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Exercise 1.4
1.
4x 4y = 12
4x = 12
4
4
X=3
4x 4y = 12
-4y = 12
-4
-4
Y = -3
1. 4(x-y) = 12
2. 4(x + y) = 8
4x + 4y = 8
4x = 8
4 4
X=2
4(x + y) = 8
4x + 4y = 8
4x = 8
4 4
X=2
2. 4(x+y) =8
3. 3(x + 1) = 3(y-1)
3x + 3 = 3y 3
3x 3y = -6
3x = -6
3 3
X = -2
3(x + 1) = 3(y-1)
3x 3y = -3 -3
-3y = -6
-3 -3
Y=2
4. 5*
5*
(3,0)
(0,-3)
(0,2)
(2,0)
3. 3(x+1) = 3(y-1)
(2,0)
(0,-2)
2x + 6 = 10y 20
2x- 10 = 20 6
2x 10y = -26
2x = -26
2
2
X = -13
-10y = -26
-10 -10
Y = 2.6
5. 2x + 6y + 6 = 0
2x 6y = -6
2x = -6
2 2
X= -3
2x 6y = -6
6y = -6
6
6
Y = -1
6. X + 2y = 7
X=7
x + 2y = 7
2y = 7
2 2
Y = 3.5
)
4. *
)
(0,2.6)
(-13,0)
5. 2x + 6y + 6 = 0
(-3,0)
(0,-1)
6. X + 2y = 7
(0,3.5)
(7,0)
7. 2x y = 4
2x = 4
2 2
X=2
2x y = 4
- ( -y = 4)
y = -4
8. X + 3y = 9
3y = 9
3 3
Y=3
x + 3y = 9
x=9
7. 2x y = 4
(2,0)
(0,-4)
8. X + 3y = 9
(0,3)
(9,0)
9. 2x + 6 = 2 2y + 4y
2x + 2y 4y = 2- 6
2x 2y = -4
2x = -4
2
2
X = -2
2x + 6 = 2 2y + 4y
2x + 2y 4y = 2- 6
2x 2y = -4
2y = -4
-2 -2
Y=2
9. 2(x=3)=2(1-y)=4y
10. X + 4 = 12 + 4y
X 4y = 12 4
X 4y = 8
X=8
X + 4 = 12 + 4y
X 4y = 12 4
X 4y = 8
-4y = 8
-4 -4
Y = -2
10. X + 4 = 6=2y
2
2(2) + 2y = 8
4 + 2y = 8
2y = 8 4
2y = 4
2
2
Y=2
Checking:
1st equation
2(2) + 2(2) = 8
4+4=8
8=8
(0,2)
(-2,0)
(8,0)
(0,-2)
Exercise 1.5
1.
2x + 2y = 8
4x 2y = 4
6x
= 12
6
6
X=2
2nd equation
4(2) 2(2) = 4
84=4
4= 4
2. 4x 6y 10 = 0
-12x + 3y = -2 multiply by 2
Checking:
1st equation
4(1.90) 6(-0.40) = 10
7.60 + 2.40 = 10
10 = 10
4x 6y = 10
-24x + 6y = -48
-20x
= -38
-20
-20
X = 1.90
4(1.90) 6y = 10
7.60 6y = 10
-6y = 10 7.60
-6y = 2.40
6
6
Y = - 0.40
2nd equation
24(1.90) 6 (-0.40) = 48
45.60 + 2.40 = 48
48 = 48
3. -2x + 2y = -2
4x 2y = 0
2x
= -2
2
2
X = -1
-2(-1) + 2y = -2
2 + 2y = -2
2y = -2 2
2y = -4
2
2
Y = -2
4.
3(50) y = -100
Checking:
150 y = -100
1st equation
-y = -100 150
3(50) 250 = -100
-y = -250
150 250 = -100
-1 -1
- 100 = - 100
Y = 250
5.
3x y = -100
-5x + y = 0
-2x
= -100
2
2
X = 50
Y 2x = 40
-5y + 10x = 20
multiply by 5
Checking:
1st equation
-2(-1) + 2(-2) = -2 4
2 4 = -2
-2 = -2
2nd equation
(-1) 2 (-2) = 0
-4 -4 = 0
0=0
2nd equation
-5(50) + 250 = 0
-250 + 250 = 0
0=0
5y 10x = 200
-5y + 10y = 20
= 180
6. 2x y = -10
3x + y = 10 5
2x y = -10
3x + y = -5
5x
= -15
5
5
x = -3
2 (-3) y = -10
-6 - y = -10
- y = -10 + 6
-y=-4
-1=-1
y=4
Checking:
First equation
2 (-3) 4 = -10
-6 4 = -10
-10 = -10
Second Equation
3 (-3) + 4 = - 5
-6 + 4 = -5
-5 = -5
7. 5x + y = 6
x 2y = 21
10x + 2y = 12
x 2y = 21
11x
= 33
11
11
x=3
Multiply by -2
8. 2x + 2y = 16
2x 2y = -8
4x
= 8
4
4
X=2
2 (2) + 2y = 16
4 + 2y = 16
2y = 16 4
2y = 12
2 = 2
Y=6
10 (3) + 2y = 12
30 + 2y = 12
2y = 12 30
2y = -18
2 = 2
y = -9
Checking:
First Equation
10 (3) + 2(-9) = 12
30 18 = 12
12 = 12
Checking:
First Equation
2 (2) + 2(6) = 16
4 + 12 = 16
16 = 16
Second Equation
3 2 (-9) = 21
3 + 18 = 21
21 = 21
Second Equation
2 (2) 2 (6) = - 8
4 - 12 = - 8
-8=-8
Checking:
First Equation
.40 (15.26) - .60(-23.16) = 20
6.10 + 13.90 = 20
20 = 20
Second Equation
1.50 (15.26) + .60 (-23.16) = 9
22.80 13.89 = 9
9=9
10. 2x y = - 10
2 (- 3) y = - 10
3x + y = - 5
- 6 y = - 10
Checking:
5x
5
- y = - 10 + 6
-y=-4
-1 = -1
Y=4
First Equation
2 (- 3) - 4 = - 10
-6 - 4 = - 10
- 10 = - 10
= - 15
= 5
X=-3
Second Equation
3 (- 3) + 4 = - 5
-9 + 4 = - 5
-5=-5
Chapter 2
Exercise 2.2
1. Minimize: 10x1+20x2
Subject: 4x1+2x2>20
2x1+6x2>30
SOLUTION:
4x1+2x2=20
4x1 = 20
4
4
X1 = 5
4x1+2x2=20
0+2x2=20
2x2 = 20
2
2
X2 = 10
2x1+6x1=30
2x1+0=30
2x1 = 30
2
2
X1 = 15
2x1+6x2=30
0+6x2=30
6x2 = 30
6
6
x2 = 5
2. Maximize: 30x1+40x2
Subject:
4x1+2x2<32
X1+3x2<18
X1, x2 >0
SOLUTION:
4x1+2x2=32
x1+3x2=18
4x1+0=32
x1+0=18
4x1 = 32
x1 = 18
3
4
X1 = 8
4x1+2x2=32
0+ 2x2=32
2x2 = 32
2
2
X2 = 16
3. Minimize: 6x1+24x2
Subject: 10x1+2x2>32
2x1+6x2>12
X1, x2 >0
SOLUTION:
x1+3x2=18
0+3x2=18
3x2=18
3 3
X2 = 6
10x1+2x2=32
10x1+0=32
10x1 = 32
10
10
X1 = 3.5
2x1+6x2=12
0+6x2=12
6x2=12
6 6
x2 = 2
10x1+2x2=32
0+2x2=32
2x2=32
2 2
X2 = 16
2x1+6x2=12
0+6x2=12
6x2=12
6 6
x2 = 2
4. Minimize: 32x1+36x2
Subject: 4x1+2x2>10
2x1+6x2>15
X1, x2 > 0
SOLUTION:
4x1+2x2=10
4x1+0=10
4x1 = 10
4
4
X1 = 2.5
2x1+6x2=15
2x1+0=15
2x1 = 15
2 2
x1 = 7.5
4x1+2x2=10
0+2x2=10
2x2 = 10
2
2
X2 = 5
2x1+6x2=15
0+6x2=15
6x2 = 15
6
6
x2 = 2.5
5. Maximize: 20x1+30x2
Subject: 4x1+2x2<4
4x1+8x2<16
X1, x2 > 0
SOLUTION:
4x1+2x2=4
4x1+0=4
4x1 = 4
4
4
X1 = 1
4x1+8x2=16
4x1+0= 16
4x1 = 16
4
4
x1 = 4
4x1+2x2=4
0+2x2=4
2x2 = 4
2
2
X2 = 2
4x1+8x2=16
0+8x2=16
8x2 = 16
8
8
x2 = 2
6. Minimize: 15x1+12x2
Subject:
x1+x2>4
X1+x2>8
X1<6
X1, x2 > 0
SOLUTIONS:
x1+x2=4
X1+0=4
X1 = 4
X1+x2=8 X1=6
X1+0=8
x1 = 8
x1+x2=4
0+x2=4
X2 = 4
X1+x2=8
0+x2=8
x2 = 8
3x1 + 5x2 = 15
5x2 = 15
5
5
X2 = 3
4x1 + x2 16
x2 = 16
x2 = 16
3x1 + 5x2 = 15
3x1 = 15
3
X1 = 5
4x1 + x2 16
4x1 = 16
4
4
x1 = 4
SOLUTION:
x1 + x2 4
x2 = 4
x1 + x2 4
x1 = 4
x1 + x2 6
x2 = 6
x1 + x2 6
x1 = 6
Exercise 2.3
Problem No. 1
Given:
Max.P = 60x1 + 100x2
2x1 + 2x2 140
2x1 + 4x2 160
X2 60
and x1 0; x2 0
I.
