IM21201 Autumn 2023

Homework Assignment-I

Due Date: September 06, 2023 (In-class)

Submit your assignment on A4 size paper and don't forget to staple all the pages before submission.

LP Formulation, Graphical Method and Algebraic Simplex method

1. A realtor is developing a rental housing and retail area. The housing area consists of efficiency apartments, duplexes, and
single-family homes. Maximum demand by potential renters is estimated to be 500 efficiency apartments, 300 duplexes,
and 250 single-family homes, but the number of duplexes must equal at least 50% of the number of efficiency apartments
and single homes. Retail space is proportionate to the number of home units at the rates of at least 10 ft2, 15 ft2, and 18 ft2
for efficiency, duplex, and single family units, respectively. However, land availability limits retail space to no more than
10,000 ft2. The monthly rental income is estimated at $600, $750, and $1200 for efficiency, duplex, and single family units,
respectively. The retail space rents for $100/ft2. Formulate a linear programming model to find the optimal retail space area
and the number of family residences.

2. A gambler plays a game that requires dividing bet money among four choices. The game has three outcomes. The following
table gives the corresponding gain or loss per dollar for the different options of the game.

Return per dollar deposited in choice

Outcome 1 2 3 4

1 -3 4 -7 15
2 5 -3 9 4
3 3 -9 10 -8
The gambler has a total of $500, which may be played only once. The exact outcome of the game is not known a priori.
Because of this uncertainty, the gambler's strategy is to maximize the minimum return produced by the three outcomes.
Formulate a linear programming model the gambler to allocate the $500 among the four choices? (Hint: The gambler's net
return may be positive, zero, or negative.)

3. The demand for ice cream during the three summer months (June, July, and August) at Café Coffee Day (CCD) is
estimated at 500, 600, and 400 20-gallon cartons, respectively. Two wholesalers, 1 and 2, supply All-Flavors with
its ice cream. Although the flavors from the two suppliers are different, they are interchangeable. The maximum
number of cartons either supplier can provide is 400 per month. Also, the prices the two suppliers charge change
from one month to the next according to the following schedule:

Price per carton in month

Price per carton in
Outcome June month
July August

Supplier 1 $100 $110 $120

Supplier 2 $115 $108 $125
To take advantage of price fluctuation, CCD can purchase more than is needed for a month and store the surplus to satisfy
the demand in a later month. The cost of refrigerating an ice cream carton is $5 per month. It is realistic in the present
situation to assume that the refrigeration cost is a function of the average number of cartons on hand during the month.
Formulate a linear programming model for an optimum schedule for buying ice cream from the two suppliers.

4. All-Natural Coop makes three breakfast cereals, A, B, and C, from four ingredients: rolled oats, raisins, shredded coconuts,
and slivered almonds. The daily availabilities of the ingredients are 5 tons, 2 tons, 1 ton, and 1 ton, respectively. The
corresponding costs per ton are $100, $120, $110, and $200. Cereal A is a 50:5:2 mix of oats, raisins, and almond. Cereal
B is a 60:2:3 mix of oats, coconut, and almond. Cereal C is a 60:3:4:2 mix of oats, raisins, coconut, and almond. The cereals
are produced in jumbo 5-lb sizes. All-Natural sells A, B, and Cat $2, $2.50, and $3.00 per box, respectively. The minimum
daily demand for cereals A, B, and Cis 500,600, and 500 boxes. Formulate a linear programming model to determine the
optimal production mix of the cereals and the associated amounts of ingredients.

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 IM21201 Autumn 2023

5. On most university campuses students are contracted by academic departments to do errands, such as answering the phone
and typing. The need for such service fluctuates during work hours (8:00 A.M. to 5:00 P.M.). In the IM department, the
minimum number of students needed is 2 between 8:00 A.M. and 10:00 A.M., 3 between 10:01 A.M. and 11:00 A.M., 4
between 11:01 A.M. and 1:00 P.M., and 3 between 1:01 P.M. and 5:00 P.M. Each student is allotted 3 consecutive hours
(except for those starting at 3:01, who work for 2 hours and those who start at 4:01, who work for one hour). Because of
their flexible schedule, students can usually report to work at any hour during the work day, except that no student wants
to start working at lunch time (12:00 noon). Formulate a linear programming model to determine the minimum number of
students the IM department should employ and specify the time of the day at which they should report to work.

6. ChemLabs uses raw materials I and II to produce two domestic cleaning solutions, A and B. The daily availabilities of raw
materials I and II are 150 and 145 units, respectively. One unit of solution A consumes 0.5 unit of raw material I and 0.6
unit of raw material II, and one unit of solution B uses 0.5 unit of raw material I and 0.4 unit of raw material II. The profits
per unit of solutions A and B are $8 and $10, respectively. The daily demand for solution A lies between 30 and 150 units,
and that for solution B between 40 and 200 units. Find the optimal production amounts of A and B using graphical method.

7. Consider the following problem,

Maximize 𝑍 = 3𝑥1 + 𝑥2
Subject to
−𝑥1 + 2𝑥2 ≤ 6
𝑥2 ≤ 4
Sketch the feasible region and find an optimal solution, if it exists.

8. Consider the following problem, where the value of c1 has not yet been ascertained.
Maximize 𝑍 = 𝑐1 𝑥1 + 𝑥2
Subject to
𝑥1 + 𝑥2 ≤ 6
𝑥1 + 𝑥2 ≤ 10
𝑎𝑛𝑑
𝑥1 , 𝑥2 ≥ 0
Use graphical analysis to determine the optimal solution(s) for x1 and x2 for various possible values of c1 −∞ ≤ 𝑐1 ≤ ∞

9. Consider the following problem, where the value of k has not yet been ascertained.
Maximize 𝑍 = 𝑥1 + 2𝑥2
Subject to
−𝑥1 + 𝑥2 ≤ 2
𝑥2 ≤ 3
𝑘𝑥1 + 𝑥2 ≤ 2𝑘 + 3, 𝑤ℎ𝑒𝑟𝑒 𝑘 ≥ 0
and
𝑥1 , 𝑥2 ≥ 0
The solution currently being used is 𝑥1 = 2, 𝑥2 = 3. Use graphical analysis to determine the values of k such that this
solution actually is optimal.

10. Consider the following LP:

Maximize z  2x1  3x2
Subject to
x1  3x2  6
3x1  2 x2  6
x1 , x2  0
a) Express the problem in equation form (augmented)
b) Determine all the basic solutions of the problem and classify them feasible and infeasible? Use direct substitution
in the objective function to determine the optimum basic feasible solution?
c) Show algebraically that the basic solutions of given LP are feasible and infeasible?
d) Verify the solution obtained in (c) using Simplex Method and Excel?
e) Show how the infeasible solutions are represented on the graphical solution space?

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