SlideShare a Scribd company logo
Linear Programming Problems A. S. Narag
Product Mix :  Profit Maximization  Janata fertilizers uses nitrates, phosphates, potash and an inert filler material for fertilizer manufacture. The firm mixes these four ingredients to make two basic fertilizers, 5-10-5 and 6-5-10 (nos. represent % wt. Of nitrates, phosphates and potash in each tonne of fertilizers). The contribution towards profits and overheads is Rs.300 and Rs.400 per tonne for (5-10-5) and (6-5-10) respectively. The firm has 120 tonnes of nitrates ,200 tonnes of phosphates, 150 tonnes of potash and unlimited filler material. They will not receive additional chemicals until next month. They believe that they can sell or store at negligible cost all fertilizer produced during the month. Determine optimal product mix.   
Product Mix:  Profit Maximization A TOOTHPICK MANUFACTURER MAKES TWO KINDS OF TOOTHPICKS: ROUNDS AND FLATS. MAJOR PRODUCTION FACILITIES INVOLVED ARE CUTTING AND PACKING. THE CUTTING DEPARTMENT CAN PROCESS 300 BOXES OF ROUNDS OR 600 BOXES FLATS PER HOUR. THE PACKING DEPARTMENT CAN PACKAGE 600 BOXES OF ROUNDS OR 300 BOXES OF  FLATS PER HOUR. –  IF THE CONTRIBUTION OF PROFIT FOR A BOX OF ROUNDS IS EXACTLY SAME AS THAT FOR A BOX OF FLATS, WHAT IS THE OPTIMUM PRODUCTION LEVEL? – UNDER WHAT CIRCUMSTANCES WOULD THE MANUFACTURER BE BETTER OFF TO PRODUCE ONLY ROUNDS?
Product Mix:  Profit Maximization PRQ FEED COMPANY MARKETS TWO FEED MIXES FOR CATTLE. THE FIRST MIX, FERTILEX, REQUIRES AT LEAST TWICE AS MUCH WHEAT AS BARLEY. THE SECOND MIX, MULTIPLEX REQUIRES AT LEAST TWICE AS MUCH BARELY AS WHEAT. WHEAT COSTS RS.1.50 PER KG. AND ONLY 1,000 KG. ARE AVAILABLE THIS MONTH. BARLEY COSTS RS. 1.25 PER KG. AND 1200 KG. ARE AVAILABLE. FERTILEX SELLS FOR RS.1.80 PER KG. UPTO 99 KG, AND EACH ADDITIONAL KG. OVER 99 KG. SELLS FOR RS.1.65. MULTIPLEX SELLS AT RS. 1.70 PER KG. UPTO 99 KG. AND EACH ADDITIONAL KG.OVER 99 KG. SELLS FOR RS.1.55. BHARAT FARMS WILL BUY ANY AND ALL AMOUNTS OF BOTH MIXES PQR FEED COMPANY WILL MIX. SET UP THE LINEAR PROGRAMMING PROBLEM TO DETERMINE THE PRODUCE MIX THAT RESULTS IN MAXIMUM PROFITS .
Product Mix:  Profit Maximization Cont/Pair Rs.100   Rs.150 A( moccasin)   B derby) Cutting & 100    Or   150 Upper Closing Lasting   50   Or   200 Sole Adhesion 250   Or   125 Solution   :- A  - 21.42857   B  - 114.2857 TC – Rs 19285.71
Product Mix:  Profit Maximization A FARMER HAS A 100- HECTARE FARM. HE CAN SELL ALL THE TOMATOES, LETTUCE, OR RADISHES HE CAN RAISE. THE PRICE HE CAN OBTAIN IS RE.1 PER KILOGRAM FOR TOMATOES, RE. 0.75 A HEAD FOR LETTUCE AND RS. 2 PER KILOGRAM FOR RADISHES. THE AVERAGE YIELD PER HECTARE IS 2,000 KILOGRAM OF  TOMATOES, 3000 HEADS OF LETTUCE AND 1,000 KILOGRAMS OF RADISHES. FERTILIZER IS AVAILABLE AT RE. 0.50 PER  KILOGRAM AND THE AMOUNT REQUIRED PER HECTARE IS 100 KILOGRAMS EACH FOR TOMATOES AND LETTUCE AND 50 KILOGRAMS FOR RADISHES. LABOUR REQUIRED FOR SOWING, CULTIVATING AND HARVESTING PER HECTARE IS 5 MAN-DAYS EACH FOR TOMATOES AND RADISHES AND 6 MAN-DAYS FOR LETTUCE. A TOTAL OF 400 MAN-DAYS OF LABOUR ARE AVAILABLE AT RS.20 PER MAN-DAY. FORMULATE THIS PROBLEM AS A LINEAR PROGRAMMING MODEL TO MAXIMIZE THE FARMER’S TOTAL PROFIT.
