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Delhi University Quantitative Techniques in management
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Scanned with CamScanner Case 1: Maximization Case
: A firm is engaged in production of two products A and B. Each unit
of product A requires 2 kes of raw material and 4 labour hours for processing,
Whereas each unit of product B requires 3 kg raw material and 3 hours of labour
of the same type. Every week, the firm has availability of 60 kg raw material and
96 labour hours. One unit of product A yields Rs.40 and one unit of product 8
yields Rs. 35 as profit.
Formulate the above problem as LPP to determine how many units of A and B
should be produced per week so that the firm maximizes its profit.
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Scanned with CamScanner Case 2: Minimization Case
it was suggested that farmer should spread out at least 4800 kg of
special phosphate fertilizer and not less than 7200 kg of special nitrogen
fertilizer to raise productivity of crops. There are two sources of obtaining these
— mixture A and mixture B. Both are available in bags weighing 100 kg each and
they cost Rs 40 and Rs 24 respectively. Mixture A contains phosphate and
nitrogen equivalent of 20 and 80 kg respectively, while mixture B contains these
ingredients in 50 kg each.
Formulate the above problem as LPP to determine how many bags of mixture
should farmer buy to obtain the required fertilizers at minimum cost.
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Scanned with CamScanner Questions for Practice
Scanned with CamScanner Example 2.6
Two kinds of food, F and F, for children are being considered to be purchased, Food F.
costs € 4 per unit while food F; is available at & 16 per unit. The nutrient contents of these foods are as follows:
Nutrient content in Minimum
Nutrient Food Fy o-oo og Food FR nutrient amount
N 40 20 200
Ne 3 12 36
Ny 18 3 24
Draft this as an LPP and determine graphically the quantities of two foods that should be bought in order that
cost is minimised while satisfying the given constraints.
Let x; and x2 units of foods F; and F>, respectively, be Hy
bought. Using the given information, we can formulate 18.
the LPP as shown here. 6. |
Minimise Z= 4x, + 16x. 1BXx1 + 3x2 = 54
14:
Subject to |
40x; + 20x, 2 200 Be |
40 20x2 = 200
3x; + 12x, 236 £10 ye aoa |
18x, + 3x, 254 Z |
,%, 20 a6 |
3 |
The constraints are plotted graphically as shown in | S$ © FEASIBLE |
Figure28, 0 ee ie -
REGION
The extreme points of the feasible region are 4, B, Cand
D which are evaluated here,
“ ie pth i
Extreme Point $
; 288
os 104
48. Figure 2.8 Graphic Solution to LPP:
° bike 48 Multiple Optimal Solutions
oh
Evidently, this problem has multip
E h has multiy
cost of 8 48. In fi a
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4 A
: na
es
Scanned with CamScanner F example 2.10 An agriculturist has 60 acres of land on which he can grow three crops, namely radish,
peas and potatoes. The average per acre yield for these crops is: 1,600 kg per acre for radish; 2,000 kg per
acre for peas and 1,400 kg per acre for potatoes while the respective selling prices of these are @ 8, 7 7 and?
8 per kg. To raise the crops, manure and labour are required, The cost of manure to raise 100 kg of either of
the crops is % 36, 40 and % 36 for radish, peas and potatoes, respectively, while the per acre requirement of
labour is 6, 8 and 5 man-days in that order for these crops. The labour costs % 400 per person per day and the
total availability of labour is restricted to 400 man-days. Further, it is desired to produce at least 16,000 kg of
radish, 16,000 kg of peas and 14,000 kg of potatoes.
Formulate this as a linear programming model to maximise profit for the agriculturist.
Let x1, x2, and x5, respectively, be the number of acres of land used for growing radish, peas and potatoes. The
profit obtainable using relevant information is calculated here.
Radish Peas Potatoes
Land (in acres) x % %
Yield (kep/acre) 1,600 2,000 1,400
Output (kg) 1,600x, 2,000. 1,400x3
Selling price (/kg) 8 7 8
Sales revenue (®) (a) 12,800x, 14,000x, 11,200x3
Less cost:
Manure 576x, 80x, 504x,
Labour 2,400x, 3,200x 2,000x5
Total cost (b) 2,916x, 4,000x, 2,504x5
Profit () (a) —(b) 9,824x, 10,000x, 8,696x5
Scanned with CamScanner .d to be produced. With a yicld of 1,600 kg per acre, it implies that a
allocated for this crop. Similarly, at least 8 and 10 acres of land should
ly. The LPP may now be stated as follows:
er, 16,000 kg of radish is require
en of 10 acres of land should b
be allocated to peas and potatoes, respe
Z=9,824x + 10,000x2 + 8,696x3
Maximise
Subject to
xy txy tx; $60 Land availability
6x, + 8x) + 5x3 $400 Labour availability
x1 210, X22 8, and x32 10 Minimum production requirement
‘Note: Here, the non-negativity condition x;, x2, x; > 0 is not required since minimum production requirements
_are given which set positive lower limits to the values of these variables.
