 740, and in doing so the
company would be left with unused resource of 24 assembly hrs which can be used for other
purposes.

Example 2: Solving the diet problem with graphic approach.

C min = 5X1 + 8X2
10X1 + 30X2  140 10X1 + 30X2 = 140
20X1 + 15X2  145 X1 0 14
X1 , X2  0 X2 14/3 0
20X1 + 15X2 = 145 X1 0 +-25
X2 9.67 0

X2

12

8
A
4

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0 X1
4 8 12 16
 B

20X1 +15X2 = 145

Value of obj
coordinates How determined Function cmin = 5X + 8X2
Points X1 X2
A 0 9.67 Observation 77.3 br.
B 5 3 Simul. equn. 49 br.
C 14 0 Observation 70 br.

Basic solution X1 = 5 pounds X2 = 3 pounds C = 49 br.

Interpretation to make the diet the minimum cost of br 49 we have to purchase 5 pounds
of type 1 food and 3 pounds type 2 food.

If there is a difference between the minimum required amount and the optimal solution, we call
the difference surplus; that is: surplus is the amount by which the optimal solution causes a 
constraint to exceed the required minimum amount. It can be determined in the same way that
slack can: substitute the optimum values of the decision variables into the left side of the
constraint and solve. The difference between the resulting value and the original right-hand side
amount is the amount of surplus.
Surplus can potentially occur in a  constraint.

3.4.2 The Simplex Algorithm/ Algebraic Solution Method

The simplex method is an iterative technique that begins with a feasible solution that is not
optimal, but serves as a starting point. Through algebraic manipulation, the solution is improved
until no further improvement is possible (i.e. until the optional solution has been identified.)
Each iteration moves one step closer to the optional solution.

The optimal solution to a linear programming model will occur at an extreme point of the
feasible solution space. This is true even if a model involves more than two variables; optsmal
solutions will occur at these point of the feasible solution space; some will be outside of the

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feasible solution space. Hence, not every solution will be a feasible solution. Solutions which
represent infasseetwim of constraints are called basic solutions; those which also satisfy all of the
constraints, including the non-negativity constraints, are called basic feasible solutions. The
simplex method is an algebraic procedure for systematically examining basic feasible solutions.
If an optimal solution exists, the simplex method will identify it. # of basic solution n + mCm 
not all basic solutions are feasible.

The simplex procedure for a maximization problem with all  constraints consists of the
following steps.
1. Write the LPM in a Standard form: When all of the constraints are written as equalities, the
LP program is said to be in a standard form. We convert the LPM in to a standard form by
applying the slack variables, s, which carries a subscript that denotes which constraint it
applies to. For example, s1 refers to the amount of slack in the first constraint, S2 to the
amount of slack in the second constraint, and so on. When slack variables are introduced to
the constraints, they are no longer inequalities b/c the slack variable accounts, they become
equalities. Further more, every variable in a model must be represented in the objective
function. However, since slack does not provide any real contribution to the objective, each
slack variable is a assigned a coefficient of zero in the objective function.
Slack = Requirement – Production, scruples – Production – Requirement
Taking the microcomputer problem, its standard form is as follows
Z max = 60X1 + 50X2 Z max = 60X1 + 50X2 + 0S1 + 0S2 + 0S3
4X1 + 10X2  100 4X1 + 10X2 + S1 = 100
2X1 + X2  22  2X1 + X2 + S2 = 22
3X1 + 3X2  39 3X1 + 3X2 + S3 = 39
X1, X2  0 All variables  0
(X1, X2, S1, S2, S3  0)
2. Develop the initial tableau
a. List the variables across the top of the table and write the objective function coefficient of
each variables just 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 row.
c. In the Cj column, enter the objective function coefficient of zero for each slack variable.
d. Compute values for row Zj.
Cj = Coeff of variable J in the obj function.
e. Computer values for Cj – Zj.

14 | P a g e bj = RHSV of constraint i.

