Addis Ababa University

College of Business and Economics

Economics Department

Group ASSIGNMENT FOR LINEAR ALGEBRA FOR ECONOMISTS

Group Assignment (10%) (The number of group members should be 4-5)
Submit ion date: 28/05/2018
1. A Metallurgy Factory produces two types of auto spare parts X and Y. Net profit from

production of one X is 2 birr and of one Y is 3 birr. Each of the two machines the factory

owns works 8 hours a day and 6 days per week. A table below shows the productivity of

the machines in terms of time requirements. One X requires 19m2 and one Y requires 7

m2 of space for storage and the total storage area available is 133, 000 m 2. Weekly

production of X cannot exceed 6000 and that of Y 9000 due to the limited market

demand.

Time Needed to Produce One

Machine X Y

M1 20 Sec. 15 Sec.

M2 10 Sec. 18 Sec.

a. Write the linear Programming problem assuming that the manager wants
to maximize profit.
b. Write the dual LP
2. A firm produces two types of outputs, X1 and X2 using two types of inputs according to

the table below. The management wants to maximize profit.

Inputs Required to The available

Inputs Produce One Stock of Inputs

X1 X2

Input one 2 units 3units 12 units

Input Two 2 units 1 units 8 units

Profit Per Unit 3 Birrs 2 Birrs

a. Convert the problem into linear programming problem (LPP)

b. Write the dual LPP and interpret it.

c. Solve both LPPs using graphic method.

3. a) Maximize  = 2X + 3Y

Subject to:

20X + 15Y  172,800 (M1 constraints in seconds)

10X + 18Y  172,800 (M2 constraints in seconds)

19X + 7Y  133,000 (space constraint)

X  6,000 (demand constraint)

Y  9,000 (demand constraint)

X, Y  0

b) Let the dual decision variables be ai

Minimize C = 172,800a1 + 172,800a2 + 133,000a3 + 6,000a4 + 9,000a5

Subject to:

20a1 + 10a2 + 19a3 + a4  2

15a1 + 18a2 + 7a3 + a5  3

ai  0
 4. a) Maximize  = 3X1 + 2X2

Subject to:

2X1 + 3X2  12

2X1 + X2  8

X1, X2  0

b) Minimize C = 12Y1 + 8Y2

Subject to:

2Y1 + 2Y2  3

3Y1 + Y2  2

Y1, Y2  0

5. Solve the following using simplex method

a. Maximize = X1 + 4X2 + 6X3

Subject to:

X1 + 3X2 + 6X3  48

X1 + 6X2 + 3X3  90

X1 + 9X2 + 10X3  137

X1, X2, X3  0

b. Maximize Z = 3X1 + 5X2 + 3X3

Subject to:
2X1 + 3X2 + 6X3  50

3X1 + 4X2 + X3  40

3X1 + 5X2 + 2X3  20

X1, X2, X3  0
c. Maximize Z = -X1 + X2 + 3X3
Subject to:
3X1 + 2X2 + X3  3

2X1 + X2 + 2X3  2

X1, X2, X3  0

d. Maximize Z = 30X1+ 24X2 + 60X3

Subject to:

6X1 + 3X2 + 5X3  30

X1 + X2 + 5X3  25

X1, X2, X3  0

6. Three products are processed through three different machines. The time required per
unit of each product, the daily capacity of the machines and the net profit per unit sold for
each product are given below:
Time required Machines capacity

Per unit (in minutes) (minutes per day)

Machine Product I Product II Product III

M1 5 2 4 52

M2 0 4 3 55

M3 2 3 6 50

Net profit /unit 4 6 3

(Birr)

Build up a linear programming model of the above production-planning problem and find the

optimum daily production for the three products that maximizes the net profit.