Linear Programming

Formulation

Q1. The owner of Fancy Goods shop is interested to determine, how many advertisements
to release in the selected three magazine A, B and C. His main purpose is to advertise in
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such a way that exposure to principal buyers of his goods is maximized. Percentages of
readers for each magazine are known. Exposure in any particular magazine is the
number to principal buyers. The following data are available :
Particulars Magazines
A B C
Readers 1.0 lakh 0.6 lakh 0.4 lakh
Principal Buyers 20% 15% 8%
Cost per Advertisement 8000 6000 5000
The budgeted amount is at the most Rs.1.0 lakh for the advertisement. The owner has
already decided that magazine A should have no more than 15 advertisement and that
B and C each gets at least 8 advertisement. Formulate a Linear Programming Model for
this problem.

Q2. For a company engaged in the manufacture of three products viz., X, Y and Z, the
available data are given in Tables 1, 2 and 3 below :
Table 1 Minimum Sales Requirements
Product Minimum Sales Requirements per month
X 10
Y 20
Z 30
Table 2 : Operations, Required Processing Times and Capacity
Operation Time (Hrs) required per item of Total available hors
X Y Z per month
1 1 2 2 200
2 2 1 1 220
3 3 1 2 180
Table 3 : Profit (Rs.) Per unit
Product Profit (Rs.) Unit
X 10
Y 15
Z 8
Formulate LP problem Need not to solve it.

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Q3. The vitamins V and W are found in two different foods, F1 and F2. The amount of
vitamin in each of the two foods, respective prices per unit of each food, and the daily
vitamin requirement are given in the following table. The data indicate that one unit of
F1 contain 2 units of vitamin V and 3 units of vitamin W. Similarly one unit of F2 contains

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4 units of vitamin V and 2 units vitamin W. Daily requirement of vitamin V is at least 40
units and vitamin W of at least 50 units.
The problem is to determine optimal quantities of food f1and F2 to be bought so that
the daily vitamin requirements are met and, simultaneously the cost of buying the
goods is Minimized.
Food Daily
Vitamin F1 F2 Requirement
V 2 4 40
W 3 2 50
Cost/Unit of food 3 2.5

Q4. A company has three operational departments (weaving, processing and packing) with
capacity to produce three different types of clothes namely suiting, shirting and
woolens yielding profit of Rs.2, R.4 and Rs. 3 per meter respectively. One meter suiting
requires 3 minutes in weaving 2 minutes in processing and 1 minute in packing.
Similarly one meter of shirting requires 4 minute in weaving, 1 minute in processing, 3
minute in packing. While Woolens require 3 minutes in each department. In a week,
total run time of each department is 60, 40 and 80 hours for weaving, processing and
packing departments respectively.
Formulate the linear programming problem to find the product mix to maximize the
profit.
Q5. The manager of an oil refinery must decide on the optimum mix of two possible
belending process of which the input and output production runs are as follows :
Process Input Output
Crude A Crude B Gasoline X Gasoline Y
1 6 4 6 9
2 5 6 5 5
The maximum amounts available of crude’s A and B are 250 units and 300 units
respectively. Market demand shows that at least 150 units of gasoline X and 130 units
of gasoline. Y must be produced. The profits per production run from process 1 and
process 2 are Rs.4 and Rs.5 respectively. Formulate the problem for maximizing the
profit.

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 Linear Programming - Formulation

Q6. A farm is engaged in breeding pigs. The pigs are fed on various product grown on the
farm. In view of the need to ensure certain nutrient constituent (call them as X, Y and
Z). It becomes necessary to two additional products say A and B. One unit of A contains
36 units of X, 3 unit of Y and 20 units of Z. One unit of B contains 6 units of X, 12 units of Y
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and 10 units of Z. The minimum requirement of X, Y and Z is 108 units, 36 units and 100
units respectively. Product A costs Rs.20 per unit and product B cost Rs.40 per unit.
Formulate LPP to minimize the total cost.

Q7. A firm buys castings of P and Q type parts and sets as finished product after machining,
boring and polishing. The purchasing cost for castings are Rs.3 and Rs.4 each for part P
and Q and selling casts are Rs.8 and Rs.10 respectively. Per hour capacity of machines
used for machining, boring and polishing for two products is given below :
Parts
Capacity (per hour) P Q
Machining 30 50
Boring 30 45
Polishing 45 30
The running costs for machining, boring and polishing are Rs.30, Rs.22.50 and Rs.22.50
per hour respectively. Formulate the linear programming problem to find out the
product mix to maximize the profit.

Q8. A Mutual Fund Company has Rs.20 lakhs available for investment in Government
Bonds, blue chip stocks, speculative stock and short-term deposits. The annual
expected return and risk factor are given below :
Types of Investment Annual Expected Return (%) Risk Factor (0 to 100)
Government Bonds 14 12
Blue Chip Stocks 19 24
Speculative Stocks 23 48
Short-term Deposits 12 6
Mutual fund is required to keep at lest Rs.2 lakhs in short-term deposits and not to
exceed average risk factor of 42. Speculative stock must be at most 20 percent of the
total amount invested. How should mutual fund invest the funds so as to maximize its
total expected annual return ? Formulate this as a Linear Programming Problem. Do
not solve it.

