Professional Documents
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Practice Problems
Practice Problems
Q.1 XYZ firm is engaged in breeding pigs. The pigs are fed on various products grown on the farm.
Because of the need to ensure certain nutrient constituents, it is necessary to buy additional one or two
products, which we shall call A and B. The nutrient constituents (vitamins and proteins) in each unit of
the product are given below:
Nutrient
Nutrient constituent in the product Minimum requirement
B
constituents A
of nutrient constituents
1
36
6
108
2
3
12
36
3
20
10
100
Product A costs Rs.20 per unit and product B costs Rs.40 per unit. Determine how much of products A
and B must be purchased so as to provide the pigs nutrients not less than the minimum required, at the
lowest possible cost. Solve the LP problem graphically.
Q.2 A firm makes two products- X and Y- and has a total production capacity of 9 tonnes per day, X and
Y requiring the same production capacity. The firm has a permanent contract to supply at least 2 tonnes
of X and at least 3 tonnes of Y per day to another company. Each tonne of X requires 20 machine hours
production time and each tonne of Y requires 50 machine hours of production time. The daily maximum
possible number of machine hours is 360. All the firms output can be sold, and the profit made is Rs.80
per tonne of X and Rs. 120 per tonne of Y. It is required to determine the production schedule for
maximum profit and to calculate this profit. Solve graphically.
Q.3 The manager of an oil refinery must decide on the optimal mix of two possible blending processes
of which the inputs and outputs per production run are as follows:
Process
1
2
Input (units)
Grade A
5
4
Grade B
3
5
Output
Gasoline X
5
4
Gasoline Y
8
4
The maximum amount available of crudes A and B are 200 units and 150 units respectively. Market
requirements show that at least 100 units of gasoline X and 80 units of gasoline Y must be produced.
The profits per production run for process 1 and process 2 are Rs.300 and Rs.400 respectively. Solve the
LP problem by the graphical method.
Q.4 A manufacturer produces two different models, X and Y, of the same product. The raw materials r 1
and r2 are required for production. At least 18 kg of r 1 and 12 kg of r2 must be used daily. Also at most 34
hrs of labour are to be utilized. 2 kg of r1 are needed for each model X and 1 kg of r1 for each model Y.
For each model of X and Y, 1 kg of r2 is required. It takes 3 hrs to manufacture a model X and 2 hrs to
manufacture a model Y. The profit is Rs.50 for each model X and Rs.30 for each model Y. How many
units of each model should be produced to maximize the profit? Solve the LP problem by the graphical
method.
Q.5 A person requires 10, 12 and 12 units of chemicals A, B and C respectively for his garden. A liquid
product contains 5, 2 and 1 units of A, B and C respectively per jar. A dry product contains 1, 2 and 4
units of A, B and C per carton. If the liquid product sells at Rs.3 per jar and dry product sells for Rs.2
per carton, how many of each should be purchased in order to minimize cost and meet the requirement?
Solve graphically.
Q.6 A furniture manufacturer makes two products: chairs and tables. Processing of these products is
done on two machines A and B. A chair requires 2 hrs on machine A 6 hrs on machine B. A table
requires 5 hrs on machine A and no time on machine B. There are 16 hrs per day available on machine A
and 30 hrs on machine B. Profit gained by the manufacturer from a chair and a table is Rs.2 and Rs.10
respectively. What should be the daily production of each of the two products? Solve graphically.
Processing time
Machine X
1.5
2
4
3
550
Machine Y
4
1
2
1
700
Machine Z
2
3
1
2
200
The profit contribution per unit of the four products A, B, C and D is Rs.4, 6, 3 and 1 respectively. The
manufacturer wants to determine its optimal product mix:
(a) Formulate the above as a linear programming problem.
(b) Solve it with the simplex method.
(c) Find out the optimal product mix and the total maximum profit contribution.
(d) Which machine(s) has (have) excess capacity available? How much?
(e) If the profit contribution from product B increases by Rs.2 per unit, will the optimal product mix
change?
(f) What are the shadow prices of the machine hours on the three machines?
(g) If machine A is to be shut down for 50 hrs due to repairs, what will be the effect on profits?
(h) If the company whishes to expand the production capacity, which of the three machines should be
given priority?
Q.2 A firm produces 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 and 2; a unit of product B
requires 5, 4 and 4, while each unit of product C requires 2, 4 and 5 hours respectively in the three
departments. Everyday, 60 hrs are available in the fabrication department, 72 hrs in the finishing
department and 100 hrs in the packaging department.
The unit contribution of product A is Rs. 5, of product B is Rs.10 and the product C is Rs.8.
Formulate the problem as an LPP and determine the number of units of each of the products that should
be made each day to maximise the total contribution. Also determine if any capacity would remain
unutilized.
Q.3 Maximise
Z = 3x1 + 2x2
Subject to
x1 + x2 15
2x1 + x2 28
x1 +2x2 20
x1, x2 0
Solve using Simplex Method.
