Question

In: Economics

24. Maximize    π = 36x1 + 28x2 + 32 x3 Subject to 2x1 + 2x2 +...

24. Maximize   

π = 36x1 + 28x2 + 32 x3

Subject to

2x1 + 2x2 + 8x3 3

3x1 + 2x2 + 2x3 4

      x1, x2, x3 0

25. Write down the economic interpretations of the dual of the problem (24).

Solutions

Expert Solution

24 & 25

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 = 36 x1 + 28 x2 + 32 x3 + 0 S1 + 0 S2
subject to
2 x1 + 2 x2 + 8 x3 + S1 = 3
3 x1 + 2 x2 + 2 x3 + S2 = 4
and x1,x2,x3,S1,S2≥0
Iteration-1 Cj 36 28 32 0 0
B CB XB x1 x2 x3 S1 S2 MinRatio
XBx1
S1 0 3 2 2 8 1 0 32=1.5
S2 0 4 (3) 2 2 0 1 43=1.3333
Z=0 Zj 0 0 0 0 0
Zj-Cj -36 -28 -32 0 0

Negative minimum Zj-Cj is -36 and its column index is 1. So, the entering variable is x1.

Minimum ratio is 1.3333 and its row index is 2. So, the leaving basis variable is S2.


Entering =x1, Departing =S2, Key Element =3

R1(old) = 3 2 2 8 1 0
R2(new) = 1.3333 1 0.6667 0.6667 0 0.3333
2×R2(new) = 2.6667 2 1.3333 1.3333 0 0.6667
R1(new)=R1(old) - 2R2(new) 0.3333 0 0.6667 6.6667 1 -0.6667
R2(old) = 4 3 2 2 0 1
R2(new)=R2(old)÷3 1.3333 1 0.6667 0.6667 0 0.3333
Iteration-2 Cj 36 28 32 0 0
B CB XB x1 x2 x3 S1 S2 MinRatio
XBx3
S1 0 0.3333 0 0.6667 (6.6667) 1 -0.6667 0.33336.6667=0.05
x1 36 1.3333 1 0.6667 0.6667 0 0.3333 1.33330.6667=2
Z=48 Zj 36 24 24 0 12
Zj-Cj 0 -4 -8 0 12

Negative minimum Zj-Cj is -8 and its column index is 3. So, the entering variable is x3.

Minimum ratio is 0.05 and its row index is 1. So, the leaving basis variable is S1.

The pivot element is 6.6667.

Entering =x3, Departing =S1, Key Element =6.6667

R1(old) = 0.3333 0 0.6667 6.6667 1 -0.6667
R1(new)=R1(old)÷6.6667 0.05 0 0.1 1 0.15 -0.1
R2(old) = 1.3333 1 0.6667 0.6667 0 0.3333
R1(new) = 0.05 0 0.1 1 0.15 -0.1
0.6667×R1(new) = 0.0333 0 0.0667 0.6667 0.1 -0.0667
R2(new)=R2(old) - 0.6667R1(new) 1.3 1 0.6 0 -0.1 0.4
teration-3 Cj 36 28 32 0 0
B CB XB x1 x2 x3 S1 S2 MinRatio
XBx2
x3 32 0.05 0 (0.1) 1 0.15 -0.1 0.050.1=0.5
x1 36 1.3 1 0.6 0 -0.1 0.4 1.30.6=2.1667
Z=48.4 Zj 36 24.8 32 1.2 11.2
Zj-Cj 0 -3.2 0 1.2 11.2


Negative minimum Zj-Cj is -3.2 and its column index is 2. So, the entering variable is x2.

Minimum ratio is 0.5 and its row index is 1. So, the leaving basis variable is x3.

The pivot element is 0.1.

Entering =x2, Departing =x3, Key Element =0.1

R1(old) = 0.05 0 0.1 1 0.15 -0.1
R1(new)=R1(old)÷0.1 0.5 0 1 10 1.5 -1
R2(old) = 1.3 1 0.6 0 -0.1 0.4
R1(new) = 0.5 0 1 10 1.5 -1
0.6×R1(new) = 0.3 0 0.6 6 0.9 -0.6
R2(new)=R2(old) - 0.6R1(new) 1 1 0 -6 -1 1
Iteration-4 Cj 36 28 32 0 0
B CB XB x1 x2 x3 S1 S2 MinRatio
x2 28 0.5 0 1 10 1.5 -1
x1 36 1 1 0 -6 -1 1
Z=50 Zj 36 28 64 6 8
Zj-Cj 0 0 32 6 8

Since all Zj-Cj≥0

Hence, optimal solution is arrived with value of variables as :
x1=1,x2=0.5,x3=0

Max Z=50


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