Aij – coefficient of variable j in constraint i

 Pivot column Pivot element

Solution Cj 60 50 0 0 0
Basis X1 X2 S1 S2 S3 RHSV
S1 0 4 10 1 0 0 100 100/4 = 25

S2 0 2 1 0 1 0 22 leaving
S3 0 3 3 0 0 1 39
22/2 = 11
Zj 0 0 0 0 0 0
39/3 = 13
Cj - Zj 60 50 0 0 0
Initial feasible solution

Entering variable S1 = 100 Obtained by

S2 = 22 equating tow

S3 =39 Variables to

X1 = 0 Zero
3. Develop subsequent tables
X = 0 Decision
3.1 Identify the entry variable –variable that has a largest positive value in2 the Cj – Zj row.
3.2 Identify the leaving variable –using the constraint coefficient or substitution
Z = 0 Variable
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 smalls non negative ratio that results indicate
which variable will leave the solution
4. Find unique vectors for the new basic variable using row operations on the pivot element.
-1/2 R21 –4R2new + R1old, -3R2new + R3old
Solution Cj 60 50 0 0 0
Cj = bi/xj (aij)
Basics X1 X2 S1 S2 S3 RHSV
56/8 = 7
S1 0 0 8 1 -2 0 56
X1 60 1 ½ 0 ½ 0 11 11/1/2 = 22

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

Zs 60 30 0 30 0 660
Cj – Zj 0 20 0 -30 0

Incoming Variable

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 Solution Cj 60 50 0 0 0 RHSV
basis X1 X2 S1 S2 S3
S1 0 0 0 1 6 -16/3 24
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
Opportunity cost
Cj - Zj 0 0 0 -10 -40/3

5. Compute Cj – Zj row
6. If all Cj – Zj Values are zeros and negatives, you have reached optimality
7. If this is not the case (step 6), repeat 2 to 5 until you get optional solution.
“A simplex solution in a maximization problem in optional 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 in row C – Z in every column whose
variable is in solution, in row C – Z in every column whose variable is in solution, indicating
that its maximum contribution to the objective function has been realized.
Example 2
A manufacture of lawn and garden equipment makes two basic types of lawn mowers; a push

type and a self propelled model. The push type require 9 minutes to assemble and 2 minutes to

package; the self-propelled mover requires 12 minute to assemble and 6 minutes to package.

Each type has an engine. The company has 12hrs of assembly time available, 75 engines, and

5hrs of packing time profits are Birr 70 for the self propelled model and br 45 for the push type

mower per unit.

Required:
1. a. To determine how many units of each type of mower to produce so as to maximize
profit.
b. Let X1 be push type mower
X2 be self propelled mower
c. Determine the objective function

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 Z max = 45X1 + 70 X2
d. Identify constraints
9X1 + 12X2  720 minutes ……assembly time
2X1 + 6X2  300 minutes ……..packing time
X1 + X2  75 engine ………….Engines
X1, X2  0
In summary
Z max = 45X1 + 70X2
S.t. 9X1 + 12X2  720
2X1 + 6X2  300
X1 + 2  75
X1, X2  0
2. a. Write the Lpm in a standard form
Z max = 45X1 + 70X2 + 0S1 + 0S2 + 0S
S.T. 9X1 + 12X2 + S1 = 720
2X1 + 6X2 + S2 = 300
X1 + X2 + S3 = 75
X1 X2, S1, S2, S3  0
b. Develop the initial tableau
Solution C 45 70 0 0 0 RHSV
basis X1 X2 S1 S2 S3
Qij = Bi/aij
S1 0 9 12 1 0 0 720
S2 0 2 6 0 1 0 300 720/12 = 60
S3 0 1 1 0 0 1 75
300/6 = 50 – Leaving
Z 0 0 0 0 0 0
C-Z 45 70 0 0 0 75/1 = 75

entering

c. Develop the subsequent tableaus

1/6R2, - 1R2new + R3, -12R2new + R1
C 45 70 0 0 0

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Solution Basis X1 X2 S1 S2 S3 RHSV
S1 0 5 0 1 -2 0 120
X2 70 1/3 1 0 1/6 0 50
S3 0 2/3 0 0 -1/6 1 25
Z 70/30 70 0 70/6 0 3500
C-Z 65/3 0 0 -70/6 0

