In: Operations Management
Find the objective function and the constraints, and then solve the problem by using the simplex method. A confectioner has 600 pounds of chocolate, 100 pounds of nuts, and 50 pounds of fruits in inventory with which to make three types of candy: Sweet Tooth, Sugar Dandy, and Dandy Delite. A box of Sweet Tooth uses 3 pounds of chocolate, 1 pound of nuts, and 1 pound of fruit and sells for $8. A box of Sugar Dandy requires 4 pounds of chocolate and 1 2 pound of nuts and sells for $5. A box of Dandy Delite requires 5 pounds of chocolate, 3 4 pounds of nuts, and 1 pound of fruit and sells for $6. How many boxes of each type of candy should be made from the available inventory to maximize revenue?
Solution:
MAX Z = 8x1 + 5x2 + 6x3
subject to
3x1 + 4x2 + 5x3 <= 600 chocolate
x1 + 1/2x2 + 3/4x3 <= 100 nuts
x1 + x3 <= 50 fruit
and x1,x2,x3 >= 0
Given data x1 = number of boxes of sweet tooth
x2 = number of sugar dandy boxes
x3 = number of dandy delight boxes
Solution:
Problem is
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| and x1,x2,x3≥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
3. As the constraint-3 is of type '≤' we should add slack variable
S3
After introducing slack variables
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| and x1,x2,x3,S1,S2,S3≥0 | 
| Iteration-1 | Cj | 8 | 5 | 6 | 0 | 0 | 0 | ||
| B | CB | XB | x1 | x2 | x3 | S1 | S2 | S3 | MinRatio XBx1  | 
| S1 | 0 | 600 | 3 | 4 | 5 | 1 | 0 | 0 | 6003=200 | 
| S2 | 0 | 100 | 1 | 0.5 | 0.75 | 0 | 1 | 0 | 1001=100 | 
| S3 | 0 | 50 | (1) | 0 | 1 | 0 | 0 | 1 | 501=50→ | 
| Z=0 | Zj | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Zj-Cj | -8↑ | -5 | -6 | 0 | 0 | 0 | 
Negative minimum Zj-Cj is -8 and its column index is 1. So,
the entering variable is
x1.
Minimum ratio is 50 and its row index is 3. So, the leaving basis variable is S3.
∴ The pivot element is 1.
Entering =x1, Departing =S3, Key Element =1