Decision Variables
Let x1 = no. of units to be produced and sold to maximize profit
Let x2 = no. of units to be produced and sold to maximize profit
II.
Objective Function
Max.P = 60x1 + 100x2
III.
Subject to:
2x1 + 2x2 140
2x1 + 4x2 160
X2 60
and x1 0; x2 0
IV.
Graphical Method:
2x1 + 2x2 140
x1
0
70
x2
70
0
2x1+2x2=140
2(0) + 2x2 = 140
2x2 = 140
2
2
X2 = 70
2x1+2x2=140
2x1 + 2(0) = 140
2x1 = 140
2
2
X1 = 70
2x1+2x2=140 *2 =
4x1+4x2 = 280
- 2x1 + 4x2 = 160
2x1 = 120
X1 = 60
P1 (0, 40);
max. P = 60x1 +100x2
= 60 (0) + 100(40)
= 4000
P0 (0, 0)
max. P = 60x1 +100x2
= 60(0) + 100 (0)
=0
P4 (70, 0)
max. P = 60x1 +100x2
= 60(70) + 100 (0)
= 4200
2x1+2x2 = 140
2(60) + 2x2 = 140
120 + 2x2 = 140
2x2 = 140 120
2x2 = 20
2
2
X2 = 10
P5 (60, 0)
max. P = 60x1 +100x2
= 60(60) + 1000 (0)
= 3600 + 1000
= 4600
2x1 + 2x2 140
2(60) + 2(10) 140
120 + 20 140
140 140
V.
Decision
In order to maximize profit to P4,600, the entity should manufacture and sell 60 units
of x1 and 10 units of x2.
Problem No. 3
Tabulation
Style A (x)
Style B (y)
TOTAL
No. of hours
1 hours
2 hours
24 hours
No. of units
16 units
Profit
P 40.00
P 30.00
I.
Decision variables
Let X = no. of units for style A
Y = no. of units for style B
II.
Objective function
Max P = 40x + 30y
III.
Subject to:
Explicit constraints:
X + 2y 24
X + Y 16
IV.
Graphical method
Equation No. 1
Equation no. 2
X + 2y 24
X + Y 16
24
16
12
16
Optimal Solution:
Max P = 40x + 30y
= 40 (8) + 30 (8)
= 320 + 240
Max P = 560
X + Y 16
8 + 2 (8) 24
8 + 8 16
24 24
V.
16 16
Decision
The manufacturer should produce 8 units of both style A and style B to
maximize the profit of Php 560.00 in daily basis.
Problem No. 4
Tabulation
Scooter (x)
Bicycle (y)
TOTAL
Center 1
4 hours
6 hours
120 hours
Center 2
10 hours
3 hours
180 units
Profit
P 60.00
P 40.00
I.
Decision variables
Let
II.
Objective functions
Max P = 60x + 40y
III.
Subject to:
Explicit constraints:
4x + 6y 120
10x + 3y 180
IV.
Graphical method
Equation No. 1
Equation no. 2
4x + 6y 120
10x + 3y 180
30
18
20
60
Optimal Solution:
Max P = 60x + 40y
= 60 (15) + 40 (10)
= 900 + 400
Max P = P 1,300
10x + 3y 180
120 120
180 180
V.
Decision
The manufacturer should produce 15 units of scooter and 10 units of bicycle
to maximize the profit of P 1,300.00.
Problem No. 5
Tabulation
I.
Raisin (x)
Walnuts (y)
TOTAL
Cookies 1
3 oz
5 oz
53 oz
Cookies 2
3 oz
2 oz
32oz
Profit
P 48.00
P 60.00
Decision variables
Let
II.
Objective functions
Max P = 48x + 60y
III.
Subject to:
Explicit constraints:
3x + 5y 53
3x + 2y 32
IV.
Graphical method
Equation No. 1
3x + 5y 53
Equation no. 2
3x + 2y 32
17.67
10.67
10.6
16
Optimal Solution:
V.
3x + 5y 53
3x + 2y 32
3(6) + 5(7) 53
3(6) + 2(7) 32
53 53
32 32
Decision
The baker should produce 6 dozen of first type cookies and 7 dozen of the second
type of cookies to meet the maximum profit of P 708.00.
CHAPTER 3
Exercise 3.1
Table I (Initial Solution)
Ci
7
X1
X2
S1
S2
Cj
X1 : 100 2 = 50 spr
S2 : 240 4 = 60
Solution
Variable
Solution
Values
S1
100
Pivot element: 2
Outgoing variable: S1
S2
240
Zj
Cj - Zj
Entering variable: X1
Optimum column
Table II
Ci
7
X1
X2
S1
S2
Cj
Solution
Variable
Solution
Values
X1
50
X1 : 50 = 100
S2 : 40 1 = 40
Pivot element: 1
7
S2
40
-2
Zj
350
7/2
7/2
3/2
-7/2
Cj - Zj
Optimum column
Outgoing variable: S2
Entering variable: X2
Row X1:
Solution variable: 100 2 =50
X1
:22=1
X2
:12=
S1
:12=
S2
:02=0
Row S2:
Solution variable: 240 4(50) =40
X1
: 4 4(1) = 0
X2
: 3 4( ) = 1
S2
: 0 4() = -2
S2
: 1 4(0) = 1
Table III
Ci
7
Cj
Solution
Variable
Solution
Values
X1
X2
S1
S2
X1
30
3/2
X2
40
-2
Zj
3/2
Cj - Zj
-3/2
Row X2:
Solution variable: 40 1 =40
X1
:01 =0
X2
:11 =1
S1
: -2 1 = -2
S2
:11 =1
Row X1:
Solution variable: 50 (40) =30
X1 : 1 (0) = 0
X2 : (1) = 1
S2 : (-2) = -2
S2 : 0 (1) = 1
Exercise 3.2
Problem No. 2
Rice
Corn
Total
Insecticides
36
Fertilizers
48
P 20,800
P15,000
Decision variables
Let X1 = number of units to be planted by rice
Let X2 = number of units to be planted by corn
Objective function: max P = 20,800X1 + 15,000 X2
Subject to:
4X1 + 3X2 36
Explicit constraints
3X1 + 6X2 48
X1 ;X2 0
Implicit constraints
15,000
Cj
Solution
Variable
Solution
Values
X1
X2
S1
S2
S1
36
X1 : 36 4 = 9 lowest
S2 : 48 3 = 16
Pivot element: 4
Outgoing variable: S1
S2
48
1
Entering variable: X1
Zj
Cj - Zj
20,800
15,000
Optimum column
15,000
Cj
Solution
Variable
Solution
Values
X1
X2
S1
S2
X1
20,800
S2
21
15/4
Zj
187,200
20,800
15,600
5200
-15,600
-5200
Cj - Zj
Row X1:
Row S2:
Solution variable: 48 3(9) =21
X1: 3 3(1) = 0
X2: 6 3( ) = 15/4
S2: 0 3() =
S2: 1 3(0) = 1
Solution variable: 36 4 =9
X1
:44=1
X2
:34=
S1
:14=
S2
:04=0
Decision:
The farmer can maximize the profit up to P187,200 by planting 9 units of rice in 3 hectares.
Problem No. 3
Program I
Program II
Total
Music
40
20
160
Advertisement
40,000 viewers
20,000 viewers
Decision variables
Let X1 = number of times music must be played to maximize profit
Let X2 = number of times advertisement must be played to maximize profit
Objective function: max P = 40,000X1 + 20,000 X2
Subject to:
40X1 + 20X2 160
2X1 + 2X2 6
X1 ;X2 0
Explicit constraints
Implicit constraints
15,000
Cj
Solution
Variable
Solution
Values
X1
X2
S1
S2
S1
160
40
20
S2
S1 : 160 40 = 4
S2 : 6 2 = 3 lowest
Pivot element: 2
0
Zj
Cj - Zj
40,000
20,000
Optimum column
20,000
Cj
Solution
Variable
Solution
Values
X1
X2
S1
S2
S1
40
-20
-20
X2
40,000
Zj
120,000
40,000
40,000
20,000
-20,000
Cj - Zj
Row X1:
Solution variable: 6 2 =3
X1
:22=1
X2
:22=1
S1
:02=0
S2
:12=
-20,000
Row S2:
Solution variable: 160 3(40) =40
X1
: 40 1(40) = 0
X2
: 20 1(40) = -20
S2
: 1 0(40) = 1
S2
: 0 (40) = -20
Decision:
The management can maximize the profit up to P120,000 by playing the advertisement 3 times
a week.
Exercise 3.3
Problem No. 1
Table 1
Solution
variables
S
S
Zj
Cj-Zj
0
0
Solution
values
24
16
0
6
X
7
X
0
S
0
S
2
2
0
6
3
1
0
7
1
0
0
0
0
1
0
0
Outgoing row
Optimum column
1. 0(2) + 0(2) = 0
0(3) + 0(1) = 0
0(1) + 0(0) = 0
0(0) + 0(1) = 0
4. S: 24 3 = 8
X: 2 3 = 2/3
X: 3 3 = 1
S: 1 3 = 1/3
S: 0 3 = 0
2. X: 6 - 0 = 6
X: 7 - 0 = 7
S: 0 0 = 0
S: 0 0 = 0
5. S: 16 1(8) = 8
X: 2 1(2/3) = 4/3
X: 1- 1(1) = 0
3. S: 24 3 = 8
smallest positive
ratio
S: 0 1(1/ 3) =- 1/3
S: 1 1(0) = 1
S: 16 1 = 16
Table 2
7
0
Solution
variables
S
S
Zj
Cj-Zj
outgoing row
Solution
values
8
8
56
6
X
7
X
0
S
0
S
2/3
4/3
14/3
4/3
1
0
7
0
1/3
-1/3
7/3
-7/3
0
1
0
0
Optimum column
1. 7(8) + 0(8)= 56
7(2/30) + o (4/3) = 14/3
7(10) + 0(0) = 7
7(1/3) + 0 (-1/3) = 7/3
7(0) + 0 (1) = 0
4.