Entering
1/5R1, -1/3 R1new + R2old, -2/3R, New + R3 old
C 45 70 0 0 0 Optimal solution
Solution Basis X1 X2 S1 S2 S3 RHSV
X1 = 24units
X1 45 1 0 1/5 -2/5 0 24
X2 70 0 1 -1/15 3/10 0 42 X2 = 42units

S3 0 0 0 -2/15 1/10 1 9 S1 = 0
Z 45 70 13/3 3 0 4020
S2 = 0
C-Z 0 0 -13/3 -3 0
S3 = 9 engine

Z = 4020
9X1 + 12X2 = 720 2X1 + 6X2 = 300 X1 + X2 = 75
X1 0 80 X1 0 150 X1 0 75
X2 60 0 X2 50 0 X2 75 0

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 X2
120
9X1 + 12X2 = 720
100 2X1 + 6S2 = 300
9(150 – 3X2) + 12X2 = 720
80 1450 – 27X2 + 12X2 = 720
730 = 15X2
X2 = 730/15
60 9X1 = 720 – 4 (730/3)
9X1 + 12X2 = 720
E
40
D
C 2X1 + 6X2 = 300
20

0 20 40 60 B 80 100 120 140 X1

A

Coordinates How determinable? Profit

Points X1 X2 45X1 + 70X2
A 0 0 observation 45(0) + 70(0) = 0
B 75 0 observation 45(75) + 70(0) = 3375
C 60 15 simultaneous 45(60) + 70 (15) = 3750
D 24 42 simultaneous 45 (24) + 70 (42) = 4020
E 0 50 observation 45(0) + 70 (50) = 3500

X1 = 24 b) 2 (24) + 6 (42) =300

X2 = 42
Z = br. 4020 c) 24 + 42 = 75
66
Constraints
a) (24) + 12(42) = 720 75 – 66 = 9
S3 = 9

Interpretation. The company is advised to produce 24 units of push type mower and 40 units of

self-propelled mowers so as to realize a profit of Br. 4020. in doing so, the company would be

left with unused resource of engine which can be used for other purposes.

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EXERCISES
1. firm manufactures three products which must be processed through some of or all four
departments. The table below indicates the number of hours a unit of each product
requires in the different departments and the number of pounds of raw materials required.
Also listed are the cost per unit, selling price, and weekly capacities of both work-hours
and raw materials. If the objective is to maximize total weekly profit, formulate the linear
programming model. (Only the model)

Weekly
Product A Product B Product C Availability
Department 1 3 4 2 120 hours
Department 2 2 2 100 hours
Department 3 4 1 80 hours
Department 4 2 3 6 150 hours
Pounds of raw 5 4 3 250 pounds
Material per
unit
Selling price $ 50 $ 60 $ 65
Cost / unit 41 40 43

2. Solve the following linear programming problem

(a) (Use simplex method)

Z max. 40X1 + 32X2

Subject to
40X1 + 20X2  600
4X1 + 10X2  100
2X1 + 3X2  38
X1, X2 0

(b) C min. : 50X1 + 80X2

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 Subject to
20X1 + 30X2 1400
10X1 + 40X2 1200
X1 , X2  0
(Use the graphic method)

(c) Z max: X1 + 1.2X2 + 2X3

Subject to
X1 + 2X2  150
X1 + 2X3  150
2X1 + X2  80
2X1 + 3X2 + X3  225
X1X2X3  0
(Use the simplex method)

Solutions

(1) * Problem: Determine the number of three products (A, B, & C) that must be
produced and sold in order to maximize the total weekly profit of the firm,
given the different limiting factors.