Q.4 Solve the following LPP
Maximize
Z = 2x1 + 4x2
Subject to
2x1 + x2 18
3x1 + 2x2 30
x1 +2x2 = 26
x1, x2 0
Q.5 A company sells a fertilizer which is made from two chemical compounds, nitrate and phosphate.
The mixture is sold in 50 kg bags. The fertilizer is widely used in agriculture. It has been established
based on scientific studies that the nitrate content should be at least 20 kgs and the phosphate content
should be not more than 40 kgs in a bag of 50 kgs. The nitrate compound costs Rs. 10 per kg and
phosphate costs Rs. 25 per kg. The company desires to determine the mixture such that the costs of the
ingredients in the mixture is minimum.
Q.6 The WG company produces high quality glass products including windows and glass doors. It has
three plants, A, B and C. Aluminium frames and hardware are made in plant A, wooden frames are made
in plant B and plant C produces the glass and assembles the final products. Production capacities of A, B
and C are 4, 12 and 18 hrs respectively.
The top management has decided to revamp the product line in order to improve the earnings.
Unproductive products are being discontinued and two new products having large sales potential are
launched. These are product P1 and product P2.Profit per batch of P1 and P2 is Rs.3000 and Rs. 5000
respectively. One batch of P1 requires 1 and 3 hrs in plants A and C respectively, but none in plant B.
one batch of product P2 needs 2 hrs each in plant B and C. The marketing division has concluded that
both products could be produced by these plants. But, because both products would be competing for the
same production capacity in plant C, it is necessary to determine the product mix which would be most
profitable.
Maximize Z= 10x1+15x2
Subject to constraints
2x1+ x2 26
2x1 + 4x2 56
-x1 + x2 5
x1, x2, x3 0
Transportation Problem
Q.1 A company has three factories, say F1, F2 and F3 that are feeding 5 zones- North, South, Eastern,
Western and Central whose monthly demands are 20, 30, 25, 25 and 20 thousand units respectively. The
cost of transporting one unit from each factory to each destination is given below:
Factory
Zones
North
South
Eastern
Western
F1
5
4
7
10
F2
13
10
7
5
F3
12
9
8
7
If the factory capacities are 40, 30 and 50 thousand units respectively then find the
schedule.
Central
12
6
10
optimal shipping
Q.2 The following table gives the cost of transporting material from supply point A, B, C, and D to
demand points E,F,G,H and I.
From
To
E
8
15
14
13
A
B
C
D
F
10
13
20
19
G
12
18
6
7
H
17
9
13
12
I
15
9
13
12
Find the optimal solution. If in the above problem, the transportation cost from A to G is reduced to 10,
what will be the new optimal schedule.
Q.3 A cement company has three factories which manufacture cement which is then transported to four
distribution centres. The quantity of monthly production of each factory, the demand of each distribution
centre and the associated transportation cost per quintal are given as follows:
Monthly
Production
Quintal)
Distribution Centres
Factories
Monthly
Demand
(in
Quintals)
10
7000
15
8000
10
14
10000
6000
6000
8000
5000
(in
Q.4 A product is produced by three factories A, B & C. Their production capacities are: Factory A- 50,
B- 80 & C-110 (in 100units). These factories supply product to 4 stores, demand of which are 40, 60,
80 and 60 thousand units respectively. Per unit transportation cost in 100Rs. from each factory to each
store is given in table.
1
Determine the extent of deliveries from each of the factories to each of the stores so that the total
transportation cost is minimum. Use VAM for initial solution.
Q.5 A company has factories A, B and C with supply warehouses at D, E, F and G. Monthly factory
capacities are 160, 150 and 190 units respectively. Monthly warehouse requirements are 80, 90, 110 and
160 units respectively. Unit shipping costs (in rupees) are as follows:
To
D
E
F
A
42
48
38
B
40
49
52
From
C
39
38
40
Determine the optimum distribution for this company to minimize shipping costs.
G
37
51
43
Warehouse
Q.6 The following table shows all the necessary information on the availability of supply to each
warehouse, the requirement of each market and unit transportation cost (in Rs.) from each warehouse to
each market.
Supply
P
Q
R
S
A
6
3
5
4
22
B
5
9
2
7
15
C
5
7
8
6
15
7
12
17
9
The shipping clerk has worked out the following schedule from experience: 12 units from A to Q, 1 unit
from A to R, 9 units from A to S, 15 units from B to R, 7 units from C to P and 1 unit from C to R.
i)
ii)
Market
Q.7 A company has factories at F1, F2 and F3 which supply warehouses at W1, W2 and W3. Weekly factory
capacities are 200, 160 and 90 units respectively. Weekly warehouse requirements are 180, 120 and 150
units respectively. Unit shipping costs (in rupees) are as follows:
F1
F2
F3
Demand
W1
16
14
26
180
W2
20
8
24
120
W3
12
18
16
150
Supply
200
160
90
350
Determine the optimal distribution for this company to minimize shipping costs.
Q.8 Determine an initial basic feasible solution to the following transportation problem using Vogels
approximation method. Also test for the optimality using MODI method and find the optimal solution.