S: 8 4/3 = 6
X: 4/3 4/3 = 1
X: 0 4/3 = 0
X: -1/3 4/3 = -1/4
X: 1 4/3 =
2. X: 6 - 14/3 = 4/3
X: 7 7 = 0
S: 0 7/3 = -7/3
S: 0 0 = 0
5. X: 8 2/3(6) = 4
X: 2/3 2/3(1) = 0
X: 1- 2/3(0) = 1
X: 1/3 2/3(-1/4) = 1/2
X: 0- 2/3(3/4) = -1/2
3. X: 8 2/3 = 12
S: 8 4/3 = 6 smallest positive ratio
Table 3 (final solution)
7
6
Solution
variables
X
X
Zj
Cj-Zj
1. 7(4) + 6(6) = 64
7(0) + 6(1) = 6
7(1) + 6(0) = 7
7(1/2) + 6(-1/4) = 2
7(-1/2) + 6(3/4) = 1
Solution
values
4
6
64
6
X
7
X
0
S
0
S
0
1
6
0
1
0
7
0
-1/4
2
-2
-1/2
3/4
1
-1
2. X: 6 6 = 0
X: 7 7 = 0
S: 0 2 = -2
S: 0 1 = -1
Problem No. 2
Product A
Product B
4 hrs.
2 hrs.
50
2 hrs.
2 hrs.
30
Machine time
Skilled worker
Profit
I.
Available time
capacity
10 hrs.
8 hrs.
Decision variables
Let X = no. Of product A to be produced
X = no. Of product B to be produced
Objective function:
Max. P = 50x + 30x
Subject to :
4x + 2x 10
explicit constraints
2x + 2x 8
X;Y 0
implicit constraints
II.
Objective function:
Max. P = 50x + 30x + 0S + 0S
Subject to:
4x + 2x + S + 0S =10
2x + 2x + 0S + S = 8
Table 1
0
0
outgoing row
Solution
variables
S
S
Zj
Cj-Zj
Solution
values
10
8
0
50
X
30
X
0
S
0
S
4
2
0
50
2
2
0
30
1
0
0
0
0
1
0
0
Optimum column
1. 0(10) + 0(8) = 0
0(4) + 0(2) = 0
0(2) + 0(2) = 0
0(1) + 0(0) = 0
0(0) + 0(1) = 0
2. X: 50 0 = 50
X: 30 0 = 30
S: 0 0 = 0
S: 0 0 = 0
3. S: 10 4 = 5/2
S: 8 2 = 4
4. S: 10 4 = 5/2
X: 4 4 = 1
X: 2 4 = 1/2
S: 1 4 = 1/4
S: 0 4 = 0
5. S: 8 2(5/2) = 3
X: 2 2(1) = 0
X: 2 2(1/2) = 1
S: 0 2() = -1/2
S: 1- 2(0) = 1
Table 2
50
0
Solution
variables
S
X
Zj
Cj-Zj
outgoing row
Solution
values
5/2
3
125
6
X
7
X
0
S
0
S
1
0
50
0
1/2
1
25
5
1/4
-1/2
25/2
-25/2
0
1
0
0
Optimum column
X: 50 50 = 0
X: 30 25 = 5
S: 0 25/2 = -25/2
S: 0 0 = 0
3.
S: 5/2 1/2 = 5
S: 3 1 = 3
4.
X: 3 1 = 3
X: 0 1 = 0
X: 1 = 1
S: -1/2 1= -1/2
S: 1 1 = 1
5.
S: 5/2 - ( 3) = 1
X: 1 (0) = 1
X: - (1) = 0
S: 1/4 (-1/2)= 1/2
S: 0 1/2 (1) = -1/2
50
30
Solution
variables
X
X
Zj
Cj-Zj
Solution
values
1
3
140
50
X
30
X
0
S
0
S
1
0
50
0
0
1
30
0
1/2
-1/2
10
-10
-1/2
1
5
-5
2. X: 50 50 = 0
X: 30 - 30= 0
S: 0 10= -10
S: 0 5 = -5
Check
4x + 2x 10
4(10) + 2(3) 10
4 + 6 10
10 10
2x + 2x 8
2(1) + 2(3) 8
2+68
88
Decision:
The Arambulo Co. Should produce and sell 1 unit of the product A and 3 units of the product B
to maximize profit to 140 per production period.
Problem No. 3
Given:
6x1 + 4x2 1350
3x1 + 4x2 780
x1 180
x2 135
x1 ; x2 0
Determine the optimum profit using the simplex method if contributions to profit of X1
are 30.50 per unit and of X2 is 29 per unit.
I.
Objective Function
Max. = 30.50x1 + 29x2
Subject to:
6x1 + 4x2 1350
3x1 + 4x2 780
x1 180
x2 135
x1 ; x2 0
Explicit Constraints
Implicit
II.
Objective Function:
Max. = 30.50x1 + 29x2 + 0S1 + 0S2 + 0S3 + 0S4
Subject to:
6x1 + 4x2 + S1 + 0S2 + 0S3 + 0S4 = 1350
3x1 + 4x2 + 0S1 + S2 + 0S3 + 0S4 = 780
x1 + 0S1 + 0S2 + S3 + 0S4 = 180
x2 + 0S1 + 0S2 + 0S3 + S4 = 135
TABLE I
Ci \ Cj
0
0
0
0
Solution
Variable
S1
S2
S3
S4
Zj
Cj Zj
Solution
Values
1350
780
180
135
0
30.50
29.00
X1
6
3
1
0
0
30.50
X2
4
4
0
1
0
29
S1
1
0
0
0
0
0
S2
0
1
0
0
0
0
S3
0
0
1
0
0
0
S4
0
0
0
1
0
0
Outgoing Row
1.)
0 (1350) + 0 (780) + 0 (180) + 0 (135) = 0
0 (6) + 0 (0) + 0 (1) + 0 (0) = 0
0 (4) + 0 (4) + 0 (0) + 0 (1) = 0
0 (1) + 0 (0) + 0 (0) + 0 (0) = 0
0 (0) + 0 (1) + 0 (0) + 0 (0) = 0
0 (0) + 0 (0) + 0 (1) + 0 (0) = 0
0 (0) + 0 (0) + 0 (0) + 0 (1) = 0
2.)
x1 : 30.50 0 = 30.50
x2 : 29 0 = 29
S1 : 0 0 = 0
S2 : 0 0 = 0
S3 : 0 0 = 0
S4 : 0 0 = 0
Optimum Column
3.)
S1 : 1350 6 = 225
S2 : 780 3 = 260
S3 : 180 1 = 180
smallest
S4 : 135 0 = undefined
4.)
S3 : 180 1 = 180
x1 : 1 1 = 1
x2 : 0 1 = 0
S1 : 0 1 = 0
S2 : 0 1 = 0
S3 : 1 1 = 1
S4 : 0 1 = 0
5.)
S1 :1350 6 (180) = 270
x1 : 6 6 (1) = 0
x2 : 4 6 (0) = 0
S1 : 1 6 (0) = 0
S2 : 0 6 (0) = 0
S3 : 0 6 (1) = 0
S4 : 0 6 (0) = 0
TABLE II
Ci \ Cj
0
0
30.50
0
Solution
Variable
S1
S2
X1
S4
Zj
Cj Zj
Outgoing Row
Solution
Values
270
240
180
135
5490
30.50
29.00
X1
0
0
1
0
30.50
0
X2
4
4
0
1
0
29
S1
1
0
0
0
0
0
S2
0
1
0
0
0
0
S3
-6
-3
1
0
30.50
-30.50
S4
0
0
0
1
0
0
optimum column
1.)
0 (270) + 0 (240) + 30.50 (180) + 0 (135) = 5490
0 (0) + 0 (0) + 30.50 (1) + 0 (0) = 30.50
0 (4) + 0 (4) + 30.50 (0) + 0 (1) = 0
0 (1) + 0 (0) + 30.50 (0) + 0 (0) = 0
0 (0) + 0 (1) + 30.50 (0) + 0 (0) = 0
0 (-6) + 0 (-3) + 30.50 (1) + 0 (0) = 30.50
0 (0) + 0 (0) + 30.50 (0) + 0 (1) = 0
2.)
x1 : 30.50 30.50 =
x2 : 29 0 = 29
S1 : 0 0 = 0
S2 : 0 0 = 0
S3 : 0 30.50 = - 30.50
S4 : 0 0 = 0
3.)
S1 : 270 4 = 67.50
S2 : 240 4 = 60 smallest
S3 : 180 0 = 180 undefined
S4 : 135 1 = 135
4.)
S2 : 240 4 = 60
x1 : 0 4 = 1
x2 : 4 4 = 0
S1 : 0 4 = 0
S2 : 1 4 = 0
S3 : -3 4 = 1
S4 : 0 4 = 0
5.)