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Linear Programming - Formulation

Q9. The Fine Paper Company produces rolls of paper used in cash register. Each roll of
paper is 500 ft. in length and can be produced in widths of 1, 2, 3 and 5 inch. The
company’s production process result in 500rolls that are 12 inches in width. Thus the
company must cut its 12 inch roll to the desired width. It has six basic cutting

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alternatives as follows :
Cutting 1” 2” 3” 5” Waste
Alternative
1 6 3 0 0 0
2 0 3 2 0 0
3 1 1 1 1 1
4 0 0 2 1 1
5 0 4 1 0 1
6 4 2 1 0 1
The maximum demand requirements for the four rolls are as follows :
Roll Width (inches) Demand Requirements (Rolls)
1 3000
2 2000
3 1500
5 1000
The company wishes to minimize the waste generated by its production meeting its
demand requirements. Formulate the LP model.

Q10. Three grads of coal A, B and C contain ash and phosphorus as impurities. In a particular
industrial process a fuel obtained by blending the above grades containing not more
than 25% ash and 0.03% phosphorous is required. The maximum demand of the fuel is
100 tons. Percentage impurities and costs of the various grades of coal are shown
below. Assuming that there is an unlimited supply of each grade of coal and there is no
loss in blending. Formulate the blending problem to minimize the cost.
Coal grade % ash % phosphorus Cost per ton in Rs.
A 30 0.02 240
B 20 0.04 300
C 35 0.03 280

Q11. The following matrix gives the units cost of transporting a product from production
plants P1, P2 and P3 to destinations D1, D2 and D3-. Plants P1, P2 and P3 have a
maximum production of 65,24 and 111 units respectively and destinations D1, D2-,
and D3 must receive at the most 60, 65 and 75 units respectively.

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 Linear Programming - Formulation

To D1 D2 D3 Supply
From
P1 Rs.400 Rs.600 Rs.800 65
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P2 Rs.1000 Rs.1200 Rs.1400 24

P3 Rs.500 Rs.900 Rs.700 111
Demand 60 65 75 200
You are required to formulate the above as linear programming problem. (Only
formulation is needed. Please do not solve).

Q12. In a chemical factory two product A and B are made involving two operations. The
production of B also results in a by-product C. The Product A can be sold at a profit of
Rs.3 per unit and B at a profit of Rs. 9 per unit. The by-product C has a profit of Rs.2 per
unit. Forecast show that up to 5 units of C can be sold. The company gets 3 units of C for
each unit of B produced. The manufacturing times are 3 hours per unit for A on each of
operation one and two and 4 hours and 5 hours per unit for B for operation one and
two respectively. Because the product C result from producing B, no time is used in
producing C. The available times are 18 hours and 21 hours for operation one and two
respectively. Formulate LP model that how many A and B should be produced keeping
C in mind to make the highest profit. Formulate LP model for this problem.

Q13. An investor is interested in investing Rs.15,00,000 in a portfolio of investments. The

investment choices and expected rates of return on each one of them are :
Investment Mutual Mutual Money Govt. Share P Share Q
Fund XY Fund HN Market Fund Bonds
Project rate 15% 9% 8% 8.75% 17% 18%
of return
The investor wants at least 40% of investments in Government bonds. Because of the
higher perceived risk of the two shares, he has specified that the combined investment
in there two shares not to exceed Rs.2,60,000. The investor has also specified that at
least 25% of the investment should be in the money market fund and that the amount
of money invested in the shares should not exceed the amount invested in he mutual
funds. His final condition is that the amount invested in the mutual fund XY should not
be more than the amount invested in mutual fund HN. The problem is to decide the
amount of money to invest in each alternative so as to obtain the highest annual
return.
Formulate the above as a LPP.

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Linear Programming - Formulation

Q14. A ship has three cargo holds, forward, aft and centre : the capacity limits are :
Forward 2,000 tonnes 1,00,000 m3
Center 3,000 tonnes 1,35,000 m3

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Aft 1,500 tonnes 30,000 m3
The following cargoes are offered : the ship owners may accept all or any part of each
commodity :
Commodity Amount (tones) Volume per tonne (m3) Profit per tonne (Rs)
A 6,000 60 60
B 4,000 50 80
C 2,000 25 50
The objective is to maximize the profit. Formulate the linear programming model for
the problem.

Q15. The most recent audited summarized Balance Sheet of stop and Shop Financial service
is given below :
Balance-Sheet as on 31st March, 2004
Liabilities Rs. (Lakhs) Assets Rs.(Lakhs)
Equity share capital 65 Fixed assets (given on lease) 375
Reserve and surplus 110 Other fixed assets 50
Term loan from IFCI 80 Investments 20
Public deposits 150 Current assets
- Stock on hire 80
- Receivables 30
- Other current assets 35
Bank borrowings 147 Misc. expenditure 12
Other Current liabilities 50
Total 602 Total 602
The company intends to enhance its investments in the lease portfolio by another
Rs.1000 lakhs. For this purpose it would to raise a mix of debt and equity in such a way
that the overall cost of raising the additional funds is minimized. The following
constrains apply to the way the funds can be mobilized :
1. Total debt divided by net owned funds cannot exceed 10.
2. Amount borrowed from the financial institutions cannot exceed 25% of the net worth.
3. Maximum amount of bank borrowing cannot exceed three times the net owned
funds?
4. The company would like to keep the total public deposits limited to 40% of total debt.

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 Linear Programming - Formulation

The post tax costs of different sources of finance are as follows :

Equity Term loans Public deposits Bank borrowings
25% 8.50% 7% 10%
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Formulate the funds problem as LPP.

Notes : (a) Total debt = Term loans from FIs + Public deposits + Bank borrowings
(b) Net worth = Equity share capital and Reserve and surplus
(c) Net owned funds = Net worth minus Misc. expenditure.

