Optimization Techniques

Subject Code : 22BSMA41 Semester :IV

Hours/week : 3 Total Hours : 45
Credits :3 L-T-P : 3-0-0
CIE : 50 SEE : 50
Course Learning Objectives (CLO)
The objective of this course is to make students
➢ Identify and develop operational research models from the verbal description of the real system.
➢ Understand the mathematical tools that are needed to solve optimisation problems.
➢ Use mathematical software to solve the proposed models.
➢ Develop a report that describes the model and the solving technique, analyse the results and propose
recommendations in language understandable to the decision-making processes in Management
Engineering
Module 1: Linear Programming 12 hours
Definition, Characteristics, and phases of OR. Modelling with linear programming problem (LPP). Methods
of solving LPP: Graphical method, Simplex method, Big-M and two-phase method, degeneracy in
Simplex method and application problems.

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Module 2: Transportation and Assignment Problems 9 hours
Definition of transportation model, basic feasible solution by different methods (North West Corner Rule,
Least Cost method and Vogel’s Approximation method), optimal solution (MODI’s method). Introduction
to Assignment Problems and optimal solution (Hungarian method).
Module 3: Game Theory 7 Hours
Formulation of two – person zero sum games, solving simple games using odds method and dominance rule,
the max-min and min-max principles, graphical solution procedure, solving by linear programming.
Module 4: PERT & CPM Techniques 9 hours
Network representation, critical path computation, construction of the time schedule, variation under
probabilistic models, crashing of simple networks, PERT calculations for application problems.
Module 5: Queuing theory and Simulation 8 hours
Introduction, Terminologies of Queuing system, Basic structure of queuing model (Kendal’s Notation),
Empirical Queuing models: (M/M/1):(GD/∞/∞), (M/M/C):(GD/∞/∞)(Self study).
Definition and steps of simulation - random number, random number generator - Discrete Event System
Simulation – clock, event list - Application in Queuing systems
Assignment: Solving LPP problems using Toolbox

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Text Books:
1. Operation Research an Introduction-Hamdy Taha, Pearson Education, 8th edition, 2007
2. Operations Research – Concept and Cases-Fredrick S Hillier and Lieverman TMH, 8th edition, 2007.
3. Operations Research – theory & applications by JK Sharma 5th edition, 2013
4. Operations Research-Panneerselvam, R, 2nd edition, (2006). PHI Learning, New Delhi.
Reference Book:
1.Engineering Optimization, New age international (P) by S. S. Rao, 1996
2.Wayne L. Winston; Operations Research: Applications and Algorithms, 4th Edition, Thomson
Books/Cole, 2003.
Course Outcomes:
After the successful completion of course, students will be able to
• Explain the concepts of LPP, Network Optimization and Queueing theory
• Test the optimality of LPP through formulation and methodologies
• Solve transportation and assignment problem using optimization techniques
• Demonstrate Game theory and its applications in Linear programming problem
• Employ probabilistic model for project management through PERT and CPM technique
• Use queueing and simulation models in production and service system

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Module I: Linear Programming
Operations Research (OR) originated during World War-II, when the British military management
contacted a group of experts together to use a scientific approach in the study of military operations to win
the conflict. Since then, it has eventually become a discipline that provides a set of analytical models for
problem solving and decision making. The results from solving OR problems are used widely in Business
and Management, Economics, Computer Science, Civil Engineering, Electrical Engineering, etc.
In India, OR came into existence in 1949-OR unit was established at Regional Research Laboratory,
Hyderabad. Prof. R. S. Verma has used some techniques in defence science laboratory. At the same time
Prof. Mahalanobis has established an OR unit to apply OR models in national planning and survey.
OR models use theories, results and theorems of mathematics, statistics and probability in the problem-
solving process. It has its own theories and algorithms that are being used by academicians and
practitioners.
Operations Research is called “Operational Research” in Europe/Britain but the abbreviation OR is used for
both throughout the world. Americans also call this field Management Science (MS). Sometimes both OR
and MS are combined and called ORMS. Yet other terms sometimes used are Industrial Engineering (IE)
and Decision Sciences (DS)

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Definitions of Operations Research
Following are some definitions of operations research by different authors.
• OR is the art of winning wars without actually fighting. - Aurther Clarke
• Operational research is a scientific approach to problems solving for executive management.
-H.M. Wagner
• OR is the art of giving bad answers to problems which otherwise have worse answers. -T.L. Saaty
• O.R. is the application of scientific methods, techniques and tools to problems involving the operations of
a system so as to provide those in control of the system with optimum solution to the problem. -
Churchman, Ackoff and Arnoff

Applications of Operations Research

Some of the areas where O.R techniques have been successfully utilized are as follows:
1.Allocation and distribution in projects:
• Optimal allocation of resources such as men materials machines, time and money to projects.
• Determination and deployment of proper workforce.
• Project scheduling, monitoring and control

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2.Production and facilities planning:
• Factory size and location decision.
• Estimation of number of facilities required.
• Preparation of forecasts for the various inventory items and computation of economic order quantities and
reorder levels.
• Scheduling and sequencing of production runs by proper allocation of machines.
• Transportation loading and unloading
• Warehouse location decision.
3.Programmes decisions:
• What, when and how to purchase to minimize procurement cost.
• Bidding and replacement policies.
4.Marketing:
• Advertising budget allocation.
• Product introduction timing.
• Selection of advertising media.
• Selection of product mix.

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• Customer’s preference of size, colour and packaging of various products.
5.Organization behaviour:
• Recruitment policies and assignment of jobs.
• Scheduling of training programs.
6.Finance:
• Capital requirements, cash flow analysis.
• Credit policies, credit risks etc.
• Investment decision.
• Profit plan for the company.
7.Research & development:
• Product introduction planning.
• Control of R&D projects.
• Selection of projects and preparation of their budgets.
8.Transportation:
• Logistics distribution.
• Designing optimal routing models:

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Advantages and Disadvantages of OR [Home work]

PHASES OF OPERATION S RESEARCH

The process of addressing an Operations Research (OR) problem typically involves several phases, which
guide the systematic approach to finding optimal solutions. These phases are as follows:
1.Problem Formulation:
o Define the Problem: Clearly articulate the problem at hand. Understand the objectives, constraints, and
the decision variables involved.
o Identify the Decision-Maker's Goals: Establish the goals that the decision-maker wants to achieve.
These could include maximizing profit, minimizing costs, optimizing resource allocation, etc.
o Specify the Decision Variables and Constraints: Identify the variables that the decision-maker can
control (decision variables) and any limitations or constraints that must be adhered to.
2.Building Mathematical Model:
o Translate the Problem into Mathematics: Formulate a mathematical representation of the problem
using equations and inequalities. This involves defining the objective function that needs to be optimized
and expressing constraints mathematically.

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o Identify Relationships Between Variables: Understand how different variables are related and how
changes in one variable might affect others.
o Quantify the Objectives and Constraints: Assign numerical values to the variables, coefficients, and
constants to represent the real-world quantities involved in the problem.
3.Deriving Solutions:
o Choose an Optimization Technique: Select an appropriate optimization method or algorithm to find the
best solution to the formulated mathematical model. Common techniques include linear programming,
integer programming, nonlinear programming, etc.
o Solve the Mathematical Model: Utilize mathematical tools or software to solve the formulated model
and obtain optimal values for decision variables that satisfy the objectives and constraints.
4.Validating Model:
o Verify Assumptions: Ensure that the assumptions made during the problem formulation phase are
reasonable and accurate.
o Sensitivity Analysis: Examine how changes in input parameters or coefficients affect the solution. This
helps in understanding the robustness of the model.
o Compare with Real-World Data: Validate the model by comparing its predictions or solutions with real-
world data or outcomes. If there are significant discrepancies, the model may need refinement.

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5.Controlling and Implementing Solution:
o Develop an Implementation Plan: Create a plan for putting the solutions into practice. This might
involve changes in processes, resource allocation, or other operational adjustments.
o Consider Practical Constraints: Ensure that the proposed solutions are feasible within the practical
constraints of the organization or system.
o Monitor and Control Implementation: Implement the solutions and continuously monitor their
performance. Adjustments may be necessary based on the real-world outcomes and changing conditions.
Each of these phases is crucial for the success of an Operations Research project, as they collectively guide
the decision-making process towards optimal solutions for complex problems.

