SIMPLEX METHOD

ASSIGNMENT
ChE 5201

1. A farmer has 110 acres of available land he wishes to plant with a mixture of potatoes, corn, and
cabbage. It costs him S400 to produce an acre of potatoes, S160 to produce an acre of corn, and
S280 to produce an acre of cabbage. He has a maximum of $20,000 to spend. He makes a profit
of $120 per acre of potatoes, $40 per acre of corn, and $60 per acre of cabbage.
a. How many acres of each crop should he plant to maximize his profit?
b. If the farmer maximizes his profit, how much land will remain unplanted? What is the
explanation for this?

Answer: The farmer will maximize profit of S6000 by planting 50 acres of potatoes and no corn or
cabbage.

2. A company has three production plants, each of which produces three different models of a
particular product. The daily capacities (in thousands of units) of the three plants are as follows.

The total demand for Model 1 is 300,000 units, for Model 2 is 172,000 units, and for Model 3 is
249,500 units. Moreover, the daily operating cost for Plant 1 is $55,000, for Plant 2 is $60,000,
and for Plant 3 is $60,000. How many days should each plant be operated in order to fill the
total demand, and keep the operating cost at a minimum?

Answer:

Plant 1 – 0 day

Plant 2 – 10 days

Plant 3 – 28 days