1.

A pharmaceutical Company has 100 kg of A, 180 kg of B and 120 kg of C available per

month. They can use these materials to make three basic pharmaceutical products
namely 5 - 10 - 5, 5 - 5 - 10 and 20 - 5 - 10, where the numbers in each case represent
the percentage by weight of A, B and C respectively in each of the products. The cost of
these raw mater also are given below :

Ingredient Cost per kg (Rs.)
A 80
B 20
C 50
Inert ingredients 20
Selling prices of these products are Rs. 40.5, Rs. 43 and Rs. 45 per kg. Respectively. There
is a capacity restriction of the company for the product 5 - 10 - 5 ; so as they cannot produce
more than 30 kg per month. Determine how much of each of the products they should
produce in order to maximize their monthly profit.

Noahs Boats makes three different kinds of boats. All can be made profitably in this
company, but the companys only production is constrained by the limited amount of
labour, wood and screws available each month. The director will choose the
combination of boats that maximizes his revenue in view of the information given in
the following table

Input Row Boat Canoe Kayak
Monthly
availability
Labour (Hours) 12 7 9 1,260 hours
Wood (Board feet) 22 18 1619,008 board
feet
Screws (Kg.) 2 4 3 396 Kg.
Selling price (in Rupees) 4,000 2,000 5,000

Formulate the above as a linear programming problem.& solve it by the simplex
method.

From the optimal table of the solved linear programming problem, answer the following
questions :
1. How many boats of each type will be produced and what will be the resulting
revenue ?
2. Which, if any, of the resources are not fully utilised ? If so, how much of spare
capacity is left ? How much wood will be used
to make all of the boats given in the optimal solution ?
3. State the dual of the formulated linear programming problem.

The table given below has been taken from the solution procedure of a
transportation problem, involving minimization of cost (In Rupees):

(i) Show that the above solution in not optimal.
(ii) Find an optimal solution.
(iii) Does the problem have multiple optimal solutions? Give reasons. If so, find one more
optimal solution.
(iv) Comment upon the managerial significance of multiple optimal solutions.
(v) If it is considered necessary to transport 20 units from factory to stockiest Z, what will be
the least-cost distribution schedule and the effect on cost?
(vi) If the transport cost from factory A to stockiest Z is increased by Rs 5 per unit, will the
solution change? If so, find the new solution.