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Mathematical Programming
A mathematical programming model is a mathematical decision model for planning decisions that optimize
an objective function and satisfy limitations by mathematical constraints. Any mathematical model can be
generally formulated as follows:
Minimize ( Maximize) : f ( x1 , x2 , x3 ,..., xn )  Objective function
Subject to
g1 ( x1 , x2 , x3 ,..., xn ) , , = b1 
g 2 ( x1 , x2 , x3 ,..., xn ) , , = b2 
 Constra int s

g m ( x1 , x2 , x3 ,..., xn ) , , = bm 

where x1 , x2 , x3 ,..., xn are the decision variables.

Example
A rectangular box open at the top is to have volume of 32 cubic feet. Find the dimensions of the box
requiring least material for its construction.
Mathematical model
Let x ft , y ft & z ft be the dimensions of the box and S be the surface area of the box.

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Then we have
Minimize S = xy + 2 yz + 2 zx
Subject to
xyz = 32
x, y , z  0
Linear programming problem (LPP)
Linear programming is powerful mathematical technique for finding the best use of the limited resources of
a concern. Linear programming is a special case of mathematical programming. If the objective function
and all the constraints are linear functions of the decision variables, then the mathematical programming
problem is called a linear programming problem(LPP).
It may be defined as a technique which allocates scarce available resources under conditions of certainty in
an optimum manner, (i.e., maximum-minimum) to achieve the company objectives which may be,
maximum overall profit, or minimum overall cost. It finds applications as resource allocation like crude
oil distribution to refineries, production distribution; in agricultural works like blending fertilizers,
selecting the right crop to be planted; in army such as bombers placements, troop’s deployment; and in
finance, personnel and advertising.
The general mathematical model of linear programming can be written in the following form:

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Minimize ( Maximize) : c1 x1 + c2 x2 + ... + cn xn  Objective function
Subject to
a11 x1 + a12 x2 + ... + a1n xn ( = ) b1 
a21 x1 + a22 x2 + ... + a2 n xn ( = ) b2 

 Constraints

am1 x1 + am 2 x2 + ... + amn xn ( = ) bm 
x1 , x2 ,..., xn  0 Non-negativity constraints

where x1 , x2 , x3 ,..., xn are the decision variables and c j , aij , bi values are constants, called parameters or

coefficients.

Assumptions of Linear programming problem:

The following basic assumptions are made in the LPP:
1.Proportionality/ Linearity
The contribution to the objective function from each decision variable is proportional to the value of the
decision variable. This means that if production of 1 unit of product uses 6 hours, then making 10 units of
that product uses 60 hours of the resources. i.e. Linear objective function and linear constraints

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2.Additivity
The total value of the objective function and each constraint function is obtained by adding up the individual

contributions from each variable. i.e. If we use t1 hours of time on Machine A to make product 1 and t2

hours to make product 2, the total time required to make products 1 & 2 on Machine A is t1 + t2 hours.
Some processes may not behave in this way. For example, when several liquids of different chemical
compositions are mixed, the resulting volume may not be equal to the sum of the volumes of the
individual liquids.
3. Divisibility
The decision variables can take fractional values. It means that the companies manufacture products in
fractional units. For example, company manufacture 2.5 tables each day, 3.2 barrels of oil etc. This is
referred too as the assumption of divisibility.
4.Non-negativity
All variables are restricted to non-negative values (i.e., their numerical value will be ≥ 0).
5.Certainty
The parameters of the model are certainly and precisely known.

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Components of Linear Programming
Any linear programming model (problem) must have the following components/properties:
• The relationship between variables and constraints must be linear.
• The model must have an objective function.
• The model must have structural constraints.
• The model must have non-negativity constraint.

Applications of LPP: Linear programming techniques are widely used in various contexts. Some of them are
➢ Industrial Applications
• Product Mix Problems
• Blending Problems
• Production Scheduling Problems
• Assembly Line Problems
➢ Management Applications
• Media Selection Problems
• Portfolio Selection Problems

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• Profit Planning Problems
• Transportation Problems
➢ Miscellaneous Applications
• Diet Problems
• Agriculture Problems
• Flight Scheduling Problems
• Facilities Location Problems

Formulating the LPP

1. Product Mix Problem Consider a chocolate manufacturing company that produces only two types of
chocolates – A and B. Both the chocolates require Milk and Choco only. To manufacture each unit of A
and B, the following quantities are required:
• Each unit of A requires 1 unit of Milk and 3 units of Choco
• Each unit of B requires 1 unit of Milk and 2 units of Choco
The company kitchen has a total of 5 units of Milk and 12 units of Choco. On each sale, the company makes
a profit of Rs 6 per unit A sold and Rs 5 per unit B sold.

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Now, the company wishes to maximize its profit. How many units of A and B should it produce
respectively?
Solution: The first thing we want to represent the problem in a tabular form for better understanding.

Chocolates Milk Choco Profit per unit

A 1 3 Rs 6

B 1 2 Rs 5

Total 5 12

Let the total number of units produced by A be = x

Let the total number of units produced by B be = y

Now, the total profit is represented by Z

The total profit the company makes is given by the total number of units of A and B produced multiplied by
its per-unit profit of Rs 6 and Rs 5 respectively.
Profit: Maximize Z= 6 x + 5 y

which means we have to maximize Z . The company will try to produce as many units of A and B to
maximize the profit. However, the resources Milk and Choco are available in a limited amount.

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As per the above table, each unit of A and B requires 1 unit of Milk. The total amount of Milk available is 5
units. To represent this mathematically,
x+ y 5

Also, each unit of A and B requires 3 units & 2 units of Choco respectively. The total amount of Choco
available is 12 units. To represent this mathematically,
3 x + 2 y  12

Also, the values for units of A can only be integers.

So we have two more constraints, x  0, y  0
For the company to make maximum profit, the above inequalities have to be satisfied.
This is called formulating a real-world problem into a linear programming problem (LPP).
Thus the LPP model for the above problem is
Maximize Z= 6 x + 5 y
Subject to
x+ y 5
3x + 2 y  12
x, y  0

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2. A patient consult a doctor to check up his ill health. Doctor examines him and advises him that he is
having deficiency of two vitamins, vitamin A and Vitamin D. Doctor advises him to consume vitamin A
and D regularly for a period of time so that he can regain his health. Doctor prescribes tonic X and tonic
Y , which are having vitamin A and D in certain proportion. Also advises the patient to consume at least 40
units of vitamin A and 50 units of vitamin D daily. The cost of tonics X and Y and the proportion of
vitamin A and D that present in X and Y are given in the table below. Formulate a model to minimize the
cost of tonics.

Vitamins Tonics Daily requirement in units.

X Y

A 2 4 40

D 3 2 50

Cost in Rs. Per unit 5 3

Solution:
Let the patient purchases x units of X and y units of Y

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Now, the total cost is represented by Z
Minimize Z= 5 x + 3 y

which means we have to minimize Z .

Inequality for vitamin A: 2 x + 4 y  40 ( Here at least word indicates that the patient can consume more than
40 units but not less than 40 units of vitamin A daily).
Similarly, Inequality for vitamin D: 3 x + 2 y  50
For non–negativity constraint, the patient cannot consume negative units. Hence both x, y  0 .
Now the LPP model for the problem is:
Minimize Z= 5 x + 3 y
Subject to
2 x + 4 y  40
3x + 2 y  50
x, y  0
3 Diet Problem A person wants to decide the constituents of a diet which will fulfil his daily requirement
of proteins, fats, and carbohydrates at the minimum cost. The choice is to be made from four different
types of foods. The yields per unit of these foods are given in the following table. Formulate LPP for the
problem.

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Solution:

Let x1 , x2 , x3 ,& x4 number of units of food of type 1, 2, 3, & 4, respectively.

Objective is to minimize the total cost i.e.

Minimize Z= 45 x1 + 40 x2 + 85 x3 + 65x4
Constraints are on the fulfilment of the daily requirement of the various constituents.
for proteins : 3x1 + 4 x2 + 8 x3 + 6 x4  800
for fats : 2 x1 + 2 x2 + 7 x3 + 5 x4  200
i.e.
for carbohydrates : 6 x1 + 4 x2 + 7 x3 + 4 x4  700
where x1 , x2 , x3 , x4  0

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Therefore, the complete LPP model for the problem can be written as
Minimize Z= 45 x1 + 40 x2 + 85 x3 + 65 x4
Subject to
3x1 + 4 x2 + 8 x3 + 6 x4  800
2 x1 + 2 x2 + 7 x3 + 5 x4  200
6 x1 + 4 x2 + 7 x3 + 4 x4  700
x1 , x2 , x3 , x4  0

Ex-4: A manufacturer produces two types of models M1 and M2. Each model of the type M1 requires 4
hours of grinding and 2 hours of polishing; whereas each model of the type M2 requires 2 hours of
grinding and 5 hours of polishing. The manufacturer has 2 grinders and 3 polishers. Each grinder works 40
hours a week and each polisher work for 60 hours a week. Profit on M1 model is Rs. 3.00 and on model
M2 is Rs. 4.00. Whatever is produced in a week is sold in the market. How should the manufacturer
allocate his production capacity to the two types of models so that he may make the maximum profit in a
week?
Solution:
Decision variables: Let x1 and x2 be the number of units of M1 and M2 models.

