1. An appliance manufacturer produces two models of microwave ovens: H and W.

Both models require

fabrication and assembly work; each H uses four hours of fabrication and two hours of assembly; and
each W uses two hours of fabrication and six hours of assembly. There are 600 fabrication hours
available this week and 480 hours of assembly. Each H contributes $40 to profits, and each W
contributes $30 to profits. What quantities of H and W will maximize profits?

Information from the question:

Models H (hrs./unit) W (hrs./unit) Total hours

 X1 X2 available

Department
Fabrication 4 2 600 hrs.

Assembly 2 6 480 hrs.

Profit/Unit 40 MU 30 MU

Model building:

Objective function: Max! Z = 40X1 + 30X2  Max! Z = 40X1 + 30X2 + 0S1 + 0S2

Subject to: 4X1 + 2X2 ≤ 600  4X1 + 2X2 + S1 = 600

2X1 + 6X2 ≤ 480  2X1 + 6X2 + S2 = 480

X1, X2 ≥ 0  All variables ≥ 0

Initial Simplex Tableau:

Product Quantity 40MU 30MU 0MU 0MU

Cj Mix bi X1 X2 S1 S2 bi/aij____

0 S1 600 4 2 1 0 600/4=150 Min! Leaving

0 S2 480 2 6 0 1 480/2=240

Zj 0 0 0 0 0

Cj - Z j 40 30 0 0 ___________

 Max! Entering

X1 is entering, while S1 is leaving.

New X1 values: 600/4=150, 4/4=1,2/4= ½ , ¼, 0

 New values of S2

480 – 2(150) = 180

2 - 2(1) = 0

6 – 2(1/2) = 5

0 – 2(1/4) = - ½

1 – 2(0) = 1

Second Simplex Tableau:

Product Quantity 40MU 30MU 0MU 0MU

Cj Mix bi X1 X2 S1 S2 bi/aij____

40 X1 150 1 ½ ¼ 0 150/0.5=300

0 S2 180 0 5 -½ 1 180/5 =36 Min! Leaving

Zj 6000 40 20 10 0

Cj - Z j 0 10 - 10 0 ___________

 Max! Entering

X2 is entering, while S2 is leaving.

New X2 values: 180/5=36, 0,1,-0.1, 0.2

New values of X1

150 – ½ (36) = 132

1 - ½ (0) = 1

0.5 – ½ (1) = 0

¼ - ½ (-0.1) = 0.3

0 – ½ (0.2) = -0.1

Third Simplex Tableau:

Product Quantity 40MU 30MU 0MU 0MU

Cj Mix bi X1 X2 S1 S2 _
 40 X1 132 1 0 0.3 - 0.1

30 X2 36 0 1 - 0.1 0.2

Zj 6360 40 30 9 2

Cj - Z j 0 0 -9 - 2___

There is no positive value in the row of “C j – Zj”, therefore optimal solution is obtained.

We should produce 132 units of Model H, 36 units of Model W.

Maximum profit is 6360MU.

2. A small candy shop is preparing for the holiday season. The owner must decide how many bags of
deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has
2/3 pound raisins and 1/3 pound peanuts, and the standard mix has ½ pound raisins and ½ pound
peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with.
Peanuts cost $0.60 per pound and raisins cost $1.5 per pound. The deluxe mix will sell for $2.90 per
pound, and the standard mix will sell for $2.55 per pound. The owner estimates that no more than 110
bags of one type can be sold.
a. If the goal is to maximize profits, how many bags of each types should be prepared?
b. What is the expected profit?
Solution

a) Data summary from the question:

Deluxe Mix Standard Mix Total kgs.

(kegs.) X1 (kegs.) X2 Available

Raisins 2/3 ½ 90 kegs. (1/5 MU/kg.)

Peanuts 1/3 ½ 60 kegs.__ (0.60MU/kg.)

Selling Price/kg. 2.9MU 2.55MU

Cost/kg. 1.5(2/3) +0.6(1/3)=1.2 1.5(1/2)+0.60(1/2)=1.05

Profit/kg. 1.7MU 1.5MU ___

Model construction:

Objective function: Max! Z = 1.7X1 + 1.5X2

Subject to: 2/3X1 + ½ X2 ≤ 90

1/3X1 + 1/2X2 ≤ 60
 X1 ≤ 110

X2 ≤ 110

X1, X2 ≥ 0

Changing the inequalities into equations, we have;

Objective function: Max! Z = 1.7X1 + 1/2X2 + 0S1 + 0S2 + 0S3 + 0S4

Subject to : 2/3X1 + ½ X2 + S1 = 90

1/3X1 + 1/2X2 + S2 = 60

X1 + S3 =110

X2 + S4 = 110

All variables ≥ 0

Initial Simplex Tableau:

