Answers to Practice Problems

Problem 1

Coffee cakes Danish Limit

Flour 5 lbs. 5 lbs. 25 lbs.
Sugar 2 lbs. 4 lbs. 16 lbs.
Demand 5 pans -
Profit Php 50 each Php 250 each

Linear Programming Model:

Max P = 50C + 250D

s.t.
5C + 5D ≤ 25
2C + 4D ≤ 16
0≤C≤5
D≥0

Graph:

Optimal Solution: (0,4)

Optimal yield: Php 1,000

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Simplex solution:

-50C – 250D + P = 0
5C + 5D + S1 = 25
2C + 4D + S2 = 16
C + S3 = 5
C D S1 S2 S3 P
S1 5 5 1 0 0 0 25
S2 2 4 0 1 0 0 16
S3 1 0 0 0 1 0 5
P -50 -250 0 0 0 1 0

C D S1 S2 S3 P
-5R2+R1 S1 5/2 0 1 -5/4 0 0 5
R2/4 D 1/2 1 0 1/4 0 0 4
S3 1 0 0 0 1 0 5
250R2+R4 P 75 0 0 125/2 0 1 1,000

S1 = excess flour
S2 = excess sugar
S3 = unsatisfied demand for coffee cakes

Based on the simplex solution above, S1 and S3 are basic variables with values of 5 each. S 2 is a non-
basic variable, therefore has a value of 0. So, if the optimal numbers of cakes and Danish are baked
(0 coffee cakes, and 4 Danish), then there will be 5 lbs. of flour left unused, and all the sugar will be
used.

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Problem 2

Necklaces Bracelets Limit

Au 3 oz. 2 oz. 18 oz.
Pt 2 oz. 4 oz. 20 oz.
Demand - 4 pcs
Profit Php 300 each Php 400 each

Linear Programming Model:

Max P = 300N + 400B

s.t.
3N + 2B ≤ 18
2N + 4B ≤ 20
N≥0
0≤B≤4

Graph:

Optimal Solution: (4,3)

Optimal Yield: Php 2,400

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Simplex solution:

-300N – 4000B + P = 0
3N + 2B + S1 = 18
2N + 4B + S2 = 20
B + S3 = 4
N B S1 S2 S3 P
S1 3 2 1 0 0 0 18
S2 2 4 0 1 0 0 20
S3 0 1 0 0 1 0 4
P -300 -400 0 0 0 1 0

N B S1 S2 S3 P
-2R3+R1 S1 3 0 1 0 -2 0 10
-4R3+R2 S2 2 0 0 1 -4 0 4
B 0 1 0 0 1 0 4
400R3+R4 P -300 0 0 0 400 1 1,600

N B S1 S2 S3 P
-3R2+R1 S1 0 0 1 -3/2 4 0 4
R2/2 N 1 0 0 1/2 -2 0 2
B 0 1 0 0 1 0 4
300R2+R4 P 0 0 0 150 -200 1 2,200

N B S1 S2 S3 P
R1/4 S3 0 0 1/4 -3/8 1 0 1
2R1+R2 N 1 0 1/2 -1/4 0 0 4
-R1+R3 B 0 1 -1/4 3/8 0 0 3
200R1+R4 P 0 0 50 75 0 1 2,400

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Problem 3

Permanent C.O. Temporary C.O. Requirement/Limit

Available workstations 40
Claims processed per day 16 12 450
Errors generated per day 0.5 1.4 25
Cost $64 each $42 each

Linear Programming Model:

Min C = 64P + 42T

s.t.
P + T ≤ 40
16P + 12T ≥ 450
0.5P + 1.4T ≤ 25
P≥0
T≥0

Graph:

Optimal Solution: (20.12,10.67) or (20,11)

Optimal Yield: 1,735.98 or 1,742

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Problem 4

Linear Programming Model:

Min C = 20W + 3.75B

s.t.
5W + 8B ≥ 800
5W/B = 1.5
400W + 37.5B ≤ 60,000
W≥0
B≥0

Optimal solution: 25.5 bottles of wine, 85 bottles of beer

Minimum cost of unused drinks: Php 828.75

Problem 5

IBFS from Phase 1 (VAM):

Enrile Faire Gonzaga Higuig Supply

Amulung 10 2 12
Ballesteros 10 7 17
Camalaniugan 10 1 11
Demand 10 10 10 10 40

Total Transportation Cost = (10 x 750) + (2 x 450) + (10 x 400) + (7 x 600) + (10 x 400) +
(1 x 550)
= 21,150
Phase 2 (Modi):
IBFS:

Enrile Faire Gonzaga Higuig Supply

Amulung 10 2 12
Ballesteros 10 7 17
Camalaniugan 10 1 11
Demand 10 10 10 10 40

1st iteration:

V1 = 300 V2 = 750 V3 = 250 V4 = 450

U1 = 0 500 750 300 450
U2 = 150 650 800 400 600
U3 = 100 400 700 500 550

K11 = 500 – 0 – 300 = 200

K13 = 300 – 0 – 250 = 50
K21 = 650 – 150 – 300 = 200
K22 = 800 – 150 – 750 = -100
K32 = 700 – 100 – 750 = -150
K33 = 500 – 100 – 250 = 150

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 Enrile Faire Gonzaga Higuig Supply
Amulung 10(-) 2(+) 12
Ballesteros 10 7 17
Camalaniugan 10 (+) 1(-) 11
Demand 10 10 10 10 40

Enrile Faire Gonzaga Higuig Supply

Amulung 9 3 12
Ballesteros 10 7 17
Camalaniugan 10 1 11
Demand 10 10 10 10 40

Total Transportation Cost = (9 x 750) + (3 x 450) + (10 x 400) + (7 x 600) + (10 x 400) +
(1 x 700)
= 21,000

2nd iteration:

V1 = 350 V2 = 750 V3 = 250 V4 = 450

U1 = 0 500 750 300 450
U2 = 150 650 800 400 600
U3 = 50 400 700 500 550

K11 = 500 – 0 – 350 = 150

K13 = 300 – 0 – 250 = 50
K21 = 650 – 150 – 350 = 150
K22 = 800 – 150 – 750 = -100
K33 = 500 – 50 – 250 = 200
K34 = 550 – 50 – 450 = 50

Enrile Faire Gonzaga Higuig Supply

Amulung 9 (-) 3 (+) 12
Ballesteros (+) 10 7 (-) 17
Camalaniugan 10 1 11
Demand 10 10 10 10 40

Enrile Faire Gonzaga Higuig Supply

Amulung 2 10 12
Ballesteros 7 10 17
Camalaniugan 10 1 11
Demand 10 10 10 10 40

Total Transportation Cost = (2 x 750) + (10 x 450) + (7 x 800) + (10 x 400) + (10 x 400) +
(1 x 700)
= 20,300

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 3rd iteration:

V1 = 450 V2 = 750 V3 = 350 V4 = 450

U1 = 0 500 750 300 450
U2 = 50 650 800 400 600
U3 = -50 400 700 500 550

K11 = 500 – 0 – 450 = 50

K13 = 300 – 0 – 350 = -50
K21 = 650 – 50 – 450 = 150
K24 = 600 – 50 – 450 = 100
K33 = 500 – (-50) – 250 = 300
K34 = 550 – (-50) – 450 = 150

Enrile Faire Gonzaga Higuig Supply

Amulung 2 (-) (+) 10 12
Ballesteros 7 (+) 10 (-) 17
Camalaniugan 10 1 11
Demand 10 10 10 10 40

Enrile Faire Gonzaga Higuig Supply

Amulung 2 10 12
Ballesteros 9 8 17
Camalaniugan 10 1 11
Demand 10 10 10 10 40

Total Transportation Cost = (2 x 300) + (10 x 450) + (9 x 800) + (8 x 400) + (10 x 400) +
(1 x 700)
= 20,200

checking:

V1 = 400 V2 = 700 V3 = 300 V4 = 450

U1 = 0 500 750 300 450
U2 = 100 650 800 400 600
U3 = 0 400 700 500 550

K11 = 500 – 0 – 400 = 100

K12 = 750 – 0 – 700 = 50
K21 = 650 – 100 – 400 = 150
K24 = 600 – 100 – 450 = 50
K33 = 500 – 0 – 300 = 200
K34 = 550 – 0 – 450 = 100

We have reached optimality. No more negative improvement indices (Kij values)

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Problem 6

Enrile Faire Gonzaga Higuig Supply

NY, Cubao 250 170 420
MX, Pampanga 520 90 610
LA, Tuguegarao 130 210 340
Demand 520 250 400 380

Total Transportation Cost = 21,930

Problem 7
Final Assignment:

Employee Component
1 C
2 F
3 E
4 A
5 D
6 B

Minimum number of defects: 85

Problem 8

Aldous – FEU, NU
Badang – UP, UST
Chou – AdMU, UE
Dyrroth – AdU, dLSU

Minimum Value: 24 (Lower rankings, better preference)

Problem 9

Korina Sanchez-Roxas, an employee who had just been laid off from ABS-CBN, is now planning to sell
food online. She must decide now which of three food products to make and sell, to plan and order
proper materials and ingredients. The cost per unit of producing each product will be determined by
whether the Supreme Court will declare the non-renewal of ABS-CBN unconstitutional. The cost per
unit for each product, given each contract result, is shown in the following payoff table:

Supreme Court declaration

Food Product
Unconstitutional Constitutional
Pasta with Salmon Caviar 375,000 300,000
Laksa 200,000 350,000
Wagyu Steak 325,000 150,000