S1 : 270 4 (60) = 30
x1 : 0 4 (0) = 0
x2: 4 4 (1) = 0
S1 : 1 4 (0) = 1
S2 : 0 4 (1/4) = -1
S3 : -6 4 (-3/4) = -3
S4 : 0 4 (0) = 0
S4 :135 1 (160) = 75
x1 : 0 1 (0) = 0
x2 : 1 1 (1) = 0
S1 : 0 1 (0) = 0
S2 : 0 1 (1/4) = -1/4
S3 : 0 1 (-3/4) = 3/4
S4 : 1 1 (0) = 1
0
0
30.50
0
Solution
Variable
S1
X2
X1
S4
Zj
Cj Zj
Solution
Values
30
60
180
75
7230
30.50
29.00
X1
0
0
1
0
30.50
0
X2
0
1
0
0
29
0
S1
1
0
0
0
0
0
S2
-1
0
-1/4
29/4
- 29/4
S3
-3
-3/4
1
35/4
-35/4
S4
0
0
0
1
0
0
1.)
0 (30) + 29 (60) + 30.50 (180) + 0 (75) = 7230
0 (0) + 29 (0) + 30.50 (1) + 0 (0) = 30.50
0 (0) + 29 (1) + 30.50 (0) + 0 (0) = 29
0 (1) + 29 (0) + 30.50 (0) + 0 (0) = 0
0 (-1) + 29 (1/4) + 30.50 (0) + 0 (-1/4) = 29/4
0 (-3) + 29 (-3/4) + 30.50 (1) + 0 (3/4) = 35/4
0 (0) + 29 (0) + 30.50 (0) + 0 (1) = 0
2.)
x1 : 30.50 30.50 = 0
x2 : 29 29 = 0
S1 : 0 0 = 0
S2 : 0 29/4 = -29/4
S3 : 0 35/4 = - 35/4
S4 : 0 0 = 0
Problem No. 4
Product A
Raw materials
Manpower
Machine type
Profit
I.
Product B
10 units
2
3
25
Product C
10 units
2
2
22.50
20 units
3
2
30
Available time
Capacity
2400 units
480 hours
480 hours
Decision Variables:
Let X1 = no. of product A to be produced
X2 = no. of product A to be produced
X3 = no. of product A to be produced
Objective Function:
Max. = 25x1 + 22.50x2 + 30x3
Subject to:
10x1 + 10x2 + 20x3 + S1 + 0S2 + 0S3 = 2400
2x1 + 2x2 + 3x3 + 0S1 + S2 + 0S3 = 480
3x1 + 2x2 + 2x3 + 0S1 + 0S2 + S3 = 480
x2 + 0S1 + 0S2 + 0S3 + S4 = 135
TABLE I
Ci \ Cj
0
0
30.50
Solution
Variable
S1
S2
S3
Zj
Cj - Zj
Outgoing row
Solution
Values
2400
480
480
0
25
22.50
30
X1
10
2
3
0
25
X2
0
2
2
0
22.50
X3
20
3
2
0
30
S1
1
0
0
0
0
S2
0
1
0
0
0
S3
0
0
1
0
0
optimum column
1.) Zj
0 (2400) + 0 (480) + 0 (480) = 0
0 (10) + 0 (2) + 0 (3) = 0
0 (0) + 0 (2) + 0 (2) = 0
0 (20) + 0 (3) + 0 (2) = 0
2.) Cj Zj
X1 : 25 0 = 25
X2 : 22.50 0 = 22.50
X3 : 30 0 = 30
S1 : 0 0 = 0
S2 : 0 0 = 0
S3 : 0 0 = 0
3.)
S1 : 2400 20 = 120
S2 : 480 20 = 160
S3 : 480 20 = 240
4.)
S1 : 2400 20 = 120
x1 : 10 20 = 1/2
x2 : 10 20 = 1/2
x3 : 20 20 = 1
S1 : 1 20 = 1/20
S2 : 0 20 = 0
S3 : 0 20 = 0
5.)
S2 : 480 3 (60) = 120
x1 : 2 3 (1/2) = 1/2
x2 : 2 3 (1/2) = 1/2
x3 : 3 3 (1) = 0
S1 : 0 3 (1/20) = -3/20
S2 : 1 3 (0) = 1
S3 : 0 3 (0) = 0
TABLE II
Ci \ Cj
30
0
0
Solution
Variable
X3
S2
S3
Zj
Cj - Zj
Solution
Values
120
120
240
3600
25
22.50
30
X1
1/2
1/2
2
15
10
X2
1/2
1/2
1
15
15/2
X3
1
0
0
30
0
S1
1/20
-3/20
-1/10
3/2
-3/2
S2
0
1
0
0
0
S3
0
0
1
0
0
Outgoing row
optimum column
1.) Zj
30 (120) + 0 (120) + 0 (240) = 0
30 (1/2) + 0 (1/2) + 0 (2) = 0
30 (1/2) + 0 (1/2) + 0 (1) = 0
30 (1) + 0 (0) + 0 (0) = 0
30 (1/20) + 0 (-3/20) + 0 (-1/10) = 3/2
30 (0) + 0 (1) + 0 (0) = 0
30 (0) + 0 (0) + 0 (1) = 0
2.) Cj Zj
X1 : 25 15 = 10
X2 : 22.50 15 = 15/2
X3 : 30 30 = 0
S1 : 0 3/2 = -3/2
S2 : 0 0 = 0
S3 : 0 0 = 0
3.)
S1 : 2400 20 = 120
S2 : 480 20 = 160
S3 : 480 20 = 240
4.)
S3 : 240 2 = 120
x1 : 2 2 = 1
x2 : 1 2 = 1/2
x3 : 0 2 = 0
S1 : -1/10 2 = -1/20
S2 : 0 2 = 0
S3 : 1 2 =
5.)
x3 : 120 1/2 (120) = 60
x1 : 1/2 1/2 (1) = 0
x2 : 1/2 1/2 (1/2) = 1/4
x3 : 1 1/2 (0) = 1
S1 : 1/20 1/2 (-1/20) = 3/40
S2 : 0 1/2 (0) = 0
S3 : 0 1/2 (1/2) = -1/4
TABLE III
Ci \ Cj
30
0
25
Solution
Variable
X3
S2
X1
Zj
Cj - Zj
Solution
Values
60
60
120
4800
25
22.50
30
X1
0
0
1
25
0
X2
20
2.50
X3
1
0
0
30
0
S1
3/40
-1/8
-1/20
1
-1
S2
0
1
0
0
0
S3
-1/4
-1/4
5
-5
Outgoing row
1.) Zj
30 (60) + 0 (60) + 25 (120) = 4800
30 (1/2) + 0 (1/2) + 25 (1) = 0
30 (1/2) + 0 (1/2) + 25 (1/2) = 0
30 (1) + 0 (0) + 25 (0) = 0
30 (1/20) + 0 (-3/20) + 25 (-1/20) = 3/2
30 (0) + 0 (1) + 25 (0) = 0
30 (0) + 0 (0) + 25 (1/2) = 0
optimum column
2.) Cj Zj
X1 : 25 25 = 0
X2 : 22.50 20= 2.50
X3 : 30 30 = 0
S1 : 0 1 = -1
S2 : 0 0 = 0
S3 : 0 5 = -5
3.)
X3 : 60 1/4 = 240
S2 : 60 1/4 = 240
X1 : 120 1/4 = 240
4.)
S2 : 60 1/4 = 240
x1 : 0 1/4 = 0
x2 : 1/4 1/4 = 1
x3 : 0 1/4 = 0
S1 : -1/8 1/4 = -1/2
S2 : 1 1/4 = 4
S3 : -1/4 1/4 = -
5.)
x3 : 60 (240) = 0
x1 : 0 (0) = 0
x2 : 1/4 (1) = 0
x3 : 1 (0) = 0
S1 : 3/40 (-1/2) = 1/5
S2 : 0 (4) = -1
S3 : - (-1/2) = -1/8
TABLE IV
Ci \ Cj
30
22.50
25
Solution
Variable
X3
X2
X1
Zj
Cj - Zj
Solution
Values
0
240
0
5400
25
22.50
30
X1
0
0
1
25
0
X2
0
1
0
22.50
0
X3
1
0
0
30
0
S1
1/5
-1/2
1/5
-1/4
S2
-1
4
-2
70
-70
S3
-1/8
-1/2
15/4
-15/4
1.) Zj
30 (0) + 22.50 (240) + 25 (0) = 5400
30 (0) + 22.50 (0) + 25 (1) = 25
30 (0) + 22.50 (1) + 25 (0) = 22.50
30 (1) + 22.50 (0) + 25 (0) = 30
30 (1/5) + 22.50 (-1/2) + 25 (1/5) = -1/4
30 (-1) + 22.50 (4) + 25 (-2) = 70
30 -1/8) + 22.50 (-1/2) + 25 (3/4) = 15/4
2.)
Cj Zj
X1 : 25 25 = 0
X2 : 22.50 22.50 = 0
X3 : 30 30 = 0
S1 : 0 = -1/4
S2 : 0 70 = -70
S3 : 0 15/4 = -15/4
Problem No. 5
Toy A
Toy B
Available Time
Capacity
Cutting Department
2 hours
1 hour
80 hours
Finishing Department
1 hour
5 hours
70 hours
Profit
50
55
I.
Decision Variables:
Let X1 = no. of Toy A to be produced
X2 = no. of Toy B to be produced
Objective Function:
Max. = 50x1 + 55x2
Subject to:
II.
Objective Function:
Max. = 50x1 + S1 + OS2
Subject to:
2x1 + x2 + S1+ OS2 = 80
X1 + 5x2 + S2 + OS1 = 70
2x1 + x2 80
Explicit
X1 +5x2 70
Constraints
X; y 0
Implicit constraints
Table 1
Cj
Ci
55
Solution
Variables
Solution
Values
X1
X2
S1
S2
S1
80
S2
70
Zj
50
55
Cj - Zj
Outgoing row
III.
