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CHAPTER 1

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

9. 0.2x 0.3y = 10 Multiply by (2)


0.5x + 0.2y = 6 Multiply by (3)
.40x - .60y = 20
1.50x + .60y = 9
1.90x
= 29
1.90
1.9
X = 15.26

.40 (15.26) - .60y = 20


6.10 - .60y = 20
-.60y = 20 6.10
-.60y = 13.90
-.60 = -.60
Y = - 23.16

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

9. Minimize: 80x1 + 75x2


Subject to: 3x1 + 5x2 15
4x1 + x2 16
x1, x2 0
SOLUTION:

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

10. Maximize: 100x1 + 200x2


Subject to: x1 + x2 4
x1 + x2 6
x2 5
x1, x2 0

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 + 4x2 160


x1
0
40
x2
80
0
2x1 + 4x2 = 160
2(0) + 4x2 = 160
4x2 = 160
4
4
x2 = 40
2x1 + 4x1 = 160
2x1 + 4(0) = 160
2x1 = 160
2
2
x1 = 80

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.

2x1 + 4x2 160


2(60) + 4 (10) 160
120 + 40 160
160 160

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

Checking of the constraints:


X + 2y 24

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

X = no. of units for scooter


Y = no. of units for bicycle

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

Checking of the constraints


4x + 6y 120

10x + 3y 180

4(15) + 6(10) 120

10(15) + 3(10) 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

X = no. of first type of cookies


Y = no. of second type of cookies

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:

Max P = 48x + 60y


= 48(6) + 60(7)
= 288 + 420
Max P = P 708.00

Checking the constraints:

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

Modified Objective function: max P = 20,800X1 + 15,000 X2 + OS1+ OS2


Subject to:
4X1 + 3X2+ S1+ OS2 = 36
3X1 + 6X2 + OS1+ S2 = 48
X1 ;X2 0
Table I - Initial feasible solution
Ci
20,800

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

Table II - Optimal Solution


Ci
20,800

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

Modified Objective function: max P = 40,000X1 + 20,000 X2 + OS1+ OS2


Subject to:
40X1 + 20X2+ S1+ OS2 = 160
2X1 + 2X2 + OS1+ S2 = 6
X1 ;X2 0

Table I: Initial feasible solution


Ci
20,800

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

Table II: Second feasible solution


Ci
40,000

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

smallest positive ratio

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

1. 50(5/2) + 0(3) = 125


50(1) + 0(0) = 50
50(1/2) + 0 (1) = 25
50(1/4) + 0(-1/2) = 25/2
50(0) + 0(1) = 0
2.

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

smallest positive ratio

Table 3 (final solution)

50
30

Solution
variables
X
X
Zj
Cj-Zj

1. 50(1) + 30(3) = 140


50(1) + 30(0) = 50
50(0) + 30 (1) = 30
50(1/2) + 30(-1/2) = 10
50(-1/2) + 30(1) = 5

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

S2 : 780 3 (180) = 240


x1 : 3 3 (1) = 0
x2 : 4 3 (0) = 4
S1 : 0 3 (0) = 0
S2 : 1 3 (0) = 1
S3 : 0 3 (1) = -3
S4 : 0 3 (0) = 0

S4 :135 0 (180) = 135


x1 : 0 0 (1) = 0
x2 : 1 0 (0) = 1
S1 : 0 0 (0) = 0
S2 : 0 0 (0) = 0
S3 : 0 0 (1) = 0
S4 : 1 0 (0) = 1

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

x1 : 180 0 (60) = 180


x1 : 1 0 (0) = 1
x2 : 0 0 (1) = 0
S1 : 0 0 (0) = 0
S2 : 0 0 (1/4) = 0
S3 : 1 0 (-3/4) = 1
S4 : 0 0 (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

TABLE III (final solution)


Ci \ Cj

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

Smallest positive ratio

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

S3 : 480 2 (60) = 240


x1 : 3 2 (1/2) = 2
x2 : 2 2 (1/2) = 1
x3 : 2 2 (1) = 0
S1 : 0 2 (1/20) = -1/10
S2 : 0 2 (0) = 0
S3 : 1 2 (0) = 1