Q16. Transport Ltd. Provides tourist vehicles of 3 types – 20-seater vans, 8-seater big cars
and 5-seater small cars. Teese seating capacities are excluding the drivers. The
company has 4 vehicles of the 20-seater van type, 10 vehicles of the 8-seater big car
types and 20 vehicles of the 5-seater small car types. These vehicles have to be used to
transport employees of their client company from their residences to their offices and
back. All the residence are in the same housing colony. The offices are at two different
places, one is the Head Office and he other is the Branch. Each vehicle plays only one
round trip per day, i.e. residence to office in the morning and office to residence in the
evening. Each day, 180 officials need to be transported in Route I (from residence to
Head Office and back) and 40 officials need to be transported in Route II (from
Residence to Branch office and back). The cost per round trip for each type of vehicle
along each route is given below.
You, are required to formulate the information as a linear programming problem, with
the objective of minimizing the total cost of hiring vehicles for the client company,
subject to the constrains mentioned above. (Only formulation is required. Solution is
not needed).
20-Seater Vans 8-Seater big cars 5-Seater small cars
Route- I
Residence-Head office 600 400 300
and Back
Route- II
Residence-Branch 500 300 200
office and Back

Q17.An oil refinery can blend three grades of crude oil to produce quality A and quality B
petrol. Two possible blending process are available. For each production run, the older
process use 5 units of crude Q, 7 units of crude P and 2 units of crude R and produces 9
units of A and 7 units of B. The newer process uses 3 units of crude Q,9 units of crude P
and 4 units of crude R to produce 5 units of A and 9 units of B. Because of prior contract
commitments, the refinery must produce at least 500 units of A and at lest 300 units of
B for the next months. It has 1,500 units of crude Q, 1,900 units of crude P and 1,000
units of crude R. For each unit of A, refinery receives Rs.60 while for each unit of B it
receives Rs.90. Formulate the problem as linear programming model so as to maximize
the revenue.
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Linear Programming - Formulation

Q18. The Delhi Florist Company is planning to make up floral arrangements for the
upcoming festival. The company has available the following supply of flowers at the
costs shown :
Type Number available Cost per flower

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Red roses 800 Rs. 0.20
Gardenias 456 Rs. 0.25
Carnations 4000 Rs. 0.15
White roses 920 Rs. 0.20
Yellow roses 422 Rs. 0.22
These flowers can be used in any of the four popular arrangement whose makeup and
selling prices as follows :
Arrangement Requirements Selling price
Economy 4 red roses Rs. 6
2 gardenias
8 carnations
May time 8 white roses Rs. 8
5 gardenias
10 carnations
4 yellow roses
Spring colour 9 red roses Rs.10
10 carnations
9 white roses
6 yellow roses
Deluxe rose 12 red roses Rs.12
12 white roses
12 yellow roses
Formulate a linear programming problem which allows the florist company to
determine how many units of each arrangement should be made up in order to
maximize profits assuming all arrangement can be sold.
The formulated LP problem is not required to be solved.

Q19. A manufacture of biscuits is considering four types of gift packs containing three types
of biscuits, Orange cream (OC), Chocolate cream (CC) and Wafers (W) research study
conducted recently to asses the preference of the consumers shows the following
types of assortments of be in good demand :

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 Linear Programming - Formulation

Assortments Contents Selling price per kg Rs.

A Not less than 40% of OC 20
Not less than 20% of CC
Any quantity of W
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B Not less than 20% of OC 25

Not less than 40% of CC
Any quantity of W
C Not less than 50% of OC 22
Not less than 10% of CC
Any quantity of W
D No restrictions 12
For the biscuits, the manufacturing capacity and costs are given are below :
Type of biscuit Plant capacity (Kg/day) Manufacturing costs (Rs./kg)
OC 200 8
CC 200 9
W 100 7
Formulate the LP model to find the production schedule which maximize the profit
assuming that there are no market restrictions.
Q20. A leading Charted Accountant is attempting to determine a “best” investment portfolio
and is considering six alternative investment proposals. The following table indicates
point estimates for the price per share, the annual dividend per share, the annual
dividend per share and a measure of risk associated with each investment.
Portfolio Data
Shares under consideration
A B C D E F
Current price Per share (Rs). 80 100 160 120 160 200
Projected Annual Growth Rate 0.08 0.07 0.10 0.12 0.09 0.15
Projected Annual Dividend per share 4.00 4.50 7.50 5.50 5.75 0.00
Projected Risk in Return 0.05 0.03 0.10 0.20 0.06 0.08
The total amount available for investment is Rs. 25 lakhs and the following conditions
are required to satisfied.
(i) The maximum rupee amount to be invested in alternative F is Rs.250,000.
(ii) No more than Rs.500,000 should be invested in alternative A and B combined.
(iii) Total weighted risk should not be greater than 0.10 where,
(Amount Invested in Alternative) (Risk ofalternative j)
Total weighted Risk =
(Total Amount Investedinall the Alternatives)
(i) For the sake of diversity, at least 100 shares of each stock should be purchased.
(ii) At least 10 per cent of the total investment should be alternatives A and B.
(iii) Dividends for the year should be atleast Rs.10,000.

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Linear Programming - Formulation

Rupee return per share of stock is defined as price per share one year hence less
current price per share plus dividend per share. If the objective is to maximized
total rupee return, formulate the linear programming model determining time
horizon for investment is one year. The formulated LP problem is not required to be

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solved.

