Salazar, Medina Ria G.

Activity 3C: Maximization of Profit (Simplex Method) CBET-01-602A

The Metal Company produces aluminum frying pans and aluminum casserole dishes. Each frying pan and each casserole dish requires
10 oz. aluminum. The company’s daily aluminum supply is limited to 140 oz. Each frying pan and each casserole dish requires 20
minutes and 40 minutes respectively on the casting machine which is available for 400 minutes a day. Each frying pan requires an
insulated handle and only 12 of this are available each day. Each casserole dish requires 2 special pick-up handles and only 16 of this
are available daily. Each frying pan contributes P150 to profit and each casserole dish contributes P200 to profit. The man is good and
the company can sell all it can produce. Determine the best combination of frying pans and casserole dishes which the company must
produce and sell to maximize profit. What is this profit?

SOLUTION:

Summary of Information
Products
Resources Total Available
Frying Pan (x) Casserole (y)
Aluminum 10 oz. 10 oz. ≤ 140 oz.
Casting machine 20 mins. 40 mins. ≤ 400 mins.
Insulated handle 1 ≤ 12
Pick-up handle 2 ≤ 16
Profit Contribution P150 P200

STEP 1: STEP 2: STEP 3:

Maximize P = P150x + P200y 10x + 10y + S1 ≤ 140 P = 150x + 200y + 0S1 + 0S2 + 0S3 + 0S4
Subject to: 20x + 40y + S2 ≤ 400 140 = 10x + 10y + S1 + 0S2 + 0S3 + 0S4
10x + 10y ≤ 140 x + 0y + S3 ≤ 12 400 = 20x + 40y + 0S1 + S2 + 0S3 + 0S4
20x + 40y ≤ 400 0x + 2y + S4 ≤ 16 12 = x + 0y + 0S1 + 0S2 + S3 + 0S4
x + 0y ≤ 12 16 = 0x + 2y + 0S1 + 0S2 + 0S3 + S4
0x + 2y ≤ 16
x, y ≥ 0
 First Solution:

Cj 150 200 0 0 0 0
PM Qty x y S1 S2 S3 S4
0 S1 140 10 10 1 0 0 0 140 / 10 = 14
0 S2 400 20 40 0 1 0 0 400 / 40 = 10
0 S3 12 1 0 0 0 1 0 12 / 0 = 0 STEP 6:
0 S4 16 0 2 0 0 0 1 → 16 / 2 = 8 outgoing variable
Zj 0 0 0 0 0 0 0
STEP 4:
Cj -Zj 150 200 0 0 0 0
STEP 5: ↑ replacing row

STEP 7: Replacing row values:

16 / 2 0/2 2/2 0/2 0/2 0/2 1/2
8 0 1 0 0 0 1/2

STEP 8: Remaining rows values:

140-10(8) 10-10(0) 10-10(1) 1-10(0) 0-10(0) 0-10(0) 0-10(1/2)
S1 60 10 0 1 0 0 -5
400-40(8) 20-40(0) 40-40(1) 0-40(0) 1-40(0) 0-40(0) 0-40(1/2)
S2 80 20 0 0 1 0 -20
IE = 0, so same values
S3 12 1 0 0 0 1 0

Second Solution:

Cj 150 200 0 0 0 0
PM Qty x y S1 S2 S3 S4
0 S1 60 10 0 1 0 0 -5 60 / 10 = 6 STEP 11:
0 S2 80 20 0 0 1 0 -20 → 80 / 20 = 4 outgoing variable
0 S3 12 1 0 0 0 1 0 12 / 1 = 12
200 y 8 0 1 0 0 0 1/2 8/0=0
Zj 1600 0 200 0 0 0 100
STEP 9:
Cj -Zj 150 0 0 0 0 -100
STEP 10: ↑ replacing row
 STEP 12: Replacing row values:
80 / 20 20 / 20 0 / 20 0 / 20 1 / 20 0 / 20 -20 / 20
4 1 0 0 0.05 0 -1

STEP 13: Remaining rows values:

60-10(4) 10-10(1) 0-10(0) 1-10(0) 0-10(0.05) 0-10(0) -5-10(-1)
S1 20 0 0 1 -1/2 0 5
12-1(4) 1-1(1) 0-1(0) 0-1(0) 0-1(0.05) 1-1(0) 0-1(-1)
S3 8 0 0 0 -0.05 1 1
IE = 0, so same values
y 8 0 1 0 0 0 1/2

Third Solution:

Cj 150 200 0 0 0 0
PM Qty x y S1 S2 S3 S4 STEP 16:
0 S1 20 0 0 1 -1/2 0 5 → 20 / 5 = 4 outgoing variable
150 x 4 1 0 0 0.05 0 -1 4 / -1 = -4
0 S3 8 0 0 0 -0.05 1 1 8/1=8
200 y 8 0 1 0 0 0 1/2 8 / 1/2 =16
Zj 2200 150 200 0 7.5 0 -50
STEP 14:
Cj -Zj 0 0 0 -7.5 0 50
STEP 15: ↑ replacing row

STEP 17: Replacing row values:

20 / 5 0/5 0/5 1/5 -1-2 / 5 0/5 5/5
4 0 0 0.20 -0.10 0 1

STEP 18: Remaining rows values:

4-(-1*4) 1-(-1*0) 0-(-1*0) 0-(-1*0.20)0.05-(-1*-0.10) 0-(-1*0) -1-(-1*1)
x 8 1 0 0.20 -0.05 0 0
8-1(4) 0-1(0) 0-1(0) 0-1(0.20) -0.05-1(-0.10) 1-1(0) 1-1(1)
S3 4 0 0 -0.20 0.05 1 0
8-1/2(4) 0-1/2(0) 1-1/2(0) 0-1/2(0.20) 0-1/2(-0.10) 0-1/2(0) 1/2-1/2(1)
y 6 0 1 -0.10 0.05 0 0
 Fourth Solution:

Cj 150 200 0 0 0 0
PM Qty x y S1 S2 S3 S4
0 S4 4 0 0 0.20 -0.10 0 1
150 x 8 1 0 0.20 -0.05 0 0
0 S3 4 0 0 -0.20 0.05 1 0
200 y 6 0 1 -0.10 0.05 0 0
Zj 2400 150 200 10 2.5 0 0
STEP 19:
Cj -Zj 0 0 -10 -2.5 0 0

Optimum Solution:

Produce and sell to maximize profit:

Frying pan (x) 8 units
Casserole dishes (y) 6 units
Profit P 2, 400