Solution to Problem #1 Let px1 = # of gold coins produced; and sx1 = # of gold coins sold (because not all

gold coins that are produced are to be sold, some of them are to be used for the production of gold chains) Let px 2 = # of gold chains produced; and sx2 = # of gold chains sold (because not all gold chains that are produced are to be sold, some of them are to be used for the production of gold lockets) Let x3 = # of gold lockets produced (as well as # of gold lockets sold) (because all gold lockets that are produced are to be sold) To Maximise Z = 10 sx1 + 50 sx2 + 100 x3 Subject to: px1 + 2 px2 + 3 x3 = 40 . . . . . . . . . . Labour hours constraint px1 = sx1 + 2 px2 . . . . . . . . . . . . . . Coins used for production of chains constraint px2 = sx2 + x3 . . . . . . . . . . . . . . . . . Chains used for production of lockets constraint px1, sx1, px 2, sx2, x3 = 0 Solution to Problem #2 Let x1 = # of compact cars Let x2 = # of midsize cars Let x3 = # of large cars To Maximise Z = 20,000 x1 + 30,000 x 2 + 40,000 x3 Subject to: 1.5 x1 + 3 x2 + 5 x3 = 6,000 . . . . . . . . . . Steel constraint

30 x1 + 25 x 2 + 40 x3 = 60,000 . . . . . . . . . . Labour hours constraint x1 = 2,000 y1 1,000 x 1 = 2,000 (1 y1) x2 = 2,000 y2 1,000 x 2 = 2,000 (1 y2) x3 = 1,200 y3 1,000 x 3 = 1,200 (1 y3) . . . . . . . . . At least 1,000 or no production of large car constraint . . . . . . . . . At least 1,000 or no production of midsize car constraint . . . . . . . . . At least 1,000 or no production of compact car constraint

x1, x2, x3 = 0 & are integers y1, y2, y3 = 0 or 1

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Solution to Problem #3 Customer #1s demand will be 4,000 Customer #2s demand will be 3,000 Customer #3 wants at least 3,000, hence Customer #3s demand will be 3,000 + k (where k is a positive integer greater than or equal to zero) Customer #4 wants as many remaining units as are left after fulfilling the demand of the remaining customers, hence Customer #4s demand will be 13,000 (10,000 + k) (where 13,000 is the total production; and (10,000 + k) is the sum of the demands of the other three customers as mentioned above) Hence, the total supply would be 3,000 + 5,000 + 5,000 = 13,000 and the total demand would be 4,000 + 3,000 + (3,000 + k) + (13,000 (10000 + k)) = 13,000 Thus it would be balanced. Solution to Problem #4 Using Vogels Approximation Method, the initial basic feasible solution would give the cost of 910 monetary units. The optimal cost for the problem is 820 monetary units. Solution to Problem #5 There are three four sites having ambulances, and there are four towns requesting for the ambulances. But three of the sites have one ambulance each, while the fourth site has three ambulances. There are total six ambulances available, while there are four requesting towns. (We will not consider the distances between the towns and the sites, rather we will consider the distances between the ambulances and the sites; because, probably, any of the three requesting towns may get all three ambulances from the site having three ambulances!) Hence, there are six supply points and four demand points. But because the number of rows and columns must be matching, we would add two dummy demand points (i.e. the dummy towns). The ambulances being sent to the dummy towns means the ambulances not sent at all! If any ambulance (from any site) can not be sent to some specific town (for whatever reason), its cost would be considered at M (very large integer) even if the distance given between the site and the town is some small value (because no matter what the distance is, no ambulance would be sent from that site to that specific town). Furthermore, the distance of less than 1 can be replaced by 0 that is obvious, because the information given in the problem has the integer values for the distances, and 0 is the smallest possible value for the distance.

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