CPO Assignment

Problem 1: A firm is engaged in producing two products ‘A’ and ‘B’.
Each unit of product ‘A’ requires 3 Kg

of raw material and 5 labor hours for processing, whereas each unit of product ‘B’ requires 6Kg of raw
material and 4 labor hours of the same type. Every month the firm has the availability of 60Kg of raw
material and 70 Labor hours. One unit of product ‘A’ sold earns profit Rs. 30 and one unit of product ‘B’
sold gives Rs. 40 as profit.
Formulate this problem as linear programming problem to determine as to how many units of each of
the products should be produced per month so that the firm can earn maximum profit, assume all unit
produced can be sold in the market. And solve it using excel solver
Problem 2: Four varieties of ties produced:
➢ one is an expensive, all-silk tie,
➢ one is an all-polyester tie, and
➢ two are blends of polyester and cotton.
The table illustrates the cost and availability (per monthly production planning period) of the three
materials used in the production process. The goal is to maximize its monthly profit. It must decide upon
a policy for product mix
Problem 3: Mr. Faisal has Rs. 70, 000 to investment in several alternatives. The alternative investments
are national certificates with an 8.5% return, Income Savings Certificates with a 10% return, old age
benefit fund (OABF) with a 6.5% return, and Bank deposit with a return of 13%. Each alternative has the
same time until maturity. In addition, each investment alternative has a different perceived risk thus
creating a desire to diversify. Ali wants to know how much to invest in each alternative to maximize the
return.
The following guidelines have been established for diversifying the investments and lessening the risk.
➢ No more than 20% of the total investment should be in bank deposit.
➢ The amount invested in Income Savings Certificates should not exceed the amount invested in the
other three alternatives.
➢ At least 30% of the investment should be in OABF and Income Savings Certificates.
➢ The ratio of the amount invested in national certificates to the amount invested in OABF should
not exceed one to three.
Formulate the problem as a LP model and solve it using excel solver
Problem 4: The Medequip Company produces precision medical diagnostic equipment at two factories.
Three medical centers have placed orders for this month’s production output. The below table shows
what the cost would be for shipping each unit from each factory to each of these customers. Also shown
are the number of units that will be produced at each factory and the number of units ordered by each
customer.
A decision now needs to be made about the shipping plan for how many units to ship from each factory
to each customer. Formulate a linear programming model for this problem and solve it using excel solver
Problem 5: Punjab Flour Mill has four branches A, B, C & D and four warehouses 1, 2, 3, and 4. Production,
demand and transportation costs are given below
Transportation cost
Formulate the problem and use Excel solver to solve this problem using simplex LP model. Also draw the
network representation of the solution
Problem 6: Suppose that England, France, and Spain produce all the wheat, barley, and oats in the world.
The world demand for wheat requires 125 million acres of land devoted to wheat production. Similarly,
60 million acres of land are required for barley and 75 million acres of land for oats. The total amount of
land available for these purposes in England, France, and Spain is 70 million acres, 110 million acres, and
80 million acres, respectively. The number of hours of labor needed in England, France and Spain to
produce an acre of wheat is 18, 13, and 16, respectively. The number of hours of labor needed in England,
France, and Spain to produce an acre of barley is 15, 12, and 12, respectively. The number of hours of
labor needed in England, France, and Spain to produce an acre of oats is 12, 10, and 16, respectively. The
labor cost per hour in producing wheat is $9.00, $7.20, and $9.90 in England, France, and Spain,
respectively. The labor cost per hour in producing barley is $8.10, $9.00, and $8.40 in England, France,
and Spain respectively. The labor cost per hour in producing oats is $6.90, $7.50, and $6.30 in England,
France, and Spain, respectively. The problem is to allocate land use in each country to meet the world
food requirement and minimize the total labor cost.
Formulate the problem and use Excel solver to solve this problem using simplex LP model. Also draw the
network representation of the solution

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Problem 1: A firm is engaged in producing two products ‘A’ and ‘B’.

Each unit of product ‘A’ requires 3 Kg

Problem 2: Four varieties of ties produced:

➢ one is an expensive, all-silk tie,

➢ one is an all-polyester tie, and

➢ two are blends of polyester and cotton.

➢ No more than 20% of the total investment should be in bank deposit.

Formulate the problem as a LP model and solve it using excel solver

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