Question 1:

Resources(inputs) T-Shirts Jacket Shirts Monthly

Availability
Labour (Hr.) 12 7 9 1260
Fabric (sq/ft.) 22 18 16 19008
Buttons 2 4 3 396
Revenue per unit 4000 2000 5000

Decision variable are as Follows:

x= No. of t-shirts/Month

y= No. of Jackets/Month

z= No. of Shirts/Month

Subject to:

12x +7y +9z <=1260

22x+ 18y +16z <=19008

2x +4y +3z <=396

Where x,y,z >=0

(Because of non-negativity constraint)

To make these inequalities, equality we have to introduce a slack variable.

12x +7y +9z + S1 = 1260

22x +18y +16z + s2 =19008

2x +4y +3z + s3 =396

Objective Function : Z= 4000x+ 2000y +5000z + s1 +s2 +s3 (i.e. to maximize the total revenue.)
 Iteration 1:
Cj 4000 2000 5000 0 0 0
Co- Basic x y z S1 S2 S3 RHS Ratio
efficient Variable
objective
function
0 s1 12 7 9 1 0 0 1260 140
0 s2 22 18 16 0 1 0 19008 1188
0 s3 2 4 3 0 0 1 396 132
Zj 0 0 0 0 0 0 0
Cj-Zj 4000 2000 5000 0 0 0

The maximum value of cj-zj gives us the key column.

Ratio : RHS/elements of key column

The minimum value of the ratio gives us the key row.

The intersection of key row and key column gives us the key element.

Key element : 3

Incoming variable : z

Outgoing variable : s3

Row operations:

 New row3: old row3/ key element

 New row1 : old row1 – 9(new row 3)
 New row2 : old row2 – 16(new row 3)

Iteration 2:
Cj 4000 2000 5000 0 0 0
Co- Basic x y z S1 S2 S3 RHS Ratio
efficient Variable
objective
function
0 s1 6 -5 0 1 0 -3 72 12
0 s2 34/3 22/3 0 0 1 -16/3 16896 25344/17
5000 z 2/3 4/3 1 0 0 1/3 132 198
Zj 1000/3 2000/3 5000 0 0 5000/3 660000
Cj-Zj 2000/3 -14000/3 0 0 0 -5000/3
Key element : 6

Incoming variable : x

Outgoing variable : s1

Row operations:

 New row1: old row1/ key element

 New row2 : old row2 – 34/3(new row 1)
 New row3 : old row3 – 2/3(new row 1)

Iteration 3:
Cj 4000 2000 5000 0 0 0
Co- Basic x y z S1 S2 S3 RHS Ratio
efficient Variable
objective
function
4000 x 1 -5/6 0 1/6 0 -1/2 12
0 s2 0 -5/9 0 -8/9 1 8/3 16760
500 z 0 17/9 1 -1/9 0 2/3 124
Zj 4000 110000/18 5000 1000/9 0 4000/3 668000
Cj-Zj 0 -37000/9 0 -1000/9 0 -4000/3

Since, Cj-Zj <= 0, so optimal solution is found.

Optimal Solution of Z=668000

Where x=12 and z=124

Hence,

 No of T-Shirts=12
 No of Jackets=0
 No of Shirts=124
 Total revenue = INR 668000
 The fabric is being unutilized and the spare capacity left is 16760 metres.
 Total fabric used to make all the garments given in the optimal solution is 2248 metres.
Question 2 :

Demand D1 Demand D2 Demand D3 Supply

2 7 4
Source S1 5
3 3 1
Source S2 8
5 4 7
Source S3 7
1 6 2
Source S4 14
Demand 7 9 18

Objective :

 to find the initial basic feasible solution using least cost method or Vogel’s method.
 Use MODI method (u-v method) to improve the solution obtained. What’s the minimum
transportation cost after improving via MODI method ?

Least Cost Method

Demand D1 Demand D2 Demand D3 Supply

2 7 4
Source S1 0 2 3 5
3 3 1
Source S2 0 0 8 8
5 4 7
Source S3 0 7 0 7
1 6 2
Source S4 7 0 7 14
Demand 7 9 18

In this method, we assign the value to that cell which will give the minimum output in terms of cost.

The transportation cost we get is:

Cost (S4 to D1) + Cost (S1 to D2) + Cost (S3 to D2) + Cost (S1 to D3) + Cost (S2 to D3) + Cost (S4 to D3)

= 7 + 14 + 28 + 12 + 8 + 14 = INR 83
MODI Method

V1 = 2 V2 = 7 V3 = 4
Demand D1 Demand D2 Demand D3 Supply
2 7 4
U1 =0 Source S1 0 2 3 5

3 3 1
U2 =-3 Source S2 0 0 8 8
5 4 7
U3 =-3 Source S3 0 7 0 7
1 6 2
U4=-2 Source S4 7 0 7 14
Demand 7 9 18

No. of occupied cells = 3 which is equals to (m+n-1), hence initial basic feasible solution is non-
degenerate.

Using the formulae:

Cij = Ui + Vj (for allocated cells)

Dij = Cij – (Ui + Vj) (For unallocated cells)

Let U1 = 0

Therefore,

C11 = U1 + V1

2 = 0 + V1

V1 = 2

Similarly,

V2 = 7, V3 = 4, U2 = -3, U3 = -3, U4 = -2

Putting these values in formula 2 to get the values of Dij

DU2V1 = CU2VI – (U2 + V1) = 3-(-1) = 4

Similarly, DU1V1 = 0, DU3V1 = 6, DU2V2 = -1, DU4V2 = 1, DU3V3 = 6

Since, DU2V2 < 0, Current basic solution is not the optimal solution.
For improving the solution, construct a closed loop starting from cell (2, 2) is made and after passing
through the occupied cells ends at cell (2, 2) only.

V1 = 2 V2 = 7 V3 = 4
Demand D1 Demand D2 Demand D3 Supply
2 7 4
U1 =0 Source S1 0 2 3 5

3 3 1
U2 =-3 Source S2 0 0 8 8
5 4 7
U3 =-3 Source S3 0 7 0 7
1 6 2
U4=-2 Source S4 7 0 7 14
Demand 7 9 18

In the closed loop, alternate cells will get positive and negative value which is equals to 2 or -2.

V1 = -3 V2 = 2 V3 = 0
Demand D1 Demand D2 Demand D3 Supply
2 7 4
U1 = 5 Source S1 0 0 5 5

3 3 1
U2 = 6 Source S2 0 2 6 8
5 4 7
U3 = 8 Source S3 0 7 0 7
1 6 2
U4= 4 Source S4 7 0 7 14
Demand 7 9 18

Now again using the formulae:

Cij = Ui + Vj (for allocated cells)

Dij = Cij – (Ui + Vj) (For unallocated cells)

DU1VI = 0, DU2V1 = 0, DU3V1= 0, DU1V1 =0, DU4V2 =0, DU3V3 =0

Since, all Dij values are >=0, the solution obtained is optimal.

So, the minimum cost obtained after improving through MODI method is :

Cost(S4 to D1) + Cost(S2 to D2) + Cost(S3 to D2) + Cost(S1 to D3) + Cost(S2 to D3) + Cost(S4 to D3) =

7 + 6 + 28 + 20 + 6 + 14 = INR 81