UNITY UNIVERSITY

DEPARTMENT OF MANAGEMENT

POST GRADUATE PROGRAM

OPERATIONS RESEARCH

PROJECT WORK I
Tossa Engineering Hospital equipment manufacturing
Tossa Engineering hospital equipment manufacturing is a company that produces examination
coach and patient bed.

The company is found in Ferensay Legasion Gurara industry village and it is one of the biggest
and smart manufacturers. Most hospitals in the country use the product of the company even
hospitals found in regional cities.

OBJECTIVES OF THE COMPANY

The objective of the company is to provide quality products for hospitals and substitute imported
products which are imported outside the country and the country costs more currencies.

CONSTRAINTS OF THE COMPANY

Some of the constraints of the company are raw materials which are used for
inputs, labor availability, and capital especially for imported raw materials.

DECISSION VARIABLES

In the company decision variables are labor hour, machine hour or machine
capacity to produce products per hour and marketing hours to sell and buy
products. And the resources which are depleted due to extra cases

MAXIMIZE THE BENEFIT OF TOSSA ENGINEERING

In order to maximize the benefit of Tossa Engineering Hospital Equipment

Manufacturing that produces examination coach that the profit realized is $12 and
patient bed the profit that is realized is $16

THE LIMITATIONS

A. Availability of only 120 hours of labor each day in the production

B. A daily availability of only 80 hours on machine time
 How many sets of each model will be produced each day so that the total profit
will be as large as possible?
 Table1. Resource used per unit

Constraints Examination coach Patient bed (X2) Maximum

(X1) available hour
Labor hour 10 20 120
Machine hour 8 8 80
Profit $ 12 $ 16
Solution:

1. Formulation of mathematical modeling of LPP by Simplex method

Solve the above information by LPP using the Simplex method

Maximize Z= 12X1+16X2

Subject to:

10X1+20X2≤120

8X1+8X2≤80

8X1 and 8X2≥0

Solution:

Max. Z= 12 X1 +16X2+OS1+OS2

X1, X2, OS1 and OS2≥0

Initial Simplex table

CBi Cj
12 16 0 0 Solution Ratio
Basic
Variable X1 X2 S1 S2
0 S1 10 1 0 0 120
120 120/20=6
20
0 S2 8 0 1 80 80/8=10
Zj 0 0 0 0 0
Ci-Zj 12 16 0 0

2
Zj=∑ ( CBi ) +(aij)
i= j

(0x10)+ (0x8) = 0+0=0

(0x20)+ (0x8) =0+0=0

Note: For maximization all Cj-Zj≤0

ITERATION 1

CBi Cj
 12 16 0 0 Solution
Basic
Variable X1 X2 S1 S2
16 X2 1 1/20 0 6 6/(1/2)=12

1/2

1 -2/5 1 32
0 S2 32/4=8
Zj 0 0 0 0 0
Ci-Zj 12 16 0 0

Corr . key column value x corr . key row

New value=Old value−
key element

8 x 10 80
8− =8− =8−4=4
20 20

8 x 20 160
8− =8− =8−8=0
20 20

8x1 8 2
0− =0− =0− =−2/5
20 20 5

8 x0 0
1− =1− =1
20 20

8 x 120 960
80− =80− =80−48=32
20 20

ITERATION 2

Cj
CBi 12 16 0 0 Solution
Basic
Variable X1 X2 S1 S2
 16 X2 0 1 1/10 -1/8 2

12 X1 1 0 -1/10 1/4 8
Zj 12 16 2/5 1 0
Ci-Zj 12 16 0 0

Corr . key column value x corr . key row

New value=Old value−
key element

1
x4
1 2
−( )=0
2 4

1 /2 x 0
1−( )=1
4

1 2
x−
1 2 5
−( )=1/10
20 4

1
0− ( )
2
x1
4
=−1/8

1/ 2 x 32
6−( )=2
4

Therefore; the Optimal Solution of Z is 128 when the company produces X=12, X2= 16 or in
order to maximize the benefit of Tossa Engineering Hospital Equipment Manufacturing that
produces examination coach that the profit realized is 12 and patient bed the profit that is
realized is 16 the Optimal Solution of Z is 128. Because in maximization of Simplex method or
Simplex matrix Cj-Zj≤0 is optimality condition