Mathematical Formulation

For Decision Variable:

Let x units, y units and z units of model 1, 2 and 3 cell phones are produced by plants in
order to fulfill the total demand and minimize the total cost of the production.

For Objective Function:

Total cost of operating plants = 550x + 600y + 600y

Let Z = 550x + 600y + 600y

Minimize Z = 550x + 600y + 600y

Minimize Z = 25(22x + 24y + 24z)

For Constraints:

8x + 6y + 12z ≥ 3000

4x + 3y + 6z ≥ 1500 (Model 1 Constraints)

4x + 6y + 4z ≥ 1720

2x + 3y + 2z ≥ 860 (Model 2 Constraints)

8x + 3y + 8z ≥ 2495 (Model 3 Constraints)

Let S1, S2, S3 be the surplus variables and the A1, A2, A3 be the artificial variables.

Now,

4x + 3y + 6z - S1 + A1 = 1500

2x + 3y + 2z - S2 + A2 = 860

8x + 3y + 8z – S3 + A3 = 2495

x, y, z, S1, S2, S3, A1, A2, A3 ≥ 0

Standard equation for simplex table:

1Z - 22x - 24y - 24z + 0S1 + 0S2 + 0S3 – 100A1 – 100A2 – 100A3 = 0

0Z + 4x + 3y + 6z -1S1 + 0S2 + 0S3 + 1A1 + 0A2 + 0A3 = 1500

0Z + 2x + 3y + 2z + 0S1 - 1S2 + 0S3 + 0A1 + 1A2 + 0A3 = 860

0Z + 8x + 3y + 8z + 0S1 + 0S2 - 1S3 + 0A1 + 0A2 + 1A3 = 2495

Simplex table 1:

Z x y z S1 S2 S3 A1 A2 A3 Constant
R0 1 -22 -24 -24 0 0 0 -100 -100 -100 0
R1 0 4 3 6 -1 0 0 1 0 0 1500
R2 0 2 3 2 0 -1 0 0 1 0 860
R3 0 8 3 8 0 0 -1 0 0 1 2495

For Identity Matrix:

New R0 = Old R0 + 100*(R1+R2+R3)

Old R0 + 100*(R1+R2+R3) New R0

1 0 1
-22 1400 1378
-24 900 876
-24 1600 1576
0 -100 -100
0 -100 -100
0 -100 -100
-100 100 0
-100 100 0
-100 100 0
0 485500 485500
Simplex table 2:

Z x y z S1 S2 S3 A1 A2 A3 Constant Ratio
R0 1 1378 876 157 -100 -100 -100 0 0 0 485500 -
6
R1 0 4 3 6 -1 0 0 1 0 0 1500 250
R2 0 2 3 2 0 -1 0 0 1 0 860 430
R3 0 8 3 8 0 0 -1 0 0 1 2495 311.875

Here R1 is the key row so it should be updated first using the formula,

Old R1 Old R 1
New R1 = =
Key Element 6

0, 2/3, ½, 1, -1/6, 0, 0, 1/6, 0, 0, 250

Similarly, we should update R0, R2 and R3 using the formula,

New R0 = Old R0 – 1576 x New R1

Old R0 - 1576 x New R1 New R0

1 0 1
1378 1050.67 327.33
876 788 88
1576 1576 0
-100 -262.67 162.67
-100 0 -100
-100 0 -100
0 262.67 -262.67
0 0 0
0 0 0
485500 394000 91500
 New R2 = Old R2 – 2 x New R1

Old R2 - 2 x New R2 New R2

0 0 0
2 4/3 2/3
3 1 2
2 2 0
0 -1/3 1/3
-1 0 -1
0 0 0
0 1/3 -1/3
1 0 1
0 0 0
860 500 360

New R3 = Old R3 – 8 x New R1

Old R3 - 8 x New R3 New R3

0 0 0
8 16/3 8/3
3 4 -1
8 8 0
0 -4/3 4/3
0 0 0
-1 0 -1
0 4/3 -4/3
0 0 0
1 0 1
2495 2000 495
Simplex table 3:

Z x y z S1 S2 S3 A1 A2 A3 Constant Ratio
R0 1 327.33 88 0 162.67 -100 -100 -262.67 0 0 91500 -
R1 0 2/3 ½ 1 -1/6 0 0 1/6 0 0 250 375
R2 0 2/3 2 0 1/3 -1 0 -1/3 1 0 360 540
R3 0 8/3 -1 0 4/3 0 -1 -4/3 0 1 495 185.625

