Ateneo de Naga University

CAED 101 Management Science

C.N. Dait

Project in CAED101 – Management Science

Jong has established an online food business during this quarantine to acquire additional source of
income for his family. Currently, they only offer liempo because it is more convenient to prepare;
however, due to popular demand, they are considering to introduce chicken as well as their
product. The following table is the selling price of liempo products and the additional proposed
chicken product.

Kilograms Selling Price in Peso

Liempo One-half 320
Liempo One-fourth 160
Chicken One 265

In a day with a maximum of 8 batches, a one-half kilo liempo takes up 25% of the oven capacity per
batch and a one-fourth kilo liempo takes up 10% of the oven capacity per batch while the one-kilo
chicken takes up 50% of the oven capacity per batch.
Every day, there are a total of 10 direct labor hours, at maximum, available for cooking. In a per
batch basis, it takes 1 hour for every 4 products of one-half kilo liempo to cook and also 1 hour for
every 10 products of one-fourth kilo liempo to cook while it only takes 45 minutes for two kilos of
chicken product to cook.
The maximum amount that should only be spent in buying raw meat/chicken should only be at
2000 pesos per day only. Approximately, a kilo of raw liempo amounts to 240 pesos while a kilo of
chicken only amounts to 140 pesos.
LP Model
Objective Function
Max z = 320X1 + 160X2 + 265X3
Let
X1 = Number of one-half kilo liempo
X2 = Number of one-fourth kilo liempo
X3 = Number of One-kilo Chicken
Subject to
0.25X1 + 0.1X2 + .5X3 = 8
0.25X1 + 0.1X2 + .375X3 ≤ 10
120X1 + 60X2 + 140X3 ≤ 4000
X1, X2, X3 ≥ 0

Jose Maria N. Rubio N1

 Ateneo de Naga University
CAED 101 Management Science
C.N. Dait
Answer
Answer is obtained using Simplex Method.
Max z = 320X1 + 160X2 + 265X3 + 0S1 + 0S2 + MA1

Subject to
0.25X1 + 0.1X2 + .5X3 + 1A1= 8
0.25X1 + 0.1X2 + .375X3 + 1S1 = 10
120X1 + 60X2 + 140X3 + 1S2 = 4000
X1, X2, X3 ≥ 0

1st table
Cj 320 160 265 0 0 M Indicator
Basic Variables Quantit X1 X2 X3 S1 S2 A1
y
M A1 8 0.25 0.1 0.5 0 0 1 32
0 S1 10 0.25 0.1 0.375 1 0 0 40
0 S2 4000 120 60 140 0 1 0 33.33
Zj 8M 0.25M 0.1M 0.5M 0 0 M
Cj - Zj 320 – 0.25M 160 – 0.1M 265 – 0.5M 0 0 0

2nd Table
Cj 320 160 265 0 0 M Indicator
Basic Variables Quantity X1 X2 X3 S1 S2 A1
320 X1 32 1 0.4 2 0 0 4 80
0 S1 2 0 0 -0.125 1 0 -1 Undefined
0 S2 160 0 12 -100 0 1 -480 13.33
Zj 10,240 320 128 640 0 0 1,280
Cj - Zj 0 32 -375 0 0 M – 1,280

3rd Table
Cj 320 160 265 0 0 M Indicator
Basic Variables Quantity X1 X2 X3 S1 S2 A1
320 X1 26.67 1 0 5.332 0 -0.0332 20 -5.002
0 S1 2 0 0 -0.125 1 0 -1 16
160 X2 13.33 0 1 -8.33 0 0.083 -40 -1.6
Zj 10,667 320 160 373.44 0 2.656 0
Cj - Zj 0 0 -108.44 0 -2.656 M

The Optimal Solution for the problem is 26.67 ~ 27 units of X 1, 13.33 ~ 13 units of X2, and no units
of X3. With that, in order to earn the maximum profit, we should not consider introducing chicken
product but instead just sell 27 units of one-half kilo liempo and 13 units of one-fourth kilo liempo
in order to acquire the most profit in a day.

Jose Maria N. Rubio N1