(8 marks)
Destination
Source
D1
D2
D3
D4
Supply
S1
30
S2
50
S3
20
Demand
20
40
30
10
Game Theory
Q.1 Two breakfast food manufacturers, ABC and XYZ are competing for an increased market share. The
payoff matrix, shown in the following table, shows the increase in market share for ABC and decrease in
market share of XYZ.
XYZ
Give Coupons
ABC
Decrease Price
Maintain Present
Strategy
4
12
0
Give Coupons
2
-2
Decrease Price
6
1
Maintain
Present -3
2
Strategy
Increase Advertisement
2
-3
7
Find the optimal strategies for both the manufacturers and value of the game.
Increase
Advertisement
1
3
6
1
Q.2 Two companies A and B are competing for the same product. The different strategies are given in
the following payoff matrix:
Company B
B1
A1
3
A2
1
A3
-2
Determine the best strategy for both the players.
B2
-4
-3
4
Company A
B3
2
-7
7
Q.3 Use dominance to reduce the size of the following game to 2x2 game and hence find the optimal
strategies and value of the game.
Player A
A1
A2
A3
A4
Player B
B1
2
5
6
4
B2
4
6
7
2
B3
3
3
9
8
B4
8
7
8
4
B5
4
8
7
3
Q.4 Given the following payoff matrix of a zero sum game, determine the optimal strategies for the
players and the value of the game:
Player A
A1
A2
A3
A4
Player B
B1
5
6
7
2
B2
-4
2
12
8
B3
5
0
8
-6
Inventory Management
B4
8
-5
7
5
Q.1 A stockist has to supply 400 units of a product every month to his customers. He gets the product at
Rs.100 per unit from the manufacturer. The cost of ordering and transportation from the manufacturer is
Rs. 75 per order. The cost of carrying inventory is 8% per year of the cost of product. Find the economic
lot size and the total optimum cost including capital cost. Also find the interval between orders and
frequency of orders per unit time.
Q.2 For one of the A class items, the following data are available:
Annual demand = 1000; Ordering cost = Rs.400; Holding cost = 40% and cost per unit = Rs.20.
The following three strategies are available for the procurement:
(i)
Place four orders of equal size every year.
(ii)
Place the order for 500 units at a time and avail a discount of 10% on the cost of items.
(iii)
Follow the EOQ policy.
Which of the above strategy do you recommend? Justify your answer.
Q.3 A hardware store procures and sells hardware items. Information on an item is given here:
Expected annual sales = 8000 units
Ordering cost
Holding cost
1 999
22.00
1000 1499
20.00
1500 1999
19.00
18.50
Q.1 For a small project of 13 activities, the details are given below:
i)
ii)
iii)
Activity
Duration
Preceding activity
A
B
C
D
E
F
G
H
I
J
K
L
M
4
2
1
12
14
2
3
2
4
3
4
2
2
E
A
B
K
E
F
F
F
I,L
C,G,H
D
I,L
Construct the network diagram and find the earliest occurrence time and latest occurrence
time.
Indicate the critical path and calculate the project completion time.
For each non-critical activity, find the total float, free float, interfering float and independent
float
Q.2 For a small project of 12 activities, the details are given below:
Activity
Duration
Preceding activity
A
B
C
D
E
F
G
H
I
J
K
L
9
4
7
8
7
5
10
8
6
9
10
2
B,C
A
C
E
E
D,F,H
E
I,J
G
a) Construct the network diagram and find the earliest occurrence time and latest occurrence time.
b) Indicate the critical path and calculate the project completion time.
c) For each non-critical activity, find the total float, free float, interfering float and independent
float.
Q.3 The owner of a chain of fast food restaurants is considering a new computer system for accounting
and inventory control. A computer company sent the following information about the system
installation:
Activity
Description
Immediate
Predecessor
To
T
m
T
p
15
12
15
20
25
10
18
26
16
G Create database
12
D, F
G, H
A
B
C
D
E
F
Immediate
Predecessor
A
B
C
C
E
Expected Duration
To
10
14
2
4
10
20
Tm
12
15
3
6
12
25
Tp
14
17
4
8
14
27
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
C
10
17
F
5
6
D
7
12
H, I
14
17
C
1
2
K
10
15
L
3
5
M, J
13
15
N
20
21
O
7
9
P
2
3
Q
2
2
P
7
10
S
5
7
T, R, G
4
8
a) Draw an arrow diagram for the project.
b) Find the expected project completion time
c) Determine the probability of completing the project in 165 days.
20
7
14
20
3
20
7
17
22
14
4
2
13
9
12
Q.5 A project consists of nine activities whose time estimates (in weeks) and other characteristics are
given below?
Activity
A
B
C
D
E
F
G
H
I
a)
b)
c)
d)
e)
Preceding Activity
Tp
6
6
24
A
8
A
23
B, D
12
B, D
9
C, F
27
E
16
Draw the network diagram
Identify the critical activities
What is the expected project completion time and its variance?
What is the probability of completing the project one week before the expected time.
A penalty of Rs.15000 per week is to be imposed on the contractor if the project is not completed
in 36 weeks. What is the probability that he has to pay a penalty? A penalty of Rs.45000?