Product Mix: Profit Maximization Cont/Pair Rs 150 Rs.100   HIKING BOOTS  SKING BOOTS   AVAILABLE  SEWING  2 3   13 HOURS STRETCHING 5 2   16 HOURS SOLUTION   :-  HB-2, SB-3 TC = Rs 600.
Product Mix : Cost Minimization A state agricultural federation manufactures and markets cattle feed. It uses two ingredients which have the following characteristics  :- Ing.A Ing.B Cost/kg.  Rs.10 Rs.40 Fiber content   25% 75% Fat content   20% 10% Specifications are that fiber content should be at least 50% and fat content should not exceed 18% in every one kg. Of the feed. What amounts of A and B should be used so that cost/kg. is minimized?
Cost Minimization A MANUFACTURER HAS CONTRACTED TO PRODUCE 2,000 UNITS OF A PARTICULER PRODUCT OVER THE NEXT EIGHT MONTHS. DELIVERIES  ARE SCHEDULED AS FOLLOW: JANUARY 100 FEBRUARY 200 MARCH 300 APRIL 400 MAY 100 JUNE 100 JULY  500 AUGUST 300 TOTAL 2,000 THE MANUFACTURER  HAS ESTIMATED THAT IT COSTS HIM RE. 1 TO STORE ONE UNIT OF PRODUCT FOR ONE MONTH. HE HAS A WAREHOUSE CAPACITY OF 300 UNITS. THE MANUFACTURER CAN PRODUCE ANY NUMBER OF UNITS IN A GIVEN MONTH, SINCE THE UNIT CAN BE  PRODUCED MOSTLY WITH PART-TIME LABOUR,  WHICH CAN BE EASILY OBTAINED. HOWEVER,THERE ARE THE COST OF TRANING NEW PERSONNEL AND COSTS ASSOCIATED  WITH LAYING OFF PERSONNEL WHO HAVE BEEN HIRED. THE MANUFACTURER HAS ESTIMATED THAT IT COSTS APPOXIMATELY 75 PAISE PER UNIT TO INCRESE THE PRODUCTION LEVEL FROM ONE MONTH TO THE NEXT(E.G. IF PRODUCTION IN JANUARY IS 200 AND IS INCREASED TO 300 IN FEBRUARY, THE COST IS RS.75 FOR TRANING THE ADDITIONAL PEOPLE REQUIRED  TO PRODUCE AT THE 300 UNIT LEVEL.)SIMILARLY IT COSTS 50 PAISE PER UNIT TO REDUCE PRODUCTION FROM ONE MONTH TO THE NEXT. (AT THE END OF EIGHT MONTHS, ALL EMPLOYEE WILL BE LAID OFF WITH THE CORRESPONDING PRODUCTION-REDUCTION COSTS). ASSUME THE PRODUCTION LEVEL BEFORE JANUARY IS ZERO . FORMULATE THE ABOVE AS A LINEAR PROGRAMMING PROBLEM.
Transportation Problem: Minimal Operating Costs A TRUCKING FIRM HAS RECEIVED AN ORDER TO MOVE 3,000 TONNES OF INDUSTRIAL MATERIAL TO A DESTINATION 1,000 KM. AWAY. THE FIRM HAS AVAILABLE AT THE MOMENT A FLEET OF 150 CLASS A 15 TONNE TRAILER TRUCKS AND ANOTHER FLEET OF 100 CLASS B 10 TONNE TRAILER TRUCKS. THE OPERATING COSTS OF THESE TRUCKS ARE RS. 3 AND RS. 4 PER TONNE KM RESPECTIVELY. BASED ON PAST EXPERIENCE, THE FIRM HAS A POLICY OF RETAINING AT LEAST ONE CLASS-A TRUCK WITH EVERY TWO CLASS-B TRUCKS IN RESERVE. IT DESIRES TO KNOW HOW MANY OF THE TWO CLASSES OF VEHICLES SHOULD BE DISPATCHED TO MOVE THE MATERIALS AT MINIMAL OPERATING COSTS.