Scanned with CamScanner Example 2.12 The ABC Company manufactures three lines of washing machines: manual, semi-automatic
and automatic, which soll for € 5,000, % 10,000, and @ 25,000, respectively. The marketing department estimates
that at least 2,500 manual machines, 4,000 semi-automatics and 1,500 automatic machines need to be
produced each week.
Producing each washing machine requires a certain amount of time to: (i) manufacture the body parts;
(\i) assemble the parts (some components are purchased from outside sources and can be ignored in the
production scheduling decision); and (ii) inspect, test and package the final product. The following table shows
the requirements (in hours) for each line of washing machine. There are 4,000 hours of manufacturing time,
5,000 hours of assembly, and 1,500 hours total to inspect, test and package per week.
Washing machine Manufacture Assemble Test, inspect, package
Manual 0.2 0.4 0.4
Semi-automatic 0.3 0.4 0.2
Automatic 0.6 0.1 0.3
ABC has decided that, in addition to the minimum production levels for each type of washing machine, automatic
machines should make up at least 35 percent of the total number of machines produced each week.
Formulate (do not solve) this problem as a linear programming.
(MBA, Dethi, 2013)
achines produced by
Let.x),.49 and 25, respectively, be the number of manual, semi-automatic and automati
the company. In the absence of cost information, the objective would be to maximise the total sales revenue.
Accordingly, the LPP is
Maximise = $,000x, + 10,000x) + 25,000x,
Scanned with CamScanner Subject to
0.24) + 0.3xy + 0.6x5 $4,000
Ax, +0.4x2 + O.Lay < 5,000
O.Lxy +.0.2x9 + 0.325 < 1,500
x, 22,500
x7 24,000
5 2 1,500
x3 20.35 (x) +x) +35)
Scanned with CamScanner Example 2.22 A manufacturer employs three inputs: man-hours, machine-hours and cloth material fo
(Ecomple 2-22
amount of money invested in Money Market Fund
‘the ar oe of money invested in Government Bonds
‘Scanned with CamScanner i traints :
subject to the consti
’ xy ty HE AM HAS +6
Xa
50,00,000
17,50,000 (2S)
80,000
10,00,000
x + X20
vu
Xs +X
2
Xs + XG
x
xy
Me Nye Xs Xgy Xs Xp 2 O
8. A company manufacturing television sets and radios has ar aey departments
~ a Shier asembly and fina testing, Monthly capacities are as follows +
Television Capacity Radio Capacity
Chassis 1500 or 4500
Cabinet 1000 or 8000
Assembly 2000 or 4000
Testing 3000 or 9000
The contribution of televi
ision is € 150 each and the contribution of radio is & 25 each,
Assuming that the company can sell any quantity of either product, determine th
1 optimal
combination of output.
Solution. Let x denote the number of televisio:
n sets and y denote the number of radios
Per month. Then the quantity to be
maximized is the total contribution Z given by
Z = 150x + 25y
apac
‘month, therefore the time taken to produc
Since the chassis department has a capacity to produce a maximum of 1500 TY chassis per
7 ra x +
ice x TV chassis is 500° Similarly, the time taken t0
Produce y radio chassis 1c . . is =
_ Produce y rad chassis is 4500 * Thus the total time taken in the chassis department is 7555
5 Ol | month, Thus we have
y \
+ By or 3x+y < 4500
sed by the other departments give
or BF +» < 8000
- ‘*
yh et
Roa
28+ < 4000
Scanned with CamScanner —
yy.
3000 * 9900S! or
Finally, it makes no sense to
3x y < 9000
assign negative values to x and yy
x20 and yoo
Thus the mathematical formulation of the problem is =
So We must have
Maximize
. Z = 150x + 25y
subject to the constraints:
3x+y < 4500
8x + y < 8000
2x+y < 4000
3x+y < 9000
xy20
Example 9. A firm buys casting of P and Q type of parts and sells them as finished products
after machining, bori i in
for parts P and Q Tespectively and selling costs are
8 and @ 10 respectively. The per hour
capacity of machines used for machining,
boring and polishing for the two products is given
belo’
Capacity (per hour)
P or Q
Machine 30 or 50
Boring 30 or 45
Polishing 45 or 30
‘The running costs for machining, boring and polishing are & 30, % 22.5 and € 22.5 per hour
Tespectively. Formulate the linear Programming problem to find out the product mix to
maximize the profit. DO NOT SOLVE. [Dethi Univ. B.Com. (H) 2004)
Solution. Let the firm produce x, units of P and x, units of Q, Then
3022.5 22.5
i =§—-(34--4—2 = %2.75
Profivunit of P = 8 [+2 ot 3] z
r 2.