Q21. A firm produces three products A, B and C. It uses two types of raw materials I and II of
which 5,000 and 7,500 units respectively are available. The many material
requirements per unit of the products are given below :
Raw Material Requirements per units of Products
A B C
I 3 4 5
II 5 4 5
The labor time for each unit of product A is twice that of product B and thrice that of
product C. The entire labour force of the firm can produce the equivalent of 3,000 units
of A. The minimum demand of the three products is 600, 650 and 500 units
respectively. Also, the ratios of the number of units produced must be equal to 2 : 3 : 4.
Assuming the profits per unit of A, B and C as R. 50, Rs.50 and Rs.80 respectively.
Formulate the problem as a linear programming model in order to determine the
number of units of each product which will maximize the profit.

Q22. WELL TYPE Manufacturing Company produces three types of typewriters. Manual
typewriters, Electronic typewriters, and Deluxe Electronic typewriters. All the three
models are required to be machined first and then assembled. The time required for
the various models are as follows :
Type Machine Time (in hour) Assembly Time (in hour)
Manual Typewriter 15 4
Electronic Typewriter 12 3
Deluxe Electronic Typewriter 14 5
The total available machine time and assembly time are 3,000 hours and 1,200 hours
respectively. The data regarding the selling and variable for the three types are :
Manual Electronic Deluxe Electronic
Selling Price (Rs.) 4100 7500 14600

Labour, Material and

Other Variable costs (Rs.) 2500 4500 9000

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 Linear Programming - Formulation
The company sells all the three types on credit basis, but will collect the amounts on
the first of next month. The labour, material and other variable expenses will have
to be paid in cash. This company has taken a loan of Rs.40,000 from a co-operative
bank and this company will have to repay it to the bank on 1 April 1999. The TNC
bank from whom this company has borrowed Rs.60,000 has expressed its approval
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to renew the loan.

The Balance Sheet of this Company as on 31.3.99 is a follows :
Liabilities Rs. Assets Rs.
Equity Share Capital 150000 Land 90000
Capital Reserve 15000 Building 70000
General Reserve 110000 Plant & Machinery 100000
Profit & Loss a/c 25000 Furniture & Fixtures 15000
Long term loan 100000 Vehicles 30000
Long from TNC Bank 60000 Inventory 5000
Loan from Co-op. Bank 40000 Receivables 50000
Cash 140000
TOTAL 5,00,000 TOTAL 5,00,000
The company will have to pay a sum of Rs.10,000 towards the salary from top
management executives and other fixed overheads for the moths. Interest on long
term loans is to be paid every months at 24% per annum. Interest on loans from TNC
and Co-operative Banks may be taken to be Rs.1,200 for the month. Also this company
has promised to deliver 2 Manual typewriters and 8 Deluxe Electronic typewriters to
one of its valued customers next months.
Also make sure that the level of operations in this company is subject to the availability
of cash next month. This company will also be able to sell all three types of typewriter
in the market. The senior Manager of this company desires to know as to how many
units of each typewriter must be manufactured in the factory next month so as of
maximize the profits of the company. Formulate this as a linear programming problem.
The formulated problem need not be solved.
Q23. Consider a company that must produce two produces over a production period of
three months of duration. The company can pay for materials and labour from two
sources; company funds and borrowed funds. The firm faces three decisions :
(1) How many units should it produces of Product 1 ?
(2) How many units should it produces of Product 2?
(3) How much money should be borrows to support the production of the two
products ?
In making these decisions, the firm wishes to maximize the profit contribution subject
to the conditions stated below :
(i) Since the company’s products are enjoying a seller’s market, it can sell as many units
as it can produce. The company would therefore like to produce as many units as
possible subject to production capacity and financial constraints. The capacity
constraints, together with cost and price data, are given is Table 1.

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Linear Programming - Formulation

Product Selling price Cost of Production Required Hours per

(Rs. Per unit) (Rs. Per unit) unit in Department
A B C
1 14 10 0.5 0.3 0.2

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2 11 8 0.3 0.4 0.1
Available hours per production period of three months 500 400 200
(ii) The available company funds during the production period will be Rs. 3 lakhs.
(iii) A bank will give loans upto Rs.2 lakhs per production period at an interest rate of
20 percent per annum provided the company’s acid (quick) test ratio is at least 1 to
1 while the loan is outstanding. Take a simplified acid-test ratio given by
Surplus cash on hand after production + Accounts receivable
BankBorrowing + Interest accrued thereon

(iv) Also make sure that the needed funds are made available for meeting the
production costs.
Formulate the above as a Linear Programming Problem.

Q 24. The Voltex Compay products an air conditioner/heating unit. The company currently
has firm orders for 6 months into the future. The company can schedule its productions
over the next 6 months to meet orders on either a regular or on overtime basis.
Consider orders and the associated production costs for the next 6 months as follows :

Months Jan. Feb. Mar. Apr. May June

Orders 590 610 650 700 500 700
Regular Production Cost/Unit (Rs.) 50 52 51 55 47 50
Overtime Production Cost/Unit 62 58 63 60 55 52
Maximum no. of units which can be produced on regular and overtime basis are 500
and 300 respectively.
With 75 air conditioners in stock at the beginning of January, the company wishes to
have at least 100 air conditioners in stock at the end of June. The inventory-carrying
costs for air-conditioners is Rs.10 per unit per month.

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 Linear Programming - Formulation
.
Q 25. Arefinery makes 3 grades of petrol (A, B, C), from 3 crude oils (d, e, f). Crude can be used
in grade but the others satisfy the following specifications.
Grade Specifications Selling Price Per litre
A Not less than 50% crude d 8.0
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Not more than 25% crude e

B Not less than 25% crude d 6.5
Not more than 50% crude e
C No specifications 5.5
There are capacity limitations on the amount of the three crude elements that can be
used :
Grade Capacity Price Per litre
d 500 9.5
e 500 5.5
f 300 6.5
It is required to product the maximum profit.

