CHAPTER 2

LINEAR PROGRAMMING:
PROBLEMS, MODELS, and
SOLUTIONS

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LEARNING OBJECTIVES

After completing this chapter,

you should be able to:
 Explain what Linear Programming is;
 List and briefly explain the components and assumptions

of Linear Programming models;

 Recognize problems that can be solved using Linear

Programming Models and formulate LPMs.

 Identify the approaches to solving LPPs.
 Solve LPPs using the Graphical Methods/Approaches
 Solve LPPs using the Simplex Methods/ Approaches
 Use sensitivity analysis to generate post-optimal solutions

to LPPs.

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2.1. LINEAR PROGRAMMING PROBLEM MODELS
LP: Meaning and Definition
A system that provides solutions when managers encounter
decision making situations in which the set of acceptable solutions
is some how restricted.
 internal restriction: raw materials, labour/machine time, and
budgets
 external restriction: labour regulations, customer orders,
resource cost
LP: PURPOSE
 to find the best solution given the constraints imposed by the
problem-constrained optimization.
 to allocate the available limited resources for various competing
activities

LP: APPLICATION
 business, government, industry, hospitals, libraries, etc
 production, finance, marketing, research and development and
HRM.
LPM
 It is the mathematical representation of LPProblems that has been
developed to help management in decision making, involving the
efficient allocation of scarce resources to achieve an optimization
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objective.
LINEAR PROGRAMMING PROBLEM MODELS…
LPM: Components
A. Objective Function: Goal of management, stated as intent to
maximize or to minimize some important quantity such as profits or
costs.
B. Decision Variables: represents the unknown values to be solved
by the decision makers.
C. Parameters: fixed values that specify the impact of one unit on
the objective function and the constraint.
D. Constraints
 are limitations or restrictions imposed by the problems.
 Resource constraints
 Individual constraints
 Non-negativity constraints
 four elements of constraint
I. RHS value: represents quantity that specifies the limit for that constraint.
II. An algebraic sign: represents whether the limit is:
 An upper bound (< )that cannot be exceeded
 A lower bound (> )that is the lowest acceptable limit
 An equality (=) that must be met exactly.
III. The decision variable to which the constraint applies.
IV. Parameters: impact of one unit of each decision variable on the RHS
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Quantity.
LINEAR PROGRAMMING PROBLEM MODELS…
LPM: Assumptions
A. Linearity- proportionality and additively
 The relationship between the Objective Function and the
constraints must be linear in nature.
B. Certainty
 the decision maker here is completely certain regarding
all aspects of the situation, i.e., availability of resources,
profit contribution of the Products, technology, courses of
action and their consequences etc.
C. Divisibility
 the decision variables are continuous meaning that
companies manufacture products in fractional units. For
example, a company manufactures 2.5 vehicles, 3.2
barrels of oil etc.
D. Non- Negativity
 all variables are restricted to non-negative values (i.e.,
their numerical value will be ≥ 0).i.e. negative values of
variables are unrealistic or meaningless.
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2.2. FORMULATION OF LPPM
PROCEDURE
STEP 1: Identify the d. variables & represent them as X 1, X 2…
STEP 2: Determine the objective function:
 First decide if the problem is maximization or minimization problem.
 Second identify the coefficients of each decision variable.

STEP 3: Identify the constraints

 First, express each constraint in words.
 Second identify the coefficients of the decision variables in the

constraints; and the RHS values of the constraints.

 Determine the limits for the constraints i.e. see whether the

constraint is of the form (<), (>) or (=).

 Write the equation.

STEP 4: Using the above information, build the model.

Max Z= 60x1 + 50x2
Subject to
4x1 + 10x2< 100
2x1 + x2< 22
3x1+ 3x2 < 39
x 1 & x2 > 0

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FORMULATION OF LPPM…
Example 1
 A firm that assembles computers and computer equipment is
about to start production two new microcomputers. Each type
of microcomputers will require assembly time, inspection
time and storage space. The amount of each of these
resources that can be devoted to the production of these
microcomputers is limited. The manager of the firm would
like to determine the quantity of each microcomputer to
produce in order to maximize the profit generated by
sales of these microcomputers.
Additional information
TYPE ONE TYPE TWO Resources
available
Profit/unit Birr 60 Birr 50

