The University Of Lusaka

School of Business, Economics and Management Science

BF360 Distance Tutorial Sheet

1. Solve the following Linear Systems Using Gauss Jordan Elimination method

a) 2 + 3 = 7 b) + 2 3 = 2 c) 2 4 + 5 = 33
2 + + = 4 + 3 + = 7 4 = 5
3 + 2 2 = 10. + 7 = 3. 2 + 2 3 = 19

2. Set up a linear programming model of the situations described. Clearly state the decision variables, the
objective function and the constraints.

a) A FINANCIAL PROBLEM. Suppose that the financial advisor of a university's endowment fund must
invest exact]y $100,000 in two types of securities: bond AAA, paying a dividend of 7%, and stock BB,
paying a dividend of 9%. The advisor has been told that no more than $30,000 can be invested in stock
BB, whereas the amount invested in bond AAA must be at least twice the amount invested in stock BB.
How much should be invested in each security to maximize the university's return?

b) Equipment purchasing problem. A container manufacturer is considering the purchase of two different
types of cardboard-folding machines: model A and model B. Model A can fold 30 boxes per minute and
requires 1 attendant, whereas model B can fold 50 boxes per minute and requires 2 attendants.
Suppose the manufacturer must fold at least 320 boxes per minute and cannot afford more than 12
employees for the folding operation. If a model A machine costs $15,000 and a model B machine costs
$20,000, how many machines of each type should be bought to minimize the cost?

3. Use the graphical method to solve the problems:

a) Maximize = 21 + 2 , b) Maximize = 101 + 202 ,

subject to subject to
2 10 1 + 22 15
21 + 52 60 1 + 2 12
1 + 2 18 51 + 32 45
31 + 2 44 and
and 1 , 2 0.
1 , 2 0.

4. Solve the indicated linear programming problems using the simplex method.

b) min = 1 2 b) max = 1 + 22 + 3 + 4
s.t. 1 + 2 1 s.t
1 + 2 0 21 + 2 + 33 + 4 8
1 , 2 0 21 + 32 + 44 12
31 + 2 + 23 18
1 , 2 , 3 , 4 0

1
5. Set up the initial simplex tableaus and solve the following using the big M method.

b) max = 1 + 22 + 4
b) min = 31 22
subject to
1 + 32 3 + 4 5 subject to
1 + 72 + 3 4 1 + 2 + 23 7
41 + 22 + 4 = 3 21 + 2 + 3 4
1 , 2 , 3 , 4 0 1 , 2 , 3 0

6. Consider the following linear program:

Max 3 + 2
s.t + 10
3 + 1 24
1 + 2 16
, 0
a. Use the graphical solution procedure to find the optimal solution.
b. Assume that the objective function coefficient for A changes from 3 to 5. Does the optimal solution
change? Use the graphical solution procedure to find the new optimal solution.
c. Assume that the objective function coefficient for A remains 3, but the objective function coefficient for B
changes from 2 to 4. Does the optimal solution change? Use the graphical solution procedure to find the
new optimal solution.

7. Write the following primal problem in canonical form, and find its dual.

8. A company supplies goods to three customers, who each require 30 units. The company has two warehouses.
Warehouse 1 has 40 units available, and warehouse 2 has 30 units available. The costs of shipping 1 unit from
warehouse to customer are shown in Table below. There is a penalty for each unmet customer unit of demand:
With customer 1, a penalty cost of $90 is incurred; with customer 2, $80; and with customer 3, $110. Formulate
a balanced transportation problem to minimize the sum of shortage and shipping costs.
To

From Customer 1 Customer 2 Customer 3

Warehouse 1 $15 $35 $25

Warehouse 2 $10 $50 $40