50
S1: 80 1 = 80
S2: 70 5 = 14
IV.
S2: 70 5 = 14
X1: 1 5 =
X2: 5 5 = 1
S1: 1 5 =
V.
S1: 80 1(14) = 66
X1: 2 1() = 9/5
X2: 1 1(1) = 0
S1: 1 1 (0) = 1
S2: 0 1() = -
optimum column
smallest
Table 2
Cj
Ci
50
55
X1
X2
S1
S2
9/
5
Solution
Variables
Solution
Values
S1
66
S2
14
Zj
770
11
55
39
Cj - Zj
Outgoing row
(2) X1: 50 11 = 39
X2: 55 55 = 0
S1: 0 0 = 0
S2: 0 11 = -11
optimum column
11
smallest
-11
Cj
Ci
50
55
Solution
Variables
Solution
Values
X1
X2
S1
S2
50
X1
110/3
5/9
-1/9
55
X2
20/3
-1/9
2/9
Zj
2200
50
55
65/3
20/3
-65/3
-20/3
Cj - Zj
Problem No. 6
Objective function:
max. F = 3X1 + 2X2 + OS1 + OS2
Subject to:
X! + 2X2 + S1 + OS2 = 6
2X1 + X2 + S2 + OS1 = 6
Table 1
Cj
X1
X2
S1
S2
Ci
Solution
Solution
Variable
Values
S1
S2
Zj
Cj - Zj
Optimum Column
Outgowing Row
1. 0(6) + 0(6) = 0
X1: 3 0 = 3
S1: 6 / 1 = 6
0(1) + 0(2) = 0
X2: 2 0 = 2
S2: 6 / 2 = 3
0(2) + 0(1) = 0
S1: 0 0 = 0
0(1) + 0(0) = 0
S2: 0 0 = 0
0(0) + 0(1) = 0
smallest
S2: 6 / 2 = 3
S1 :6 1(3) = 3
X1 : 2 / 2 = 1
X1 : 1 1(1) = 0
X2 ; 1 / 2 =
X2 : 2 1(1/2) = 3/2
S1 : 0 / 2 = 0
S1 : 1 1 (0) = 1
S2 : 1 / 2 =
S2: 0 1 (2) = -
Table 2
Cj
Ci
Solution
Variables
Solution
Values
X1
X2
S1
S2
S1
3/
2
S2
Zj
3/2
3/2
-3/2
Cj - Zj
Outgoing row
smallest
Optimum column
Table 3
Cj
Ci
Solution
Variables
Solution
Values
X1
X2
S1
S2
S1
2/3
-1/3
S2
-1/3
2/3
Zj
10
1/3
4/3
-1/3
-4/3
Cj - Zj
(2) X1: 3 3 = 0
X2: 2 2 = 0
S1: 0 1/3 = -1/3
S2: 0 4/3 = -4/3
Exercise 3.4
Problem No. 1
Decision Variables:
Let
Objective function:
Min. C = P50 X1 + P20 X2
Subject to:
X1 + X2 = 25
X1 10
X2 20
X1; X2 0
Modification:
Objective Function:
Min. C = P50 X1 + P20X2 + 0S1 + 0S2 + MA1 + MA2
Subject to:
X1 + X2 + A1 + 0S1 + 0S2 + 0A1 = 25
X1 X2 + A2 + 0S2 + 0A1 = 10
X2 + S2 + 0S1 + 0A1 + 0A2 = 20
X1; X2 0
TABLE I
Ci/Cj
M
M
0
Solution
Variables
A1
A2
S2
Zj
Cj- Zj
Solution
Values
25
10
20
35M
50
X1
20
X2
M
A1
0
S1
M
A2
0
S2
1
1
0
2M
50-2M
1
0
1
M
20-M
1
0
0
M
0
0
-1
0
-M
M
0
1
0
M
0
0
0
1
0
0
X1 = entering variable
A2 = outgoing variable
1 = pivot element
TABLE II
Ci/Cj
M
50
0
Solution
Variables
A1
X1
S2
Zj
Cj - Zj
A1:
Solution
Values
15
10
20
15M+500
50
X1
20
X2
M
A1
0
S1
M
A2
0
S2
0
1
0
50
0
1
0
1
M
20-M
1
0
0
M
0
1
-1
0
M-50
-M+50
-1
1
0
-M+50
M-50
0
0
1
0
0
S2:
X1:
25 1 (10) = 15
20 0 (10) = 20
10 1 = 10
1 1 (1) = 0
0 0 (1) = 0
11=1
1 1 (0) = 1
1 0 (0) = 1
01=0
1 1 (0) = 1
0 0 (0) = 0
01=0
0 1 (-1) = 1
0 0 (-1) =0
-1 1 = -1
0 1 (1) = -1
0 0 (1) = 0
11=1
0 1 (0) = 0
1 0 (0) = 1
01=0
S2 = entering variable
A1 = 15 1 = 15
A1 = outgoing variable
X1 = 10 0 = undefined
1 = pivot element
S2 = 20 1 = 20
TABLE III
Ci/ Cj
Solution
Variables
X2
X1
S2
Zj
Cj Zj
20
50
0
X1:
Solution
Values
15
10
5
800
50
X1
20
X2
M
A1
0
S1
M
A2
0
S2
0
1
0
50
0
1
0
0
20
0
1
0
1
20
M-20
1
-1
-1
-30
30
-1
1
-1
30
M-30
0
0
1
0
0
S2:
X2:
10 0 (15) = 10
20 1 (15) = 5
15 1 = 15
1 0 (0) = 1
0 1 (0) = 0
0 1 = 0
0 0 (1) = 0
1 1 (1) = 0
11=1
0 0 (1) = 0
0 1 (1) = -1
11=1
-1 0 (1) = -1
0 1 (1) = -1
11=1
1 0 (-1) = 1
0 1 (-1) = 1
-1 1 = -1
0 0 (0) = 0
1 1 (0) = 1
01=0
X1 + X2 = 25
X1 10
X2 20
10 + 15 = 25
10 10
20 20
Check:
25 = 25
Decision:
The optimum solution is to use 10 kilos of A and 15 kilos of B to minimize the cost of P800.
Problem No. 4
Cashew
Peanut
Selling Price
A
>40%
<25%
320
Decision Variables:
X1 = number of kilos of cashew in A
X2 = number of kilos of cashew in B
X3 = number of kilos of peanut in A
X4 = number of kilos of peanut in B
Objective Function:
Min.C = 200X1 + 200X2 + 80X3 + 80X4
Subject to:
X1 + X2 200
X3 + X4 400
X1 40%
X2 20%
X3 25%
X4 60%
B
>20%
<60%
160
Total
200
400
Cost
200
80
Min. C = 200X1 + 200X2 + 80X3 + 80X4 + 0S1 + 0S2 + MA1 + MA2 + 0S3 + 0S4 + 0S5 + 0S6
TABLE I
Ci/Cj
200
Solution
Variable
s
Solutio
n
Values
X1
20
0
X2
0
0
M
S1
S2
A1
1
0
1
1
0
0
0
1
0
0
1
0
1
0
0
0
1
0
0
0
1
0
0
0
0
0
-1
0
0
0
0
0
0
0
0
0
A2
-1
S5
S6
200
400
2/5 or
40%
1/5 or
20%
or
25%
3/5 or
60%
3/5 M
200- M
M
200-M
M
80
0
80
0
0
0
0
0
0
M
0
M
0
-M
M
-M
M
0
0
0
0
Zj
Cj Zj
80
80
X3
X4
S1
S2
A1
A2
S3
S4
S5
S6
TABLE II
Ci/Cj
200
X1
200
X2
80
X3
80
X4
0
S1
0
S2
M
A1
M
A2
0
S3
0
S4
0
S6
0
S
5
0
-1
Solution
Variables
S1
Solution
Values
999/5
S2
400
M
200
A1
X2
2/5
1/5
1
0
0
1
0
0
0
0
0
0
0
0
1
0
0
1
-1
0
0
-1
0
0
0
0
S5
1/4
S6
Zj
3/5
40+2/5
M
0
M
0
200
0
0
1
0
0
0
0
0
0
M
0
200
0
-M
0
-200
0
0
1
0
200-M
80
80
M-200
200
Cj Zj
TABLE III
Ci/Cj
0
0
M
M
0
0
Solution
Variable
s
S1
S2
A1
A2
S5
S6
Zj
Cj-Zj
Solutio
n
Values
200
400
2/5
1/5
3/5
3/5 M
200
X1
200
X2
80
X3
80
X4
0
S1
0
S2
M
A1
M
A2
0
S3
0
S4
0
S5
0
S6
1
0
1
0
0
0
M
200-M
1
0
0
1
0
0
M
200-M
0
1
0
0
1
0
0
80
0
1
0
0
0
1
0
80
1
0
00
0
0
0
0
0
0
1
0
0
0
0
0
0
0
M
0
0
0
1
0
0
M
0
0
0
1
0
0
0
M
-M
0
0
0
-1
0
0
-M
M
0
0
0
0
1
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
CHAPTER 4
Exercise 4.1
Problem No. 1
Initial Feasible Solution
To
PROJECT
Supply
From
B
1000
Plant X
145
1500
Plant Y
50
C
2000
750
750
-1250
1750
2250
1600
155
-250
2000
Plant Z
1450
500
200
1250
1600
140
1750
4650
Demand
1500
1750
1400
4650
Transportation Cost:
Computation of Stones:
1450 x 1000
50 x 1500
1550 x 1750
200 x 500
1400 x 1250
= P 1450000
=
75000
=
2712500
=
100000
=
1750000
P 6087500
XC = 0 + 1400 = 1400
XA = 1450 1400 = 50
YA = 50 + 1400 = 1450
YB = 1550 1400 = 150
ZB = 200 + 1400 = 1600
ZC = 1400 1400 = 0
Optimal Solution
To
PROJECT
Supply
From
B
1000
Plant X
2000
50
750
1500
Plant Y
145
750
1750
2250
1600
150
1000
2000
Plant Z
1450
140
500
1250
1600
160
1750
1250
4650
Demand
1500
1750
1400
4650
P 4337500
]Transportation Cost:
50 x 1000
1450 x 1500
150 x 1750
1600 x 500
1400 x 750
= P 50000
=
2175000
=
262500
=
800000
=
1050000
Decision: DJA Trucking Co. should follow the distribution schedule in Table II to minimize the cost to
P 4,337,500
Problem No. 2
Initial Feasible Solution
To
PACKING PLANT
Supply
From
Plantation A
X
240
130
Y
160
100
40
40
220
Plantation B
-160
300
160
200
250
90
40
Plantation C
170
140
120
100
100
-240
-80
520
Demand
130
200
190
520
Transportation Cost:
Computation of Stones:
130 x 240 =
40 x 160 =
160 x 300 =
90 x 200 =
100 x 120 =
P 31200
6400
48000
18000
12000
P 115600
CY = 100 100 = 0
BY = 90 + 100 = 190
BX = 160 100 = 60
AW = 130 100 = 30
AX = 40 + 100 = 140
CW = 0 + 100 = 100
Table II
To
PACKING PLANT
Supply
From
X
240
Plantation A
30
160
100
140
-160
170
40
220
Plantation B
300
60
200
250
190
40
Plantation C
140
120
100
100
180
260
520
Demand
130
200
190
520
Transportation Cost:
Computation of Stones:
30 x 240 =
140 x 160 =
60 x 300 =
190 x 200 =
100 x 40 =
P 7200
22400
18000
38000
4000
P 89600
Optimal Solution
To
PACKING PLANT
Supply
From
X
240
Plantation A
160
160
30
170
40
300
30
200
250
190
40
Plantation C
100
170
220
Plantation B
140
120
100
100
20
100
520
Demand
130
200
190
520
Transportation Cost:
170 x 160 =
30 x 220 =
30 x 300 =
190 x 200 =
100 x 40 =
P 27200
6600
9000
41800
4000
P 88600
Decision: The banana plantation should follow the distribution schedule in Table III to minimize the
transportation cost to P 88,600.