Product Quantity 1.7MU 1.5MU 0MU 0MU 0MU 0MU

Cj Mix bi X1 X2 S1 S2 S3 S4___bi/aij

0 S1 90 2/3 ½ 1 0 0 0 90/2/3=135

0 S2 60 1/3 ½ 0 1 0 0 60/1/3=180

0 S3 110 1 0 0 0 1 0 110/1=110 Min! Leaving

0 S4 110 0 1 0 0 0 1 -

Zj 0 0 0 0 0 0 0

Cj - Zj 1.7 1.5 0 0 0 0 ___

 Max! Entering

X1 is entering, while S3 is leaving the tableau.

New values of X1: 110/1=110, 1, 0, 0, 0, 1, 0

New values of S1 New values of S2 New values of S4

90 – 2/3(110) = 50/3 60 – 1/3(110) = 70/3 110 - 0(110) = 110

2/3 – 2/3(1) = 0 1/3 - 1/3(1) =0 0 – 0(1) =0

½ - 2/3(0) =½ ½ - 1/3(0) =½ 1 – 0(0) =1

 1 - 2/3(0) =1 0 - 1/3(0) =0 0 – 0(0) =0

0 - 2/3(0) =0 1 - 1/3(0) =1 0 – 0(0) =0

0 - 2/3(1) = - 2/3 0 - 1/3(1) = -1/3 0 – 0(1) =0

0 - 2/3(0) =0 0 - 1/3(0) =0 1 - 0(0) =1

Second Simplex Tableau:

Product Quantity 1.7MU 1.5MU 0MU 0MU 0MU 0MU

Cj Mix bi X1 X2 S1 S2 S3 S4___bi/aij

0 S1 50/3 0 ½ 1 0 -2/3 0 50/3/1/2= 100/3 Min! Leaving

0 S2 70/3 0 ½ 0 1 -1/3 0 70/3/1/2=140/3

1.7 X1 110 1 0 0 0 1 0 110/0= -

0 S4 110 0 1 0 0 0 1 110/1=110

Zj 187 1.7 0 0 0 1.7 0

Cj - Zj 0 1.5 0 0 - 1.7 0 ___

 Max! Entering

X2 is entering the solution, while S1 is leaving the solution.

New X2 values: 50/3/1/2=100/3, 0, 1, 2, 0,-2/3/1/2=-4/3, 0

New values of S2 New values of X1 New values of S4

70/3 – ½(100/3) = 20/3 Since the key number 110 – 1(100/3) = 230/3

0 - ½ (0) =0 is zero, the row values 0 – 1(0) =0

½ - ½ (1) =0 remain same. 1 – 1(1) =0

0 – ½ (2) = -1 0 – 1(2) = -2

1 – ½ (0) =1 0 – 1(0) =0

-1/3 – ½ (-4/3) = 1/3 0 – 1(-4/3) = 4/3

0 – ½ (0) =0 1 – 1(0) =1
 Third Simplex Tableau:

Product Quantity 1.7MU 1.5MU 0MU 0MU 0MU 0MU

Cj Mix bi X1 X2 S1 S2 S3 S4___bi/aij

1.5 X2 100/3 0 1 2 0 -4/3 0 -

0 S2 20/3 0 0 -1 1 1/3 0 20 Min! Leaving

1.7 X1 110 1 0 0 0 1 0 110

0 S4 230/3 0 0 -2 0 4/3 1 115/2

Zj 237 1.7 1.5 3 0 -0.3 0

C j - Zj 0 0 -3 0 0.3 0 ___

 Max! Entering

S3 is entering the solution, while S2 is leaving.

New S3 values are: 20/3/1/3= 20, 0, 0, -3, 3, 1, 0

New values of X2 New values of X1 New values of S4

100/3 – (-4/3)20 = 60 110 – 1(20) = 90 230 - 4/3(20) = 50

0 – (-4/3)0 = 0 1 – 1(0) = 1 0 – 4/3(0) = 0

1 – (-4/3)0 = 1 0 - 1(0) = 0 0 – 4/3(0) = 0

2 – (-4/3)(-3) = -2 0 - 1(-3) = 3 -2 - 4/3(-3) = 2

0 – (-4/3)3 = 4 0 - 1(3) = -3 0 - 4/3(3) = -4

-4/3 – (-4/3)1 = 0 1 - 1(1) = 0 4/3 – 4/3(1) = 0

0 – (-4/3)0 = 0 0 - 1(0) = 0 1 - 4/3(0) = 1

Fourth Simplex Tableau:

Product Quantity 1.7MU 1.5MU 0MU 0MU 0MU 0MU

Cj Mix bi X1 X2 S1 S2 S3 S4___

1.5 X2 60 0 1 -2 4 0 0

0 S3 20 0 0 -3 3 1 0

1.7 X1 90 1 0 3 -3 0 0
 0 S4 50 0 0 2 -4 0 1

Zj 243 1.7 1.5 2.1 0.9 0 0

C j - Zj 0 0 -2.1 -0.9 0 0 ___

There is no positive value in the row of “C j – Zj”, therefore we have obtained the optimal
solution.

b) We should prepare 90 bags of deluxe, 60 bags of standard. Expected maximum profit is 243 MU.

3. Hurşit Manufacturing has contracted to build two products. A and B, for an out- of –state purchaser.
The purchaser has indicated that all of the units that are manufactured will be bought. Hurşit plans to
manufacture as many units as possible each operating day. However, capacity restrictions are such
that Hurşit can produce at most 10 units of an at most 6 units of B per day.
An analysis of current assembly operation revealed the following: Product A requires 5 man
hours per unit and Product B requires 6 man-hours per unit. Product B also requires twice as much
inspection time as does Product A, which requires 1 man-hour per unit. Hurşit has a maximum of 60
man-hours per day for producing both products and at most 16 man-hours for inspection. Product A
return a profit of $ 2 per unit.and product B returns a profit of $3 per unit. Use the simplex method to
determine the most profitable daily combination.

Solution

Data Summary:
Product A Product B Available

X1 X2 Capacity

Man-hours 5 hours 6 hours 60 hours maximum

Inspection Time 1 hour 2 hours 16 hours maximum

Production: A 1 10 units maximum

Production: B 1 6 units maximum

Profit Contribution 2MU/unit 3MU/unit

Formulation of the problem:

Objective function:

Max! Z = 2X1 + 3X2  Max! Z = 2X1 + 3X2 + 0S1 + 0S2 + 0S3 + 0S4

Subject to:
 5X1 + 6X2 ≤ 60  5X1 + 6X2 + S1 = 60

X1 + 2X2 ≤ 16  X1 + 2X2 + S2 = 16

X1 ≤ 10  X1 + S3 = 10

X2 ≤ 6  X2 + S4 = 6

X1, X2 ≥ 0  All variables ≥ 0

Initial Simplex Tableau:

Product Quantity 2 3 0 0 0 0

Cj Mix bi X1 X2 S1 S2 S3 S4 bi/aij

0 S1 60 5 6 1 0 0 0 60/6=10

0 S2 16 1 2 0 1 0 0 16/2=8

0 S3 10 1 0 0 0 1 0 -

0 S4 6 0 1 0 0 0 1 6/1=6 Min! Leaving

Zj 0 0 0 0 0 0 0

Cj - Z j 2 3 0 0 0 0

 Max! Entering

Variable X2 is entering and variable S4 is leaving the tableau.

New X2 values are: 6/1=6, 0, 1/1=1, 0, 0, 0, 1

Old S1 Row – Key No.(New X2 Values) = New S1 Values Old S2 Row – Key No.(New X2 Values) = New S2 Values

60 – 6(6) = 24 16 – 2(6) = 4

5 – 6(0) = 5 1 – 2(0) = 1

6 – 6(1) = 0 2 – 2(1) = 0

1 – 6(0) = 1 0 – 2(0) = 0

0 – 6(0) = 0 1 – 2(0) = 1

0 – 6(0) = 0 0 – 2(0) = 0

0 – 6(1) = -6 0 – 2(1) = -2

Since the key number of S3 row is 0, therefore the values of S 3 remain same.
Second Simplex Tableau:

Product Quantity 2 3 0 0 0 0

Cj Mix bi X1 X2 S1 S2 S3 S4 bi/aij

0 S1 24 5 0 1 0 0 -6 24/5=4.8

0 S2 4 1 0 0 1 0 -2 4/1=4 Min! Leaving

0 S3 10 1 0 0 0 1 0 10/1=1

3 X2 6 0 1 0 0 0 1 6/0=∞ -

Zj 18 0 0 0 0 0 0

Cj - Z j 2 0 0 0 0 -3

 Max! Entering

X1 is entering and S2 is leaving.