Here, R3 is the row element and it should be updated first using the formula,

Now,

Old R 3 3
New R3 = = Old R3 x
Key Element 8

0, 1, -3/8, 0, ½, 0, -3/8, -1/2, 0, 3/8, 185.625

Similarly, R0 can be updated from the following formula,

New R0 = Old R0 - 327.33 x New R3

Old R0 - 327.33 x New R3 New R0

1 0 1
327.33 327.33 0
88 -122.748 210.748
0 0 0
162.67 163.665 -1
-100 0 -100
-100 -122.748 22.748
-262.67 -163.665 -99.005
0 0 0
0 122.748 -122.748
91500 60760.63 30739.3
 New R1 = Old R1 – 2/3 x New R3

Old R1 - 2/3 x New R3 New R1

0 0 0
2/3 2/3 0
½ -1/4 ¾
1 0 1
-1/6 1/3 -1/2
0 0 0
0 -1/4 ¼
1/6 -1/3 ½
0 0 0
0 ¼ -1/4
250 123.75 126.25

New R2 = Old R2 – 2/3 x New R3

Old R2 - 2/3 x New R3 New R2

0 0 0
2/3 2/3 0
2 -1/4 9/4
0 0 0
1/3 1/3 0
-1 0 -1
0 -1/4 ¼
-1/3 -1/3 0
1 0 1
0 ¼ -1/4
360 123.75 236.25
 Simplex Table 4:

Z x y z S1 S2 S3 A1 A2 A3 Constant Ratio
R0 1 0 210.748 0 -1 -100 22.748 -99.005 0 -122.748 30739.3 -
R1 0 0 ¾ 1 -1/2 0 ¼ ½ 0 -1/4 126.25 168.33
R2 0 0 9/4 0 0 -1 ¼ 0 1 -1/4 236.25 105
R3 0 1 -3/8 0 ½ 0 -3/8 -1/2 0 3/8 185.625 -

Here, R2 is the row element and it should be updated first using the formula,

Now,

Old R 2 4
New R2 = = Old R2 x
Key Element 9

0, 0, 1, 0, 0, -4/9, 1/9, 0, 4/9, -1/9, 105

Now, to update the R0, R1 and R3 using the following formulae,

New R0 = Old R0 – 210.74 x New R2

Old R0 - 210.748 x New R2 New R0

1 0 1
0 0 0
210.748 210.748 0
0 0 0
-1 0 -1
-100 -93.66 -6.34
22.748 23.49 -0.742
-99.005 0 -99.005
0 93.66 -93.66
-122.748 23.49 -146.23
30739.3 22128.75 8610.5
 New R1 = Old R1 – ¾ x New R2

Old R1 - 3/4 x New R2 New R1

0 0 0
0 0 0
¾ ¾ 0
1 0 1
-1/2 0 -1/2
0 -1/3 1/3
¼ 1/12 1/6
½ 0 ½
0 1/3 -1/3
-1/4 -1/12 -1/6
126.25 78.75 47.5

New R3 = Old R3 + 3/8 x New R2

Old R3 + 3/8 x New R2 New R3

0 0 0
1 0 1
-3/8 3/8 0
0 0 0
½ 0 1/2
0 -1/6 -1/6
-3/8 1/24 -1/3
-1/2 0 -½
0 1/6 1/6
3/8 -1/24 1/3
185.6 39.4 225
 Simplex table 5:

Z x y z S1 S2 S3 A1 A2 A3 Constant
R0 1 0 0 0 0 -1 -6.34 -0.74 -99.005 -146.23 8610.5
R1 0 0 0 1 -1/2 1/3 1/6 ½ -1/6 -1/3 47.5
R2 0 0 1 0 0 -4/9 1/9 0 4/9 -1/9 105
R3 0 1 0 0 ½ -1/6 -1/3 -1/2 1/6 1/6 225

Here, we have all the coefficient of variables in R 0 row is all ≤ 0 so we reached the
optimum solution.

Hence,

Minimum Z = 25 x 8610.5 = 215250.5

≈ 215250

(We had divided the objective function by 25 earlier.)

x = 225

y = 105

z = 47.5

Conclusion:

Hence the cell phone company can minimize the production cost to £ 215250.