Problem No. 3
Initial Feasible Solution Optimal Solution
To
(D)
Makati
From
DEPARTMENT STORES
(E)
(F)
(G)
Cubao
Sta. Cruz
Ermita
12.00
5.00
Plantation A
11.00
14.50
725
11.00
11.50
6.50
12.00
5.00
Supply
(H)
Dummy
0
16.50
7.50
4.00
7250
Plantation B
10150
145
580
--
Plantation C
217
725
9.00
--
1.00
Demand
8700
5800
1.50
5.50
217
2175
2900
4350
217
2175
21750
21750
Transportation Cost:
Evaluation of Unused Cells:
7250
1450
5800
2175
725
2175
x 5.00 = P 36250.00
x 11.00 = 15950.00
x 6.50 = 37700.00
x 5.00 = 10875.00
x 4.00 =
2900.00
x 5.50 = 11962.00
P 115637.50
Decision: Rachel Mae should follow the distribution schedule in Table I to minimize the cost to
P115637.50
Problem No. 4
Table 1
To
PA
PB
Supply
From
1600
Plant M
1000
Plant N
1300
Plant P
840
4300
2540
1000
2000
2160
-
1300
2040
1360
1200
1200
0
Plant Dummy
160
0
200
200
3700
Demand
2300
1400
3700
Exercise 4.2
Problem No. 1
From
A
B
C
From
A
B
C
To
Supply
380
260
140
To
Q
R
S
Demand
300
260
220
Q
P140
P80
P40
R
P180
P160
P100
S
P60
P140
P180
Table 1.
R1 = 0
R2 = -20
R3 = 20
From
A
B
C
Demand
To
K1 = 140
Q
300
-40
-120
300
K2 = 180
R
80
180
-100
260
Solution:
Q, A = R1 + K1 = 140
S, B = R2 + K3 = 140
Q, A = 0 + K1 = 140
S, B = -20 + K3 = 140
Q, A = K1 = 140
S, B = K3 = 140 + 20
R, A = R1 + K2 = 180
S, B = K3 = 160
R, A = 0 + K2 = 180
S, C = R3 + K3 = 180
R, A = K2 = 180
S, C = R3 + 160 = 180
R, B = R2 + K2 = 160
S, C = R3 = 180 - 160
R, B = R2 + 180 = 160
S, C = R3 = 20
R, B = R2 = 160 -180
R, B = -20
K3 = 160
S
-100
80
140
220
Supply
380
260
140
780
Q, C = 0 + 140 = 140
Q, A = 300 140 = 160
R, A = 80 + 140 = 220
R, B = 180 140 = 40
S, B = 80 + 140 = 220
S, C = 140 140 = 0
Table 2
R1 = 0
R2 = -20
R3 = 20
From
A
B
C
Demand
To
K1 = 140
Q
160
-40
140
300
K2 = 180
R
220
40
-100
260
K3 = 160
S
-100
220
0
220
Supply
380
260
140
780
Problem No. 2
Projects
A
B
C
From
X
Y
Z
To
Demand
1500
1750
1400
Plant
X
Y
Z
Available
1450
1600
1600
A
P1000
P1500
P2000
B
P2000
P1750
P500
C
P750
P2250
P1250
Table 1
From
To
R1 = 0
X
R2 = 500
Y
R3 = -750
Z
Demand
Transportation cost: P6, 087, 500
K1 = 1000
A
1450
50
1750
1500
K2 = 1250
B
750
1550
200
1750
A, X = 1, 450, 000
A, Y = 75, 000
B, Y = 2, 712, 500
B, Z = 100, 000
C, Z = 1, 750, 000
TC
6, 087, 500
Solution
A, X = R1 + K1 = 1000
B, Z = R3 + K2 = 500
A, X = 0 + K1 = 1000
B, Z = R3 + 1250 = 500
A, X = K1 = 1000
B, Z = R3 = 500 1250
A, Y = R2 + K1 = 1500
B, Z = R3 = -750
A, Y = R2 + 1000 = 1500
C, Z = R3 + K3 = 1250
A, Y = R2 = 1500 1000
C, Z = -750 + K3 = 1250
A, Y = R2 = 500
C, Z = K3 = 1250 + 750
K3 = 2000
C
-1250
-250
1400
1400
Supply
1450
1600
1600
4650
B, Y = R2 + K2 = 1750
C, Z = K3 = 2000
B, Y = 500 + K2 = 1750
B, Y = K2 = 1750 500
B, Y = K2 =1250
C, X = 0 + 1400 = 1400
C, Z = 1400 1400 = 0
B, Z = 200 + 1400 = 1600
B, Y = 1550 1400 = 150
A, Y =50 + 1400 = 1450
A, X = 1450 1400 = 50
Table 2.
R1 = 0
R2 = 500
R3 = -750
From
X
Y
Z
Demand
C, Y = 0 + 1400 = 1400
A, Y = 1450 1400 = 50
A, X = 50 + 1400 + 1450
C, X = 1400 1400 = 0
Table 3.
To
K1 = 1000
A
50
1450
1750
1500
K2 = 1250
B
750
150
1600
1750
K3 = 2000
C
1400
-250
0
1400
Supply
1450
1600
1600
4650
From
To
X
Y
Z
Demand
Transportation cost: P 5737, 500
R1 = 0
R2 = 500
R3 = -750
K1 = 1000
A
1450
50
1750
1500
K2 = 1250
B
750
150
1600
1750
K3 = 2000
C
0
1400
0
1400
Supply
1450
1600
1600
4650
A, X = 1, 450, 000
A, Y = 75, 000
B, Y = 262, 500
B, Z = 800, 000
C, X = 3, 150, 000
TC
5, 737, 500
Problem No. 3
Projects
A
B
C
From
Cavite
Batangas
Laguna
To
Demand
750
200
500
1450
From
Cavite
Batangas
Laguna
Supply
100
800
150
1050
Project A
P500
P600
P300
Project B
P100
P400
P200
Project C
P700
P600
P500
Table 1.
From
To
Cavite
Batangas
Laguna
Dummy (X)
Demand
Transportation Cost: P 560, 000
R1 = 0
R2 = 100
R3 = -100
R4 = -600
K1 = 500
Project A
100
650
-100
1100
750
K2 = 300
Project B
-200
150
50
900
200
K3 = 600
Project C
100
-100
100
400
500
Supply
100
800
150
400
1450
560, 000
Solution:
A, Cavite = R1 + K1 = 500
B, Laguna = R3 + K2 = 200
A, Cavite = 0 + K1 = 500
A, Cavite = K1 = 500
A, Batangas = R2 + K1 = 600
B, Laguna = -100
C, Laguna = R3 + K3 = 500
A, Batangas = R2 = 100
B, Batangas = R2 + K2 = 400
C, Laguna = K3 = 600
C, X = R4 + K3 = 0
C, X = R4 + 600 = 0
B, Batangas = K2 = 300
C, X = R4 = - 600
Table 2.