Q26. A complete unit of a certain product consists of four units of components A and three
units of components B. The two components (A and B) are manufactured from two
different raw materials of which 100 units and 200 units, respectively, are available.
Three departments are engaged in the productions process with each department
using a different method for manufacturing the components per production run and
the recoulting units of each components are given below :

Department Input per run (units) Output per run (units)

1 7 5 6 4
2 4 8 5 8
3 2 7 7 3

Formulate this problem as a linear programming model so as to determine the number

of production runs for each department which will maximized the total number of
complete units of the final product.

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Linear Programming - Formulation

Q27. A computer company produces three types of models, which are first to be machined
and then assembled. The time (hours per unit) for these operations are as follows :
Model Machine Time Assembly time
P III 20 5

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P II 15 4
Celeron 12 3
The total available machine time and assembly time are 1,000 hours and 1500 hours
respectively. The selling price and variable cost for three models are :
P III P II Celeron
Selling price (Rs.) 3,000 5,000 15,000
Variable cost/unit (Rs.) 2,000 4,000 8,000
The company has taken a loan of Rs.50,000 from a nationalized bank which is required
to be prepaid on 1.4.2001. In addition, the company has borrowed Rs.1,00,000 from a
co-operative bank. However, this bank has given the consent to renew the loan.
The Balance Sheet of the company as on 31.3.2001 is follows :
Liabilities Rs. Assets Rs.
Equity Share Capital 100000 Land 80000
Capital Reserve 20000 Building 50000
P & L A/c 30000 Plant & Machinery 100000
Long term loan 200000 Furniture 20000
Long (co-operative bank) 100000 Vehicles 40000
Loan (nationalized bank) 50000 Cash 210000
Total 5,00,000 Total 5,00,0000

The company is required to a sum of Rs.15,000 towards the salary. Interest on long
term loan is to be paid every month @18% per annum. Interest on loan from
nationalized bank and loan co-operative bank amount to Rs. 1,500 per month. The
company has already promised to deliver the three PIII, two PII and five Celeron type of
computers to M/s ABC Ltd next month. The level of operation in the company is subject
to the available of cash next month.
The company manager is wiling to known that how many units of each model must be
manufactured next month, so as to miximized the profit. Formulate a LPP for the
above.

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 Linear Programming - Formulation

Q28. A city hospital has the following minimal daily requirement for nurses :

Period Clock time (24 hours day) Minimal number of nurses required
1 6 AM - 10 AM 2
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2 10 AM – 2 PM 7
3 2 PM – 6 PM 15
4 6 PM – 10 PM 8
5 10 PM – 2 AM 20
6 2 AM – 6 AM 3
Nurse report to the hospital at the beginning of each period and work for consecutive 8
hours. The hospital wants to determine the minimal number of nurses to be employed

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 Linear Programming
(graphical method)
Q.29 A dealer wants to purchase a number of fans and sewing machines costs. He has only
Rs.5,760 to invest and has space for 20 item only. A fan costs him Rs.360 and sewing
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machine costs him Rs.240. his expectation is that he can sell a fan at a profit of Rs.22
and sewing machine at a profit Rs.18. assume that he can sell all the items that he can
buy. How should he invest his money in order to maximize his profit? Formulate this
problem as linear programming problem and then use graphical method to solve it

Q.30 A firm manufactures two products A & B on which the profits earned per unit are Rs.3
and Rs.4 Respectively. Each product is processed on two machines M1 and M2. Product
A required on minute of processing time on M1 and two minutes on M2, while B
requires one minute on M1 and one minute on M2. Machine M1 is available for not
more than 7 hrs. 30 mins. While machine M2 is available for 10 hrs. during any working
day. Find the number of units of products. A and B to be manufactured to get maximum
profit.

Q.31 Find the maximum value of

Z = 2 x1 + 3 x2,
Subject to X 1 + x2 £ 30,
x2 ³ 3,
x2 £ 12,
x1 + x2 ³ 0,
0 £ X1 £ 20,

Q.32
Maximize Z = 2 x1 + x2 ,

Subject to x1 + 2 x2 £ 10
x1 + x2 £ 6,
x1 - x2 £ 2
x1 - 2x2 £ 1
x1 x2 ³ 0

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 Linear Programming (graphical method)

Q.33 A local travel agent is planning a charter trip to a major sea resort. The eight day/seven
night package includes the fare for round-trip travel, Surface transportation, Board and
lodging and selected tour options. The charter trip is restricted to 200 person. And past
experience indicated that there will not be any problem for getting 200 persons. The
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problem for the travel agent is to determine the number of deluxe, Standard and
Economy tour packages to offer for this charter. These three plans differ according to
seating and service for the flight, quality of accommodations, meal plans and tour
options. The following table summarizes the estimated prices for the three packages
and the corresponding expenses for the travel agent. The travel agent has hired an
aircraft for the flat fee of Rs.2,00,000 for the entire trip.

Prices and costs for tour packages per person

Tour Plan Price (Rs.) Hotel costs (Rs.) Meal & other expenses (Rs.)
Deluxe 10,000 3,000 4,750
Standard 7,000 2,200 2,500
Economy 6,500 1,900 2,200
In planning the trip, the following considerations must be taken into account:
i. At least 10 percent of the packages must be deluxe type.
ii. At least 35 per cent but not more than 70 percent must be of the standard type.
iii. At least 30 percent must be of the economy type.
iv. The maximum number of deluxe 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 the above 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.

