Cedron, Crisha Mae M.

I. LP MODEL FORMULATION (50pts)

1.RDB Enterprise supplies contracts, on a weekly basis, suppliers for its stores. XYZ can
provide 150 glazed and 400 unglazed flowerpots per week. It can commit to at most 15
weeks of production. The contract is for $500 per week. ABC can provide 50 glazed and
100 unglazed flowerpots per week. It can commit to at most 35 weeks of production.
This contract is for $250 per week. To satisfy existing orders for spring shipment of
plants, RDB Enterprise needs at least 2250 glazed and 5000 unglazed flowerpots. How
many weeks of production from each supplier should be contracted to minimize costs?

Glazed Unglazed Weeks it can Cost per week

Flowerpots Flowerpots commit at most
XYZ 150 400 15 Weeks $500
ABC 50 100 35 Weeks $250

DECISION VARIABLE:

X1= XYZ weeks production

X2=ABC weeks production

OBJECTIVE FUNCTION:

Min Z = $500X1+$250X2

CONSTRAINTS
X1≤15
X2≤35
150X1+50X2≥2250
400X1+100X2≥5000
X1,X2≥0

2. TWO Farms produce lemon juice and mango juice.  It costs $0.70 to produce a bottle
of lemon juice and $0.90 to produce a bottle of mango juice.  The company has a policy
that at least 25% but no more than 70% of its output must be mango juice.  The
maximum demand estimate for mango juice is 5,500 bottles plus an additional 7 bottles
for every $1 spent to promote the product.   The estimate of maximum demand for
lemon juice is 4,000 bottles plus an additional 5bottles for each $1 spent on advertising. 
The company wants to meet but not exceed these demand estimates.  The company has
$20,000 to spend on producing and advertising lemon juice and mango juice. Lemon
juice sells for $1.55/bottle while mango juice sells for $1.95/bottle.  The company wants
to know how many units of each product to produce and how much advertising to spend
on each bottle to maximize profit.

DECISION VARIABLES:
X1 = Lemon Juice bottles
X2 = Mango Juice bottles
X3 = $ spent on advertising of lemon juice
X4 = $ spent on advertising of mango juice
OBJECTIVE FUNCTION:
Max Z = (1.55-0.70) X1+ (1.95-0.90)X2 - X3 - X4
Subject to:
X2≥ 0.25(X1 +X2)
X2≤0.70(X1 +X2)
X1 ≤4,000 + 5X3
X2 ≤ 5,500 + 7X4
0.70X1 +0.90X2 +X3 +X4 ≤ 20,000
X1,X2,X3,X4≥ 0 (Non-negativity)

II. SIMPLEX METHOD

Solve the LP model using the simplex method.
Objective: Max Z = 10X1 + 20X2
Subject to: 3X1 + 4X2 < 31 Plant 1 assembly capacity constraint
 X1 < 5 Plant 2 capacity constraint
– 5X1 + 6X2 < 18 Plant 3 capacity constraint
X1, X2 > 0

By adding slack variables:

Max Z = 10X1 + 20X2 + 0S1+0S2+0S3
Subject to
3X1+4X2+S1 = 31
X1 + S2 =5
-5X1+6X2 + S3 = 18

X1,X2,S1,S2,S3 ≥ 0

Iteration-1 Cj 10 20 0 0 0
B CB XB X1 X2 S1 S2 S3 min ratio
S1 0 31 3 4 1 0 0 31
=7.75
4
S2 0 5 1 0 0 1 0
S3 0 18 -5 6 0 0 1 18
=3
6
Z=0 Zj 0 0 0 0 0
Zj-Cj -10 -20 0 0 0

Column index = 2
Minimum ratio = 3 now the index is 3, so the basis variable is S 3
Pivot element = 6

R3(new) = R3(old) / 6
R1(new) = R1(old) - 4R3(new)
R2(new) = R2(old)
Iteration-2 Cj 10 20 0 0 0
B CB XB X1 X2 S1 S2 S3 min ratio
S1 0 19 6.333 0 1 0 -0.667 19
=3
6.333
S2 0 5 1 0 0 1 0 5
=5
1
X2 0 3 -0.833 1 0 0 0.166 -
Z=60 Zj -16.67 20 0 0 3.33
Zj-Cj -26.67 0 0 0 3.33

Replacing S1 with X1 , Key element = 6.333

R1(new) = R1(old) / 6.333
R2(new) = R2(old) - R1(new)
R3(new) = R3(old) - 0.833R1(new)

Iteration-3 Cj 10 20 0 0 0
B CB XB X1 X2 S1 S2 S3 min ratio
X1 10 3 1 0 0.1579 0 -0.1053
S2 0 2 0 0 - 1 0.1053
0.1579
X2 20 5.5 0 1 0.1316 0 0.0789 -
Z=140 Zj 10 20 4.2105 0 0.5263
Zj-Cj 0 0 4.2105 0 0.5263

The optimal solution is

Max Z = 140 from x1 = 3 x2=5.5

III. Graphical Method

Given the LP problem:
Maximize Z = 3X1 + 5X2,
Subject to: X1 + 2X2 ≤ 50, ---- eqn. 1
-X1 + X2 ≥ 10, ---- eqn. 2
X1 ≥ 0
X2 ≥ 0,

X1 X2
Similar to eqn.1 x1+2x2=50 or + =1 ----- eqn.3
50 25
X1 axis at (50,0)
X2 axis at (0,25)
X1 X2
Similar to eqn.2 -x1+x2=10 or − + =1 ----- eqn. 4
10 10
X1 axis at (-10,0)
X2 axis at (0,10)

Substituting x1=0 and x2 = 0 in inequality 1

0 + 2(0) ≤50
0 ≤ 50 - true
The bounded region of equation 1 is denoted towards the origin
Substituting x1=0 and x2 = 0 in inequality 2
-0 + 0 ≥10
0 ≥ 10 - not true
By graphical method the bounded region denoted by equation 2 is towards the opposite
of origin from line 4

So the figure becomes

Since,
x1≥0 and x2 ≥0 so the feasible region becomes
The extreme points are:
A ( 10, 20)
B ( 0, 10)
C (0, 25)

So
at A (10,20)
Z = 3(10)+5(20) = 130

at B (0,10)
Z = 3(0) + 5(10) = 50
at C (0,25)
Z = 3(0) + 5(25) = 125

Since at A (10,20) Z is maximum

The optimal solution is

Max Z = 130 from x1 = 10 x2=20