R1 = 0
R2 = 100
R3 = - 100
R4 = -600
From
To
Caviite
Batangas
Laguna
Dummy (x)
Demand
K1 = 500
Project A
0
750
-100
1100
750
K2 = 300
Project B
100
50
50
900
200
K3 = 600
Project C
100
-100
100
400
500
Supply
100
800
150
400
1450
K1 = 500
Project A
0
700
50
1100
750
K2 = 300
Project B
100
100
0
900
200
K3 = 600
Project C
100
-100
100
400
500
Supply
100
800
150
400
1450
Table 3.
R1 = 0
R2 = 100
R3 = -100
R4 = -600
From
To
Cavite
Batangas
Laguna
Dummy (x)
Demand
Table 4.
From
To
R1 = 0
Cavite
R2 = 100
Batangas
R3 = -100
Laguna
R4 = -600
Dummy (x)
Demand
Transportation cost: P515, 000
K1 = 500
Project A
0
600
150
1100
750
K2 = 300
Project B
100
100
0
900
200
K3 = 600
Project C
100
100
0
400
500
Supply
100
800
150
400
1450
Exercise 4.3
Problem No. 1
Cost Information
Machines
Jobs
J-19
P11
P14
P90
P6
P5
K-20
P8
P5
P1
100
0
11
L-21
12
Jobs
MachineA
Machine B
Machine C
J-19
K-20
L-21
P11-8=3
8-8=0
9-8=1
P14-10=4
10-10=0
12-10=2
P6-6=0
11-6=5
7-6=1
Jobs
J-19
P3
P4
P0
K-20
P5
120
P5
L-21
11
1
1P
Jobs
Machine A
Machine B
Machine C
J-19
K-20
L-21
P3-3=0
0
0
P4-3=1
0
1
0
0
0
Jobs
J-19
P0
P1
P0
K-20
L-21
Assigned
Cost
Job#1 to Machine 1
Job#2 to Machine 3
Job#3 to Machine 2
Total Assignment cost
P 11
10
7
P 28
Problem No. 2
Cost Information
Financing Corporation
Personnel
Pampanga
Bataan
Bulacan
Mel
P21,000
P22,00
0
P18,000
Ben
25,000
23,000
15,000
P50
Fred
20,00
0
33,000
15,000
Jobs
Pampanga
Bataan
Bulacan
Mel
Ben
Fred
P21,000-20,000=1,000
25,000-20,000=5,000
20,000-20,000=0
P22,000-22,000=0
23,000-22,000=1,000
33,000-22,000=11,000
P18,000-15,000=3,000
15,000-15,000=0
15,000-15,000=0
Financing Corporation
Personnel
Pampanga
Bataan
Bulacan
Mel
P1,00
0
P0
P3,000
Ben
5,000
1,000
Fred
11,000
Jobs
Pampanga
Bataan
Bulacan
Mel
Ben
Fred
P1,000-1,000=0
5,000-1,000=4,000
0
0
1,000-1,000=0
11,000-11,000=0
P3,000-1,000=2,000
0
0
Financing Corporation
Personnel
Pampanga
Bataan
Bulacan
Mel
P0
P0
P2,000
Ben
4,000
Fred
Assigned
Cost
Mel to Pampanga
Ben to Bataan
Fred to Bulacan
Total Assignment cost
P21,000
23,000
15,000
P 59,000
Problem No. 3
3-A.
Cost Information
Job
1
A
B
Machine
4
12
10
Jobs
A
B
C
7-6=1
6-6=0
9-6=3
6-6=0
8-6=2
9-6=3
2-2=0
4-2=2
8-2=6
8-5=3
5-5=0
12-5=7
5-4=1
4-4=0
10-4=6
5-5=0
6-5=1
6-5=1
Machine
4
B
C
Jobs
A
B
C
1-1=0
0
3-1=2
0
2-1=1
3-1=2
0
2-1=1
6-1=5
3-1=2
0
7-1=6
1-1=0
0
6-5=1
0
1-1=0
1-1=0
Machine
4
A
0
B
C
Assigned
Cost
A to 1
B to 4
C to 6
Total Assignment cost
P7 hours
5 hours
6 hours
18 hours
3-B.
Cost Information
Job
1
A
2
1
Machine
4
3
3
6
1
B
16
18
10
14
19
12
12
14
12
18
20
24
Jobs
A
B
C
1-1=0
16-1=15
12-1=11
3-3=0
18-3=15
14-3=11
2-1=1
10-1=9
12-1=11
2-2=0
14-2=12
18-2=16
1-1=0
19-1=18
20-1=19
1-1=0
12-1=11
24-1=23
Machine
4
A
0
15
15
B
C
12
18
11
11
16
19
23
Jobs
A
B
C
0
15-9=6
11-11=0
0
15-9=6
11-11=0
0
9-9=0
11-11=0
0
12-9=3
16-11=5
0
18-9=9
19-11=8
0
11-9=2
23-11=12
Machine
4
A
0
12
B
C
Assigned
Cost
A to 1
B to 3
C to 2
Total Assignment cost
1 hours
10 hours
14hours
25 hours
Problem No. 4
SALES
ADVISERS
Las Pias
Quezon City
Caloocan
San Juan
Mandaluyong
Pasig
Ramirez
14
12
10
13
Arambulo
13
14
11
12
Cordero
12
12
10
Cereza
11
10
12
11
Diaz
10
Tellez
10
14
11
10
14
18
SOLUTION:
Las Pias
Quezon City
Caloocan
San Juan
Mandaluyong
Pasig
8- 6=2
14 - 10 - 4
12 - 9 = 3
10 - 8 = 2
13 - 9 = 4
9-7=2
7-6=1
13 - 10 = 3
14 - 9 = 5
11 - 8 = 3
12 - 9 = 3
8-7=1
6-6=0
12 - 10 = 2
12 - 9 = 3
9-8=1
10 - 9 = 1
9-7=2
9-6=3
11 - 10 = 1
10 - 9 = 1
9-8=1
12 - 9 = 3
11 - 7 = 4
8-6=2
10 - 10 = 0
9-9=0
8-8=0
9-9=0
7-7=0
10 - 6 = 4
14 - 10 = 4
11 - 9 = 2
10 - 8 = 2
14 - 9 = 5
18 - 7 = 11
SALES
ADVISERS
Las Pias
Quezon City
Caloocan
San Juan
Mandaluyong
Pasig
Ramirez
Arambulo
Cordero
Cereza
Diaz
Tellez
11
SOLUTION :
Ramirez
2-2=0
4-2=2
3-2=1
2-2=0
4-2=2
2-2=0
Arambulo
1-1=0
3-1=2
5-1=4
3-1=2
3-1=2
1-1=0
Cordero
0-0=0
2-0=2
3-0=3
1-0=1
1-0=1
2-0=2
Cereza
3-1=2
1-1=0
1-1=0
1-1=0
3-1=2
4-1=3
Diaz
2-0=0
0-0=0
0-0=0
0-0=0
0-0=0
0-0=0
Tellez
4-2=2
4-2=2
2-2=0
2-2=0
5-2=3
11 - 2 = 9
SALES
ADVISERS
Las Pias
Quezon City
Caloocan
San Juan
Mandaluyong
Pasig
Ramirez
Arambulo
Cordero
Cereza
Diaz
Tellez
ASSIGNED:
COST
10
Arambulo to Pasig
11
Diaz to Mandaluyong
Tellez to Caloocan
11
55
Exercise 4.4
Solve the following problems
1.Three jobs has to be done on three machines. Each job can be assigned to one and only one
machines. The cost of each job on each machine is given in the following table.
Machines
Jobs
P50
P70
P90
140
100
120
150
130
160
Machines
Job #1
Job #2
Job #3
Machines1
P50-50= P0
140-50=90
150-150=100
Jobs
P50
P5
0
P70
P7
0
P90
P7
0
140
100
120
150
130
160
Machines2
P70-70=P0
100-70=30
130-70=60
Machines3
P90-90=P0
120-90=30
160-90=70
Machines
Job #1
Job #2
Job #3
Jobs
P0
P0
P0
90
P3
100
0
P3
120
0
100
130
P6
00
70
Machines1
0
90-30=60
100-60=40
Machines1
0
30-30=0
60-60=0
Machines3
0
30-30=0
70-60=10
Machines
Jobs
P0
P0
P0
60
40
10
Assigned
Cost
Job#1 to Machine 1
Job#2 to Machine 3
Job#3 to Machine 2
P 50
120
130
P300
2. The Ramirez Reality Company wishes to reshuffle and asign six of its top-notch real-estate sales
advisors to one of six areas where their low-cost housing projects are located. Using the demography of
their six areas and the past sales performance of their six sales advisor, the company estimates that the
sales of property, in homes per year would be as follows.
Sales
Advisor
Areas
1
Carol
26
18
16
20
24
28
24
16
14
22
28
26
20
18
12
18
24
24
24
22
18
18
20
22
18
14
16
16
18
20
24
24
20
20
22
28
Ben
Oscar
Mel
Minnie
Art
Determine to which area each of the six should be assigned in order to maximize the total
annual sales of houses.