Assembly time/unit 4 hours 10 hours 100 hours

Inspection time/unit 2 hours 1 hour 22 hours

Storage space/unit 3 cubic feet 3 cubic feet 39 Cubic feet

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FORMULATION OF LPPM…

Example 2
A firm is engaged in breeding pigs. The pigs are
fed on various products grown on the farm. In
view of the need to ensure certain nutrient
constituents (call them vitamins, minerals and
proteins) it is necessary to buy two
additional products say A and B. One unit of
product A contains 36 units of vitamins, 3 units
of minerals and 20 units of proteins. One units
of product B contains 6 units of vitamins, 12
units of minerals and 10 units of proteins. The
minimum requirement of vitamins, minerals and
proteins is 108 units, 36 units and 100 units
respectively. Product A costs birr 20 per unit
and product B costs birr 40 per unit.
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FORMULATION OF LPPM…
1. A manufacturer can manufacture two products P & Q from two
raw materials A and B. Each unit of P requires 2 units of Raw
material A and 4 units of raw material B. Each units of Q
requires 5 units of Raw material A and 4 units of Raw material B.
The availability of raw material A is restricted to 10,000 units
while that of B to 15,000 units. Find out a suitable product mix
assuming the profit of P is Birr 5 per unit and that of Q birr 16
per unit.
2. A company produces three products; P1, P2, and P3 from two
raw materials A and B, and Labor L. One unit of product P1
requires 1 unit of A, 3 unit of B and 2 units of L. One unit of
product P2 requires 2 units of A and B each, and 3 units of L,
while one units of P3 needs 2 units of A, 6 units of B and 4 units
of L. The company has a daily availability of 8 units of A, 12 units
of B and 12 units of L. It is further known that the unit contribution
margin for the products is birr 3, 2, and 5 respectively for p1, p2, and p3.

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FORMULATION OF LPPM…
3. A farmer has 1000 acres of land on which he can grow corn,
wheat and soybean. Each acre of corn costs birr 100 for
preparation, requires 7 man-days work and yields a profit of birr
30. An acre of wheat costs birr 120 to prepare, requires 10 man-
days of work and yields a profit of birr 40 . An acre of Soybeans
costs birr 70 to prepare, requires 8 man-days of work and yields
a profit of birr 20. If the farmer has birr 100,000 for preparation and can
count on 8000 man-days of work, how may acres should be allocated to
each crop to maximize profit?
4. Food X contains 20 units of vitamin A and 40 units of Vitamin B
per gram. Food Y contains 30 units each of Vitamin A and B. The
daily minimum human requirement of vitamin A and B are 900
units and 1200 units respectively. How many grams of each type
of food should be consumed so as to minimize the cost, if food X
costs birr 0.60 per gram and food Y costs birr 0.80 per gram.

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FORMULATION OF LPPM…
5. A firm has produced three products A, B, and C. Each of which
passes through three departments: Fabrication, finishing, and
packaging. Each unit of product A requires 3,4, & 2 hours; a
unit of B requires 5,4, and 4 hours while each unit of product
C requires 2,4 and 5 hours respectively in three departments.
Every day, 60 hours are available in the fabrication
departments, 72 hours in the finishing department and 100
hours in the packaging department. If the unit contribution of
product A is birr 5, of product B is 10 and of product C is birr
8, determine the number of units of each of the products, that
should be made each day to maximize the total contribution.
6. Dinsho Company sells two types of fertilizers, Urea and DAP.
Urea fertilizer contains 2 units of chemical A and 4 units of
Chemical B per sack and the DAP fertilizer contains 3 units of
each of the chemical A and B per sack. Urea and DAP
fertilizers sell at $3 and $4 per sack respectively. A farmer
requires at least 90 units of chemical A and at least 120 units
of chemical B for his farm. How many of each fertilizer should
the farmer purchase to minimize the cost while meeting the
requirement? [email protected]
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FORMULATION OF LPPM…
7. An air force is experimenting with three types of bombs P, Q, and R
in which three kinds of Explosive viz, A, B and C will be used.
Taking the various factors into consideration, it has been decided to
use the maximum 600 kg of explosive A, at least 480 kg of explosive
B and Exactly 540 of explosive C. Bomb P requires 3,2,2 kg of A,B,C
respectively. Bomb Q requires 1, 4, 3 kg of A, B, and C respectively.
Bomb R requires 4, 2, 3 kg of A, B, C respectively. Now bomb P will
give the equivalent of 2 ton explosive, bomb Q will give 3 ton
explosive and bomb R will give 4 ton explosive. Under what
production schedule can the Air Force make the biggest bang?
8. A firm has an advertising budget of birr 720,000. It wishes to
allocate this budget to two media: magazines and televisions, so
that total exposure is maximized. Each page of magazine
advertising is estimated to result in 60,000 exposures, whereas
each spot on television is estimated to result in 120,000exposure.
Each page of magazine advertising costs birr 9,000 and each spot
on television costs birr 12,000. An additional condition that the firm
has specified is that at least 2 pages of magazine advertising be
used and at least 3 spots on television. Determine the optimal media
mix that maximizes the exposure.
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 2.3 Solving for LPPs
Linear Programming Problems can be solved by
using:
 i. The Geometric method called” Graphical Method”
 ii. The Algebraic method called” Simplex Method”