Product Mix:  Minimize Cost of Production FOUR PRDUCTS HAVE TO BE PROCESSED THROUGH THE PLANT, THE QUANTITIES REQUIRED FOR THE NEXT PRODUCTION  PERIOD BEING: PRODUCT 1 2,000   UNITS PRODUCT 2 3,000  UNITS PRODUCT 3 3,000  UNITS PRODUCT 4 6,000  UNITS  THERE ARE THREE PRODUCTION LINES ON WHICH THE PRODUCTS COULD BE PROCESSED. THE RATES FOR PRODUCTION IN UNITS PER DAY AND THE TOTAL AVAILABLE CAPACITY IN DAYS ARE GIVEN IN THE FOLLOWING TABLE. THE COST OF USING THE LINES IS RS. 600,  RS. 500, RS. 400 PER DAY,RESPECTIVELY, ASSIGNMENT OF FOUR PRODUCTS: RATES OF PRODUCTION IN UNITS PER DAY. PRODUCTION   PRODUCT   MAX.LINE LINE   1  2  3  4  CAPACITY(DAYS) A   150  100  500  400 20 B   200  100  760  400  20 C   160  80  890  600 18 FORMULATE THE ABOVE AS A LINEAR PROGRAMMING PROBLEM TO MINIMIZE THE COST OF  PRODUCTION
Product Mix: Cost Minimization A COSTS RS.150/- PER PAIR B COSTS RS.100/- PER PAIR BUYER WANTS:- EXACTLY 5000 PAIRS NOT MORE THAN 2000 PAIRS OF A FOR EVERY ONE PAIR OF A NOT MORE THAN TWO PAIRS OF B OBJECTIVE:  MINIMIZE THE COSTS
Media Planning Problem:  Cost Minimization EXPOSURE RATES TA   TB MAGAZINE 2%   1% (Rs.80,000) TV COMMERCIAL  1%   3% (Rs.3,20,000) MIN.  EXPOSURE 50%   30%

More Related Content

PDF
2018 Season Fox and Mink offering - Agro Industriala
PDF
Bees innovation: HOW TO INCREASE HONEY PRODUCTION
PPTX
Perform Estimation and Calculation
PPTX
Ecnomic (1) (2)
DOC
Actividades preparar la carga
PPTX
Nextgeneration network
DOCX
Class 9 Week 4 Assignment Part 1 Flow Chart
PPTX
Logia VZW
2018 Season Fox and Mink offering - Agro Industriala
Bees innovation: HOW TO INCREASE HONEY PRODUCTION
Perform Estimation and Calculation
Ecnomic (1) (2)
Actividades preparar la carga
Nextgeneration network
Class 9 Week 4 Assignment Part 1 Flow Chart
Logia VZW

Viewers also liked (20)

PDF
02.2010 0226 my_suggestion
PPTX
Presentacion trabajo colaborativo rs
PPTX
copywriter als beroep 2
PPTX
Collage reciclado
PDF
Rock music magazine draft
PPS
SUBMARINE HMS OCELOTON TENGERALATTJÁRÓ
PDF
Revista tegi 10mo numero
PDF
Portfolio pro
PPTX
Computacion Parasitaria
PDF
Kik Fitness Buddies:)?
PPT
Projeto de execução
ODP
POR QUÉ USAR SOFTWARE LIBRE EN NUESTRA ESCUELA
DOCX
Historia de la electricidad
PPTX
Real estate
KEY
Referat hsg emba_st_gallen_06_2010
PDF
Piano esecutivo di gestione laboratori urbani
PPTX
Fisica radiactividad natural
PPTX
Presion de fludios tavo
PDF
PPS
Autoestima
02.2010 0226 my_suggestion
Presentacion trabajo colaborativo rs
copywriter als beroep 2
Collage reciclado
Rock music magazine draft
SUBMARINE HMS OCELOTON TENGERALATTJÁRÓ
Revista tegi 10mo numero
Portfolio pro
Computacion Parasitaria
Kik Fitness Buddies:)?