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

Smallest positive ratio

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

S2 : 120 1/2 (120) = 60


x1 : 1/2 1/2 (1) = 0
x2 : 1/2 1/2 (1/2) = 1/4
x3 : 0 1/2 (0) = 1
S1 : -3/20 1/2 (-1/20) = -1/8
S2 : 1 1/2 (0) = 1
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

X1 : 120 1/2 (240) = 0


x1 : 1 1/2 (1) = 1
x2 : 1/2 (1/2) = 0
x3 : 0 1/2 (0) = 0
S1 : -1/20 1/2 (-1/2) = 1/5
S2 : 0 1/2 (4) = -2
S3 : 1/2 (- ) = 3/4

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

(4) 66 9/5 = 110/3


X1: 9/5 9/5 = 1
X2: 0 9/5 = 0
S1: 1 9/5 = 5/9
S2: - 9/5 = -1/9
(5) 14 (110/3) = 20/3
X1: = 0
X2: 1 (0) = 1
S1: 0 (5/9) = -1/9
S1: (1/9) = 2/9

optimum column

(1) 0(66) + 55(14) = 770


0(9/5) + 55() =11
0(0) + 55(1) = 55
0(1) + 55(6) = 0
0(-) + 55() = 11

(3) S1: 66 9/5 = 110/3


X2: 14 = 70

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

(1) 50(110/3) + 55 (20/3) = 2200


50(4) + 55 (0) = 50
50(0) + 55 (1) = 55
50(5/9) + 55 (-1/9) = 65/3
50(-1/9) + 55 (2/9) = 20/3
(2) X1: 50 50 = 0
X2: 55 55 = 0
S1: 0 65/3 = -65/3
S2: 0 20/3 = -20/3
Decision:
A toy Manufacturer should produced 11/3 units of Toy A & 20/3 units of Toy B to
maximize profit to 2200 per production period.

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

(1) 0(3) + (3) = 9


0(0) + 3(1) = 3
0(3/2) + 3(1/2) = 3/2
0(1) + 3(0) = 0
0(-1/2) + 3(1/2) = 3/2
(2) X1: 3 3 = 0
X2: 2 3/2 =
S1: 0 0 = 0
S2: 0 3/2 = -3/2
(3) S1: 3 3/2 = 2
X1: 2 = 6

smallest

Optimum column

(4) S1: 3 3/2 = 2


X1: 0 3/2 = 0
X2: 3/2 3/2 = 1
S1: 1 3/2 = 2/3
S2: - 3/2 = -1/3
(5) X1: 3 (2) = 2
X1: 1 = 1
X2: (1) = 0
X1: 0 (2/3) = -1/3
X1: (-1/3) = 2/3

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

(1) 2(2) + 3(2) = 10


2(0) + 3(1) = 3
2(1) + 3(0) = 2
2(2/3) + 3(-1/3) = 1/3
2(-1/3) + 3(2/3) = 4/3

(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

X1 = number of kilos in ingredient A


X2 = number of kilos in ingredient B

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

X1 + X2 + S1 + 0S2 + 0A1 + 0A2 + 0S3 + 0S4 + 0S5 + 0S6 = 200


X3 + X4 + S2 + 0S1 + 0A1 + 0A2 + 0S3 + 0S4 + 0S5 + 0S6 = 400
X1 S3 + A1 + 0S1 + 0S2 + 0A2 + 0S4 + 0S5 + 0S6 = 2/5
X2 S4 + A2 + 0S1 + 0S2 + 0S3 + 0A1 + 0S5 + 0S6 = 1/5
X3 + S5 + 0S1 + 0S2 + 0S3 + 0S4 + 0A1 + 0A2 + 0S6 = 1/4
X4 + S6 + 0S1 + 0S2 + 0A2 + 0S4 + 0S5 + 0A1 + 0A2 = 3/5

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

The largest negative index is -1250


The smallest stone in negative position is 1400

= P 1450000
=
75000
=
2712500
=
100000
=
1750000
P 6087500

Evaluation of Unused Cells:


XB = 2000 1750 + 1500 1000 = 750
XC = 750 1250 + 500 1750 + 1500 1000 = -1250
YC = 2250 1250 + 500 1750 = -250
ZA = 2000 500 + 1750 1500 = 1750