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Objective function: Since the profit on both the models are given, we have to maximize the profit viz.
Max Z = 3x1 + 4x2
Constraints: There are two constraints — one for grinding and the other for polishing.
Numbers of hours available on each grinder for one week is 40. There are 2 grinders. Hence the
manufacturer does not have more than 2 × 40 = 80 hours of grinding. M1 requires 4 hours of grinding and
M2 requires 2 hours of grinding.
The grinding constraint is given by
4x1 + 2x2  80
Since there are 3 polishers, the available time for polishing in a week is given by 3 × 60 = 180 hours of
polishing. M1 requires 2 hours of polishing and M2 requires 5 hours of polishing. Hence we have
2x1 + 5x2  180.
Finally we have,
Max Z = 3x1 + 4x2
Subject to, 4x1 + 2x2  80
2x1 + 5x2  180
x1, x2 0.

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Ex-5: A company manufactures two products A and B. These products are processed in the same machine.
It takes 10 minutes to process one unit of product A and 2 minutes for each unit of product B and the
machine operates for a maximum of 35 hours in a week. Product A requires 1 kg and B requires 0.5 kg of
raw material per unit, the supply of which is 600 kg per week. Market constraint on product B is known to be
minimum of 800 units every week. Product A costs Rs. 5 per unit and sold at
Rs. 10. Product B costs Rs. 6 per unit and can be sold in the market at a unit price of Rs. 8. Determine the
number of units of A and B per week to maximize the profit.
Solution
Decision variables: Let x1 and x2 be the number of products A and B respectively.
Objective function: Cost of product A per unit is Rs. 5 and selling price is Rs. 10 per unit.
Profit on one unit of product A = 10 – 5 = Rs.5
x1 units of product A contributes a profit of Rs.5x1, profit contribution from one unit of product
B = 8 – 6 = Rs.2
x2 units of product B contribute a profit of Rs. 2x2 The objective function is given by,
Max Z = 5x1 + 2x2
Constraints: Time requirement constraint is given by,

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10x1 + 2x2  (35 × 60)
10x1 + 2x2  2100
Raw material constraint is given by,
x1 + 0.5x2  600
Market demand of product B is 800 units every week
x2  800
The complete LPP is
Max Z = 5x1 + 2x2
Subject to, 10x1 + 2x2  2100
x1 + 0.5x2  600
x2  800
x1, x2  0.
Ex-6: A person requires 10, 12 and 12 units of chemicals A, B and C, respectively for his garden. A liquid product
contains 5, 2 and 1 units of A, B and C, respectively, per jar. A dry product contains 1, 2 and 4 units of A, B, C per
carton. If the liquid product is sold for Rs. 3 per jar and the dry product is sold for Rs. 2 per carton, how many units
of each product should be purchased, in order to minimize the cost and meet the requirements?

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Solution:
Objective function: Since the cost for the products are given, we have to minimize the cost.
Min Z = 3x1 + 2x2
Constraints: As there are 3 chemicals and their requirements are given, we have three constraints forthese three
chemicals.
5x1 + x2  10

2x1 + 2x2  12
x1 + 4x2  12

Min Z = 3x1 + 2x2

Subject to, 5x1 + x2  10

2x1 + 2x2  12
x1 + 4x2  12

x1, x2  0.

Example 7 A paper mill produces two grades of paper namely X and Y. Owing to raw material restrictions, it cannot
produce more than 400 tons of grade X and 300 tons of grade Y in a week. There are 160 production hours in a week.

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 It requires 0.2 and 0.4 hours to produce a ton of products X and Y, respectively with corresponding profits of Rs. 200
and Rs.500 per ton. Formulate the above as an LPP to maximize profit and find the optimum product mix.
Solution:
Decision variables: Let x1 and x2 be the number of units of two grades of paper of X and Y. Objective function:

Since the profit for the two grades of paper X and Y are given, the objectivefunction is to
maximize the profit.
Max Z = 200x1 + 500x2

Constraints: There are 2 constraints, one referring to the raw material, and the other to the production hours.
Max Z = 200x1 + 500x2

Subject to, x1  400

x2 300

0.2x1 + 0.4x2  160

Non-negative restriction x1, x2  0.
Ex-8: A company manufactures two products A and B. Each unit of B takes twice as long as to produce one unit of A
and if the company is to produce only A, it would have time to produce 2000 units per day. The availability of the
raw material is sufficient to produce 1500 units per day of both A and B combined. Product B requiring a special
ingredient, only 600 units can be prepared per day. If A fetches a profit of Rs. 2 per unit and B, a profit of Rs. 4 per

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 unit, find the optimum product mix by graphical method.
Solution:
Let x1 and x2 be the number of units of the products A and B respectively.

The profit after selling these two products is given by the objective function,
Max Z = 2x1 + 4x2

Since the company can produce at the most 2000 units of the product in a day and type B requires twice as much
time as that of type A, production restriction is given by
x1 + 2x2  2000

Since the raw materials are sufficient to produce 1500 units per day, if both A and B are combined, we have
x1 + x2  1500

As B requires special ingredients, there can be a maximum of 600 units from B so we have x2  600. Also, since the

company cannot produce negative quantities, x1  0 and x2  0.

Hence the problem can be finally put in the form: Find x1 and x2 such that the profits,
Z = 2x1 + 4x2 is maximum

Subject to, x1 + 2x2  2000

x1 + x2  1500

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x2  600

x1, x2  0.

Ex-9: A firm manufacturers 3 products A, B and C. The profits are Rs. 3, Rs. 2 and Rs. 4 respectively. The firm has 2
machines and given below is the required processing time in minutes for each machine on each product
Product-wise processing time (min)
Machines A B C
M1 4 3 5
M2 3 2 4

Machines M1 and M2 have 2000 and 2500 machine minutes respectively. The firm must manufacture 100 units of A’s,
200 units of B’s and 50 units of C’s but not more than 150 units of A’s. Set up an LPP to maximize the profit.
Solution Let x1, x2, x3 be the number of units of the products A, B, C respectively.
Since the profits are Rs. 3, Rs. 2 and Rs. 4 respectively, the total profit gained by the firm after selling these three
products is given by,
Z = 3x1 + 2x2 + 4x3

The total number of minutes required in producing these three products at machine M1 is given by
4x1 + 3x2 + 5x3 and at machine M2, it is given by 3x1 + 2x2 + 4x3.
The restrictions on the machine M1 and M2 are given by 2000 minutes and 2500 minutes.

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4x1 + 3x2 + 5x3  2000

3x1 + 2x2 + 4x3  2500

Also, since the firm manufactures 100 units of A’s, 200 units of B’s and 50 units of C’s but not more than 150 units of
A’s the further restriction becomes
100  x1  150

200  x2  0
50  x3  0

Hence the allocation problem of the firm can be finally put in the form: Find the value of x1, x2, x3 so as to maximize
Z = 3x1 + 2x2 + 4x3

Subject to the constraints, x1, x2  0

4x1 + 3x2 + 5x3  2000
3x1 + 2x2 + 4x3  2500

100  x1  150, 200  x2  0, 50  x3  0.

Ex-10: A farmer has a 100 acre farm. He can sell all tomatoes, lettuce or radishes and can get a price of Rs. 1.00 per kg
for tomatoes, Rs. 0.75 a heap for lettuce and Rs. 2.00 per kg for radishes. The average yield per acre is 2,000 kg of

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 tomatoes, 3,000 heaps of lettuce and 1,000 kg of radishes. Fertilizers are available at Rs. 0.50 per kg and the amount
required per acre is 100 kg each for tomatoes and lettuce and 50 kg for radishes. Labour required for sowing,
cultivating and harvesting per acre is 5 man-days for tomatoes and radishes and 6 man-days for lettuce. A total of
400 man-days of labour are available at Rs. 20 per man-day. Formulate this problem as a linear programming model
to maximize the farmer’s total profit.
Solution:
Let x1, x2, x3 be the area (in acre) of his farm to grow tomatoes, lettuce and radishes, respectively. The farmer
produces 2000x1 kg of tomatoes, 3000x2 heaps of lettuce and 1000x3 kg of radishes.