Q.34 Solve the following linear programming problem by graphical method:

Maximize Z = 15 x1 + 10 x2 ,

Subject to x1 + X 2 £ 20
3x1 + 2 x2 £ 48

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Linear Programming (graphical method)

Q.35 Solve the below problem by graphical method and comment on results:

Maximize Z = 12 x1 + 15 x2 ,

Subject to x1 + x2 ³ 20

NAHATA PROFESSIONAL ACADEMY

3x1 + 2 x2 ³ 48

Q.36 Is there any feasible solution to the below mentioned situation:

Maximize Z = 10 x1 + 11 x2 ,

Subject to x1 + x2 £ 20
2x1 + 2 x2 ³ 60

What if the constraints are same but problem is for maximization. Use graphical
method.

Q.37 Given below is problem of profit maximization

Maximize Z = 24 x1 + 20 x2 ,

Subject to x1 + x2 = 30
3x1 + 2 x2 = 72
Solve this by graphical method.

Q.38 A firm buys casting of P and Q types of parts and sell them as finished product after
machining. Boring and polishing. The purchasing cost for castings are Rs.3 and Rs.4
each for parts P and Q and selling price are Rs.8 and Rs.10 respectively. The per hour
capacity of machine used for machining, Boring and policing for two products is given
below:

Machines Parts & Capacity/per Hr.

P Q
Machining 30 50
Boring 30 45
Polishing 45 30

The running costs for machining, boring and polishing are Rs.30, Rs.22.50 and Rs.22.50
per hour respectively.
Formulate the linear programming problem to find out the product mix to maximize
the profit and solve it using graphical method.

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 Linear Programming
(simplex)
Q.39 The XYZ Company manufactures two products A and B. these are processed on same
machine. A takes 10 minutes per item and B takes 2 minutes per items on machine.
NAHATA PROFESSIONAL ACADEMY

Machine can run for a maximum of 35 hours in a week. Product A require 1 Kg and
product B 0.5 Kg. of the raw material per item, the supply of which is 600 kg per week.
Not more than 800 items of product B are required per week. If the product A costs Rs.5
per item and can be sold for 10 per item and product B costs Rs.5 per item and can be
sold for 8 per item, determine by simplex method how many item per week be
produced for A and B in order to maximize the profit.

Q.40 A dealer wants to purchase a number of fans and sewing machines costs. He has only
Rs.5,760 to invest and has space for 20 items only. A fan costs him Rs.360 and sewing
machine costs him Rs.240. His expectation is that he can sell a fan at a profit of Rs.22
and sewing machine at a profit Rs.18. assume that he can sell all the items that he can
buy. How should he invest his money in order to maximize his profit? Formulate this
problem as linear programming problem and then use simplex method to solve it

Q.41 A boat manufacturing company makes three different kinds of boats. All can be made
profitably in his company, but the company’s production is constrained by the limited
amount of labour, wood and screws available each month. The director will choose the
combination of boats that maximizes his revenue in view of the information given in
the following table:

Input Row Boat Canoe Kayak Monthly Availability

Labour 12 7 9 1260 hours
Wood 22 18 16 19008
(Board Feet)
Screws (kg) 2 4 3 396 kg
Selling Price 4,000 2,000 5,000
in Rs.

a) Formulate the above as a linear programming problem.

b) Solve it by simplex method.

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Linear Programming (simplex)

Q.42 For a company engaged in the manufacture of three products X, Y and Z the available
data are given table 1, 2 and 3.
Table 1
Product Minimum sales requirement per month

NAHATA PROFESSIONAL ACADEMY

X 10
Y 20
Z 30

Table 2
Product Profit per Unit (Rs.)
X 10
Y 15
Z 8

Table 3
Operation Time (Hours) required per item of Total hours
X Y Z available per month
1 1 2 2 200
2 2 1 1 220
3 3 1 2 180
Find the product mix to maximize profit.
Does the problem have alternative optimal solution?

Q.43 You were given a maximization problem:

Maximize Z = 3x + 2 y
Subject to
-x + 2 y £ 4 3x + 2 y £ 14 x-y £3 X, y ³ 0
You solve it by simplex. The table below gives the final iteration of the above problem.
C 3 2 0 0 0
C Basic variables Quantity x y S1 S2 S3
0 S1 6 0 0 -1 -1/5 8/5
2 X2 1 0 1 0 1/5 -3/5
3 X1 4 1 0 0 1/5 2/5
Z 3 2 0 1 0
C-Z 0 0 0 -1 0
Does the problem have alternative optimal solution? If yes, find the same.

CA. Tarun Mahajan 50

 Linear Programming (simplex)

Q.44 Given below is the simplex table for a maximization Linear Programming problem:

C 10 6 4 0 0 0 Quantity
Basic variables X1 X2 X3 S1 S2 S3
NAHATA PROFESSIONAL ACADEMY

X2 0 1 5/6 5/3 -1/6 0 200/3

X1 1 0 1/6 -2/3 1/6 0 100/3
S3 0 0 4 -2 0 1 100
Answer the following questions
(i) Does the table above give an optimal solution?
(ii) Is this solution feasible?
(iii) Does the problem have alternative optimal solution?
(iv) Is this solution degenerate?
(v) Write the optimal product mix and profit contribution shown by the above solution.
(vi) Indicate the shadow prices of the three resources.
(vii) If the company wishes to expand the production capacity, which of the three
resources should be given the priority?
(viii) If the customer is prepared to pay higher price for X3 , how much should the price
be increased so that the company's profit remains unchanged?
(ix) write down the objective function of the problem.

