Assignment 2

Formulate the Problems

1) The redevelopment of the city of Hyderabad is planned to seek as a long term solution for
developing IT industries. The government will earn in terms of tax by condemning some part of
the old city and replacing it with modern development.

The project involves two phases: 1) Demolishing substandard houses to provide land for new
development and 2) building new development.

The summary of the situations is as follows:

1) As many as 300 substandard buildings can be demolished. Each building occupies of 0.5
acres area. The cost of demolishing one substandard building is Rs 200000/-
2) New buildings with 1 BHK, 2 BHK, 3 BHK and 4 BHK are to be developed with each
building having 0.18, 0.28, 0.4, 0.5 acre respectively. Streets, open space and utility
easements account for 15% of the available acreage.
3) In new development the 3 BHK and 4 BHK buildings account for at least 25% of the
total. 1 BHK should be at least 20% of all units and 2 BHK should be at least 10%.
4) The tax levied per building for 1 BHK, 2 BHK , 3 BHK and 4 BHK is Rs 100000,
150000, 200000, and 250000 respectively.
5) The construction cost per unit building for 1 BHK, 2 BHK , 3 BHK and 4 BHK is Rs 1.5
Cr, Rs 2 Cr, Rs 2.8 Cr and Rs 3.2 Cr. Finance available for the total project is Rs 150
Cr.

How many building of each type should be constructed to maximize tax collection?

Hint: Take decision variables as number of different types of buildings and number
of buildings to be demolished.
Assume each building can have only one type of homes.
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2) A dairy farm has two milk plants with daily milk production of 6 million liters and 9 million
liters respectively. Each day the firm must fulfill the needs of its three distribution centre, which
have milk requirement of 7, 5 & 3 million liters respectively. Cost of shipping 1 million liters of
milk from each plant to each distribution centre is given in hundred of rupees below. Formulate
the model to minimize the transportation cost.

Plants/ A B C Supply
Distribution (Million liters)
Centres
 1 2 3 11 6
2 1 9 6 9
Demand (Million 7 5 3
Liters)
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3) A Food Park produces two products A & B. Production of both products requires same
process, I & II. The production of B results in a byproduct C at no extra cost. The product A can
be sold at the profit of Rs 3 per unit and B at the profit of Rs 8 per unit. Some of the by product
C can be sold at profit of Rs 2 per unit and the remaining need to be destroyed, the cost of
destruction is Rs 1 per unit. Forecasts shows that only up to 5 units of C can be sold, and for
every unit of B produced the company gets 3 units of C. The manufacturing time for A on
process I and II is 3 Hrs per unit respectively & 4 and 5 hrs per unit for B on process I and II
respectively. Because the product C results during production of B no time is used in producing
C. The available times are 18 and 21 hours of process I and II respectively. Formulate the
problem.

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Solve Graphically

1) Max Z = 2x1 + x2 2) Max Z = 7/4x1 +3/2 x2

Subject to the linear constraints Subject to the linear constraints
x1 +2x2 ≤ 10 8x1 +5x2 ≤ 320
x1 +x2 ≤ 6 4x1 +5x2 ≤ 20
x1 - x2 ≤ 2 x1 ≥ 15
x1 -2x2 ≤ 1 x2 ≥ 10
x1 ,x2 ≥ 0 x1 ,x2 ≥ 0

3) Max Z = 3x1 + 2x2 4) Max Z = 10x1 + 6x2

Subject to the linear constraints Subject to constraints: 5x1 + 3x2 ≤ 30
-2x1 +3x2 ≤ 9 x1 + 2x2 ≤ 18
x1 - 5x2 ≥ -20 x1 ,x2 ≥ 0
x1 ,x2 ≥ 0

5) Max Z = 6x1 - 4x2 6) Max Z = 10x1 + 6x2

Subject to the linear constraints Subject to the linear constraints
2x1 +4x2 ≤ 4 5x1 +3x2 ≤ 30
4x1 + 8x2 ≤ 16 x1 + 2x2 ≤ 18
x 1 ,x2 ≥ 0 x1 ,x2 ≥ 0

Simplex/Big M Method
 1. Define the following terms: Basic solution, feasible solution, basic feasible solution, optimal
basic feasible solution, unbounded solution, infeasible solution, alternative (multiple) solution,
unrestricted variable.
2. What do you mean by Degeneracy?
3. Solve Problem No 3 & Problem No 4 of above graphical questions by simplex method.

1) Max Z = 3x1 + 2x2 + 5x3 2) Min Z = x1 - 2x2 - 3x3

Subject to the linear constraints Subject to the linear constraints
x1 +2x2 + x3 ≤ 430 -2x1 + x2 + 3x3 = 2
3x1 + 2x3 ≤ 460 2x1 + 3x2 + 4x3 = 1
x1 + 4x2 ≤ 420 x 1 ,x2,x3 ≥ 0
x1 ,x2,x3 ≥ 0

3) Min Z = 2x1 + 3x2 4) Min Z = 2x1 + 8x2

Subject to the linear constraints Subject to constraints: 5x1 + 3x2 ≥ 10
x1 - 2x2 ≤ 0 2x1 + 2x2 ≥ 14
-2x1 + 3x2 ≥ -6 x1 + 4x2 ≥ 12
x1 ,x2 unrestricted. x1 ,x2 ≥ 0
Show an alternative solution if it exists.
5) Max Z = 5x1 + x2 6) Max Z = 8x2
Subject to the linear constraints Subject to the linear constraints
5x1 +2x2 ≤ 20 x1 - 3x2 ≥ 0
x1 ≥ 3 2x1 + 3x2 ≤ -6
x2 ≤ 5 x 1 ,x2 unrestricted.
x 1 ,x2 ≥ 0

To be submitted by 6th September 2010