 The total sales of the farmer will be

= Rs. (1.00 × 2000x1 + 0.75 × 3000x2 + 2 × 1000x3)
 Fertilizer expenditure will be 0.5 × [100 (x1 + x2) + 50x3] Labour cost= Rs. 20 × (5x1 + 6x2 + 5x3)

 Farmer’s profit will be

Z = Sale (in Rs.) – Total expenditure (in Rs.)
= (2000x1 + 0.75 × 3000x2 + 2 × 1000x3)

– 0.5 × [100 (x1 + x2) + 50x3] (Fertilizer)

– 20 × (5x1 + 6x2 + 5x3) (Labour)

Z = 1850x1 + 2080x2 + 1875x3

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Since the total area of the farm is restricted to 100 acres
x1 + x2 + x3  100. Also, the total man-days labour is restricted to 400 man-days.

5x1 + 6x2 + 5x3  400

Hence, the farmers allocation problem can be finally put in the form.
Find the value of x1, x2 and x3 so as to maximize
Z = 1850x1 + 2080x2 + 1875x3

Subject to,
x1 + x2 + x3  1005

x1 + 6x2 + 5x3  400

x1, x2, x3  0.

Methods for the Solution of a Linear Programming Problem

The various methods available to solve the LPP are:
1.The Graphical Method when we have two decision variables in the problem. (To deal with more
decision variables by graphical method will become complicated, because we have to deal with planes
instead of straight lines. Hence in graphical method let us limit ourselves to two variable problems.

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2.The Systematic Trial and Error method, where we go on giving various values to variables until we get
optimal solution. This method takes too much of time and laborious, hence this method is not discussed
here.
3.The Simplex method. When the problem is having more than two decision variables, simplex method is
the most powerful method to solve the problem. It has a systematic programme, which can be used to
solve the problem.
Terminology for Solutions of Linear Programming Problem
Solution
A Set of variable {x1,x2,x3,…,xn} is called a solution if it satisfies the constraints
Feasible Solution
A Set of variable {x1,x2,x3,…,xn} is called feasible solution if these variable satisfy the constraints are non
-ve.
i.e., A set of values for the decision variables that satisfy all the constraints is called feasible solution.
Feasible Region
A feasible region is an area defined by a set of all possible feasible solutions. i.e. The feasible region is the
collection of all feasible solutions.
Basic Solution

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A solution obtained by setting n variables among m+n variable to zero and solving for the remaining m
variables is called a basic solution. These m variables are basic variables and n variables are non basic
variables
Basic Feasible Solution (BFS)
A solution is called basic feasible solution if all the basic variables are greater than or equal to zero
Non Degenerate BFS
It is a basic feasible solution in which all the m variables are positive and then remaining n variables are
zero
Degenerate BFS
It is a basic feasible solution in which one or more of the m variables are equal to zero
Optimal BFS
The optimal basic feasible solution if it is optimises the objective function. i.e.,
A feasible solution that minimizes/maximizes the objective function is called an optimal solution.
Infeasible Solution
An infeasible solution is a solution for which at least one constraint is violated.
Unbounded Solution

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If the values of the objective function can be increased or decreased indefinitely than the solution is called
an unbounded solution
Corner point feasible solution
it is a feasible solution that doesn't lie on any line segment connecting to other feasible solution

Graphical Method for Solving a Linear Programming Problem

The graphical method is used to optimize the two-variable linear programming. If the problem has two
decision variables, a graphical method is the best method to find the optimal solution. In this method, the
set of inequalities are subjected to constraints. Then the inequalities are plotted in the XY plane. Once, all
the inequalities are plotted in the XY graph, the intersecting region will help to decide the feasible region.
The feasible region will provide the optimal solution as well as explains what all values our model can
take.
The systematic procedure of graphical method is given as follows:
Graphical Method

Step-1: Generate the mathematical model of the given LP problem.

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Step-2: a. Replace ≤ and ≥ sign to = in each constraint (inequality to equality).
b. Find the two points of each line and draw it on graph.
c. For inequality sign of each constraint, decide the area of feasible solution.
(For ≤ constraint it is left side of the line and for ≥ constraint it is right side of the line. So for
easy understanding, take any point of left side of line and if it satisfies the constraint then mark
the left side area otherwise mark the right side area)
d. Shade the common portion of the graph.

Step-3: a. Decide the extreme points (corner points) of the feasible region.
b. Calculate the objective function value at each extreme points.
c. Find out min or max value (optimal value) of the objective function.

Note
The optimum value of the objective function occurs at one of the extreme/corner points of the feasible
region (closed polygon)

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Solved Examples
1. Find the solution using graphical method
Maximize Z = 40 x1 + 80 x2
Subject to
2 x1 + 3x2  48
x1  15
x2  10
x1 , x2  0
Solution
Given
Maximize Z = 40 x1 + 80 x2
Subject to
2 x1 + 3x2  48
x1  15
x2  10
x1 , x2  0
Since all the constraints are inequalities, so convert them into equalities.
Thus,

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2 x1 + 3x2 = 48 (1)
x1 = 15 (2)
x2 = 10 (3)

From (1)  when x1 = 0 then 3x2 = 48  x2 = 16

Thus, (0,16) be one of the corner point.

Similarly, (1)  when x2 = 0 then 2 x1 = 48  x1 = 24

Thus, (24, 0) be another corner point.

From (2)  x1 = 15 means a straight line parallel to Y-axis

Thus, (15, 0) be another corner point.

From (3)  x2 = 10 means a straight line parallel to X-axis

Thus, (0,10) be another corner point.

On plotting the straight lines (1), (2) and (3)
we have the following graph.

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Let OABCD be the feasible region bounded by the
corner points O(0, 0), A(0,10), B(9,10), C(15, 6), and
D(15, 0)

Since, the optimum value of the objective function

occurs at one of the extreme/corner points of the
feasible region (OABCD). The value of the objective
function at each of these extreme points is as follows:
Extreme Point Objective function value
Coordinates Z = 40 x1 + 80 x2
( x1 , x2 )
O(0, 0), Z = 40(0) + 80(0) = 0

A(0,10), Z = 40(0) + 80(10) = 800

B(9,10), Z = 40(9) + 80(10) = 1160

C(15, 6), Z = 40(15) + 80(6) = 1080

D(15, 0) Z = 40(15) + 80(0) = 600

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Clearly, the maximum value of the objective function Z = 1160 occurs at the extreme point B(9,10).

Hence, the optimal solution to the given LP problem is : x1 = 9, x2 = 10 and Max Z = 1160 .

2. Solve the following problem graphically

Minimize Z = 20 x1 + 10 x2
Subject to
x1 + 2 x2  40
3x1 + x2  30
4 x1 + 3x2  60
x1 , x2  0

and solve the above problem for minimization.

Solution
Given

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Minimize Z = 20 x1 + 10 x2
Subject to
x1 + 2 x2  40
3x1 + x2  30
4 x1 + 3x2  60
x1 , x2  0

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3. Solve the following problem graphically
Maximize Z = 5 x1 + 7 x2
Subject to
x1 + x2  4
3x1 + 8 x2  24
10 x1 + 7 x2  35
x1 , x2  0

Optimization Technique Department of Mathematics 42 | P a g e

Optimization Technique Department of Mathematics 43 | P a g e
 4. Solve the following problem graphically
Maximize Z = 3x1 + 4 x2
Subject to
5 x1 + 4 x2  200
3x1 + 5 x2  150
5 x1 + 4 x2  100
8 x1 + 4 x2  80
x1 , x2  0

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5. Solve the following problem graphically
Maximize Z = 6 x1 + 4 x2
Subject to
− 2 x1 + x2  2
x1 − x2  2
3x1 + 2 x2  9
x1 , x2  0

Optimization Technique Department of Mathematics 45 | P a g e

Optimization Technique Department of Mathematics 46 | P a g e
Solving with different approach
6. Solve the following problem graphically
Maximize Z = 5 x + 3 y
Subject to
x + 2 y  14
3x − y  0
x− y 2

and solve the above problem for minimization.