* Let, X1 = the number of product A, that must be produced & sold

X2 = the number of product B, that must be produced & sold
X3 = the number of product C, that must be produced & sold

* Objective function: profit maximization

Z max = 9X1 + 20X2 + 22X3

* Constraints:

 Production time constraints: 3X1 + 4X2 + 2X3  120

 Production time constraints 2X2 + 2X3  100
 Production time constraints 4X1 + X2  80
 Production time constraints 2X1 + 3X2 + 6X3  150

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  Raw material constraints: 5X1 + 4X2 + 3X3  250

* Non-negative restrictions: X1, X2, X3 0

 Therefore, Z max: 9X1 + 20X2 + 22X3
Subject to:

3X1+ 4X2+2X3  120

2X2 + 2X3  100
4X1 + X2  80
2X1 + 3X2 + 6X3  150
5X1 + 4X3 +3X3  250
X1, X2, X3  0

(2) a. * Problem: determining the number of bentwood rocking chairs and bentwood
coffee tables that must be manufactured in order to maximize the total profit,
given the different limiting factors.

* Let, X1 = the number of bentwood rocking chairs that must be manufactured &
sold
X2 = the number of bentwood coffee tables that must be manufactured &
sold
* Objective function: profit maximization
Z max = 40X1 + 32X2
* Constraints
 Raw material const. (Rosewood): 40X1 + 20X2  600
 Wood working hour const. 4X1 + 10X2  100
 Finishing hour constraint 2X1 + 3X2  38

* Non-negative restrictions: X1, X2  0

 Therefore, Z max = 40X1 + 32X2
Subject to:

40X1 + 20X2  600

4X1 + 10X2 100

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 2X1 + 3X2  38
X1 , X2  0

Standard form
Z max = 40X1 + 32X2 + OS1 + OS2 + OS3
Subject to:
40X1 + 20X2 + S1 = 600
4X1 + 10X2 + S2 = 100
2X1 + 3X2 + S3 = 38
X1 , X2 ,S1 , S2, S3, 0

Initial Table

Soln. Cj 40 32 0 0 0 Quantity
bases X1 X2 S1 S2 S3 (RHSV) Q/X1
S1 0 40 20 1 0 0 600 15
S2 0 4 10 0 1 0 100 25
S3 0 2 3 0 0 1 38 19
Zj 0 0 0 0 0 0
j = Cj – Zj 40 32 0 0 0
1/40 R1 / -4R1 new + R2 old / / -2R1 new + R3 old

Soln. Cj 40 32 0 0 0 quantity
bases X1 X2 S1 S2 S3 (RHSV) Q/X2
X1 40 1 ½ 1/40 0 0 15 30
S2 0 0 8 –1/10 1 0 40 5
S3 0 0 2 –1/20 0 1 8 4
Zj 40 20 1 0 0 600
j =Cj- Zj 0 12 –1 0 0
1/2 R3 / -1/2R3 new + R1 old / -8R3 new + R3 old

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 Soln. Cj 40 32 0 0 0 (Quantiy)
bases X1 X2 S1 S2 S3 (RHSV)
X1 40 1 0 3/80 0 –1/4 13
S2 0 0 0 1/10 1 –4 8
X2 32 0 1 –1/40 0 ½ 4
Zj 40 32 7/10 0 6 648
j = cj –zj 0 0 –7/10 0 –6
 Since, the numbers in j = cj – zj row are all 0 & Negative it shows that this solution
is optimal solution.
X1 = 13 , X2 = 4, S2 = 8 (unused) hours Z max = $ 648

 Proof for Question No. 2 by Graphic Method

* 40X1 + 20X2 = 600 X1 0 15
X2 30 0

* 4X1 + 10X2 = 100 X1 0 25

X2 10 0

* 2X1 + 3X2 = 38 X1 0 19
X2 12.7 0

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 40X1 + 20X2 = 600

30 (0, 30)

25

20

2X1 + 3X2 = 38 15
(0, 12.7)
4X1 + 10X1 = 100

10 B (4, 10)
C

5
D
(0, 0)
A E(15, 0) (19, 0) (25, 0) X1
0 5 10 15 20 25 30

C.P X1 X2 Value of O.F

40X1 + 32X2
A 0 0 Observation 0
B 6 10 Observation 320
C 10 6 Elimination 592
D 13 4 Elimination 648 *
E 15 0 Observation 600

