Question

1. Analysis Problem 1 “LP”

You may either solve manually or using computer tools such as MS Excel, Lindo or Lingo

New pressures have arisen in our industry and we now have new constraints. We are still in the business of fabricating animal drawn vehicles for our frontier village and near-by farms.   The amount of each resource needed is given in the table below.

Resource	Wagon	Buggy	Dog-cart
Lumber	20 board feet	15 board feet	5 board feet
Carpentry hours	10 hours	7 hours	5 hours
Wheelwright hours	12 hours	15 hours	8 hours

Present inventory of materials:

2753 board feet of lumber

166 carpentry hours available

153 wheelwright hours available

A wagon sells for $180

A buggy sells for $155

A dog-cart now sells for $75

The demand for our products is unlimited.

Since all materials are on hand, we would like to identify the alternative that maximizes our total revenue.

For added points: while the demand for wagons and buggies is unlimited, our crack sales team who spend most of their day down at their favorite pub, The Plough and Slough, have determined through focus groups (other people they have met at the pub) that we will only be able to sell 7 dog-carts.

How does this affect total maximum revenue?

Since all materials are on hand, we would like to identify the alternative that maximizes our total revenue.

Answer 1

In this solution some basic concepts and formulas of Linear Programming are used. For more information, refer to any standard textbook or drop a comment below. Please give a Thumbs Up, if solution is helpful.

Solution :

I am using a calculator to solve it using the simlex method. You are advised to go with you own calculations.

The optimal solution value is Z = 2295
X1 = 12.75
X2 = 0
X3 = 0

NOTE : Feel free to ask further queries. Your positive rating would be appreciated and motivate me !