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    A Pharmaceutical Company Has 100 KG of A, 180 KG of B and 120 KG of C Available Per

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    Saurabh Choudhari
    The document describes two linear programming problems: 1) A pharmaceutical company that must determine how to optimally produce and allocate three products given constraints on available raw materials. 2) A boat manufacturer that must determine how to optimally produce row boats, canoes, and kayaks given constraints on available labor, wood, and screws to maximize revenue.

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    A Pharmaceutical Company Has 100 KG of A, 180 KG of B and 120 KG of C Available Per

    Uploaded by

    Saurabh Choudhari
    1K views3 pages
    The document describes two linear programming problems: 1) A pharmaceutical company that must determine how to optimally produce and allocate three products given constraints on available raw materials. 2) A boat manufacturer that must determine how to optimally produce row boats, canoes, and kayaks given constraints on available labor, wood, and screws to maximize revenue.

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    The document describes two linear programming problems: 1) A pharmaceutical company that must determine how to optimally produce and allocate three products given constraints on available raw materials. 2) A boat manufacturer that must determine how to optimally produce row boats, canoes, and kayaks given constraints on available labor, wood, and screws to maximize revenue.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views3 pages

    A Pharmaceutical Company Has 100 KG of A, 180 KG of B and 120 KG of C Available Per

    Uploaded by

    Saurabh Choudhari
    The document describes two linear programming problems: 1) A pharmaceutical company that must determine how to optimally produce and allocate three products given constraints on available raw materials. 2) A boat manufacturer that must determine how to optimally produce row boats, canoes, and kayaks given constraints on available labor, wood, and screws to maximize revenue.

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    © All Rights Reserved
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    1.

    A pharmaceutical Company has 100 kg of A, 180 kg of B and 120 kg of C available per


    month. They can use these materials to make three basic pharmaceutical products
    namely 5 - 10 - 5, 5 - 5 - 10 and 20 - 5 - 10, where the numbers in each case represent
    the percentage by weight of A, B and C respectively in each of the products. The cost of
    these raw mater also are given below :

    Ingredient Cost per kg (Rs.)
    A 80
    B 20
    C 50
    Inert ingredients 20
    Selling prices of these products are Rs. 40.5, Rs. 43 and Rs. 45 per kg. Respectively. There
    is a capacity restriction of the company for the product 5 - 10 - 5 ; so as they cannot produce
    more than 30 kg per month. Determine how much of each of the products they should
    produce in order to maximize their monthly profit.

    Noahs Boats makes three different kinds of boats. All can be made profitably in this
    company, but the companys only production is constrained by the limited amount of
    labour, wood and screws available each month. The director will choose the
    combination of boats that maximizes his revenue in view of the information given in
    the following table

    Input Row Boat Canoe Kayak
    Monthly
    availability
    Labour (Hours) 12 7 9 1,260 hours
    Wood (Board feet) 22 18 1619,008 board
    feet
    Screws (Kg.) 2 4 3 396 Kg.
    Selling price (in Rupees) 4,000 2,000 5,000

    Formulate the above as a linear programming problem.& solve it by the simplex
    method.

    From the optimal table of the solved linear programming problem, answer the following
    questions :
    1. How many boats of each type will be produced and what will be the resulting
    revenue ?
    2. Which, if any, of the resources are not fully utilised ? If so, how much of spare
    capacity is left ? How much wood will be used
    to make all of the boats given in the optimal solution ?
    3. State the dual of the formulated linear programming problem.

    The table given below has been taken from the solution procedure of a
    transportation problem, involving minimization of cost (In Rupees):

    (i) Show that the above solution in not optimal.
    (ii) Find an optimal solution.
    (iii) Does the problem have multiple optimal solutions? Give reasons. If so, find one more
    optimal solution.
    (iv) Comment upon the managerial significance of multiple optimal solutions.
    (v) If it is considered necessary to transport 20 units from factory to stockiest Z, what will be
    the least-cost distribution schedule and the effect on cost?
    (vi) If the transport cost from factory A to stockiest Z is increased by Rs 5 per unit, will the
    solution change? If so, find the new solution.

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