Q1. A paper mill produces two grades of paper namely X and Y.

Because of raw material restrictions, it cannot produce more than 400 tons of grade X and 300 tons of grade Y in a week. There are 160 production hours in a week. It requires 0.2 and 0.4 hours to produce a ton of products X and Y respectively with corresponding profits of N200 and N500 per ton. Formulate the above as a LPP to maximize profit and hence find the first two iterations of the simplex algorithm,

Q2.

Check if the following game matrices have saddle points. Hence, find the optimal strategies for the players in each game.
B1 B2 0 2 3 3 B3 0 1 0 4 B4 5 2 2 2 B5 3 2 6 6

(a)

A1 2 A2 3 A3 4 A4 5

B1

B2 15 1

B3 1 4

(b)

A1 8 A2 3

3 (a) A pharmaceutical company produces two popular drugs, A and B, on which they make profits of N30 and N20 per unit, respectively. Each of the two drugs requires three chemicals: P, Q and R. Drug A requires 5 grams (gm) of P, 3 gm of Q and 2 gm of R; while drug B requires 3 gm of P, 3 gm of Q and 4 gm of R. The company currently has a stock of 16,000 gm of P, 14,000 gm of Q and 12,000 gm of R. They want to know the quantities of drugs A and B to produce in order to maximize their total profit. a) Formulate the problem as a linear programming problem (LPP), clearly stating the decision variables, the objective function and all the constraints. b) Solve the LPP using either the graphical or Simplex method c) Give a complete interpretation of the solution.

4 The Wazobia Trading Company has four mostly similar machines which can be
operated by five different operators, each with a different operating cost as given below. However, experience dictates to Wazobia that Operator C cannot be assigned to Machine 4 and Operator E cannot operate Machine 2. Costs are in N000. MACHINE 1 2 3 4 A N15 N15 N14 N12 B N17 N14 N20 N13 C N19 N13 N15 X D N19 N12 N16 N17 E N21 X N13 N19 Find the optimal allocation of operators to machines. What is the minimal

(a) cost? (b) Interpret your solution. 5

The Katako Furniture Company manufactures special tables in three locations and sells to four major companies (customers). In the next production period, plants 1, 2, and 3 will produce 30, 50 and 30 tables, respectively. The demand requirements of customers A, B, C and D are 20, 20, 40 and 40, respectively. The per unit transportation cost depends on a number of factors, distance from the customers and

the plants. The companys accountant has determined the transport cost per unit, based on shipping a table from each given plant to each customer. His information is as follows (in 000). Customers A B C D 1 N70 N20 N10 N40 Plants 2 N20 N60 N30 N20 3 N30 N40 N50 N20 Use any method(s) for initial allocation, checking for optimality and reallocation to find a shipping pattern that will minimize the total cost for the company.