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* Point C
4X1 + 10X2 = 100
-2 2X1 + 3X2 = 38
4X1 + 10X2 = 100
-4X1 – 6X2 = -76
4X2 = 24
4 4
X2 = 6
4X1 + 10(6) = 100
4X1 + 60 = 100
4X1 = 100 – 60
4X1 – 40
4 4 X1 = 10

Point D
40X1 + 20X2 = 600 40X1 + 20 (4) = 600
-20 2X1 + 3X2 = 38 40X1 + 80 = 600
40X1 + 20X2 = 600 40X1 = 600 - 80
-40X1 – 60X2 = -760 40X1 = 520
-40X2 = -160 40 40
-40 –40 X1 = 13
X2 = 4

Interpretation
It is advisable for the company to produce 13 units of bentwood rocking chairs and 4 units coffee
tables and maximize its profit to birr 648, by doing so the company may be left with 8 unused
wood working hours, therefore, the company can use these unused hours for other purposes.

(b) * Problem: determine the number of two types of that must be produced by the two
machines (M I & M II) in order to minimize costs of operating the machines.

* Let X1 = the number of tiers that must be produced by M I

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 X2 = the number of tiers that must be produced by M II

* Objective function : cost Minimization

Z min = 50X1 + 80X2
* Constraints:
 Grade A tiers constraints: 20X1 + 30X2 1,400
 Grade B tiers constraints :10X1 + 40X2  1,200

* Non-negative restrictions X1 , X2  0
 Therefore, Z min = 50X1 + 80X2
Subject to:
20X1 + 30X2 1,400
10X1 + 40X2 1,200
X1, X2  0
 Solution for Question No. 3 Graphic Method
* 20X1 + 30X2 = 1,400
X1 0 70
X2 46 – 7 0

* 10X1 + 40X2 = 1,200

X1 0 120
X2 30 0

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20X1 + 30X2 = 1400 X2

60

50 (0, 46.7)

40

10X1 + 40X2 - 120030

20 B (?)

10

0 (70,0) C (120,0) X1

10 20 30 40 50 60 70 80 90 100 110 120

Corner X1 X2 How Value of objective

points F: 50X1 + 80X2
A 0 46.7 Obser. 3736
B 40 20 Elimin. 3600 *
C 120 0 Obser. 6000

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 * Point B
20X1 + 30X2 = 1400  in order to Minimize
-2 10X1 + 40X2 = 1200 costs of operating the Machines
20X1 + 30X2 = 1400 M I  Has to produce 40 tires
-20X1 + 80X2 = -2400 M II  has to produce 20 tires
-50X2 = -1000 Z min = 3600
50 50
X2 = 20

10X1 + 40 (20 = 1200

10X1 + 800 = 1200
10X1 = 1200 – 800
10 ½ R2 / -R2new + R4 old

Soln Cj 1 1.2 2 0 0 0 0 Quantity Q/x2

bases X1 X2 X3 S1 S2 S3 S4 (RHSV)
S1 0 1 2 0 1 0 0 0 150  75
X3 2 ½ 0 1 0 ½ 0 0 75 75 
S3 0 2 1 0 0 0 1 0 80  80
S4 0 3/2 3 0 0 -1/2 0 1 150 225 50
Zj 1 0 2 0 1 0 0 150
 j = Cj - Zj 0 1.2 0 0 -1 0 0

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 1/3 R4 / -R4 New + R3 old / -2R4 new + R1 old
n
Sol Cj 1 1.2 2 0 0 0 0 Quantity
bases X1 X2 X3 S1 S2 S3 S4 (RHSV)
S1 0 0 0 0 1 1/3 0 -2/3 150
X3 2 ½ 0 1 0 ½ 0 0 75
S3 0 1 0 0 0 1/6 1 -1/3 30
X2 1.2 1/2 1 0 0 -1/6 0 1/3 50
Zj 1.6 1.2 2 0 0.8 0 0.4 210
 j = Cj - Zj -0.6 0 0 0 -0.8 0 -0.4

 since there is no positive number in Aj = Cj – Z raw we can suggest that we reach the
optimum solution therefore, X2 = 50
X3 = 75
S1 = 50
S3 = 30
and Zj = 210

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