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:

Evaluation of Unused Cells:

50 x 1000
1450 x 1500
150 x 1750
1600 x 500
1400 x 750

XB = 2000 1750 + 1500 1000 = 750


YC = 2250 750 + 1000 1500 = 1000
ZA = 2000 500 + 1750 1500 = 1750
ZC = 1250 750 + 1000 1500 + 1750 500 = 1250

= 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 =

The largest negative index is -240


The smallest stone in negative position is 100

P 31200
6400
48000
18000
12000
P 115600

Evaluation of Unused Cells:


AY = 100 200 + 300 160 = 40
BW = 220 300 + 160 240 = -160
CW = 40 240 + 160 300 + 200 100 = -240
CX = 140 120 + 200 300 = -80

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

Evaluation of Unused Cells:


AY = 100 200 + 300 160 = 40
BW = 220 300 + 160 240 = - 160
CX = 140 160 + 240 40 = 180
CY = 120 200 + 300 160 + 240 40 = 260

The largest negative index is -160


The smallest stone in negative position is 30
BW = 0 + 30 = 30
BY = 60 30 = 30
AW = 30 30 = 0
AX = 140 + 30 = 170

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:

Evaluation of Unused Cells:

170 x 160 =
30 x 220 =
30 x 300 =
190 x 200 =
100 x 40 =

CX = 140 300 + 220 40 = 20


CY = 120 200 + 220 40 = 100
AW = 240 160 + 300 220 = 160
AY = 100 200 + 300 160 = 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

AE = 12.00 6.50 + 11.00 5.00 = 11.50


AF = 11.00 5.00 + 11.00 5.00 = 12.00
AG = 14.50 4.00 + 11.00 5.00 = 16.50
AH = 0 0 + 5.50 4.00 + 11.00 5.00 = 7.50
BH = 0 0 + 5.50 4.00 = 1.50
CE = 9.00 6.50 + 4.00 5.50 = 1.00

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

Total transportation cost:


1000 (1600) + 1300 (2000) + 2160 + 1200 (1360) + 200 = P 5, 832, 000

Evaluation of Unused Cells:


MB = 4300 2160 + 2000 - 1600 = 2540
PA = 2040 - 2000 + 2160 - 1360 = 840
PB = 0 0 + 2160 - 2000 = 160

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, B = 80 (-20) 140 = -40


Q, C = 40 20 140 = -120
R, C = 100 20 180 = -100
S, A = 60 0 160 = -100

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

A, Z = 2000 (-750) 1000 =1750


X, B = 2000 0 -1250 = 750
C, X = 750 0 2000 = -1250
C, Y = 2250 500 2000 = -250

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

A, Cavite = 50, 000


A, Batangas = 390, 000
B, Batangas = 60, 000
B, Laguna = 10, 000
C, Laguna = 50, 000
TC

560, 000

Solution:
A, Cavite = R1 + K1 = 500

B, Laguna = R3 + K2 = 200

A, Cavite = 0 + K1 = 500

B, Laguna = R3 + 300 = 200

A, Cavite = K1 = 500

B, Laguna = R3 = 200 - 300

A, Batangas = R2 + K1 = 600

B, Laguna = -100

A, Batangas = R2 + 500 = 600

C, Laguna = R3 + K3 = 500

A, Batangas = R2 = 600 500

C, Laguna = -100 + K3 = 500

A, Batangas = R2 = 100

C, Laguna = K3 = 500 + 100

B, Batangas = R2 + K2 = 400

C, Laguna = K3 = 600

B, Batangas = 100 + K2 = 400

C, X = R4 + K3 = 0

B, Batangas = K2 = 400 100

C, X = R4 + 600 = 0

B, Batangas = K2 = 300

C, X = R4 = - 600

A, Laguna = 300 (-100) 500 = -100


A, X = 0 (-600) -500 = 1100
B, Cavite = 100 0 300 = -200
B, X = 0 (-600) 300 = 900
C, Cavite = 700 0 600 = 100
C, Batangas = 600 100 600 = -100

B, Cavite = 0 + 100 = 100


B, Batangas = 150 100 = 50
A, Batangas = 650 +100 = 750
A, Cavite = 100 -1 00 = 0

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

A, Laguna = 0 +50 =50


A, Batangas = 750 50 = 700
B, Batangas = 50 +50 = 100
B, Laguna = 50 -50 = 0

Table 3.

