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Big M Method Example

M&D Chemicals produces two products, A and B, and needs to satisfy a customer's order of 125 gallons of product A and 200 gallons of product B using its available 600 processing hours. The objective is to maximize profits of $6 per gallon for product A and $3 per gallon for product B. This document formulates the problem as a linear program to determine the optimal production quantities to maximize total profit.

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27 views4 pages

Big M Method Example

M&D Chemicals produces two products, A and B, and needs to satisfy a customer's order of 125 gallons of product A and 200 gallons of product B using its available 600 processing hours. The objective is to maximize profits of $6 per gallon for product A and $3 per gallon for product B. This document formulates the problem as a linear program to determine the optimal production quantities to maximize total profit.

Uploaded by

hussein
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

M&D Chemicals produces two products that are sold as raw materials to companies

manufacturing laundry detergents. Product A requires 2 hours of processing time per


gallon and product B requires 1 hour of processing time per gallon. For the coming
month, 600 hours of processing time are available. A major customer’s order for 125
gallons of product A and 200 of product B must be satisfied. M&D’s objective is to
satisfy these requirements and achieve a maximum profit. The expected profits are $6
per gallon for product A and $3 per gallon for product B.

Data Arrangement

Product Time
Availability
𝐴 𝐵 (hr./month)
Processing Time (hr./gallon) 2 1 600
Demand Requirement (gallon/month): 125 200

Production Costs ($/gallon) 6 3

Formulating the Linear Programming Problem:

Decision Variables:

𝐴 ≡ number of gallons of product 𝐴


𝐵 ≡ number of gallons of product 𝐵

Constraints

Con. 1 2𝐴 + 𝐵 ≤ 600 (hr. / month) (300,0) (0,600)

Con. 2 𝐴 ≥ 125 (gallon / month) —

Con. 3 𝐵 ≥ 200 (gallon / month) —

Objective Function:

The objective is to maximize the profit

𝑍 = 6𝐴 + 3𝐵 ($/𝑚𝑜𝑛𝑡ℎ) → max

Non–Negative Variables:

𝐴 ≥ 0, 𝐵≥0

Page 1 / 4
The Augmented Form:

Constrains:

2𝐴 + 𝐵 + 𝑆1 = 600
𝐴+ 𝐴2 − 𝑆2 = 125
𝐵 + 𝐴3 − 𝑆3 = 200

Objective Function:

The coefficients of the slack variable in the objective function are zeros.

Maximize

𝑍 = 6𝐴 + 3𝐵 − 𝑀𝐴2 − 𝑀𝐴3

Or

𝑍 − 6𝐴 − 3𝐵 + 𝑀𝐴2 + 𝑀𝐴3 = 0

Non–Negative Variables:
𝑥 ≥ 0, 𝑦 ≥ 0, 𝑆1 ≥ 0, 𝑆2 ≥ 0, 𝑆3 ≥ 0

Initial Solution:

• Non–Basic Variables:
Put

𝐴 = 𝐵 = 0, 𝑆2 = 𝑆3 = 0

• Basic Variables:
Substituting in the constrains

𝑆1 = 600, 𝐴2 = 125, 𝐴3 = 200

Page 2 / 4
First Table
−𝟔 −𝟑 𝟎 𝟎 𝟎 𝑴 𝑴 0
B.V. A B 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑨𝟐 𝑨𝟑 R.H.S. Min. R.T.
𝟎 𝑺𝟏 2 1 1 0 0 0 0 600 300
𝑴 𝑨𝟐 1 0 0 −1 0 1 0 125 125
𝑴 𝑨𝟑 0 1 0 0 −1 0 1 200 —
−6 −3
𝒁 0 𝑀 𝑀 0 0 −325𝑀
−𝑀 −𝑀

Second Table
B.V. A B 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑨𝟐 𝑨𝟑 R.H.S. Min. R.T.
𝑺𝟏 0 1 1 2 0 −2 0 350 350
𝑨 1 0 0 −1 0 1 0 125 —
𝑨𝟑 0 1 0 0 −1 0 1 200 200
−3 6 750
𝒁 0 0 −6 𝑀 0
−𝑀 +𝑀 −200𝑀

Third Table
B.V. A B 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑨𝟐 𝑨𝟑 R.H.S. Min. R.T.
𝑺𝟏 0 0 1 2 1 -2 -1 150 75
𝑨 1 0 0 −1 0 1 0 125 —
𝑩 0 1 0 0 −1 0 1 200 —
𝒁 0 0 0 −6 −3 6+𝑀 3+𝑀 1350

Page 3 / 4
Fourth Table – 1st Solution
B.V. A B 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑨𝟐 𝑨𝟑 R.H.S. Min. R.T.
𝑺𝟐 0 0 1/2 1 1/2 −1 −1/2 75 150
𝑨 1 0 1/2 0 1/2 1/2 −1/2 200 400
𝑩 0 1 0 0 −1 0 1 200 —
𝒁 0 0 3 0 0 M M 1800

Fifth Table – 2nd Solution


B.V. A B 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑨𝟐 𝑨𝟑 R.H.S. Min. R.T.
𝑺𝟑 0 0 1 2 1 −2 −1 150
𝑨 1 0 0 −1 0 −1/2 −1 125
𝑩 0 1 1 2 0 −2 0 350
𝒁 0 0 3 0 0 M M 1800

Page 4 / 4

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