Projeto de execução
POR QUÉ USAR SOFTWARE LIBRE EN NUESTRA ESCUELA
Historia de la electricidad
Real estate
Referat hsg emba_st_gallen_06_2010
Piano esecutivo di gestione laboratori urbani
Fisica radiactividad natural
Presion de fludios tavo
Autoestima
Ad

Similar to Qm linear programming problems a.s. narag (20)

PPT
1.Operations Research.ppt
PPT
Vcs slides on or 2014
PPTX
linear optimization.pptx
PPTX
Linear programming Cost Minimization
PDF
181_Sample-Chapter.pdf
PPTX
LPP FORMULATION 21 -22.pptx
PPTX
Managerial economics linearprogramming
PPTX
Operation research
PPTX
session 3 OR_L1.pptx
PPTX
Chapter-1 Introduction to LP and Formulation.pptx
PPTX
Operation research chapter two linear programming
PDF
Linear programming
PDF
OR_L03.pdf
PPTX
linear programming method
DOCX
Mat 540 wee k 11 final exam
PDF
1. intro. to or & lp
PDF
3 Introduction To Linear Programming
DOC
Math 540 Success Begins / snaptutorial.com
DOC
Math 540 Massive Success / snaptutorial.com
DOCX
Linear programming
1.Operations Research.ppt
Vcs slides on or 2014
linear optimization.pptx
Linear programming Cost Minimization
181_Sample-Chapter.pdf
LPP FORMULATION 21 -22.pptx
Managerial economics linearprogramming
Operation research
session 3 OR_L1.pptx
Chapter-1 Introduction to LP and Formulation.pptx
Operation research chapter two linear programming
Linear programming
OR_L03.pdf
linear programming method
Mat 540 wee k 11 final exam
1. intro. to or & lp
3 Introduction To Linear Programming
Math 540 Success Begins / snaptutorial.com
Math 540 Massive Success / snaptutorial.com
Linear programming
Ad

More from Kinshook Chaturvedi (20)

PPTX
Working and functions_of_rbi[1]
PPTX
Role of idfc_in_infrastucture_finance
PPTX
Mutual funds
PPTX
PPTX
Basel ii norms.ppt
PPT
Retail banking pres
PPT
Presentation on lic of india
PPT
Management of np as imt
PPT
Life insurance in india final raja
PPT
Financial inclusion
PPT
Corporate banking v2
PPT
Corporate banking latest
DOC
Financial mgt exercises
PDF
Csac10[1].p
PDF
Csac08[1].p
PDF
Csac05[1].p
PDF
Csac14[1].p
PDF
Csac06[1].p
PDF
Xyber001 16 12_09 (2)
Working and functions_of_rbi[1]
Role of idfc_in_infrastucture_finance
Mutual funds
Basel ii norms.ppt
Retail banking pres
Presentation on lic of india
Management of np as imt
Life insurance in india final raja
Financial inclusion
Corporate banking v2
Corporate banking latest
Financial mgt exercises
Csac10[1].p
Csac08[1].p
Csac05[1].p
Csac14[1].p
Csac06[1].p
Xyber001 16 12_09 (2)

Recently uploaded (20)

PDF
TyAnn Osborn: A Visionary Leader Shaping Corporate Workforce Dynamics
PDF
Introduction to Generative Engine Optimization (GEO)
PDF
Environmental Law Communication: Strategies for Advocacy (www.kiu.ac.ug)
PDF
income tax laws notes important pakistan
PPTX
Board-Reporting-Package-by-Umbrex-5-23-23.pptx
PDF
NEW - FEES STRUCTURES (01-july-2024).pdf
DOCX
Handbook of Entrepreneurship- Chapter 5: Identifying business opportunity.docx
PPTX
Slide gioi thieu VietinBank Quy 2 - 2025
PPTX
svnfcksanfskjcsnvvjknsnvsdscnsncxasxa saccacxsax
PDF
Satish NS: Fostering Innovation and Sustainability: Haier India’s Customer-Ce...
PDF
ANALYZING THE OPPORTUNITIES OF DIGITAL MARKETING IN BANGLADESH TO PROVIDE AN ...