1. Determine which product should be produced, using the following decision criteria:
a. Pasta with Salmon Caviar
b. Pasta with Salmon Caviar
c. Pasta with Salmon Caviar
d. Pasta with Salmon Caviar
e. Pasta with Salmon Caviar
2. Unsolvable, because of the lack of probabilities

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Problem 10

A is the better investment

Expected Value of A = 23,300

Problem 11

Month Sales 5-month moving average Month Sales Forecast (α = 0.20)

1 345 - 1 345 -
2 411 - 2 411 345
3 266 - 3 266 358.2
4 347 - 4 347 339.76
5 506 - 5 506 341.21
6 278 375 6 278 374.17
7 411 361.6 7 411 354.94
8 510 361.6 8 510 366.15
9 198 410.4 9 198 394.92
10 387 380.6 10 387 355.54
11 344 356.8 11 344 361.83
12 412 370 12 412 358.26
13 415 370.2 13 415 369.01
14 395 351.2 14 395 378.21
15 298 390.6 15 298 381.57
16 377 372.8 16 377 364.86
17 418 379.4 17 418 367.29
18 522 380.6 18 522 377.43
19 421 402 19 421 406.34
20 384 407.2 20 384 409.27
21 455 424.4 21 455 404.22
22 506 440 22 506 414.38
23 478 457.6 23 478 432.70
24 613 448.8 24 613 441.76
25 344 487.2 25 344 476.01
26 286 479.2 26 286 449.61
27 455 445.4 27 455 416.89
28 634 435.2 28 634 424.51
29 502 466.4 29 502 466.41
30 388 444.2 30 388 473.53
31 427 453 31 427 456.42
32 561 481.2 32 561 450.54
33 447 502.4 33 447 472.63
34 395 465 34 395 467.50
35 414 443.6 35 414 453
36 522 448.8 36 522 445.2
37 ? 467.8 37 ? 460.56

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 Month Sales Forecast (α = 0.20) Trend Adjusted Forecast
1 345 - - -
2 411 345 0 345.00
3 266 358.2 3.96 362.16
4 347 339.76 -2.76 337.00
5 506 341.21 -1.50 339.71
6 278 374.17 8.84 383.01
7 411 354.94 0.42 355.36
8 510 366.15 3.66 369.81
9 198 394.92 11.19 406.11
10 387 355.54 -3.98 351.56
11 344 361.83 -0.90 360.93
12 412 358.26 -1.70 356.56
13 415 369.01 2.03 371.04
14 395 378.21 4.18 382.39
15 298 381.57 3.94 385.51
16 377 364.86 -2.26 362.60
17 418 367.29 -0.85 366.44
18 522 377.43 2.45 379.88
19 421 406.34 10.39 416.73
20 384 409.27 8.15 417.42
21 455 404.22 4.19 408.41
22 506 414.38 5.98 420.36
23 478 432.70 9.68 442.38
24 613 441.76 9.50 451.26
25 344 476.01 16.92 492.93
26 286 449.61 3.93 453.54
27 455 416.89 -7.07 409.82
28 634 424.51 -2.66 421.85
29 502 466.41 10.71 477.12
30 388 473.53 9.63 483.16
31 427 456.42 1.61 458.03
32 561 450.54 -0.64 449.90
33 447 472.63 6.18 478.81
34 395 467.50 2.79 470.29
35 414 453 -2.40 450.60
36 522 445.2 -4.02 441.18
37 ? 460.56 1.79 462.35

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Problem 12

Determine if the following queues are

single-channel, single-phase;
multi-channel, single-phase;
single-channel, multi-phase; or
multi-channel, multi-phase

1. Barbershop, where the owner is also the barber – SINGLE-CHANNEL, SINGLE PHASE
2. Barbershop, where the owner hired barbers – MULTI-CHANNEL, SINGLE PHASE
3. NLEX tollgates – SINGLE-CHANNEL, SINGLE PHASE
4. Drive-thru at Jollibee – SINGLE-CHANNEL, MULTI-PHASE
5. Emergency room of a hospital – MULTI-CHANNEL, MULTI-PHASE
6. DIY Laundry shop – MULTI-CHANNEL, MULTI-PHASE
7. Checkout counters in small groceries like Candice Megamart – SINGLE-CHANNEL, SINGLE-
PHASE
8. A bank, in which customers entered the building and then, depending upon the service
desired, chose one of several tellers in front of which to form a line – MULTI-CHANNEL,
SINGLE PHASE
9. Tuition payment at USL – MULTI-CHANNEL, SINGLE PHASE
10. BPI ATM located outside USL - SINGLE-CHANNEL, SINGLE PHASE

Problem 13

a. No, Wq = 8 minutes
b. Yes, Wq = 0.11 minutes
c. Yes, Wq = 0.53 minutes

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