Addis Ababa University
College of Business and Economics
Economics Department
Group ASSIGNMENT FOR LINEAR ALGEBRA FOR ECONOMISTS
Group Assignment (10%) (The number of group members should be 4-5)
Submit ion date: 28/05/2018
1. A Metallurgy Factory produces two types of auto spare parts X and Y. Net profit from
production of one X is 2 birr and of one Y is 3 birr. Each of the two machines the factory
owns works 8 hours a day and 6 days per week. A table below shows the productivity of
the machines in terms of time requirements. One X requires 19m2 and one Y requires 7
m2 of space for storage and the total storage area available is 133, 000 m 2. Weekly
production of X cannot exceed 6000 and that of Y 9000 due to the limited market
demand.
Time Needed to Produce One
Machine X Y
M1 20 Sec. 15 Sec.
M2 10 Sec. 18 Sec.
a. Write the linear Programming problem assuming that the manager wants
to maximize profit.
b. Write the dual LP
2. A firm produces two types of outputs, X1 and X2 using two types of inputs according to
the table below. The management wants to maximize profit.
Inputs Required to The available
Inputs Produce One Stock of Inputs
X1 X2
Input one 2 units 3units 12 units
Input Two 2 units 1 units 8 units
Profit Per Unit 3 Birrs 2 Birrs
a. Convert the problem into linear programming problem (LPP)
b. Write the dual LPP and interpret it.
c. Solve both LPPs using graphic method.
3. a) Maximize = 2X + 3Y
Subject to:
20X + 15Y 172,800 (M1 constraints in seconds)
10X + 18Y 172,800 (M2 constraints in seconds)
19X + 7Y 133,000 (space constraint)
X 6,000 (demand constraint)
Y 9,000 (demand constraint)
X, Y 0
b) Let the dual decision variables be ai
Minimize C = 172,800a1 + 172,800a2 + 133,000a3 + 6,000a4 + 9,000a5
Subject to:
20a1 + 10a2 + 19a3 + a4 2
15a1 + 18a2 + 7a3 + a5 3
ai 0
4. a) Maximize = 3X1 + 2X2
Subject to:
2X1 + 3X2 12
2X1 + X2 8
X1, X2 0
b) Minimize C = 12Y1 + 8Y2
Subject to:
2Y1 + 2Y2 3
3Y1 + Y2 2
Y1, Y2 0
5. Solve the following using simplex method
a. Maximize = X1 + 4X2 + 6X3
Subject to:
X1 + 3X2 + 6X3 48
X1 + 6X2 + 3X3 90
X1 + 9X2 + 10X3 137
X1, X2, X3 0
b. Maximize Z = 3X1 + 5X2 + 3X3
Subject to:
2X1 + 3X2 + 6X3 50
3X1 + 4X2 + X3 40
3X1 + 5X2 + 2X3 20
X1, X2, X3 0
c. Maximize Z = -X1 + X2 + 3X3
Subject to:
3X1 + 2X2 + X3 3
2X1 + X2 + 2X3 2
X1, X2, X3 0
d. Maximize Z = 30X1+ 24X2 + 60X3
Subject to:
6X1 + 3X2 + 5X3 30
X1 + X2 + 5X3 25
X1, X2, X3 0
6. Three products are processed through three different machines. The time required per
unit of each product, the daily capacity of the machines and the net profit per unit sold for
each product are given below:
Time required Machines capacity
Per unit (in minutes) (minutes per day)
Machine Product I Product II Product III
M1 5 2 4 52
M2 0 4 3 55
M3 2 3 6 50
Net profit /unit 4 6 3
(Birr)
Build up a linear programming model of the above production-planning problem and find the
optimum daily production for the three products that maximizes the net profit.