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Assignment: Interpret third table (starting from replacement ratio of 2nd table) in the Simplex method solution of below problem: A firm is engaged in producing two products A & B. Each unit of product A requires 2 kg of raw materials & 4 labour hours for processing , whereas each unit of product B requires 3 kg of raw materials & 3 hours of labour, of the same type. Every week , the firm has an availability of 60 kg of raw materials & 96 labour hours . One unit of product A sold yield Rs 40 & one unit of product B sold gives Rs 35 as profit. Formulate this problem as a LPP to determine as to how many units of each of the products should be produced per week so that the firm can earn the maximum profit. Assume that there is no marketing constraint so that all that is produced can be sold
Answer: Below is the 2nd table for the above LPP Problem:
Step 3: Simplex Table 2 (Non-optimal solution) Cj Basis CB C3=0 C1=40 Zj j =Cj-ZJ XB X3=12 X1=24 Xj X1 0 1 40 0 X2 3/2 3/4 30 5 X3 1 0 0 0 X4 -1/2 1/4 10 -10 12/(3/2) = 8 24/(3/4) = 32 40 35 0 0 Replacement Ratio XBi/air, air > 0
Operations Research Step 3: Simplex Table 2 (Optimal solution) Cj Basis CB C2=35 C1=40 Zj j =Cj-ZJ XB X2=8 X1=18 Xj X1 0 1 40 0 X2 1 0 35 0 X3 2/3 -1/2 10/3 -10/3 X4 -1/3 1/2 25/3 -25/3 40 35 0 0
Operations Research The quantity of x2 given up will result in some extra labor hours freed, which along with excess raw material may be used in some extra production of Product A. To release 1 kg of raw material, 2/3 unit of x2 is freed which results in 2 kg raw material and 2 labor hours to be released. Out of this, 1 kg of raw material and 2 kg of labor hours is available for production of x1. As 2 kg raw material and 4 units of labor hour are required to produce 1 unit of Product A, therefore 1 kg of raw material and 2 kg of labor hours can be used to produce an extra amount of unit of Product A. Values 2/3 and -1/2 under the x3 column reflect the above facts.
Column Headed x4: Keeping in mind that both raw material and labor are completely exhausted, to free up 1 labor hour for other purposes, certain quantity of x1 needs to be given up The quantity of x1 given up will result in some extra labor hours freed, which along with excess raw material may be used in some extra production of Product B(x2). To release 1 labor hour, unit of x1 is freed which results in 1 kg of raw material and 2 labor hour to be released. Out of this, 1 kg raw material and 1 labor hour is available for production of Product B (x2) As 3 kg raw material and 3 labor hours are required to produce 1 unit of Product B, hence 1 unit of raw material and 1 labor hour can be used to produce 1/3 unit of Product B in excess. Values of -1/3 and under x4 indicate the above facts
j Elements:
j=Cj-Zj Zj represents loss of profits that results from addition of one unit of variable heading a particular column For Column headed x1 Addition of one unit of product A causes a reduction of one unit of same product and a zero change in x2 Reduction in Product A results in a loss of profit of Rs 40 per unit. Hence, for x1, the value equals 40 . For Column headed x2 Addition of one unit of product B causes a reduction of one unit of same product and a zero change in x1 Reduction in Product B results in a loss of profit of Rs 35 per unit. Hence, for x2, the value equals 35 For Column headed x3 Addition of one unit of x3 results in reduction in production of B by 2/3 unit and increase in production of A by unit.
Operations Research Reduction by 2/3 unit of B results in loss of 2/3*35 Addition of unit of A results in profit of *40 So net loss of profit for x3 equals (-1/2*40 + 2/3*35) = Rs 10/3
For Column headed x4 Addition of one unit of x4 results in reduction in production of A by 1/2 unit and increase in production of B by 1/3 unit. Reduction by 1/2 unit of A results in loss of 1/2*40 Addition of 1/3 unit of B results in profit of 1/3*35 So net loss of profit for x4 equals (1/2*40 - 1/3*35) = Rs 25/3 Cj value for various columns indicate profit associated with in it values of variables involved. The values are 40, 35, 0 and 0 respectively for x1, x2, x3 and x4. Thus, if one unit of x1 is added to the solution, it would add Rs. 40 to the profit whereas addition of the unit also involves a loss of profit of Rs. 40 as indicated by Zj values for this variable. Therefore, net change to profit on adding one unit of x1 is given by j=Cj-Zj = 40 40 = 0. Similarly for x2, net change to profit on adding one unit of x2 is given by j=Cj-Zj = 35 35 = 0. For x3, net change is j = 0-10/3= -10/3 For x4, net change is j = 0-25/3= -25/3 Thus all j values are either zero or negative thus giving us the optimum feasible solution of the problem, viz. x1=18 kg and x2=8 labor hours.
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