The coefficients of the variables in the Objective

Function are called the profit or cost coefficients.
They express the rate at which the value of the
Objective Function increases or decreases by
including in the solution one unit of each of the
decision variables.
The coefficients of the constraints’ variables are
called the input- output coefficients that indicate
the rate at which the given resources are depleted
or utilized.
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Solving for LPPs: The Graphical Method
The Graphical method
a visual method or approach that moves from
determining the basic feasible solution area to
find the optimal solution mix that satisfies the
objective function.
 Used for simplistic LP problems (usually with 2
decision variables)

Advantages of the Graphical method

 Visual appeal
 Presents multiple potential feasible solutions
 Simplistic

Application of the method

 Maximization Problems
 Minimization Problems
 Maximization Problems with mixed constraints
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The Graphical Method - Solution procedure
steps
Step 1: Formulate the LPP Model
Step 2: Standardize the problem by
converting the inequalities to equations.
Step 3: draw the equations on a X1 – X2
Axis graph/plane
Step 4: determine the feasible solution
area
Step 5: identify the feasible solution
mixes/identify the border points of the
feasible solution area
Step 6: determine the optimal solution
by substituting the border points in to
12/04/24the objective function
[email protected] 15
The Graphical Method - Solution procedure

Example 1
Max Z = 3x1 + 5x2
Subject to
x1 + <4
2x2 < 12
3x1+ 2x2 < 18
x1 & x 2 > 0

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The Graphical Method - Solution procedure

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Maximization case
Maximization Problem ==>Maximize Z with
inequalities of constraints in < form
Example: Consider two models of color TV sets;
Model A and B, are produced by a company to
maximize profit. The profit realized is $300 from A
and $250 from set B.
The limitations are
a. availability of only 40hrs of labor each day in the
production department.
b. a daily availability of only 45 hrs on machine time
c. ability to sale 12 set of model A.
How many sets of each model will be produced
each day so that the total profit will be as large as
possible?
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Solution…

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Solution…

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Solution…

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Solution…

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Solution…

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Solution…
Interpretation:
12 units of product A and 11 units of product
B should be produced so that the total profit
will be $6350.

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 The Graphical Method - Solution procedure

Example 2
Max Z = 5x1 + 4x2
Subject to
6x1 + 4x2 < 24
x1+ 2x2 < 6
-x1+ x2 < 1
x2 < 2
x1 & x 2 > 0

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Minimization Problem
==>Minimize Z with inequalities of constraints
in > form
Example 1: Suppose that a machine shop has two
different types of machines; machine 1 and machine
2, which can be used to make a single product .
These machines vary in the amount of product
produced per hr., in the amount of labor used and in
the cost of operation.
Assume that at least a certain amount of product
must be produced and that we would like to utilize at
least the regular labor force.
How much should we utilize each machine in order to
utilize total costs and still meets the requirement?
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Minimization…

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Minimization…

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Minimization…
Corners Coordinates Z MinZ =25
X1 + 30X2
A (0, 20/3 200
B (2.5, 3.33) 162.5
C (7.5, 0) 187.5
__________________________________________________
_____________
Optimal solution
X1 =2.5
X2=3.33 and
Min Z= 162.5

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Solving for LPPs: The Simplex Method
The simplex method
 an ITERATIVE or “step by step” method or
repetitive algebraic approach that moves
automatically from one basic feasible solution to
another basic feasible solution improving the
situation each time until the optimal solution is
reached at.