Profitv/unit of 2 =10 -[4 + a 2 2
+ 25) = 4.15
50 45 30
Thus, the appropriate mathematical formulation of the problem is :
Maximize Z = 2.75x, + 4.15x,
Scanned with CamScanner subject to the constraints
or 5x, 43x, S150
3x, 4 2x7 5 90
M4221 or 2x, 43x) 5 90
Finally, it makes no sense to assign negative v: 0 \d x,, SO we must have
ly, it make: ense to assign negative values to x, and x,,
7 s
x20 and x20
i ialist plans to allocate advertising expenditure in three media Where
Etust occas ane 1500, % 1250 and & 1000 respecte ie total advertising
budget available for the year is € 50,000. The first medium is a monthly Magazine and jt;
desired to advertise not more than once in one issue. At least five advertisements should
appear in the second medium and the number of advertisements in the third medium shoul
strictly lie between 6 and 10. The effective audience for unit advertisement in the three medi
is given below :
Medium 1 2 x}
Expected Effective Audience : 50,000 40,000 25,000
Formulate a linear Programming problem to find the optimum allocation of advertisements in
three media that would maximize the total effective audience
[Delhi Univ. B.Com. (H) 1990]
Solution. Let x,, x, and %, be the number of advertisements in media 1, 2 and 3 respectively
Then the appropriate mathematical formulation of the given problem is :
4 Maximize Zs 50,000x, + 40,000x, + 25,000x,
subject to the constraints;
1500x; + 1250%) + 1000x, < 50,000
x S12
x2 25
6sxy<10
Xp X25 20
has a farm with 125 acres, He produces radish, pe
sold in the market, He gets & 5 for radish per kg,
8: The average yield is 1500 kg of radish per ac
‘4YS Of labour at
Scanned with CamScanner Formulate this as a linear programming model to maximize the Apriculturiat’
s total profit
[Dethi Univ, B.Com. (I) 2001
Solution, The data of the problem may be summarized in the tabular form as follow
Radish Peas Ponato |
Revenue/acre 1500s $= 7500 1800 «4 = 7200 12007 5 = 6000 |
Cost of labouracre |40 x 6 = 240 40 «5 = 200 4076
240 |
12.50
Cost of manure’acre| —>-¥ 1500 = 187.5 Be 1800 = 225 Bet 1200 = 1975 |
‘Net profivacre 7500 — 240 - 187.5 7200 - 200 — 225 6000 - 240 ~ 187.5 |
= 7072.5 = 6775 = 5572.5 |
ye; and x, acres of farm be used to produce radish, peas and potato, respectively. Then
=ppropriate mathematical formulation ofthe problem is :
= 1072.5x, + 6775x, + 5572.5x
wy +x ty S125
6x, + 5xy + 6x3 < 500
XX, %y 20
Scanned with CamScanner two
Example 27. A firm assembles and sells t
iat of outboard motors A and B using four resources. The production pros
bed as follows :
Capacity per Month
Resources
1 Motor unit shop . 400 Type A or 250 Type B units or any
linear combination of the two
spe A gear and drive shop resource 175 Type A units
225 Type B units
1!) Type B gear and drive shop resource
200 Type A units or 350 Type B units or
JV Final assembly resource
any linear combination of the two.
s bring ina profit of € 90 each and Type B units = 60 each. Formulate the above
‘r programming problem to maximize profit and solve the same by graphic method.
[Dethi Univ. B.Com. (H) 2003, 2009]
7 “ and y denote the number of outboard motors of Type 4 and Type 8
hen the appropriate mathematical formulation of the problem is :
Solution,
Fespect
Maximize 5
- Z = 0x + 6
subject to the constraints: oy |
Sx +8y < 2000 ¥
Tx +4y < 1400 »
Scanned with CamScanner oO 175 200 400
Fig.3.16
3.16 represents the feasible region. The corner points of th
)(175) + 60(0) = 15,750
(175) + 60(175/4) = 18,375
0/9) + 60(1750/9) = 19,666.67
40) + 60(225) = 17,100
) (225) = 13,500
occurs when x = 800/9 and )
which he manufactures handcarts Each
3 hours and a wheel 2 hours of labour
ter wants that he should manufacture at
d that of a wheel is % 200.
Scanned with CamScanner ‘Scanned with CamScanner