PPTX
Project Management_ SMART Projects Class.pptx
PDF
Keppel_Proposed Divestment of M1 Limited
PDF
Chapter 2 - AI chatbots and prompt engineering.pdf
DOCX
FINALS-BSHhchcuvivicucucucucM-Centro.docx
PPTX
interschool scomp.pptxzdkjhdjvdjvdjdhjhieij
PDF
Kishore Vora - Best CFO in India to watch in 2025.pdf
PDF
533158074-Saudi-Arabia-Companies-List-Contact.pdf
PPT
Lecture notes on Business Research Methods
PDF
#1 Safe and Secure Verified Cash App Accounts for Purchase.pdf
TyAnn Osborn: A Visionary Leader Shaping Corporate Workforce Dynamics
Introduction to Generative Engine Optimization (GEO)
Environmental Law Communication: Strategies for Advocacy (www.kiu.ac.ug)
income tax laws notes important pakistan
Board-Reporting-Package-by-Umbrex-5-23-23.pptx
NEW - FEES STRUCTURES (01-july-2024).pdf
Handbook of Entrepreneurship- Chapter 5: Identifying business opportunity.docx
Slide gioi thieu VietinBank Quy 2 - 2025
svnfcksanfskjcsnvvjknsnvsdscnsncxasxa saccacxsax
Satish NS: Fostering Innovation and Sustainability: Haier India’s Customer-Ce...
ANALYZING THE OPPORTUNITIES OF DIGITAL MARKETING IN BANGLADESH TO PROVIDE AN ...
Project Management_ SMART Projects Class.pptx
Keppel_Proposed Divestment of M1 Limited
Chapter 2 - AI chatbots and prompt engineering.pdf
FINALS-BSHhchcuvivicucucucucM-Centro.docx
interschool scomp.pptxzdkjhdjvdjvdjdhjhieij
Kishore Vora - Best CFO in India to watch in 2025.pdf
533158074-Saudi-Arabia-Companies-List-Contact.pdf
Lecture notes on Business Research Methods
#1 Safe and Secure Verified Cash App Accounts for Purchase.pdf

Qm linear programming problems a.s. narag

  • 2. Product Mix : Profit Maximization Janata fertilizers uses nitrates, phosphates, potash and an inert filler material for fertilizer manufacture. The firm mixes these four ingredients to make two basic fertilizers, 5-10-5 and 6-5-10 (nos. represent % wt. Of nitrates, phosphates and potash in each tonne of fertilizers). The contribution towards profits and overheads is Rs.300 and Rs.400 per tonne for (5-10-5) and (6-5-10) respectively. The firm has 120 tonnes of nitrates ,200 tonnes of phosphates, 150 tonnes of potash and unlimited filler material. They will not receive additional chemicals until next month. They believe that they can sell or store at negligible cost all fertilizer produced during the month. Determine optimal product mix.  
  • 3. Product Mix: Profit Maximization A TOOTHPICK MANUFACTURER MAKES TWO KINDS OF TOOTHPICKS: ROUNDS AND FLATS. MAJOR PRODUCTION FACILITIES INVOLVED ARE CUTTING AND PACKING. THE CUTTING DEPARTMENT CAN PROCESS 300 BOXES OF ROUNDS OR 600 BOXES FLATS PER HOUR. THE PACKING DEPARTMENT CAN PACKAGE 600 BOXES OF ROUNDS OR 300 BOXES OF FLATS PER HOUR. – IF THE CONTRIBUTION OF PROFIT FOR A BOX OF ROUNDS IS EXACTLY SAME AS THAT FOR A BOX OF FLATS, WHAT IS THE OPTIMUM PRODUCTION LEVEL? – UNDER WHAT CIRCUMSTANCES WOULD THE MANUFACTURER BE BETTER OFF TO PRODUCE ONLY ROUNDS?