Q.45 Given below is the simplex table for a maximization Linear Programming problem:

C 3 4 0 0 Quantity
Basic variables X1 X2 S1 S2
X2 1 1 1 0 6
S2 1 0 -1 1 2

Answer the following questions

(i) Does the table above give an optimal solution?
(ii) Is this solution feasible?
(iii) Does the problem have alternative optimal solution?
(iv) Is this solution degenerate?
(v) If S1 is the slack variable of machine 1 (Hours/Week) and S2 is the slack variable of
machine 2 (Hours/Week), which of these two machines is used at full capacity to
produce the optimum production?

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Linear Programming (simplex)

(vi) A customer would like to have one unit of product x1 and is willing to pay in excess of
normal price in order to get it. How much the price should be increased to ensure no
reduction in profit?
(vii) What is optimum production mix? Profit?

NAHATA PROFESSIONAL ACADEMY

(viii) Machine 1 has to be shut down for 2 hours for repairs next week. How much will be
reduction in profit?
(ix) What is the maximum you would be prepared to pay for another hour (per week) of
capacity each on Machine A and Machine B?
(x) What are the shadow prices of machine-hours?

Q.46 Solve the following minimize Z = 5x + 6y

Subject to 2x + 5 y ³ 1500 3x + y ³ 1200 X, y ³ 0

Q. 47 Solve the following minimize Z = 4x + y

Subject to 3x + 4 y ³ 20 -x - 5y £ -15 X, y ³ 0

Q. 48 Minimize Z = 8x + 4y
Subject to:
3x + y ³ 27 x + y = 21 x + 2y £ 40 X, y ³ 0

Q. 49 Maximize Z = 8x +12y
Subject to :
x+ y =5 x =2 y £4 X, y ³ 0

Q. 50 Given below is a table appearing in the course of the simplex solution of an LP problem:
C 2 4 1 0 0 0 -M
C Basic
Quantity x y z S1 S2 S3 A1
variables
2 x 4 1 2 1/2 0 0 7/8 0
0 S2 12 0 0 -1 0 1 -1/2 0
0 S1 12 0 6 0 1 0 1 -1
Z 2 4 1 0 0 7/4 0
C-Z 0 0 0 0 0 -7/4 -M

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 Linear Programming (simplex)

Answer the following questions

(i) What is the objective function of the problem?
(ii) Is the solution indicated above optimal? If yes, what optimal mix? what is the
optimal profit?(iii) Is the above solution degenerate?
NAHATA PROFESSIONAL ACADEMY

Does the problem have multiple optimal solution? If yes, write an alternative solution.

CA. Tarun Mahajan 53

Q.56 Obtain the dual of the primal problem
Linear Programming Subject to

(primal
Q.57 A company makes three dual)
products. X,Y and Z out
Unrestricted in sign.
of three raw materials A, B and C. The number of units of raw material require
to produce on unit of the product is as given in the table below.

Q.51 Construct the dual of the problem:

Minimize Z= 3x1 - 2x2 + 4x3,
NAHATA PROFESSIONAL ACADEMY

Subject to the constraints 3x1 + 5x2 + 4x3 ³ 7,

6x1 + x2 + 3x3 ³ 4,
7x1 - 2 x2 - x3 £ 10,
x1 - 2 x2 + 5x3 ³ 3,
x1, x2, x3 ³ 0.

Q.52 Construct the dual of the primal problem:

Maximize Z= 3x1 + 5x2,
Subject to 2x1 + 6x2 £ 50,
3x1 + 2 x2 £ 35,
5x1 - 3 x2 £ 10,
x2 £ 20,
x1, x2, ³ 0.

Q.53 Construct the dual of the problem:

Maximize Z= 3x1 + 10x2 + 2x3,
Subject to 2x1 + 3x2 + 2x3 £ 7,
3x1 - 2 x2 + 4 x3 = 3,
x1, x2, x3 ³ 0.

Q.54 Construct the dual of the problem:

Minimize Z= x2 + 3x3,
Subject to: 2x1 + x2 £ 3,
x1 + 2 x2 + 6x3 ³ 5,
- x1 + x2 + 2 x3 = 2,
x1, x2, x3 ³ 0.

Q.55 Obtain compute the dual of the following primal problem:

Minimize Z= 3x1 - 2x2 + x3,
Subject to: 2x1 - 3x2 + x3 £ 5,
4x1 - 2 x2 ³ 9,
-8x1 + 4 x2 + 3x3 = 8,
x1, x2 ³ 0 , x3 is unrestricted .

CA. Tarun Mahajan 54

 L i n e a r Pr o g r a m m i n g ( p r i m e & D u a l )

Q.56 Obtain the dual of the primal problem

Maximize Z= x1 + 3x2 + 2x3 + 5x4,

NAHATA PROFESSIONAL ACADEMY

Subject to: 3x1 -x2 + x3 4x4 = 2,

5x1 + 3 x2 - x3 - 2x4 = 3,

X1, x2, ³ 0, x3 x4 unrestricted in sign.

57 A company makes three products. X,Y and Z out of three raw materials A, B and C. The
number of units of raw material required to produce on unit of the product is as given in the
table below.
X Y Z
A 2 1 1
B 2 1 4
C 2 5 1
The unit profit contribution of the products X, Y and Z is Rs.40, 25 and 50 respectively. The
number of units of raw materials available are 36, 60 and 45 respectively.
i. Determine the product mix that will maximize the total profit.
ii. From the final simplex table, write the solution to the dual and give the economic
interpretation

Q.58 A company manufactures three products: tables, chairs and racks. The resource utilization,
resource availability and profit/unit of each product are given below:
Product Resource Requirement
Time in
Time in finishing
Timber manufacturing Profit/unit (Rs.)
department
(cubic feet) department
(hours)
(hours)
Table 10 7 2 12
Chair 2 3 4 3
Rack 1 2 1 1
Available 100 77 80

Formulate it as a linear programming problem.

ii. Write its dual.
iii. Find the optimal solution to the given problem.
iv. From the final optimal table, find the solution to the dual problem.
v. What are the shadow prices of the resources?
vi. Give economic interpretation of the dual problem.