New X1 values are as follows: 4,1, 0, 0, 1, 0, -2

Old S1 Row – Key No.(New X1 Values) = New S1 Values Old S3 Row – Key No.(New X1 Values) = New S3 Values

24 – 5(4) = 4 10 – 1(4) = 6

5 – 5(1) = 0 1 – 1(1) = 0

0 – 5(0) = 0 0 – 1(0) = 0

1 – 5(0) = 1 0 – 1(0) = 0

0 – 5(1) = -5 0 – 1(1) = -1

0 – 5(0) = 0 1 – 1(0) = 1

-6 – 5(-2) = 4 0 – 1(-2) = 2

Since the key number of X2 is 0, therefore the values of X2 remain same.

Third Simplex Tableau:

Product Quantity 2 3 0 0 0 0

Cj Mix bi X1 X2 S1 S2 S3 S4 bi/aij

0 S1 4 0 0 1 -5 0 4 4/4=1 Min! Leaving

2 X1 4 1 0 0 1 0 -2 -

0 S3 6 0 0 0 -1 1 2 6/2=3

3 X2 6 0 1 0 0 0 1 6/1=6

Zj 26 2 3 0 2 0 -1

Cj - Z j 0 0 0 -2 0 1

 Max! Entering

S4 is entering and S1 is leaving.

New S4 values are: 1, 0, 0, ¼, -5/4, 0, 1

Old X1 Row – Key No.(New S4 Values) = New X1 Values Old S3 Row – Key No.(New S4 Values) = New S3 Values

4 – (-2)1 = 6 6 – 2(1) = 4

1 – (-2)0 = 1 0 – 2(0) = 0

0 – (-2)0 = 0 0 – 2(0) = 0

0 – (-2)¼ = ½ 0 – 2(1/4) = -½

1 – (-2)(-5/4) = -3/2 -1 -2(-5/4) = 3/2

0 – (-2)0 = 0 1 – 2(0) = 1

-2 – (-2)1 = 0 2 – 2(1) = 0

Old X2 Row – Key No.(New S4 Values) = New X2 Values

6 – 1(1) = 5

0 – 1(0) = 0

1 – 1(0) = 1
 0 – 1(1/4) = -¼

0 – 1(-5/4) = 5/4

0 – 1(0) = 0

1 – 1(1) = 0

Fourth Simplex Tableau:

Product Quantity 2 3 0 0 0 0

Cj Mix bi X1 X2 S1 S2 S3 S4

0 S4 1 0 0 ¼ -5/4 0 1

2 X1 6 1 0 ½ -3/2 0 0

0 S3 4 0 0 -½ 3/2 1 0

3 X2 5 0 1 -¼ 5/4 0 0

Zj 27 2 3 ¼ 3/4 0 0

Cj - Z j 0 0 -¼ -3/4 0 0

Inspection of 4th Tableau reveals that “Cj – Zj” ≤ 0 for all values of “Cj – Zj”, which means the
optimal solution is attained.

The solution is X1 = 6

X2 = 5

S3 = 4

S4 = 1 .

In order to achieve maximum profit, it is necessary to produce 6 units of Product A, and 5 units of
Product B, This combination will result in a maximum of 27 MU. The S 3 value indicates that Hurşit will
have 4 units of unused capacity for producing Product A as given in the original formulation of the
problem. The S4 value of 1 indicates that there will be 1 unit of unused capacity for producing
Product B. Since S1 and S2 do not appear in the solution set, they both equal zero. Hence
production an d inspection time will be totally consumed.
4. Data Summary:

Bookcases Tables Available

X1 X2 ___

Cutting 4 hrs 3 hrs 40 hours

Finishing 4 hrs 5 hrs 30 hours__

Profit 6 MU 5 MU ___

Formulation of the problem:

Objective function:

Max! Z = 6X1 + 5X2  Z = 6X1 + 5X2 + 0S1 + 0S2

Subject to:

4X1 + 3X2 ≤ 40  4X1 + 3X2 + S1 = 40

4X1 + 5X2 ≤ 30  4X1 + 5X2 + S2 = 30

X 1 , X2 ≥ 0  All variables ≥0

Initial Simplex Tableau:

Product Quantity 6 5 0 0

Cj Mix bi X1 X2 S1 S2 bi/aij

0 S1 40 4 3 1 0 10

0 S2 30 4 5 0 1 15/2 Min! Leaving

Zj 0 0 0 0 0

_____Cj-Zj 6 5 0 0__________
  Max! Entering

Second Simplex Tableau:

Product Quantity 6 5 0 0

Cj Mix bi X1 X2 S1 S2

0 S1 10 0 -2 1 -1

6 X1 15/21 5/4 0 ¼

Zj 4/56 15/2 0 3/2

_____Cj-Zj 0 -5/2 0 -3/2

The solution is optimal. No positive values in the “C j - Zj! row.

Thus

Bookcases (X1) = 15/2 units

Available hours in cutting = 10 hours

Total profit = 45 MU