  • 4. Product Mix: Profit Maximization PRQ FEED COMPANY MARKETS TWO FEED MIXES FOR CATTLE. THE FIRST MIX, FERTILEX, REQUIRES AT LEAST TWICE AS MUCH WHEAT AS BARLEY. THE SECOND MIX, MULTIPLEX REQUIRES AT LEAST TWICE AS MUCH BARELY AS WHEAT. WHEAT COSTS RS.1.50 PER KG. AND ONLY 1,000 KG. ARE AVAILABLE THIS MONTH. BARLEY COSTS RS. 1.25 PER KG. AND 1200 KG. ARE AVAILABLE. FERTILEX SELLS FOR RS.1.80 PER KG. UPTO 99 KG, AND EACH ADDITIONAL KG. OVER 99 KG. SELLS FOR RS.1.65. MULTIPLEX SELLS AT RS. 1.70 PER KG. UPTO 99 KG. AND EACH ADDITIONAL KG.OVER 99 KG. SELLS FOR RS.1.55. BHARAT FARMS WILL BUY ANY AND ALL AMOUNTS OF BOTH MIXES PQR FEED COMPANY WILL MIX. SET UP THE LINEAR PROGRAMMING PROBLEM TO DETERMINE THE PRODUCE MIX THAT RESULTS IN MAXIMUM PROFITS .
  • 5. Product Mix: Profit Maximization Cont/Pair Rs.100 Rs.150 A( moccasin) B derby) Cutting & 100 Or 150 Upper Closing Lasting 50 Or 200 Sole Adhesion 250 Or 125 Solution :- A - 21.42857 B - 114.2857 TC – Rs 19285.71
  • 6. Product Mix: Profit Maximization A FARMER HAS A 100- HECTARE FARM. HE CAN SELL ALL THE TOMATOES, LETTUCE, OR RADISHES HE CAN RAISE. THE PRICE HE CAN OBTAIN IS RE.1 PER KILOGRAM FOR TOMATOES, RE. 0.75 A HEAD FOR LETTUCE AND RS. 2 PER KILOGRAM FOR RADISHES. THE AVERAGE YIELD PER HECTARE IS 2,000 KILOGRAM OF TOMATOES, 3000 HEADS OF LETTUCE AND 1,000 KILOGRAMS OF RADISHES. FERTILIZER IS AVAILABLE AT RE. 0.50 PER KILOGRAM AND THE AMOUNT REQUIRED PER HECTARE IS 100 KILOGRAMS EACH FOR TOMATOES AND LETTUCE AND 50 KILOGRAMS FOR RADISHES. LABOUR REQUIRED FOR SOWING, CULTIVATING AND HARVESTING PER HECTARE IS 5 MAN-DAYS EACH FOR TOMATOES AND RADISHES AND 6 MAN-DAYS FOR LETTUCE. A TOTAL OF 400 MAN-DAYS OF LABOUR ARE AVAILABLE AT RS.20 PER MAN-DAY. FORMULATE THIS PROBLEM AS A LINEAR PROGRAMMING MODEL TO MAXIMIZE THE FARMER’S TOTAL PROFIT.
  • 7. Product Mix: Profit Maximization Cont/Pair Rs 150 Rs.100 HIKING BOOTS SKING BOOTS AVAILABLE SEWING 2 3 13 HOURS STRETCHING 5 2 16 HOURS SOLUTION :- HB-2, SB-3 TC = Rs 600.
  • 8. Product Mix : Cost Minimization A state agricultural federation manufactures and markets cattle feed. It uses two ingredients which have the following characteristics :- Ing.A Ing.B Cost/kg. Rs.10 Rs.40 Fiber content 25% 75% Fat content 20% 10% Specifications are that fiber content should be at least 50% and fat content should not exceed 18% in every one kg. Of the feed. What amounts of A and B should be used so that cost/kg. is minimized?
