Product Mix
• A studio sells photographs and prints.
• It cost $20 to purchase each photograph and it takes 2 hours
to frame it.
• It costs $25 to purchase each print and it takes 5 hours to
frame it.
• The store has at most $400 to spend and at most 60 hours to
frame.
• It makes $30 profit on each photograph and $50 profit on
each print.
• Find the number of each that the studio should purchase to
maximize profits.
1. Product Mix
A goldsmith manufactures and sells only two types of jewellery,
J1 and J2, with a daily quota of 15.6 tolas of gold. He wonders as
to how many of each type of jewellery he should make daily to
make a profitable business.
Every J1 needs 1.2 tolas of gold, while a J2 needs 1 tola.
The market limits the sales of J1 and J2 to 10 and 8 per day.
The profits from each of J1 and J2 are Rs 800 and Rs 400
respectively.
The demand for J1 always exceeds 2 per day.
Design (graphically) a plan for the goldsmith.
2. Farming
A farmer has a piece of farm land, say 20 square kilometres
large, to be planted with either wheat or barley or some
combination of the two. The farmer has unlimited amount of
fertilizer (F) and 18 litres of insecticide (P) which has to be used
up (else they become useless), each of which is required in
different amounts per unit area for wheat (F1, P1) and barley (F2,
P2). F1, P1 = 2, 2, F2, P2 = 3, 1
Twice the area used by wheat should exceed the area used by
barley.Plan a maximization of the revenue of the farmer if S1 and
S2 are the selling prices of wheat and barley respectively.
3. Financial planning
A bank makes four kinds of loans to its personal customers and
these loans yield the following annual interest rates to the bank:
• First mortgage 14%
Transportation Problems
Example 1
Source 3 1 5 80
2
Deman 30 40 30 100
d
Iteration 1
Source 3 1 5 80
2
Deman 30 40 30 100
d
vj
Iteration 2
Source 3 1 5 80
2
Deman 30 40 30 100
d
vj
Example 2
Factory 2 3 4 2 30
Demand 10 15 25 50
Iteration 1
Factory 3 4 2 30
2
Deman 10 15 25 50
d
vj
Iteration 2
Factory 3 4 2 30
2
Deman 10 15 25 50
d
vj
Example 3
Source 2 6 70
3