Solution
Given
Maximize Z = 5 x + 3 y
Subject to
x + 2 y  14
3x − y  0
x− y 2

Since all the constraints are inequalities, so convert them into equalities.
Thus,

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 x + 2 y = 14 (1)
3x − y = 0 (2)
x− y =2 (3)

Solving (1) & (2) we have

(1)  x + 2 y = 14
 x + 2(3x) = 14 ( y = 3x from (2))
 7 x = 14
 x=2

Thus, (2, 6) be one of the corner point.

Solving (1) & (3) we have

(1)  x + 2 y = 14
 x + 2( x − 2) = 14 (x − 2 = y from (3))
 3x − 4 = 14
 x=6

Thus, (6, 4) be one of the corner point.

Similarly, solving (2) & (3) we have

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 (2)  3x − y = 0
 3x − ( x − 2) = 0 (x − 2 = y from (3))
 2x + 2 = 0
 x = −1

Thus, (−1, −3) be one of the corner point.

As there is no non-negativity constraint involved in the given problem, the decision variables are allowed to
take negative values.
On plotting the straight lines (1), (2) and (3), we have the following graph.

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 Let ABC be the feasible region bounded by the corner
points A( −1, −3), B(6, 4), and C(2, 6)
Since, the optimum value of the objective function occurs
at one of the extreme/corner points of the feasible region
(ABC). The value of the objective function at each of
these extreme points is as follows:

Extreme Point Objective function value

Coordinates Z = 5x + 3 y
( x, y)
A( −1, −3), Z = 5(−1) + 3(−3) = −14
B(6, 4), Z = 5(6) + 3(4) = 42
C(2, 6) Z = 5(2) + 3(6) = 28

Clearly, the maximum value of the objective function Z = 42 occurs at the extreme point B(6, 4).
Hence, the optimal solution to the given LP problem is : x = 6, y = 4 and Max Z = 42 .

Similarly, the minimum value of the objective function Z = −14 occurs at the extreme point A(−1, −3).
Hence, the optimal solution to the given LP problem is : x = −1, y = −3 and Max Z = −14 .

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7. Solve the following problem graphically
Maximize Z = 100 x1 + 80 x2
Subject to
5 x1 + 10 x2  50
8 x1 + 2 x2  16
3x1 − 2 x2  6
x1 , x2  0

Solution
Given
Maximize Z = 100 x1 + 80 x2
Subject to
5 x1 + 10 x2  50
8 x1 + 2 x2  16
3x1 − 2 x2  6
x1 , x2  0

Since all the constraints are inequalities, so convert them into equalities.
Thus,

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 5 x1 + 10 x2 = 50 (1)
8 x1 + 2 x2 = 16 (2)
3x1 − 2 x2 = 6 (3)

Solving (1) & (2) we have

(1)  5 x1 + 10 x2 = 50
 5 x1 + 10(8 − 4 x1 ) = 50 (8 x1 + 2 x2 = 16  x2 = 8 − 4 x1 from (2))
 − 35 x1 = −30
 x1 = 6 / 7

 6 32 
Thus,  ,  be one of the corner point.
7 7 
Solving (1) & (3) we have

(1)  5 x1 + 10 x2 = 50
1 1
 5 x1 + 10( (3x1 − 6) ) = 50 (3x1 − 2 x2 = 6  x2 = (3x1 − 6) from (2))
2 2
 20 x1 = 80
 x1 = 4

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Thus, (4,3) be another corner point.

Similarly, solving (2) & (3) we have

(2)  3x1 − 2 x2 = 6
 3x1 − 2(8 − 4 x1 ) = 6 (8 x1 + 2 x2 = 16  x2 = 8 − 4 x1 from (3))
 11x1 = 22
 x1 = 2

Thus, (2, 0) be another corner point.

On plotting the straight lines (1), (2) and (3), we have the following graph.
Let ABC be the feasible region bounded by the corner points A(4,3), B(10, 0), and C(2, 0)
Since, the optimum value of the objective function occurs at one of the extreme/corner points of the feasible
region (ABC). The value of the objective function at each of these extreme points is as follows:

Extreme Point Objective function value

Coordinates Z = 100 x1 + 80 x2
( x1 , x2 )
A(4,3), Z = 100(4) + 80(3) = 640
B(10, 0), Z = 100(10) + 80(0) = 1000
C(2, 0) Z = 100(2) + 80(0) = 640

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Clearly, the maximum value of the objective function Z = 1000 occurs at the extreme point B(10, 0).
Hence, the optimal solution to the given LP problem is : x1 = 10, x2 = 0 and Max Z = 1000 .

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4.

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Some Exceptional Cases in Graphical Method
In the preceding examples, we have seen that solution of an LPP occurs at a vertex of feasible region. But it
is not always true, there may be an LPP for which no solution exists or for which the only solution
obtained is an unbounded one or an LPP may have more than one solution. Now we shall discuss the
following three special cases that arise in the application of graphical method.
(a) Alternative optimal solution: Objective function assumes the same optimum value at more than one
vertex
(b) Infeasible (or non-existing) solution: When the constraints are not satisfied simultaneously, the LPP has
no feasible solution
(c) Unbounded solution: There exist an infinite number of solutions to the problem.

5. Solve the following problem graphically (Alternative Optimal Solution)

Maximize Z = 2 x1 + 4 x2
Subject to
x1 + 2 x2  5
x1 + x2  4
x1 , x2  0

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Solution
Given
Maximize Z = 2 x1 + 4 x2
Subject to
x1 + 2 x2  5
x1 + x2  4
x1 , x2  0
Since all the constraints are inequalities, so convert them into equalities.
Thus,
x1 + 2 x2 = 5 (1)
x1 + x2 = 4 (2)
On plotting the straight lines (1) and (2), we have the following graph.
Let ACDB be the feasible region bounded by the
corner points A(3,1), B(0, 2.5), C(4, 0) and
D(0, 0)

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 Since, the optimum value of the objective function
occurs at one of the extreme/corner points of the
feasible region (ACDB). The value of the
objective function at each of these extreme points
is as follows:
Extreme Objective function value
Point Z = 2 x1 + 4 x2
Coordinates
( x1 , x2 )
A(3,1), Z = 2(3) + 4(1) = 10

B(0, 2.5), Z = 2(0) + 4(2.5) = 10

C(4, 0) Z = 2(4) + 4(0) = 8

D(0, 0) Z = 2(0) + 4(0) = 0

Clearly, the maximum value of the objective function Z = 10 occurs at the two extreme points
A(3,1) & B(0, 2.5)

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 Hence, the optimal solution to the given LP problem is : x1 = 3, x2 = 1 and Max Z = 10 . (or) the optimal

solution to the given LP problem is : x1 = 0, x2 = 2.5 and Max Z = 10 .

6. Solve the following problem graphically (Infeasible Solution)

Maximize Z = x1 + x2
Subject to
x1 + x2  1
− 3 x1 + x2  3
x1 , x2  0
Solution
Given
Maximize Z = x1 + x2
Subject to
x1 + x2  1
− 3 x1 + x2  3
x1 , x2  0

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Since all the constraints are inequalities, so convert them into equalities.
Thus,
x1 + x2 = 1 (1)
− 3 x1 + x2 = 3 (2)
On plotting the straight lines (1) and (2), we have the following graph.
Since the constraints are not satisfied
simultaneously, the LPP has no feasible
solution. This implies there is no feasible
region i.e. empty.

Note:
This situation can never occur if all the
constraints are of the  type.

Thus, the LPP has no feasible solution.

7. Solve the following problem graphically (Unbounded Solution)

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Maximize Z = 6 x1 + x2
Subject to
2 x1 + x2  3
x2 − x1  0
x1 , x2  0
Solution
Given
Maximize Z = 6 x1 + x2
Subject to
2 x1 + x2  3
x2 − x1  0
x1 , x2  0
Since all the constraints are inequalities, so convert them into equalities.
Thus,
2 x1 + x2 = 3 (1)
x2 − x1 = 0 (2)
On plotting the straight lines (1) and (2), we have the following graph.

