NATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY F

FACULTY O COMMERCE
DEPARTMENT OF INSURANCE AND ACTUARIAL SCIENCE
QUANTITATIVE ANALYSIS FOR BUSINESS
TUTORIAL : LINEAR PROGRAMMING

1. Use the graphical method to solve the problem:

Maximize Z = 2x1 + x2,
subject to
x2 ≤10
2x1 + 5x2 ≤ 60
x1 +x2 ≤18
3x1 + x2 ≤ 44
x1 ≥0, x2 ≥ 0.

2. Use the graphical method to solve the problem:

Maximize Z = 10x1 + 20x2,
subject to
x1 + 2x2 ≤ 15
x1 +x2 ≤12
5x1 + 3x2 ≤ 45
and
x1 ≥ 0, x2 ≥ 0.

3. The Whitt Window Company is a company with only three employees which makes two
different kinds of hand-crafted windows: a wood-framed and an aluminum-framed
window. They earn $60 profit for each wood-framed window and $30 profit for each
aluminum-framed window. Doug makes the wood frames, and can make 6 per day. Linda
makes the aluminum frames, and can make 4 per day. Bob forms and cuts the glass, and
can make 48 square feet of glass per day. Each wood-framed window uses 6 square feet
of glass and each aluminum-framed window uses 8 square feet of glass. The company
wishes to determine how many windows of each type to produce per day to maximize
total profit.

(a) Then construct and fill in a table for this problem, identifying both the activities and the
resources.

b) Formulate a linear programming model for this problem.

(c) Use the graphical model to solve this model.

(d) A new competitor in town has started making wood-framed windows as well. This may
force the company to lower the price they charge and so lower the profit made for each wood
framed window. How would the optimal solution change (if at all) if the profit per wood-framed
window decreases from $60 to $40? From $60 to $20?

(e) Doug is considering lowering his working hours, which would decrease the number of wood
frames he makes per day. How would the optimal solution change if he makes only 5 wood
frames per day?
4. The Apex Television Company has to decide on the number of 27- and 20-inch sets to be
produced at one of its factories. Market research indicates that at most 40 of the 27-inch
sets and10 of the 20-inch sets can be sold per month. The maximum number of work-
hours available is 500 per month. A 27-inch set requires 20 work-hours and a 20-inch set
requires 10 work-hours. Each 27-inch set sold produces a profit of $120 and each 20-inch
set produces a profit of $80. A wholesaler has agreed to purchase all the television sets
produced if the numbers do not exceed the maxima indicated by the market research.

(a) Formulate a linear programming model for this problem.

(b) Use the graphical method to solve this model.

5. The World Light Company produces two light fixtures (products 1 and 2) that require
both metal frame parts and electrical components. Management wants to determine how
many units of each product to produce so as to maximize profit. For each unit of product
1, 1 unit of frame parts and 2 units of electrical components are required. For each unit of
product 2, 3 units of frame parts and 2 units of electrical components are required. The
company has 200 units of frame parts and 300 units of electrical components. Each unit
of product 1 gives a profit of $1, and each unit of product 2, up to 60 units, gives a profit
of $2. Any excess over 60 units of product 2 brings no profit, so such an excess has been
ruled out.

(a) Formulate a linear programming model for this problem.

(b) Use the graphical method to solve this model. What is the resulting total profit?

6. Weenies and Buns is a food processing plant which manufactures hot dogs and hot dog
buns. They grind their own flour for the hot dog buns at a maximum rate of 200 pounds
per week. Each hot dog bun requires 0.1 pound of flour. They currently have a contract
with Pigland, Inc., which specifies that a delivery of 800 pounds of pork product is
delivered every Monday. Each hot dog requires 14 pound of pork product. All the other
ingredients in the hot dogs and hot dog buns are in plentiful supply. Finally, the labor
force at Weenies and Buns consists of 5 employees working full time (40 hours per week
each). Each hot dog requires 3 minutes of labor, and each hot dog bun requires 2 minutes
of labor. Each hot dog yields a profit of $0.20, and each bun yields a profit of $0.10.
Weenies and Buns would like to know how many hot dogs and how many hot dog buns
they should produce each week so as to achieve the highest possible profit.

(a) Formulate a linear programming model for this problem.

(b) Use the graphical method

7. Work through the simplex method (in algebraic form) step by step to solve the following
problem.

Maximize Z =4x1+3x2 +6x3,

Subject to
3x1 +x2 +3x3 ≤30
2x1 +2x2 +3x3 ≤40
And
x1≥0, x2 ≥0, x3 ≥0.

8. Work through the simplex method (in algebraic form) step by step to solve the following
problem.

Maximize Z =x1 +2x2 +4x3,

Subject to
3x1 +x2 +5x3 ≤10
x1+4x2 +x3 ≤8
2x1 + 2x3 ≤7

9. Solve the following Linear Programming formulation graphically.

Min Z = 24x1 + 28x2

Subject to:

5x1 + 4x2 ≤ 2000

x1≥ 80
x1 + x2 ≥ 300
x2 ≥ 100
x1, x2 ≥ 0

10.
 a) Formulate the Linear programming model that will minimize the shipping cost.
b) Solve the problem using the least cost and the north-west corner method.
c) Compare and comment on the answer for b).

11. 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

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.
12. Consider the following model

Min Z = 40x1 + 50x2

Subject to:

2x1 + 3x2 ≥ 30

x1 +x2 ≥ 12

2x1 + x2 ≥ 20

And

x1 , x2 ≥ 0

(a) Use the graphical method to solve this model.

(b) How does the optimal solution change if the objective function is changed to Z= 40x 1 + 70x2?

(c) How does the optimal solution change if the third functional constraint is changed to 2x 1 + x2 ≥15?

13. The One note Co. produces a single product at three plants for four customers. The three plants will
produce 60, 80, and 40 units, respectively, during the next time period. The firm has made a commitment
to sell 40 units to customer 1, 60 units to customer 2, and at least 20 units to customer 3. Both customers
3 and 4 also want to buy as many of the remaining units as possible. The net profit associated with
shipping a unit from plant i for sale to customer j is given by the following table

Management wishes to know how many units to sell to customers 3 and 4 and how many units to
ship from each of the plants to each of the customers to maximize profit.

a) Formulate this problem as a transportation problem where the objective function is to be

maximized by constructing the appropriate parameter table that gives unit profits.
b) Find the optimal solution using the Vogel’s method.