R1 = 0
R2 = 100
R3 = -100
R4 = -600

From
To
Cavite
Batangas
Laguna
Dummy (x)
Demand

C, Batangas = 0 + 100 = 100


C, Laguna = 100 100 = 0
A, Laguna = 50 + 100 = 150
A, Batangas = 700 100 = 600

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

A, Batangas = 360, 000

K2 = 300
Project B
100
100
0
900
200

K3 = 600
Project C
100
100
0
400
500

Supply
100
800
150
400
1450

C, Batangas = 60, 000

A, Laguna = 45, 000


B, Cavite = 10, 000
B, Batangas = 40, 000

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

Job Opportunity cost table


Machines

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

Revised Opportunity Cost


Machines

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

Job Opportunity cost table

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

Revised Opportunity Cost

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

Job Opportunity cost table


Job
1
A

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

Revised Opportunity Cost


Job
1

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

Job Opportunity cost table


Job
1

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

Revised Opportunity Cost


Job
1

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

COST INFORMATION TABLE


O F F I C E S

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

SALE'S ADVISERS OPPORTUNITY COST TABLE


O F F I C E S

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

TOTAL OPPORTUNITY COST TABLE


O F F I C E S

SALES
ADVISERS

Las Pias

Quezon City

Caloocan

San Juan

Mandaluyong

Pasig

Ramirez

Arambulo

Cordero

Cereza

Diaz

Tellez

ASSIGNED:

COST

Ramirez to San Juan

10

Arambulo to Pasig

Cordero to Las Pias

Cereza to Quezon City

11

Diaz to Mandaluyong

Tellez to Caloocan

11

TOTAL ASSIGNMENT COST

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

Find the job assignment that will minimize cost?


Cost Information

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

Job Opportunity cost table

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

Revised Opportunity Cost

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

Total Assignment cost

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

Job Opportunity cost table


Sales
Advisor

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- Opportunity cost table


Sales
Advisor

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

Revised Opportunity Cost


Sales
Advisor

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

3. Given the following assignment table:

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

Job Opportunity cost table

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

Revised Opportunity Cost

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

Total Assignment cost

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

Find the assignment that will minimize the assignment cost.

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

JOB OPPORTUNITY COST TABLE

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

TOTAL OPPORTUNITY COST TABLE

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

5. Given the following table:

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

Use the assignment method to determine the least-cost purchasing plan.


ANSWER:
COST INFORMATION TABLE

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

TOTAL OPPORTUNITY COST TABLE

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

D= 10, 000 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?

D= 100, 000 units

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.
(

)(

Qu=P 32, 404/ Yes

A= P350, 000

c.
(

)(

Qp= P 32, 404

)
(

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)

A = 36, 800 annual


demand now

(
(

)
)

100 =

A1= 36, 800 + 20 %( 36, 800 )


A1= 44 160

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.

The number of order per year


The economic order quantity
The amount in pesos per order
The number of days interval between orders
The total inventory costs.

a.

b.
(
(

Qn= 2

d.

)(

Qu= P 6, 325

c.

e. Ordering Cost

)(

Qp= P 20, 000

Carrying Cost

Total inventory
cost

Qd= 231 days

)
(

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.

The no. of order/year


The EOQ
Amount in pesos/order
No. of days interval between order
Total inventory cost

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

Qd= 365 days

)
(

Qn x P
1 x 500 = 500

= 500

1, 000

Exercise 5.2

1. EOQ before discount


(

)(

Qu = 4, 899 units/ order


Considering discount
1. Incremental price benefit
P15(9000) = P 135, 000
2. Incremental carrying cost
C=

x (.28 x 205 ) = P 22.8 with discount

22.8 (

P 4621

3. Incremental benefit of reduced ordering cost


160(

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
(

)
)

Total inventory cost:


P3, 000 + P3,066 = P 6, 066 / year

(
(

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.

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