Q1.

A manufacturing firm has discontinued production of a certain unprofitable product

line. This created considerable excess production capacity. Management is considering to
devote this excess capacity to one or more of three product 1,2 and 3. The available capacity
on the machines which might limit output are given below:

Machine type Available time

(in machine hours per week)
Milling 250
machine

Lathe 150

Grinder 50

The number of machine hours required for each units of the respective product is given
below;
Machine type Productivity (in machine hours/unit)

Product 1 Product 2 Product 3

Milling 8 2 3
Lathe 4 3 0
Grinder 2 0 1
The unit profit would be 20 birr, 6 birr and 8 birr for products 1,2 and 3. Find how much of
each product the firm should produce in order to maximise profit ? Solve the problem by
simplex method.

Q2. Write the dual of following problems:

(a) Maximize Z = 7X1 + 5X2

Subject to:

X1 + 2X2 ≤ 6

4X1 + 3X2 ≤ 12

X1, X2 ≥ 0

(b) Maximize Z= 3X1 + 4X2

Subject to:
5X1 + 4X2 ≤ 200

3X1 + 5X2 ≤ 150

8X1 + 4X2 ≥ 80

X1, X2 ≥ 0

Q3. Obtain an initial basic feasible solution to the following transportation

problem using Vogel’s approximation method.

D1 D2 D3 D4
A 5 1 3 3 34
B 3 3 5 4 15
C 6 4 4 3 12

D 4 -1 4 2 19

21 25 17 17 80
Q4. Four jobs are to be done on four different machines. The cost in rupees of
producing ith on the jth machine is given below. Assign the jobs to different machines
so as to minimise the total cost.

Jobs M1 M2 M3 M4

J1 15 11 13 15

J2 17 12 12 13

J3 14 15 10 14

J4 16 13 11 17
Q5. In a small town, there are two discount stores ABC and XYZ. They are the only
stores that handle the festival goods. The total number of customers is equally divided
between the two because the price and quality of goods sold are equal. Both stores
have good reputations in the community, and they render equally good customer
services. Assume that a gain of customer by ABC is a loss to XYZ and vice versa.
Both stores plan to run annual pre-Christmas sale during the first week of December.
Sales are advertised through the local newspaper, radio and television media. With the
aid of advertising the payoff for ABC store is constructed and given below.
XYZ store
 News paper radio Television
News paper 30 40 -80
ABC radio 0 15 -20
Television 90 20 50
Find optimal strategies for both stores and the value of the game.