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 The two vertices of the feasible region are A and B.
We observe that the feasible region is unbounded.
The value of the objective function at the vertex
A (1, 1) and B (0, 3) are 7 and 3, respectively.
But there exist number of points in feasible region for
which the value of the objective function
is more than 7. For example, the point (3, 6) lies in the
feasible region and the objective function
value at this point is 24 which is more than 7. Thus,

both the variables x1 and x2 can be made arbitrarily

large and the value of Z also increases. Hence, the

problem has an unbounded solution.
Thus, the LPP has unbounded solution.
Online Graphical Method Calculator
https://www.pmcalculators.com/graphical-method-calculator/
Production Process Models

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1. A manufacturing company makes two models A and B of a product. Each piece of Model A requires 9
labour hours for fabricating and 1 labour hour for finishing. Each piece of Model B requires 12 labour
hours for fabricating and 3 labour hours for finishing. For fabricating and finishing, the maximum labour
hours available are 180 and 30 respectively. The company makes a profit of Rs 8000 on each piece of
model A and Rs 12000 on each piece of Model B. How many pieces of Model A and Model B should be
manufactured per week to realise a maximum profit? What is the maximum profit per week?
Solution:
Enter the given data in the table below:

Models
Process A B Availability of Labour hours

Fabricating 9 12 180
Finishing 1 3 30
Profit per unit Rs 8000 Rs 12000
Suppose x is the number of pieces of Model A and y is the number of pieces of Model B. Then
, the complete LPP model for the problem can be written as

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Maximize Z = 8000 x + 12000 y
Subject to
9 x + 12 y  180 (Fabricating constraint)
3x + 4 y  60 (Finishing constraint)
x, y  0 (Non − negativity constraint)
Since all the constraints are inequalities, so convert them into equalities.
Thus,
9 x + 12 y = 180 (1)
3x + 4 y = 60 (2)
On plotting the straight lines (1), and (2) we have the following graph.

Let OABC be the feasible region bounded by the corner

points O(0, 0), A(20, 0), B(12, 6), and C(0,10)
Since, the optimum value of the objective function occurs at
one of the extreme/corner points of the feasible region
(ABC). The value of the objective function at each of these
extreme points is as follows:

Optimization Technique Department of Mathematics 64 | P a g e

 Extreme Objective function value
Point Z = 8000 x + 12000 y

Coordinates
( x, y)

O(0, 0), Z = 8000(0) + 12000(0) = 0

A(20, 0), Z = 8000(20) + 12000(0) = 160000

B(12, 6), Z = 8000(12) + 12000(6) = 168000

C(0,10) Z = 8000(0) + 12000(10) = 120000

Clearly, the maximum value of the objective function Z = 168000 occurs at the extreme point B(12, 6)
Hence, the optimal solution to the given LP problem is : x = 12, y = 6 and Max Z = 168000 .
Hence, the company should produce 12 pieces of Model A and 6 pieces of Model B to realise maximum
profit and maximum profit then will be Rs 1,68,000.

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2. A company manufactures two products X and Y . The profit contribution of X and Y are Rs. 3/- and
Rs. 4/- respectively. The products X and Y require the services of four facilities. The capacities of the
four facilities A, B, C, and D are limited and the available capacities in hours are 200 hours, 150 hours,
100 hours, and 80 hours respectively. Product X requires 5, 3, 5 and 8 hours of facilities A, B, C, and D
respectively. Similarly the requirement of Y is 4, 5, 5, and 4 hours respectively on A, B, C and D. Find
the optimal product mix to maximize the profit.
Solution:
Enter the given data in the table below:

The inequalities and equations for the above data will be as follows.

Let the company manufactures x1 units of X and x2 units of Y

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Therefore, the complete LPP model for the problem can be written as
Maximize Z = 3x1 + 4 x2
Subject to
5 x1 + 4 x2  200
3x1 + 5 x2  150
5 x1 + 4 x2  100
8 x1 + 4 x2  80
x1 , x2  0
Since all the constraints are inequalities, so convert them into equalities.
Thus,
5 x1 + 4 x2 = 200 (1)
3x1 + 5 x2 = 150 (2)
5 x1 + 4 x2 = 100 (3)
8 x1 + 4 x2 = 80 (4)
On plotting the straight lines (1), (2), (3) and (4), we have the following graph.

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 Let ABC be the feasible region bounded by the corner
points A(0, 20), B(10, 0), and C(0, 0)
Since, the optimum value of the objective function
occurs at one of the extreme/corner points of the
feasible region (ABC). The value of the objective
function at each of these extreme points is as
follows:
Extreme Point Objective function value

Coordinates ( x1 , x2 ) Z = 3x1 + 4 x2

A(0, 20), Z = 3(0) + 4(20) = 80

B(10, 0), Z = 3(10) + 4(0) = 30

C(0, 0) Z = 3(0) + 4(0) = 0

Clearly, the maximum value of the objective function Z = 80 occurs at the extreme point A(0, 20)

Hence, the optimal solution to the given LP problem is : x1 = 0, x2 = 20 and Max Z = 80 . Hence, the

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company should manufacture 0 units of type X and 20 units of type Y to realise maximum profit and
maximum profit then will be Rs 80.

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Simplex Method:
Slack Variable:
If the constraint has a sign "  " to make it an equality, the positive variable, which is added to the LHS of
the constraints, is called slack variable.
Ex:
Max Z = 6 x + 8 y
Subject to
5 x + 10 y  60
4 x + 4 y  40
x, y  0
Here all the constraints are "  " sign type. The constraints can be converted into equalities by introducing
slack variables ( s1 , s2 ,..., sn ) . Thus, the above LPP becomes
Max Z = 6 x + 8 y
Subject to
5 x + 10 y + s1 = 60
4 x + 4 y + s2 = 40
x, y, s1 , s2  0

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Surplus Variable:
If the constraint has a sign "  " to make it an equality, the positive variable, which is subtracted from the
LHS of the constraints, is called surplus variable.
Ex:
Max Z = 6 x + 8 y
Subject to
5 x + 10 y  60
4 x + 4 y  40
x, y  0
Here all the constraints are "  " sign type. The constraints can be converted into equalities by introducing
surplus variables ( s1 , s2 ,..., sn ) . Thus, the above LPP becomes
Max Z = 6 x + 8 y
Subject to
5 x + 10 y − s1 = 60
4 x + 4 y − s2 = 40
x, y, s1 , s2  0
Note:

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1. If the LPP has mixed constraints (Some are "  " type and others are of "  " type), then both slack and
surplus can be introduced to convert them into equalities.
Ex:
Max Z = 6 x + 8 y
Subject to
x + y = 50
5 x + 10 y  60
4 x + 4 y  40
x, y  0
After introducing slack and surplus variables, the above LPP will be reduced to standard form of LPP

Max Z = 6 x + 8 y
Subject to
x + y = 50
5 x + 10 y + s1 = 60
4 x + 4 y − s2 = 40
x, y, s1 , s2  0

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Where s1 is called slack variable and s2 is called surplus variable.

2. Observe whether all bi' s (R.H.S of the constraints) are positive or not. If not, they can be made positive

by multiplying bi' s of the constraint by -1, by doing so direction of the inequality will also change.

3. Objective function must be in Maximization type. If not, change into maximization type as follows:
Min Z = −( Max(− Z )) = − Max Z * , where Z = Z *

Basic Variable
A variable is said to be to basic variable, if it has unit coefficient in one of the constraints and zero
coefficient in the remaining constraints.
Simplex Method
Simplex method is the method to solve ( LPP ) models which contain two or more decision variables.
The step-by-step procedure of Simplex algorithm is given as follows:
1.Write the standard form for the given LPP and prepare the initial simplex table
2.Compute the value of Z j using the following formula

Z j =  CBi aij
i

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3.Compute C j − Z j

If all the C j − Z j are  equals to zero then the optimality is reached. Otherwise the select the variable with

maximum C j − Z j value as the entering variable.

For Minimization problem, if all the C j − Z j  0 then the optimality is reached. Otherwise the select the

variable with most negative C j − Z j value as the entering variable.

4. C j − Z j is maximum for any variable is known as entering variable and the corresponding column is

called key column.

5.Calculate the ratio by dividing the solution values with key column values.
6.Select the variable from present set of variable with respect to minimum ratio, such variable is the leaving
variable and the corresponding row is called key row.
7.The value of the intersection of the key row and key column is called key element/pivot element.
8.In the next iteration, any basic variable of the above table is replaced by the objective function variable
and that row computed by dividing the key row element with pivot element.
9.The remaining row elements are computed by using the below formula

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 ( Key column value)( Key rowvalue)
Newvalue = Old value −
Pivot element
Stopping condition
1. C j − Z j  0 for a Minimization problem

2. C j − Z j  0 for a Maximization problem

Ex-1: Use the simplex method to solve the following LP problem.

