LP Problems
LP Problems
(a) Identify the optimal point coordinates and the associated value of the objective
function.
(b) Identify the constraints as binding, non-binding, and redundant respectively.
(c) For the current solution to be optimal, show that the permissible range for the
coefficient of Y in the objective function is -∞ < Y < 100.
(d) Solve the above question using the simplex method and verify the results.
Q2. The Stonehouse Electronics Company manufactures four technical products, which it
supplies to the computer industry. Each of the four products must pass through the
following four processes: forming, wiring, assembly, and inspection. The time
requirements (in hours) for each product together with the production time available (also
in hours) for each process each month are summarized in the following table:
Table 1
Process
Product Forming Wiring Assembly Inspection
XL35 1 2 4 0.5
RK27 2 3 2 0.5
RM93 2 1 3 1
TS15 1 3 2 0.5
Production time 2,500 4,000 4,500 1,200
The profits for each product, together with the minimum monthly production
requirements to fulfill contracts, are as follows:
Table 2
Product Unit Profit Minimum Production
Level
XL35 Rs 2500 200
RK27 3000 150
RM93 2000 300
TS15 2200 200
a) Formulate the problem as a linear program for the production manager of the
company with the objective of maximizing monthly profits. You may use X1, X2,
X3, and X4, as the four decision variables corresponding to the four products.
b) Formulate the problem in the standard algebraic form and develop the initial
(starting) tableau only. It should be consistent with the logic of the Simplex
Method.
c) An extract of the output from a computer package for this problem is given
below:
Table 3
Variable RHS Constraints Dual Price
XL35 425 Forming Rs 800
RK27 525 Wiring 275
RM93 300 Assembly 288
TS15 425 Market demand for RM93 -738
Provide a full and clear interpretation of this output for the production manager. Include
information concerning the product mix, optimum monthly profit, unused process time,
and sales potential.
Q3. A company produces two products, A and B. The sales volume for A is at least 80% of the
total sales of both A and B. However, the company cannot sell more than 100 units of
A per day. Both products use one raw material, of which the maximum daily availability
is 240 kg. The usage rates of the raw material are 2 kg per unit of A and 4 kg per unit of
B. The unit prices for A and B are $20 and $50 respectively.
a). Determine the optimal product mix for the company to maximize profit.
b). Determine the worth per unit change in the availability of the raw material and its
range of applicability.
c). Determine the revenue range corresponding to the feasibility range of the raw
material resource.
d). Use the unit worth per unit to determine the effect of changing the maximum demand
for product A by ±10 units.
e). Solve the problem using the simplex method to verify the results.