Linear

Programming
Models
Graphical Method

Presented By
Prabhat Taneja 221090
Preeti Sharma 221096
Rajdeep Baruah - 221113
INDEX
CASE STUDY : Production
Strategy
BETTER FITNESS INC. (BFI)
Page number 85-86

Using graphical method

FORE School of Management

BFI wants to manufacture
its two machines :

BodyPlus 100

BodyPlus 200

FORE School of Management

BodyPlus 100
consists of :
a) Frame Unit
b) Press Station
c) Pec -Dec Station

BodyPlus 200
consists of :
a) Frame Unit
b) Press Station
c) Pec -Dec FORE
Station
School of Management
BodyPlus 100 And BodyPlus 200
There are various activities involved in per unit
manufacturing of body plus 100 and body plus
200 :

Machining and welding

Painting and finishing
Assembling, packaging and testing

These activities take different amount of time.

FORE School of Management

 BodyPlus 100
Machine Painting Assembling, Raw Pack
and and Testing and Materi agin
welding finishing packaging al Cost g
time(in time(in time(in ($) Cost
hours) hours) hours) ($)
Frame Unit 4 2 450

Press Station 2 1 300

2
Pec-Dec 2 2
Station 250 50

Total 8 5 2 1000

FORE School of Management

 BodyPlus
200
Machine Painting Assembling Cost Packa
and and , Testing ($) ging
welding finishing and Cost
time(in time(in packaging ($)
hours) hours) time(in
hours)
Frame Unit 5 4 650
Press Station 400
3 2
2
Pec-Dec 2 2 250
Station 75
Leg-Press 2 2 200
Station
Total 12 10 2 1500
FORE School of Management
 Machine Painting Assembling,
and Welding and Testing
Time finishing and
time Packaging
Time

Labor Cost
Per hour $20 $15 $12
For the next production period management estimates the hours and labour cost
Total Time(hrs) Cost per hour ($)
Machine and 600 20
Welding Time

Painting and 450 15

finishing time

Assembling, 140 12
Testing and
Packaging Time

FORE School of Management

Calculating Manufacturing
Cost
Retail Price of BodyPlus 100 = $2400

Retail Price of BodyPlus 200 = $3500

Labour costfor BodyPlus 100=

(20x8)+(15x5)+(12x2)= $259
Labour cost BodyPlus 200 =
(20x12)+(15x10)+(12x2)= $414.
Raw material cost for BodyPlus 100 = $1000 +$50 =
$1050
(with $50 as assembling ,packaging and testing
cost.)
Raw material cost for BodyPlus 200 =$1500 + $75
= $1575
(with $75 as assembling ,packaging and testing
cost.)

FORE School of Management

Calculating Retail
Cost
Authorized dealers can purchase at 70% of
the suggested price :

BodyPlus 100s price =0.70 x 2400 =

$1680

BodyPlus 200sprice = 0.70 x 3500=

$2450

This is the price at which it is sold to

Dealers.

President stated that the number of units of

the BodyPlus 200 produced must be at
least 25 percent of the total production.
FORE School of Management
Calculating Profit
BP100 :
Total cost= raw material cost + labour
cost
=1050 + 259= $1309

Price sold= $1680

Profit = 1680 1309 = $371

BP200 :
Total cost = raw material cost + labour
cost
1575 + 414= $1989

Price sold = $2450

Profit = 2450 1989 = $461

FORE School of Management

A)Decision Variable involved are :

X1 = Number of units of BodyPlus 100 to be produced.

X2 = Number of units of BodyPlus 200 to be produced.

B)LPP Equation (Profit Maximization Equation) :

Max Z = 371X1 +461X2

C)Constraints :
1) Machine and Welding Hours :
8X1 + 12X2<= 600
2) Painting and Finishing Hours :
5X1 + 10X2 <= 450
3) Assembly and Packaging Hours :
2X1 + 2X2 <= 140
4) X2 >= 0.25(X1 +X2)
5) Non Negative Constraints :
X1 >=0 , X2 >=0
FORE School of Management
Plotted using MATLAB

8X1 + 12X2<= 600; 5X1 + 10X2 <= 450; 2X1 + 2X2 <=
140; X2 >= 0.25(X1 +X2)
FORE School of Management
 1
.
. Boundary points

. 0,0
0,45

.
30,30
50,16.66

Max Z = 371X1 +461X2

solution: X1 = 50, X2 = 50/3 or 16.667, Profit = $26
FORE School of Management
2 Case without constraint of producing
at least 25% of
BP200 out of the total production

Using the following 4 constraints we can

plot the required
region to check the optimal solution for
case 2.
8X1 + 12X2<= 600
5X1 + 10X2 <= 450
2X1 + 2X2 <= 140
X1 >=0 , X2 >=0

FORE School of Management

 .
. Boundary
points
0,0

. 0,45

. .
30,30
60,10
70,0

Max Z = 371X1 +461X2

ptimal solution: X1 = 60, X2 = 10 Profit= $ 26870.00
FORE School of Management
of producing BP100 and BP200 without the constrain
mber of BP200 to be at least 25% of the TOTAL produc

Profit margin increases by -> $26870 - $26233.487

$636.513

FORE School of Management

 Where should efforts be expended in
3 order to increase profits?

Arriving at the optimal solution considering

the constraint of producing at least 25%
BP200 of the total production, we can see that
machine and welding time is fully utilized.

8*50 + 12*16.66= 600

5*50 + 10*16.667 <= 450 ------ SLACK of 33.33 hours
2*50 + 2*16.667 <= 140 ------ SLACK of 6.68 hours
While there is a slack in the painting and
finishing time and Assembly time. Thus by
increasing the Machine and Welding time ,
we can successfully increase profits by
utilizing the slack in painting and
assembling time.
FORE School of Management
BIBLIOGRAPHY and REFERENCE

An Introduction to Management
Science
Quantitative Approaches to Decision
Making

MATLAB Preparation of Line Graph

Wolframalpha.com Preparation of
Inequality Graph

FORE School of Management

 THANK YOU

FORE School of Management