Maximize 𝑍 = 𝑥1 + 1.5𝑥2
subject to the constraints 𝑥1 + 2𝑥2 ≤ 160
3𝑥1 + 2𝑥2 ≤ 240
And 𝑥1 , 𝑥2 ≥ 0
Solution: The standard form of the given LPP is
After introducing slack variables

Max Z = x1 + 1.5 x2 + 0 S1 + 0 S2

subject to

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 x1 + 2 x2 + S1 = 160

3 x1 + 2 x2 + S2 = 240

and x1,x2,S1,S2≥0

Negative minimum 𝑍𝑗 − 𝐶𝑗 is -1.5 and its column index is 2.

So, the entering variable is x2.
Minimum ratio is 80 and its row index is 1. So, the leaving basis variable is S1.
∴ The pivot element is 2. Entering =x2, Departing =S1, Key Element =2

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Optimization Technique Department of Mathematics 77 | P a g e
Since all Zj-Cj≥0
Hence, optimal solution is arrived with value of variables as: x1=40,x2=60
Max Z=130

Ex-2: Use the simplex method to solve the following LP problem.

Maximize 𝑍 = 3𝑥1 + 5𝑥2 + 4𝑥3
subject to the constraints 2𝑥1 + 3𝑥2 ≤ 8
2𝑥2 + 5𝑥3 ≤ 10
3𝑥1 + 2𝑥2 + 4𝑥3 ≤ 15
And 𝑥1 , 𝑥2 , 𝑥3 ≥ 0
Solution: The standard form of the given LPP is
Maximize 𝑍 = 3𝑥1 + 5𝑥2 + 4𝑥3 + 0𝑠1 + 0𝑠2 + 0𝑠3
subject to the constraints 2𝑥1 + 3𝑥2 + S1 = 8
2𝑥2 + 5𝑥3 + S2 = 10
3𝑥1 + 2𝑥2 + 4𝑥3 + S3 = 15
And 𝑥1 , 𝑥2 , 𝑥3 , S2 , S1 , S3 ≥ 0

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Iteration-2:

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Iteration-3:

Iteration-4:

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all 𝑐𝑗 – 𝑧𝑗 ≤ 0 for non-basic variables. Therefore, the optimal solution is reached with,
89 50 62 765
𝑥1 = 41 , 𝑥2 = 41 , 𝑥3 = 41 and the optimal value of 𝑍 = .
41

Ex-3: A company makes two kinds of leather belts, belt A and belt B. Belt A is a high quality belt and belt
B is of lower quality. The respective profits are Rs 4 and Rs 3 per belt. The production of each of type A
requires twice as much time as a belt of type B, and if all belts were of type B, the company could make
1,000 belts per day. The supply of leather is sufficient for only 800 belts per day (both A and B
combined). Belt A requires a fancy buckle and only 400 of these are available per day. There are only 700

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 buckles a day available for belt B. What should be the daily production of each type of belt? Formulate
this problem as an LP model and solve it using the simplex method.
Solution:
Maximize (total profit) 𝑍 = 4𝑥1 + 3𝑥2
subject to the constraints
(i) 2𝑥1 + 𝑥2 ≤ 1,000 (Time availability),
(ii) 𝑥1 + 𝑥2 ≤ 800 (Supply of leather)
(iii) 𝑥1 ≤ 400(Buckles availability)
𝑥2 ≤ 700
and 𝑥1, 𝑥2 ≥ 0
The standard form of the LPP is
Maximize 𝑍 = 4𝑥1 + 3𝑥2 + 0𝑠1 + 0𝑠2 + 0𝑠3 + 0𝑠4
subject to the constraints 2𝑥1 + 𝑥2 + 𝑠1 = 1,000,
𝑥1 + 𝑥2 + 𝑠2 = 800
𝑥1 + 𝑠3 = 400
𝑥2 + 𝑠4 = 700
and 𝑥1, 𝑥2, 𝑠1, 𝑠2, 𝑠3, 𝑠4 ≥ 0
Iteration-1:

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Iteration-2:

Iteration-3:

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Iteration-4:

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 Since all 𝑐𝑗 – 𝑧𝑗 < 0 correspond to non-basic variables columns, the current basic feasible solution is
also the optimal solution. Thus, the company must manufacture, x1 = 200 belts of type A and x2 = 600
belts of type B in order to obtain the maximum profit of Rs 2,600.

Artificial Variable
In a LPP if the constraints have sign = (or )  , we may not get unit matrix in the basis. To avoid this
difficulty, we introduce another variable called Artificial variable.
Note: Such type of LPP can be solved by using Big-M method or Two Phase method

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Big-M Method/ Penalty Method
In this method, if the objective function is maximization type, then the coefficient of the artificial variable in
the objective function should be − M . Otherwise, it should be M , whose M value is very large.
Calculate the values of 𝑐𝑗 – 𝑧𝑗 in last row of the simplex table and examine these values.
(i) If all 𝑐𝑗 – 𝑧𝑗 ≥ 0, then the current basic feasible solution is optimal.

Ex-1: Solve the following LPP using Big-M method

Max Z = 3x + 2 y
Subject to
2x + y  1
3x + 4 y  4
x, y  0
Solution
Given LPP

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Max Z = 3x + 2 y
Subject to
2x + y  1
3x + 4 y  4
x, y  0
The standard form of given LPP is as follows:
Max Z = 3x + 2 y + 0S1 − 0S 2
Subject to
2 x + y + S1 = 1
3x + 4 y − S2 = 4
x, y, S1 , S 2  0

where S1 is slack variables and S 2 is surplus variables which are introduced to balance constraints

The canonical form of the above model presented below after introducing necessary artificial variables

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MinZ = Max(− Z ) = −3x − 2 y − 0S1 + 0S 2 + M A1
Subject to
2 x + y + S1 = 1
3 x + 4 y − S 2 + A1 = 4
x, y, S1 , S2 , A1  0
Initial Simplex table:
Iteration 1:
CBi Coef. in Z (C j ) -3 -2 0 0 M bi Ratio (  )
Basic variables x y S1 S2 A1
( Bi )
0 S1 2 1 1 0 1 1 1

M A1 3 4 0 −1 1 4 4
(Pivot Element) = 1 (min)
4
→ Leaving variable
Zj 3M 4M 0 −M M
Cj − Z j −3 − 3M −2 − 4M  0 M 0
Entering variable

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Since all the C j − Z j  0 , the optimality is not yet reached. For large M , C j − Z j is maximum for the

variable y and the leaving variable is A1 and row 2 is the key row. Thus, the pivot element is 4.

Iteration 2:
In this table the Artificial variable A1 of the previous table is replaced by y .

CBi Coef. in Z (C j ) -3 -2 0 0 M bi Ratio (  )

Basic variables x y S1 S2 A1
( Bi )
0 S1 5 0 1 1 1 0 0(min)
(Pivot Element) −
4 4 4 → Leaving variable
−2 y 3 1 0 1 1 1 3
−
4 4 4 4

Zj −3 −2 0 1 1
−
2 2 2
Cj − Z j −3 0 0 1 1
 − M+
2 2 2
Entering variable

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Since all the C j − Z j  0 , the optimality is not yet reached. For large M , C j − Z j is maximum for the

5
variable x and the leaving variable is S1 and row 1 is the key row. Thus, the pivot element is .
4
Iteration 3:
In this table the basic variable S1 of the previous table is replaced by x .

CBi Coef. in Z (C j ) -3 -2 0 0 M bi Ratio (  )

Basic variables x y S1 S2 A1
( Bi )
−3 x 1 (Pivot Element) 0 4 1 1 0 0(min)
−
5 5 5 → Leaving variable
−2 y 0 1 3 1 11 1 3
− − −
5 10 20 4
Zj −3 −2 6 2 19
− −
5 5 10
Cj − Z j 0 0 6 2 11
M+
5 5 20

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Since all the values of C j − Z j  0 , thus the optimality is reached.

The corresponding optimal solution is Max Z = −2, x = 0, y = 1

Ex-2: Solve the following LPP using Big-M method

Min Z = 5 x + 6 y
Subject to
2 x + 5 y  1500
3x + y  400
x, y  0
Solution
Given LPP
Min Z = 5 x + 6 y
Subject to
2 x + 5 y  1500
3x + y  400
x, y  0
The standard form of given LPP is as follows:

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Min Z = 5 x + 6 y
Subject to
2 x + 5 y − S1 = 1500
3x + y − S 2 = 400
x, y, S1 , S 2  0
where S1 & S2 are surplus variables which are introduced to balance constraints

The canonical form of the above model presented below after introducing necessary artificial variables
Min Z = 5 x + 6 y + 0S1 + 0S 2 + MA1 + MA2
Subject to
2 x + 5 y − S1 + A1 = 1500
3 x + y − S 2 + A2 = 400
x, y, S1 , S 2 , A1 , A2  0

Initial Simplex table:

Iteration 1:

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CBi Coef. in Z 5 6 0 0 M M bi Ratio (  )
(C j )

Basic x y S1 S2 A1 A2
variable
s
( Bi )

M A1 2 5(Pivot Element) −1 0 1 0 150 300(Min)

0 → LeavingVariable
M A2 3 1 0 −1 0 1 400 400

Zj 5M 6M −M −M M M

Cj − Z j 5 − 5M 6 − 6M  M M 0 0

Entering variable

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Since all the C j − Z j  0 , the optimality is not yet reached. For large M , C j − Z j is maximum for the

variable y and the leaving variable is A1 and row 1 is the key row. Thus, the pivot element is 5.