  • 9. Cost Minimization A MANUFACTURER HAS CONTRACTED TO PRODUCE 2,000 UNITS OF A PARTICULER PRODUCT OVER THE NEXT EIGHT MONTHS. DELIVERIES ARE SCHEDULED AS FOLLOW: JANUARY 100 FEBRUARY 200 MARCH 300 APRIL 400 MAY 100 JUNE 100 JULY 500 AUGUST 300 TOTAL 2,000 THE MANUFACTURER HAS ESTIMATED THAT IT COSTS HIM RE. 1 TO STORE ONE UNIT OF PRODUCT FOR ONE MONTH. HE HAS A WAREHOUSE CAPACITY OF 300 UNITS. THE MANUFACTURER CAN PRODUCE ANY NUMBER OF UNITS IN A GIVEN MONTH, SINCE THE UNIT CAN BE PRODUCED MOSTLY WITH PART-TIME LABOUR, WHICH CAN BE EASILY OBTAINED. HOWEVER,THERE ARE THE COST OF TRANING NEW PERSONNEL AND COSTS ASSOCIATED WITH LAYING OFF PERSONNEL WHO HAVE BEEN HIRED. THE MANUFACTURER HAS ESTIMATED THAT IT COSTS APPOXIMATELY 75 PAISE PER UNIT TO INCRESE THE PRODUCTION LEVEL FROM ONE MONTH TO THE NEXT(E.G. IF PRODUCTION IN JANUARY IS 200 AND IS INCREASED TO 300 IN FEBRUARY, THE COST IS RS.75 FOR TRANING THE ADDITIONAL PEOPLE REQUIRED TO PRODUCE AT THE 300 UNIT LEVEL.)SIMILARLY IT COSTS 50 PAISE PER UNIT TO REDUCE PRODUCTION FROM ONE MONTH TO THE NEXT. (AT THE END OF EIGHT MONTHS, ALL EMPLOYEE WILL BE LAID OFF WITH THE CORRESPONDING PRODUCTION-REDUCTION COSTS). ASSUME THE PRODUCTION LEVEL BEFORE JANUARY IS ZERO . FORMULATE THE ABOVE AS A LINEAR PROGRAMMING PROBLEM.
  • 10. Transportation Problem: Minimal Operating Costs A TRUCKING FIRM HAS RECEIVED AN ORDER TO MOVE 3,000 TONNES OF INDUSTRIAL MATERIAL TO A DESTINATION 1,000 KM. AWAY. THE FIRM HAS AVAILABLE AT THE MOMENT A FLEET OF 150 CLASS A 15 TONNE TRAILER TRUCKS AND ANOTHER FLEET OF 100 CLASS B 10 TONNE TRAILER TRUCKS. THE OPERATING COSTS OF THESE TRUCKS ARE RS. 3 AND RS. 4 PER TONNE KM RESPECTIVELY. BASED ON PAST EXPERIENCE, THE FIRM HAS A POLICY OF RETAINING AT LEAST ONE CLASS-A TRUCK WITH EVERY TWO CLASS-B TRUCKS IN RESERVE. IT DESIRES TO KNOW HOW MANY OF THE TWO CLASSES OF VEHICLES SHOULD BE DISPATCHED TO MOVE THE MATERIALS AT MINIMAL OPERATING COSTS.
  • 11. Product Mix: Minimize Cost of Production FOUR PRDUCTS HAVE TO BE PROCESSED THROUGH THE PLANT, THE QUANTITIES REQUIRED FOR THE NEXT PRODUCTION PERIOD BEING: PRODUCT 1 2,000 UNITS PRODUCT 2 3,000 UNITS PRODUCT 3 3,000 UNITS PRODUCT 4 6,000 UNITS THERE ARE THREE PRODUCTION LINES ON WHICH THE PRODUCTS COULD BE PROCESSED. THE RATES FOR PRODUCTION IN UNITS PER DAY AND THE TOTAL AVAILABLE CAPACITY IN DAYS ARE GIVEN IN THE FOLLOWING TABLE. THE COST OF USING THE LINES IS RS. 600, RS. 500, RS. 400 PER DAY,RESPECTIVELY, ASSIGNMENT OF FOUR PRODUCTS: RATES OF PRODUCTION IN UNITS PER DAY. PRODUCTION PRODUCT MAX.LINE LINE 1 2 3 4 CAPACITY(DAYS) A 150 100 500 400 20 B 200 100 760 400 20 C 160 80 890 600 18 FORMULATE THE ABOVE AS A LINEAR PROGRAMMING PROBLEM TO MINIMIZE THE COST OF PRODUCTION
  • 12. Product Mix: Cost Minimization A COSTS RS.150/- PER PAIR B COSTS RS.100/- PER PAIR BUYER WANTS:- EXACTLY 5000 PAIRS NOT MORE THAN 2000 PAIRS OF A FOR EVERY ONE PAIR OF A NOT MORE THAN TWO PAIRS OF B OBJECTIVE: MINIMIZE THE COSTS
  • 13. Media Planning Problem: Cost Minimization EXPOSURE RATES TA TB MAGAZINE 2% 1% (Rs.80,000) TV COMMERCIAL 1% 3% (Rs.3,20,000) MIN. EXPOSURE 50% 30%