CA. Tarun Mahajan 55

 Linear Programming

Steps for Graphical Method:

1. Take the first equation (i.e. the constraint) treat it as an equation and calculate any two points for this equation
2. The easiest way to calculate point is to take x1 = 0 and calculate x2, This pair of x1 and x2 will give you a point o
graph, then take x2 =0 and calculate x1, This pair of x1 and x2 will give you 2nd point on the graph.
3. Repeat the above procedure for all Constraint.
4. Now draw the points for 1st constraint and join these two to draw a straight line.
5. To decide the area for this inequation (or we can say direction of inequation), take both x1 = 0 and x2 = 0. If th
constraint is satisfied then the direction is towards the origin and if it is not satisfied then the direction is opposite to th
origin. If a straight line passes through origin then to decide the direction take any other point (0, x ).
6. Repeat step 4 and 5 for all the constraints.
7. On the basis of direction of constraints mark the common area, This is call feasible region.
8. Identify or calculate corner points, If a corner point is on x axis or y axis or at origin then you can easily identif
the value of x1 and x2. If a corner point is at the interaction of two straight line then to identify the value of x1 and x2 yo
will have to solve equation of these two constraints.
9. Now calculate value of Z for all the corner points and choose the desired answer.

Steps for Simplex Method:

1. First of all we will have to formulate a problem. In formulation we decide one objective function which may b
to maximize or to minimize Z and we also write no. of constraints which may carry

Objective function: Maximize Z = c1x1 + c2x2 + - - - + cnxn

Constraints: a11x1 + a12x2 + - - - - - - - - - + a1nxn = b1

a21x1 + a22x2 + - - - - - - - - - + a2nxn = b2
a31x1 + a32x2 + - - - - - - - - - + a3nxn = b3

Here all a, b & c are constraint while all x are variables,

2. Introducing Slack , Surplus and/or artificial variables, this is usually done to convert the inequation int
equation. For example if the constraint is 3x1 +2x2 48 then it will become 3x1 +2x2 + S1 = 48. In this case we can sa
that x1, x2, S1 0.
3. Now we will assume the decision variable (x1, x2 etc.) are 0 and calculate the value of slack variable.
4. Thereafter we will set up the initial simplex table.

Contribution Basic
Variable C1 C2 0 0 Qty. Replacement
Ratio

X1 X2 S1 S2
0 S1 a11 1 0 b1
0 S2 a21 0 1 b2
NER
C1 - (a11 x 0 + a21 x 0)

Net evaluation of basic variable will always be zero. In the above table we can observe that basic variable will form a
identity matrix

CA. Tarun Mahajan 56

 Linear Programming
CONCEPT NOTE

5. In a maximization problem we will search the highest positive NER and mark the column (key
column) for incoming variable. In case of a tie we can choose any one arbitrary.
6. Now we will calculate Replacement Ratio RR = Qty. / Element of key column. We will look for the lowest
positive (not negative or 0) replacement ratio and mark this row as a key row. Basic variable in this row
will be the outgoing variable. Key element is the element where the key column and key row
intersects.
7. Now we will make the table for next iteration/repetition.
(i) In this table in the row of incoming variable all the elements (a and b) will be divided by key elements. The
purpose behind it is to maintain identity matrix of basic variables (means we need zeros in this table in the
column, which was key column of last table but we need one at the place of key element).
(ii) To get zero in a row we need to deduct elements of key row multiplied by fixed ratio from respective
elements of this row. For example if we need zero in second row and suppose 1st row is key row then (2 - 1) FR.
(iii) Fixed Ratio = elements of key column / Key element.
8. Now we will make NER for the above table and look for the highest positive element. If all the elements
of NER are negative or zero then we have arrived at the optimal solution but if there is any positive elements in
NER then repeat step 5 to 8 till the optimal solution is reached.
9. In case of a minimization problem the only change is that we will look for most negative element in
NER.

Special Case
Case 1.
Multiple optimal solution:- In the final Simplex table if we find a zero in NER for a non basic v a r i a b l e t h e n
there exists multiple optimal solutions.
To find the alternative solution assume the non basic variable which has zero in NER as the incoming variable and solve
it as per the rules discussed above. If you have two optimal solution then you can fixed out infinite optimal
solution by taking weighted average of these two.
Case 2.
Unbounded Solution:- If we get all the negative and/or infinite replacement ratio in simplex Table then it is the case of
unbounded solution.
Case 3.
No feasible solution: - If we get an artificial variable in final iteration of simplex table then the problem has no feasible
solution.
Case 4.
Degeneracy:- degeneracy in a simplex table means a situation where in a next iteration we will not get any
improvement in Value of Z. It may occur in the following cases.
(i) Zero Qty. in initial table:- In this case we will select zero for outgoing variable & not the positive number.
(ii) If there is a tie replacement ratio then we will select any one arbitrarily randomly but in the next table we
will get a zero in a replacement table for sure and in this case we will select zero for the outgoing variable and
not the positive minimum number.
Note:- If the find a zero replacement ratio in any other situation then we will ignore it and we will select the
minimum positive number.

CA. Tarun Mahajan 57

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