Iteration 2:
In this table the basic variable S1 of the previous table is replaced by x .

CBi Coef. in Z 5 6 0 0 M M bi Ratio (  )

(C j )

Basic x y S1 S2 A1 A2
variable
s
( Bi )
6 y 2 1 0 1 0 30 750
−
5 1 5 5 0

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 M A2 13 0 1 −1 1 1 10 500
− ( Min)
5 5 5 0 13
(Pivot Element) → LeavingVariable

Zj 12 + 7 M 6 −6 + M −M 6−M M
5 5 5
Cj − Z j 13 − 7 M 0 6−M M 6M − 6 0
5 5 5


Entering variable

Since all the C j − Z j  0 , the optimality is not yet reached. For large M , C j − Z j is maximum for the

13
variable x and the leaving variable is A2 and row 2 is the key row. Thus, the pivot element is .
5
Iteration 3:
In this table the basic variable A2 of the previous table is replaced by x .

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CBi Coef. in Z 5 6 0 0 M M bi Ratio (  )
(C j )

Basic x y S1 S2 A1 A2
variables
( Bi )
6 y 0 3 2 3 2 3700
− −
1 13 13 13 13 13

5 x 1 0 1 5 1 5 500
− −
7 7 7 7 13

Zj 5 6 29 13 29 13 1900
− −
35 7 35 7
Cj − Z j 0 0 29 13 35M − 29 7 M − 13
35 7 35 13

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Since all the values of C j − Z j  0 , thus the optimality is reached.

500 3700
The corresponding optimal solution is Min Z = 1900, x = , y=
13 13
Ex-3: ABC Printing Company is facing a tight financial squeeze and is attempting to cut costs
wherever possible. At present it has only one printing contract, and luckily, the book is selling well in both
the hardcover and the paperback editions. It has just received a request to print more copies of this book in
either the hardcover or the paperback form. The printing cost for the hardcover books is Rs 600 per 100
books while that for paperback is only Rs 500 per 100. Although the company is attempting to economize,
it does not wish to lay off any employee. Therefore, it feels obliged to run its two printing presses – I and
II, at least 80 and 60 hours per week, respectively. Press I can produce 100 hardcover books in 2 hours or
100 paperback books in 1 hour. Press II can produce 100 hardcover books in 1 hour or 100 paperbacks
books in 2 hours. Determine how many books of each type should be printed in order to minimize costs.
(Home work)

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Two-Phase Method
When Big-M method is computed, the value of M is assumed to be very large. As a result, there may be
rounding or truncation of coefficients while carrying out different iterations that end up with misleading
results.
To overcome this difficulty, two-phase simplex method is used for problems involving  (or ) = type
constraints. Algorithm for two-phase method is described as follows:
Note:
1.Obtain the canonical form of the given problem
2.Whatever may be the type of the objective function type in the original problem, minimization type of
objective function is preferred in two-phase method. We also work with maximization type objective
function.
Phase 1
1.Form a modified problem from the canonical form by replacing the objective function with the sum of
artificial variables only along with the same set of constraints of the canonical form.
2.Prepare the initial simplex table.
3.Apply the usual simplex method till the optimality is reached.

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4.Check whether the objective function value is zero in the optimum table. If yes, go to Phase 2, otherwise
conclude that the given LPP has no feasible solution and stop the procedure.
Phase 2
5. Obtain a modified table using the following step
5.1. Drop the columns in the optimum table in Phase 1 corresponding to the artificial variables which are
not currently non-basic.
5.2. If some artificial variables are present, then substitute its objective function coefficients with 0
5.3. Substitute the coefficients of the original objective function in the optimum table of the phase 1 for
the remaining variables and make necessary changes in CBi column.

6.Carry out further iterations till the optimality is reached and then stop.

Ex-1: Solve the following LPP using Two-Phase method

Min Z = 12 x + 18 y + 15 z
Subject to
4 x + 8 y + 6 z  64
3x + 6 y + 12 z  96
x, y , z  0

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Solution
The canonical form of the given problem is shown below
Min Z = 12 x + 18 y + 15 z + MA1 + MA2
Subject to
4 x + 8 y + 6 z − S1 + A1 = 64
3 x + 6 y + 12 z − S 2 + A2 = 96
x, y, z , S1 A1 , S 2 A2  0

Phase 1
The model for phase-1 with its revised objective function is shown below.
Min Z = A1 + A2
Subject to
4 x + 8 y + 6 z − S1 + A1 = 64
3x + 6 y + 12 z − S 2 + A2 = 96
x, y, z , S1 A1 , S 2 A2  0
The corresponding initial table is given below

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Initial Table
CBi (C j ) 0 0 0 0 0 1 1 bi Ratio (  )

B.V x y z S1 S2 A1 A2
( Bi )

1 A1 4 8 6 −1 0 1 0 64 64
= 10.8
6

1 A2 3 6 12 0 −1 0 1 96 96
=8
(Pivot element) 12
→ Leaving variable
Zj 7 14 18 −1 −1 1 1

Cj − Z j −7 −14 −18  1 1 −1 −1

Entering variable

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Iteration 1:
CBi (C j ) 0 0 0 0 0 1 1 bi Ratio (  )

B.V x y z S1 S2 A1 A2
( Bi )

1 A1 5 5 0 −1 1 1 1 16 16
− = 3.2
2 2 2 5
→ Leaving variable
0 z 1 1 1 0
−
1 0 1 8 16
4 2 12 12
(Pivot element)
Zj 5 5 0 −1 1 1 1
−
2 2 2
Cj − Z j 5 −5  0 1 1 0 3
− −
2 2 2
Entering variable

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Iteration 2:
CBi (C j ) 0 0 0 0 0 1 1 bi Ratio (  )

B.V x y z S1 S2 A1 A2
( Bi )

0 y 1 1 0 1 1 1 1 16 16
− − = 3.2
2 5 10 5 10 5 5
→ Leaving variable
0 z 0 0 1 1
−
2
−
1 2 32 16
(Pivot 10 15 10 15 5

element)
Zj 0 0 0 0 0 0 0

Cj − Z j 0 0 0 0 0 1 1

The set of basic variables in the optimal table of Phase-1 does not contain artificial variables. So the given
problem has a feasible solution.

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Phase 2:
CBi (C j ) 12 18 15 0 0 bi Ratio (  )

B.V x y z S1 S2
( Bi )

18 y 1 1 0 1 1 16
−
2 5 10 5

15 z 0 0 1 1
−
2 32
10 15 5

Zj 9 18 15 21 1 768
− −
10 5 5
Cj − Z j 3 0 0 21 1
10 5

Since all the values of C j − Z j  0 , thus the optimality is reached.

768 16 32
The corresponding optimal solution is Min Z = , x = 0, y = , z =
5 5 5

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Ex-2: Solve the following LPP using Two-Phase method
Min Z = x + y
Subject to
2x + y  4
x + 7y  7
x, y  0
Solution
The canonical form of the given problem is shown below
Min Z = x + y + MA1 + MA2
Subject to
2 x + y − S1 + A1 = 4
x + 7 y − S2 + A2 = 7
x, y, S1 A1 , S 2 A2  0
Phase 1
The model for phase-1 with its revised objective function is shown below.

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Min Z = A1 + A2
Subject to
2 x + y − S1 + A1 = 4
x + 7 y − S2 + A2 = 7
x, y, S1 A1 , S2 A2  0
The corresponding initial table is given below
Initial Table

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Phase 2

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Ex-3: Use two-phase simplex method to solve the following LP problem:
Minimize 𝑍 = 𝑥1 + 𝑥2
subject to the constraints 2𝑥1 + 𝑥2 ≥ 4
𝑥1 + 7𝑥2 ≥ 7
and 𝑥1 , 𝑥2 ≥ 0

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