Part 2
Part 2
Part 2
In planning the trip, the following considerations must be taken into account:
(i) At least 10 per cent of the packages must be of the delux type.
(ii) At least 35 per cent but no more than 70 per cent must be of the standard type.
(iii) At least 30 per cent must be of the economy type.
(iv) The maximum number of delux packages available in any aircraft is restricted to 60.
(v) The hotel desires that at least 120 of the tourists should be on the deluxe and
standard packages together.
The travel agent wishes to determine the number of packages to offer in each type so as to
maximize the total profit.
(a) Formulate this problem as a linear programming problem.
(b) Restate the above linear programming problem in terms of two decision variables,
taking advantage of the fact that 200 packages will be sold.
(c) Find the optimum solution using graphical method for the restated linear
programming problem and interpret your results.
Ans : 20 – D , 100 – S, 80 – E
Profit = 280000 – 13000 = 267000.
10. Alpha Radio Manufacturing company must determine production quantities for this month
for two different models, A and B. Data per unit are given in the following table:
Model Revenue Sub-assembly Final assembly Quality
(Rs) time (hr) time (hr) inspection (hr)
A 250 1.0 0.8 0.5
B 300 1.2 2.0 0
The maximum time available for these products is 1,200 hours for sub-assembly, 1,600 hours for
final assembly, and 500 hours for quality inspection. Orders outstanding require that at least 200
units of A and 100 units of B be produced. Determine the quantities of A and B that maximize
the total revenue.
11. Attempt graphically the following problem:
Maximise 3x1 + 2x2
Subject to 2x1 + x2 12; x1 + x2 10; - x1 + 3x2 6; and x1, x2 0
12. Obtain graphically the solution to the following LPP:
Maximise Z = x1 + 3x2
Subject to
x1 + 2x2 9
x1 + 4x2 11
x1 – x2 2
x1, x2 0
13. A firm is engaged in producing two products : P1 and P2. The relevant data are given here:
Per Unit Product P1 Product P2
(i) Selling price Rs 200 Rs 240
(ii) Direct materials Rs. 45 Rs. 50
(iii) Direct wages
Deptt A 8 hrs @ Rs. 2 / hr 10 hrs @ Rs 2 /hr
Deptt B 10 hrs @ Rs 2.25 / hr 6 hrs @ Rs 2.25 /hr
Deptt C 4 hrs @ Rs 2.5 / hr 12 hrs @ Rs 2.5 / hr
(iv) Variable overheads Rs. 6.50 Rs 11.50
Fixed overhead = Rs 2,85,000 per annum
No of employees in the three departments: Deptt A = 20
Deptt B = 15
Deptt C = 18
No. of hours / employee / week = 40 in each department
No. of weeks per annum = 50
(a) Formulate the given problem as a linear programming problem and solve graphically to
determine
(i) the product mix as will maximize the contribution margin of the firm
(ii) the amount of contribution margin and profit obtainable per year
(a) From the graph, do you observe any constraint that is redundant? Which one, if yes?
14. A local business firm is planning to advertise a special sale on radio and television during a
particular week. A maximum budget of Rs. 16,000 is approved for this purpose. It is found
that radio commercials cost Rs. 800 per 30 second spot with a minimum contract of five
spots. Television commercials, on the other hand, costs Rs. 4,000 per spot. Because of
heavy demand, only four television spots are still available in the week. Also, it is believed
that a TV spot is six times as effective as a radio spot in reaching consumers. How should
the firm allocate its advertising budget to attract the largest number of consumers? How will
the optimal solution be affected if the availability of TV spot is not constrained?
15. M/s. P.M.S. Industries makes two kinds of leather purses for ladies. Purse type
‘A’ is of high quality and purse type ‘B’ is of lower quality. Contributions per
unit were Rs. 4 and Rs. 3 for purse type ‘A’ and type ‘B’ respectively. Each
purse of type ‘A’ requires two hours of machine time per unit & that of type ‘B’
requires one hour per unit. The company has 1000 hours per week of maximum
available machine time. Supply of leather is sufficient for 800 purses of both
types combined per week. Each type requires the same amount of leather. Purse
type ‘A’ requires a fancy zip and 400 such zips are available per week, there are
700 zips for purse type ‘B’ available per week. Assuming no market or finance
constraints recommend an optimum product mix.
Solution:
Decision variables:
Let X 1 be the number of units of purse type A
Let X 2 be the number of units of purse type B
The LP model
Maximise Z = 4x 1 + 3x 2
subject to the constraints
2X 1 + X 2 ≤ 1000 (Machine time)
X1 + X 2 ≤ 800 (Leather)
X1 ≤ 400 (Special zip for Purse A)
X2 ≤ 700 (Ordinary zip for Purse B)
X i ≥ 0 (Non negativity restriction)
X2 Units
1000
X1 400
800
D
X2 700
E
C
600
400 X1 + X2 800
2X1 + X2 1000
200
B
O A
0.01002003004005006007008009001000
X1 Units
Scale
X-Axis 1 cm = 100 units Y-Axis 1 cm = 100 units
Draw the graph as indicated in Fig 4.1
The optimum solution will lie on one of the corner points of the shaded area
OABCDE
Calculation of Z (Z = 4X 1 + 3X 2 ) at corner points
O (0,0); ZO = 4 x 0 + 3 x 0 = 0
A (400, 0); Z A = 4 x 400 = Rs. 1600
B (400, 200); Z B = 4 x 400 + 3 x 200 = Rs. 2200
C (200, 600); Z C = 4 x 200 + 3 x 600 = Rs. 2600
D (100, 700); Z D = 4 x 100 + 3 x 700 = Rs. 2500
E (0, 700); Z E = 3 x 700 = Rs. 2100
Corner point C signifies the optimum solution because the corresponding value of Z
is maximum.
The optimum solution is 200 units of Purse Type ‘A’ & 600 units of Purse Type B
The corresponding Total Contribution = Rs. 2600
16. A catering manager is in the process of replacing the furniture in a canteen. He
wishes to determine how many tables of type ‘S’ (seating 6) and how many of
type ‘T’ (seating 10) to buy.
He has to work under the following constraints:
(1) The canteen must be able to accommodate at least 60000 people.
(2) The available floor space of the canteen is at most 63000 sq. meters.
He estimates that each type ‘S’ table needs 7 meters sq. of floor space while each
type ‘T’ needs 9.
Advise the manager on how many tables of each type to buy if each type ‘S’ costs
Rs. 100 and each type ‘T’ costs Rs. 190.
Solution:
X2 Units
10000
8000
6000
C
A
6X1 + 10X2 60000
2000
(0, 0)10002000300040005000600070008000900010000
Decision variables:
Let X 1 be the number of units of table type S
Let X 2 be the number of units of table type T
The LP model
Minimise Z = 100x 1 + 190x 2
subject to the constraints
6X 1 + 10X 2 ≥60000 (People)
7X 1 + 9X 2 ≤ 63000 (Floor space)
Xi ≥0
Draw the Graph as indicated in Figure.
The optimum solution will lie on one of the corner points of the shaded area ABC
Calculation of Z (Z = 100X 1 + 190X 2 ) at corner points
A (5625, 2625); Z A = 100 x 5625 + 190 x 2625 = Rs.
1061,250
B (0, 7000); Z B = 190 x 7000 = Rs. 1330,000
C (0, 6000); Z C = 190 x 6000 = Rs. 1140,000
Corner point A signifies the optimum solution because the corresponding value of Z
is minimum.
The optimum solution is 5625 units of Table type S & 2625 units of Table type T
The corresponding Total Cost = Rs. 1061250