Advantages of the simplex method

 Capability to accommodate problems of highly
complex nature
 Ability to provide all solution details to decision
makers

Application of the method

 Maximization Problems
 Minimization Problems
 Maximization /Minimization Problems with mixed
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constraints
[email protected] 30
Maximization Problems with all constraints in “<” form…
1. A firm that assembles computers and computer equipment is about to
start production two new microcomputers. Each type of
microcomputers will require assembly time, inspection time and
storage space. The amount of each of these resources that can be
devoted to the production of these microcomputers is limited. The
manager of the firm would like to determine the quantity of
each microcomputer to produce in order to maximize the profit
generated by sales of these microcomputers.

Additional information

TYPE ONE TYPE TWO Resources

available
Profit/unit Birr 60 Birr 50

Assembly time/unit 4 hours 10 hours 100 hours

Inspection time/unit 2 hours 1 hour 22 hours

Storage space/unit 3 cubic feet 3 cubic feet 39 cubic feet

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1. Maximization Problems with all constraints in “<” form
Solution procedure
Step 1: Formulate the LPP Model
Step 2: Standardize the problem by introducing additional
variables
 Slack Variables(S): added to the left hand side of a <

constraint and show/s unused resource.

 Surplus variables(S): added to the left hand side of a

>constraints & show/s the excess resources used.

 Artificial variables (A): have no physical interpretation,

they merely serve as a device to enable us to use the

simplex process.
Step 3: Obtain the initial simplex tableau
Step 4: Choose the “entering” variables with the largest
positive value in the C - Z row
Step 5: Choose the “leaving “variable (with the smallest
replacement ratio) and the “pivot element”
Step 6: Perform row/algebraic operations on the PIVOT
COLUMN to convert the pivot element into 1 and the
remaining pivot column numbers into 0 (zero).

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solution: all C-Z ROW values are non-positive 32
Minimization Problem
Minimize Z with inequalities of
constraints in “> “form
We use the Direct method/Big M-
method/ to solve a minimization
problem using artificial variables

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Minimization Problem…
Surplus Variable (-s):
A variable inserted in a greater than or equal to
constraint to create equality. It represents the
amount of resource usage above the minimum
required usage.
Surplus variable is subtracted from a > constraint
in the process of converting the constraint to
standard form.
Neither the slack nor the surplus is negative
value. They must be positive or zero.

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Contd…
Artificial variable (A):
Artificial variable is a variable that has no
meaning in a physical sense but acts as a tool to
create an initial feasible LP solution.
Note:
Type of constraint To put into standard
form
< ----------------------------------Add a slack variable
= ----------------------------------Add an artificial variable
> ------------------- Subtract a surplus variable and add
artificial variable

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Minimization Problem…
The Big M-method /Charnes Penalty Method/
 The Big-M Method is a method which is used in removing
artificial variables from the basis .In this method; we assign
coefficients to artificial variables, undesirable from the
objective function point of view.
 If objective function Z is to be minimized, then a very large
positive price (called penalty) is assigned to each artificial
variable.
 Similarly, if Z is to be maximized, then a very large negative
price (also called penalty) is assigned to each of these
variables.
 Following are the characteristics of Big-M Method:
 High penalty cost (or profit) is assumed as M
 M is assigned to artificial variable A in the objective function
Z.
 Big-M method can be applied to minimization as well as
maximization [email protected]
12/04/24
problems with the following distinctions: 36
Minimization Problems with all constraints in “≥”form
Solution procedure - Big M-method
Step 1: Formulate the LPP Model
Step 2: Standardize the problem by introducing additional
variables
 Slack Variables(S): added to the left hand side of a <

constraint and show/s unused resource.

 Surplus variables(S): added to the left hand side of a

>constraints & show/s the excess resources used.

