Question

In: Operations Management

A furniture maker has 4,200 wood units and 8,000 hours available, during which it will manufacture...

A furniture maker has 4,200 wood units and 8,000 hours available, during which it will manufacture decorative screens. Previously, 2 models have been sold well, so it will be limited to producing these 2 types of furniture. He estimates that model one requires 5 units of wood and 7 hours of available time, while model 2 requires 2 units of wood and 8 hours. The utility that each model provides is 120 dollars. and 80 dollars, respectively. What is the maximum utility that this manufacturer can achieve? USING SIMPLEX METHOD

Solutions

Expert Solution

LPP Formulation:

Let us say that Model 1 = x1 and Model 2 = x2

Now the objective function to maximize the utility

Max Z = 120x1 + 80x2

Constraints:

5x1 + 2x2 <= 4200 (Wood Constraint)
7x1 + 8x2 <= 8000 (Hours constraint)

and x1,x2 >= 0 (non-negativity constraint)

Below is the simplex method solution:

Solution:
Problem is

Max Z = 120 x1 + 80 x2
subject to
5 x1 + 2 x2 4200
7 x1 + 8 x2 8000
and x1,x2≥0;



The problem is converted to canonical form by adding slack, surplus and artificial variables as appropiate

1. As the constraint-1 is of type '' we should add slack variable S1

2. As the constraint-2 is of type '' we should add slack variable S2

After introducing slack variables

Max Z = 120 x1 + 80 x2 + 0 S1 + 0 S2
subject to
5 x1 + 2 x2 + S1 = 4200
7 x1 + 8 x2 + S2 = 8000
and x1,x2,S1,S2≥0


Iteration-1 Cj 120 80 0 0
B CB XB x1 x2 S1 S2 MinRatio
XBx1
S1 0 4200 (5) 2 1 0 42005=840
S2 0 8000 7 8 0 1 80007=1142.8571
Z=0 Zj 0 0 0 0
Zj-Cj -120 -80 0 0



Negative minimum Zj-Cj is -120 and its column index is 1. So, the entering variable is x1.

Minimum ratio is 840 and its row index is 1. So, the leaving basis variable is S1.

The pivot element is 5.

Entering =x1, Departing =S1, Key Element =5

R1(new)=R1(old)÷5

R1(old) = 4200 5 2 1 0
R1(new)=R1(old)÷5 840 1 0.4 0.2 0


R2(new)=R2(old) - 7R1(new)

R2(old) = 8000 7 8 0 1
R1(new) = 840 1 0.4 0.2 0
R1(new) = 5880 7 2.8 1.4 0
R2(new)=R2(old) - 7R1(new) 2120 0 5.2 -1.4 1


Iteration-2 Cj 120 80 0 0
B CB XB x1 x2 S1 S2 MinRatio
XBx2
x1 120 840 1 0.4 0.2 0 8400.4=2100
S2 0 2120 0 (5.2) -1.4 1 21205.2=407.6923
Z=100800 Zj 120 48 24 0
Zj-Cj 0 -32 24 0



Negative minimum Zj-Cj is -32 and its column index is 2. So, the entering variable is x2.

Minimum ratio is 407.6923 and its row index is 2. So, the leaving basis variable is S2.

The pivot element is 5.2.

Entering =x2, Departing =S2, Key Element =5.2

R2(new)=R2(old)÷5.2

R2(old) = 2120 0 5.2 -1.4 1
R2(new)=R2(old)÷5.2 407.6923 0 1 -0.2692 0.1923


R1(new)=R1(old) - 0.4R2(new)

R1(old) = 840 1 0.4 0.2 0
R2(new) = 407.6923 0 1 -0.2692 0.1923
0.4×R2(new) = 163.0769 0 0.4 -0.1077 0.0769
R1(new)=R1(old) - 0.4R2(new) 676.9231 1 0 0.3077 -0.0769


Iteration-3 Cj 120 80 0 0
B CB XB x1 x2 S1 S2 MinRatio
x1 120 676.9231 1 0 0.3077 -0.0769
x2 80 407.6923 0 1 -0.2692 0.1923
Z=113846.1538 Zj 120 80 15.3846 6.1538
Zj-Cj 0 0 15.3846 6.1538



Since all Zj-Cj≥0

Hence, optimal solution is arrived with value of variables as :
x1=676.9231,x2=407.6923

Max Z=113846.1538

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