Cost Information
Sales
Advisor
Areas
1
Carol
26
18
16
20
24
28
24
16
14
22
28
26
20
18
12
18
24
24
24
22
18
18
20
22
18
14
14
16
16
18
20
24
24
20
20
22
28
Ben
Oscar
Mel
Minnie
Art
Areas 1
Areas 2
Areas 3
Areas 4
Areas 5
Areas 6
Carol
Ben
Oscar
Mel
Minnie
Art
26-16=10
18-16=2
16-16=0
20-16=4
24-16=8
28-16=12
24-14=10
16-14=2
14-14=0
22-14=8
28-14=14
26-14=12
20-12=8
18-12=6
12-12=0
18-12=6
24-12=12
24-12=12
24-18=6
22-18=4
18-18=0
18-18=0
20-18=2
22-18=4
18-14=4
14-14=0
16-14=2
16-14=2
18-14-4
20-14=6
28-20=8
24-20=4
20-20=0
20-20=0
22-20=2
28-20=8
Areas
1
Carol
10
2
18
12
10
2
16
14
12
6
18
6
18
12
12
2
20
2
16
12
222
Ben
Oscar
Mel
Minnie
Art
Carol
Ben
Oscar
Mel
Minnie
Art
Areas 1
Areas 2
Areas 3
Areas 4
Areas 5
Areas 6
10-2=8
2-2=0
0
4-2=2
8-2=6
12-2=10
10-2=8
2-2=0
0
8-2=6
14-2=12
12-2=10
8-6=2
6-6=0
0
6-6=0
12-6=6
12-6=6
6-2=4
4-2=2
0
0
2-2=0
4-2=2
4-2=2
0
2-2=0
2-2=0
4-2-2
6-2=4
8-2=6
4-2=2
0
0
2-2=0
8-2=6
Areas
1
Carol
8
42
10
86
12
10
22
22
22
24
22
Ben
Oscar
Mel
Minnie
Art
Areas 1
Areas 2
Areas 3
0Areas 4
Areas 5
Areas 6
Carol
Ben
Oscar
Mel
Minnie
Art
8-2=6
0
0
2-2=0
6-2=4
10-2=8
8-6=2
0
0
6-6=0
12-6=6
10-6=4
2-2=0
0
0
0
6-2=4
6-2=4
4-2=2
2-2=0
0
0
0
2-2=0
2-2=0
0
0
0
2-2-0
4-2=0
6-2=4
2-2=0
0
0
0
6-2=4
Areas
1
Carol
6
Ben
Oscar
Mel
Minnie
Art
Assigned
Cost
Carol to Areas 1
Ben to Areas 2
Oscar to Areas 3
Mel to Areas 4
Minnie to Areas 5
Art to Areas 6
Total Assignment cost
18
14
20
22
16
22
112
Personnel
Job#1
Job#2
Job#3
David
5 hours
7 hours
9 hours
Hazel
14 hours
10 hours
12 hours
Rachel
15 hours
13 hours
16 hours
Find the assignment program that will minimize the number of hours spent in doing the jobs?
Cost Information
Personnel
Job#1
Job#2
Job#3
David
5 hours
hours
7
7 hours
hours
95hours
hours
Hazel
14 hours
10 hours
12 hours
Rachel
15 hours
13 hours
16 hours
Personnel
Job#1
Job#1
Job#1
David
Hazel
Rachel
5hours- 5hours = 0
14 hours -5hours =9 hours
15 hours -5hours =10 hours
7hours- 7hours = 0
10hours- 7hours =3 hours
13hours- 7hours = 6 hours
9hours- 9hours = 0
12hours- 9hours =3 hours
16hours- 9hours = 7 hours
Personnel
Job#1
Job#2
Job#3
David
Hazel
9 hours
10 3hours
123 hours
Rachel
10 hours
13 6hours
7 hours
hours
hours
hours
Personnel
Job#1
Job#1
Job#1
David
Hazel
Rachel
0
9 hours -3hours =6 hours
10 hours -6hours =4 hours
0
3hours- 3hours =0
6hours- 6hours =0
0
3hours- 3hours =0
7hours- 6hours = 1 hours
Personnel
Job#1
Job#2
Job#3
David
Hazel
6 hours
Rachel
4 hours
1 hours
Assigned
Cost
David to Job#1
Hazel to Job#2
Rachel toJob#3
5 hours
12 hours
13 hours
30 hours
4. The manager of a company wishes to assign three jobs to four machines on one-on-one basis. The
cost of each job on each machine is given on the following table:
Jobs
Machine 1
Machine 2
Machine 3
Machine 4
P 650
P 480
P 560
P 640
160
260
340
340
200
300
380
440
ANSWER:
COST INFORMATION TABLE
Jobs
Machine 1
Machine 2
Machine 3
Machine 4
P 650
P 480
P 560
P 640
160
260
340
340
200
300
380
440
Jobs
Machine 1
Machine 2
Machine 3
Machine 4
P 490
P 220
P 220
P 300
40
40
40
100
SOLUTION:
Machine 1
Machine 2
Machine 3
650 160 = 490 480 260 = 220 560 340 = 220 640 340 = 200
160 160 = 0
260 260 = 0
340 340 = 0
200 160 = 40 300 260 = 40 380 340 = 40 440 340 = 100
Machine 4
340 340 = 0
Jobs
Machine 1
Machine 2
Machine 3
Machine 4
P270
P0
P0
P 80
60
SOLUTION:
JOB
A
490 220
220 220 = 0
220 220 = 0
300 220 = 80
00=0
00=0
00=0
00=0
40 40 =0
40 40 = 0
40 40 = 0
100 40 = 60
ASSIGNED
Job A to Machine 2
Job B to Machine 1
Job C to Machine 3
TOTAL
COST
480
160
380
1020
Item # 1
Item # 2
Item # 3
Department Store 1
P 650
P 800
P 780
Department Store 2
660
780
790
Department Store 3
600
790
790
Item # 1
Item # 2
Item # 3
Department Store 1
P 650
P 800
P 780
Department Store 2
660
780
790
Department Store 3
600
790
790
Item # 1
Item # 2
Item # 3
Department Store 1
P50
P 20
P0
Department Store 2
60
10
Department Store 3
10
10
SOLUTION:
Item #1
650 600 = 50
660 600 = 0
600 600 = 0
ASSIGNED
Dept. Store 1 to Item #3
Dept. Store 2 to Item #2
Dept. Store 3 to Item #1
Item #2
Item #3
800 780 = 20
780 780 = 0
780 780 = 0
790 780 = 10
790 780 = 10
790 790 = 10
COST
780
780
600
P 2160
CHAPTER 5
Exercise 5.1
Solve the following problems:
1. The cost of placing an order is P60 and the carrying cost is P30 per unit per year. The estimated
annual demand is 10, 000 units. Find the economic order quantity.
P= P60
C= P30/ units
)(
Qu = 200
2. The DJA Company uses 100, 000 units per year of a product. The carrying cost per unit is P3 per
year. The cost of ordering a batch is P60.
a. What is optimum order size ( EOQ )?
b. If the ordering cost is P60 per order, how many units should be ordered at one time?
a.
C= P3/units
P= P60
b.
(
Qu= 2, 000
)(
Qn= 50
( )
)
3. Hazel Rae, the owner of Hazels Boutique is planning to order maternity dresses for her store.
The dress manufacturer informed her that if the maternity dress order received this month are
worth P30, 000 or more, the manufacturer will sponsor the one-day visit by Dr. Alene del
Rosario, an OB-Gyne who will come to the store and talk with prospective mothers about child
care. Hazel orders P350, 000 worth of maternity dresses per year. Her carrying costs are 20% of
average inventory and her ordering costs is P300 per order.
a. If Hazel places her order using the EOQ model, will the value of her order be sufficient to qualify
for a visit by Dr. del Rosario?
b. How much is the worth of maternity dresses per order?
c. How many days interval per order?
C= 20%
P= P300/ units
a.
b.
(
)(
A= P350, 000
c.
(
)(
)
(
Qd= 34 days
4. This year Arielle Rachel Mae, the owner of Rachels Novelty Store in Makati has ordered a
particular novelty item according to EOQ calculations. She places 10 orders per year. Her
ordering cost is P46 per order, while her carrying cost is 25%. Next year, annual demand for the
same item is expected to increase by 20%. How many orders will Rachell Mae should be placing
next year?
EOQ = 10 orders per year
[10]2 =
P = P46/ order
C = 25%
.25 = 92(100)
(
(
)
)
100 =
5. The following data are for an inventory item in which the EOQ model applies.
Given:
D= 10, 000 units ( annual demand )
R = P10 per unit
P = P500 per order
C = 25% of average inventory
Find:
a.
b.
c.
d.
e.
a.
b.
(
(
Qn= 2
d.
)(
Qu= P 6, 325
c.
e. Ordering Cost
)(
Carrying Cost
Total inventory
cost
)
(
Qn x P
2 x 500 = 1, 000
= 625
1, 625
6. The Arambulos Garment Factory purchases their raw materials from one of the textile mills in
Metro Manila. One of these raw materials is being used in the manufacture of childrens
dresses. The factory uses 5, 000 yards of this raw material per year. The cost of ordering this raw
material from the Company is P500 per order. Carrying cost is 20% of average inventory.
Find:
a.
b.
c.
d.
e.
D= 5, 000 yards
a.
b.
(
Qn= 1
d.
P= P500/ order
c.
(
)(
Qu= P 5, 000
C= 20%
e. Ordering Cost
)(
Qp= P 5, 000
Carrying Cost
Total inventory
cost
)
(
Qn x P
1 x 500 = 500
= 500
1, 000
Exercise 5.2
)(
22.8 (
P 4621
Therefore net incremental benefit = P 135, 000 (-P4621) + (-P4506) = P 135, 115/ Yes the
owner should take the offer.
2. A.
)
)
B. TC = (Qn x P) + (A/Qn) x x c
(
)
)
(
(
B. 365
4.
(
)
3. A.
)
(
)
(
5. No, because from the given formula of EOQ, R, which is the cost per unit can only be found
at the formula of finding number of units per order (Qu). But because Qu is also not given,
its impossible to derived a formula having two entities of the equation missing so therefore,
its not.