 Artificial variables (A): have no physical interpretation,

they merely serve as a device to enable us to use the

simplex process.
Step 3: Obtain the initial simplex tableau
Step 4: Choose the “entering” variables with the negative
value remotest to zero in the C - Z row
Step 5: Choose the “leaving “variable (with the smallest
replacement ratio) and the “pivot element”
Step 6: Perform row/algebraic operations on the PIVOT
COLUMN to convert the pivot element into 1 and the
remaining pivot column numbers into 0 (zero).
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Minimization Problem…
Assign +M as coefficient of artificial variable A in
the objective function Z
Here, –M is assigned as coefficient of artificial
variable A in the objective function Z
Coefficient of S (slack/surplus) takes zero values in
the objective function Z
For minimization problem, the incoming variable
corresponds to the highest negative value of Cj-Zj.
Solution is optimal when there is no negative value
of Cj-Zj.(For minimization case)

Example 1:
Minimize Z=25x1 +30x2
Subject to:
20x1+15x2 > 100 2x1+
3x2 > 15
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x1, [email protected]
2 >0 38
Contd…..

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Contd…

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Contd…

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Contd…

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3. Maximization Problems with mixed constraints
Solution procedure
Step 1: Formulate the LPP Model
Step 2: Standardize the problem by introducing additional
variables
 Slack Variables(S): added to the left hand side of a < constraint

and show/s unused resource.

 Surplus variables(S): added to the left hand side of a >constraints

& show/s the excess resources used.

 Artificial variables (A): have no physical interpretation, they

merely serve as a device to enable us to use the simplex process.

Step 3: Obtain the initial simplex tableau
Step 4: Choose the “entering” variables with the largest
positive value in the C-Z row
Step 5: Choose the “leaving “variable (with the smallest
replacement ratio) and the “pivot element”
Step 6: Perform row/algebraic operations on the PIVOT
COLUMN to convert the pivot element into 1 and the
remaining pivot column numbers into 0.

12/04/24
Optimal solution: all C-Z ROW values are non-positive
[email protected] 43
Maximization Problems with mixed constraints…
1. An air force is experimenting with three types of bombs P,
Q, and R in which three kinds of Explosive viz, A, B and C
will be used. Taking the various factors into consideration, it
has been decided to use the maximum 600 kg of explosive A,
at least 480 kg of explosive B and Exactly 540 of explosive C.
Bomb P requires 3,2,2 kg of A,B,C respectively. Bomb Q
requires 1, 4, 3 kg of A, B, and C respectively. Bomb R
requires 4, 2, 3 kg of A, B, C respectively. Now bomb P will
give the equivalent of 2 ton explosive, bomb Q will give 3 ton
explosive and bomb R will give 4 ton explosive. Under what
production schedule can the Air Force make the biggest
bang?
2. A firm has an advertising budget of birr 720,000. It wishes
to allocate this budget to two media: magazines and
televisions, so that total exposure is maximized. Each page of
magazine advertising is estimated to result in 60,000
exposures, whereas each spot on television is estimated to
result in 120,000exposure. Each page of magazine
advertising costs birr 9,000 and each spot on television costs
birr 12,000. An additional condition that the firm has
specified is that at least 2 pages of magazine advertising be
used and at least 3 spots on television. Determine the
optimal media mix that maximizes the exposure?
12/04/24 [email protected] 44
Some Special Topics
1. Multiple optimal solution-non basic variable has
a zero C-Z value in the optimal simplex tableau.
2. Infeasibility-artificial variable with positive value
is in the basis of an optimal solution
3. Unboundedness -there is no small positive
replacement ratio to determine the outgoing
variable
for non optimal solution. All of them are
negative or they are equal to infinity.
4. Degeneracy – there is a tie in the replacement
ratio
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 3. ADVANCED TOPICS IN LPPS
(POST OPTIMALITY ANALYSIS)

Sensitivity Analysis

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SENSITIVITY ANALYSIS
I. Change in the Right Hand—Side Quantity (RHS)
 The first step in determining how a change in RHS of a constraint
would influence the optimal solution is to examine the shadow
prices in the final simplex tableau.
Shadow Prices
 a manager’s window for guessing the impact of one unit change on
the value of the Objective function
 a marginal value, i.e. it indicates the impact a one unit change in
the amount of a constraint would have on the objective function
Range of feasibility
 the range over which the RHS value of a constraint can be changed
with out changing the optimal solution mix of a problem (still have
the same shadow prices)
Rules of determining RoF
 For maximization problem
 To find the UL, take the negative ratio closest to zero
 To find the LL, take the smallest positive ratio
For a minimization problem , the rules are
reversed: the allowable decrease is the negative
ratio and the allowable increase is the negative
ratio.
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SENSITIVITY ANALYSIS (cont’d)
II. Changes of the coefficients of the objective
function (c)
 To calculate changes in the coefficients of objective function we should
consider only Decision variables. Decision variables can be basic
or non basic:
1. Range for the coefficients of basic decision variables
(range of optimality)
 the range over which a basic decision variable coefficient in the
objective function can change without changing the optimal solution
mix. However, this change will change only the optimal value of the
objective function.
The general rule for calculating the upper and lower limits of RoO
 Allowable increase: the smallest positive ratio of C-Z value
and the variable’ substitution rate
 Allowable decrease: the smallest negative ratio of C- Value
and the variable substitutions rate
2. Range for the coefficients of non basic decision
variables(range of insignificance)
 the range over which Cj rates for non-basic variables can vary
12/04/24 without causing a change in the optimal solution mix (variable).
[email protected] 48
SENSITIVITY ANALYSIS
II. Changes of the coefficients of the objective function
 consider only Decision variables.
1. Range for the coefficients of basic decision variables
A. The Range of Optimality (RoO)
 Is the range over which a basic decision variable coefficient in the

objective function can change without changing the optimal solution

mix (only the optimal value of the objective function/profit/cost figure)

B C 60 50 0 0 0 Q
X1 X2 S1 S2 S3

S1 0 0 0 1 6 16/3 24

X1 60 1 0 0 1 -1/3 9

X2 50 0 1 0 -1 2/3 4

Z 60 50 0 10 40/3 740
C- Z
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0
[email protected]
0 0 -10 - 40/3 49
SENSITIVITY ANALYSIS
Analysis of X1
Procedure
C – Z row
X1 row
Columns X1 X2 S1 S2 S3
 C – Z row 0=0 0 =und 0 =und -10 =-10 -
40/3 =+40
 X1 row 1 0 0 1 -
1/3

Note
 Allowable increase: the smallest positive ratio of C-Z
value and the variable’ substitution rate
 Allowable decrease: the smallest negative ration of C-Z
Value and the variable substitutions rate
Analysis of X2
 C – Z row
 X1 row
 Column X1 X2 S1 S2 S3
 C – Z row 0 =und 0 =0 0 =und -10 =10 -40/3
=-20
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 X row 0 1 0 -1 2/3
SENSITIVITY ANALYSIS (cont’d)
2. A firm has produced three products A, B, and C. Each of
which passes through three departments: Fabrication,
finishing, and packaging. Each unit of product A requires
3,4, & 2 hours; a unit of B requires 5,4, and 4 hours while
each unit of product C requires 2,4 and 5 hours
respectively in three departments. Every day, 60 hours
are available in the fabrication departments, 72 hours in
the finishing department and 100 hours in the packaging
department. If the unit contribution of product A is birr 5,
of product B is 10 and of product C is birr 8, determine
the number of units of each of the products, that should
be made each day to maximize the total contribution.
 Find the optimal solution.
 Identify the shadow prices of the constraints and explain their
implication.
 Determine the RoF of all the constraints.
 If the manufacturer ever had the chance to do it, which
resource/s should it increase? Why?
 Determine the RoI or RoO of the variables in the objective
function.
 What will be the new solution if the number of hours of
fabrication is increased by 20 hours? Or decreased by 20 hours?
51
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SENSITIVITY ANALYSIS (cont’d)
2. A farmer has 1000 acres of land on which he can
grow corn, wheat and soybean. Each acre of corn
costs birr 100 for preparation, requires 7 man-days
work and yields a profit of birr 30. An acre of wheat
costs birr 120 to prepare, requires 10 man-days of
work and yields a profit of birr 20. An acre of
Soybeans costs birr 70 to prepare, requires 8 man-
days of work and yields a profit of birr 20. If the
farmer has birr 100,000 for preparation and can
count on 8000 man-days of work, how many acres
should be allocated to each crop to maximize profit.
 Find the optimal solution.
 Identify the shadow prices of the constraints and explain
their implication.
 Determine the RoF of all the constraints.
 If the manufacturer ever had the chance to do it, which
resource/s should it increase? Why?
 Determine the RoI or RoO of the variables in the
objective function.
12/04/24 [email protected] 52
LPPS - EXERCISES
1. Max Z = 2x1 + 3x2
Subject to
x1 + 2x2 < 2
6x1+ 4x2 ≥ 24
x1 & x2 > 0
REQUIRED: Find the optimal solution using the SIMPLEX PROCEDURE
2. Max Z = 3x1 + 5x2
Subject to
x1 + <4
2x2 < 12
3x1+ 2x2 = 18
x1 & x2 > 0
REQUIRED: Find the optimal solution using the SIMPLEX PROCEDURE
3. Max Z = 4x1 + 5x2
Subject to
3x1+ x2 < 27
5x1+ 5x2 = 60
6x1+ 4x2 ≥ 60
x1 & x2 > 0
REQUIRED: Find the optimal solution using the SIMPLEX PROCEDURE

12/04/24 [email protected] 53
LPPS - EXERCISES (cont’d)

4. A manufacturer can manufacture two products P

& Q from two raw materials A and B. Each unit of
P requires 2 units of Raw material A and 4 units
of raw material B. Each units of Q requires 5 units
of Raw material A and 4 units of Raw material B.
The availability of raw material A is restricted to
10,000 units while that of B to 15,000 units. Find
out a suitable product mix assuming the profit of
P is Birr 5 per unit and that of Q birr 16 per unit.
 Find the optimal solution.
 Identify the shadow prices of the constraints and
explain their implication.
 Determine the RoF of all the constraints.
 If the manufacturer ever had the chance to do it,
which resource/s should it increase? Why?
 Determine the RoI or RoO of the variables in the
objective function. 54
12/04/24 [email protected] 54
LPPS - EXERCISES (cont’d)
5. A company produces three products; P1, P2,
and P3 from two raw materials A and B, and
Labor L. One unit of product P1 requires 1 unit
of A, 3 unit of B and 2 units of L. One unit of
product P2 requires 2 units of A and B each,
and 3 units of L, while one units of P3 needs 2
units of A, 6 units of B and 4 units of L. The
company has a daily availability of 8 units of A,
12 units of B and 12 units of L. It is further
known that the unit contribution margin for the
products is birr 3, 2, and 5 respectively for p1,
p2, and p3.
 Find the optimal solution.
 Identify the shadow prices of the constraints and
explain their implication.
 Determine the RoF of all the constraints.
 If the manufacturer ever had the chance to do it,
which resource/s should it increase? Why?
 Determine the RoI or RoO of the variables in the
objective function. 55
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LPPS - EXERCISES (cont’d)

6. Food X contains 20 units of vitamin A and 40

units of Vitamin B per gram. Food Y contains 30
units each of Vitamin A and B. The daily
minimum human requirement of vitamin A and
B are 900 units and 1200 units respectively.
How many grams of each type of food should be
consumed so as to minimize the cost, if food X
costs birr 0.60 per gram and food Y costs birr
0.80 per gram.

 Find the optimal solution.

 Identify the shadow prices of the constraints and
explain their implication.
 Determine the RoF of all the constraints.
 If the manufacturer ever had the chance to do it,
which resource/s should it increase? Why?
 Determine the RoI or RoO of the variables in the
objective function.
56
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LPPS - EXERCISES (cont’d)

7. A firm is engaged in breeding pigs. The pigs are

feed on various products grown on the farm. In
view of the need to ensure certain nutrient
constituents (call them vitamins, minerals and
proteins) it is necessary to buy two additional
products say A and B. One unit of product A
contains 6 units of vitamins, 3 units of minerals and
20 units of proteins. One units of product B
contains 1 unit of vitamins, 12 units of minerals
and 10 units of proteins. The minimum
requirement of vitamins, minerals and proteins is
18 units, 36units and 100 units respectively.
Product A costs birr 20 per unit and product B
costs birr 40 per unit.
 Find the optimal solution.
 Identify the shadow prices of the constraints and
explain their implication.
 Determine the RoF of all the constraints.
 If the manufacturer ever had the chance to do it, which
resource/s should it increase? Why?
 Determine the RoI or RoO of the variables in the
objective function. 57
12/04/24 [email protected] 57