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Quantitative Analysis for Business Decision (QABD)

Individual Assignment
Assignment

By Birhane Walelign Mengistu

1/1/2023
1. A finished product weighs exactly 150grams. The two raw materials used in manufacturing
the product are A, with cost of birr 2 per unit and B with a cost of birr 8 per unit. At least 14
units of B and not more than 20 units of A must be used. Each units of A and B weighs 5 and 10
grams respectively.
a. Formulate the above problem as a linear programming model
b. Obtain optimal solution to the problem by using the simplex method, how much of each type of row
Material should be used for each unit of the final product in order to minimize the cost?

C. Determine the surplus amount if any

2. Solve graphically

Maximize Z= 10X1+ 15X2

Subject to
2X1+ X2 ≤ 26
2X1+ 4X2≤ 56
X1- X2 ≥ -5
X X ≥0

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 Answer: Minimum cost is 116 when we take 2 units of A and 14 units of B.

Explanation:

Let the units of A be   and units of B be 

Cost of 1 unit of A  =  2

Total cost of A  =  

Cost of 1 unit of B  =  8

Total cost of B  =  

Net cost  

Mass of 1 unit of A  =  5

Total mass of A  =  

Mass of 1 unit of B  =  10

Total mass of B  =  

Net mass  

Requirement :

Minimize net cost ⇒ Minimize 2x + 8y

Constraints :

 Net mass = 150

 Units of A not more than 20

 Units of B not less than 14

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 Number of units of A and B are non-negative

Corner points are the possible solutions.

There are 2 corner points :

1. x = 0 , y = 15
2. x = 2 , y =  14

Cost  for case 1  

Cost  for case 2  

Minimum cost is 116 when we take 2 units of A and 14 units of B.

3. A construction company has recently begun constructing a new warehouse. During the
construction period several changes have occurred that required development of a new
distribution plan. Plant capacity and warehouse demand is given below:

To: Warehouses
From: Plants W X Y Z Supply
1 12 10 7 9 400
2 4 8 11 6 600
3 3 6 8 2 800
Demand 900 200 300 400

Required: Find an initial feasible solution using:

a) North-West Corner Method(NWCM) (3 points)
b) Least Cost Method(LCM) (4 points)
c) Vogel's Approximation Method(VAM) (7 points)

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 4. The information given below is for the products A and B.
_____________________________________________________________________
Machine hours per week Maximum available
Department Product A Product B per week
_____________________________________________________________________

Cutting 3 6 900
Assembly 1 1 200
Profit per unit $8 $16
_____________________________________________________________________
Assume that the company has a marketing constraint on selling products B and therefore it can
sale a maximum of 125units of this product.
Required:
a. Formulate the LPP of this problem
b. Find the optimal solution

5. A firm is engaged in producing two products A and B .Each unit of product A requires 2Kg
of raw material and 4 labor-hrs for processing. Where as each unit of product B requires 3Kg
of raw materials and 3hrs of labor. Every unit of product A requires 4 hrs for packaging
where as B needs 3.5hrs. Every week the firm has availability of 60Kg of raw material, 96
labor-hours and 105 hrs in the packaging department.
[

1 unit of product A sold yields $40 profit and 1 unit of B sod yields $35 profit.

Required:
a. Formulate this problem as a LPP
b. Find the optimal solution

solution
products Res.av./week

resources A B
Raw materials(kg) 2 3 60
Labor (hr) 4 3 96
Packaging (hr) 4 3.5 105

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 Profit per unit $40 $35

Let x1=the no of units of product A produced/week

X2=The no of units of product B produced per week
Max Z= 40x1+35x2
St.
2x1 +3x2 < 60
4x1 +3x2 < 96
4x1 +3x2 < 105
X1, X2, >0

Corners coordinates MaxZ=40X1 + 35X2

A (0,0) 0
B (0,20) 700
C (18,8) 1000
D (24,0) 960
X1=18
X2=8 and
Max Z=1000

6. A manufacturer produces two different models; X and Y, of the same product .The raw
materials r1 and r2 are required for production. At least 18 Kg of r1 and 12 Kg of r2 must be
used daily. Almost at most 34 hours of labor are to be utilized .2Kg of r1 are needed for each
model X and 1Kg of r1 for each model Y. For each model of X and Y, 1Kg of r2 is required. It
takes 3 hours to manufacture a model X and 2 hours to manufacture a model Y. The profit

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 realized is $50 per unit from model X and $30 per unit from model Y. How many units of
each model should be produced to maximize the profit?

Required:
a. Formulate this problem as a LPP
b. Find the optimal solution
7. Solve graphically
Max Z=300X1 +250X2
St:
2X1 +X2< 40
X1 +3X2< 45
X1 < 12
X1, X2 >0
8. A manufacture of lawn and garden equipment makes two basic types of lawn mowers; a push
type and a self propelled model. The push type require 9 minutes to assemble and 2 minutes to
package; the self-propelled mover requires 12 minute to assemble and 6 minutes to package.
Each type has an engine. The company has 12hrs of assembly time available, 75 engines, and
5hrs of packing time profits are Birr 70 for the self-propelled model and br 45 for the push
type mower per unit.
Required:
a. Formulate this problem as a LPP
b. Find the optimal solution by simplex method
9. A manufacturer of light weight mountain tents makes two types of tents, REGULAR tent and
SUPER tent. Each REGULAR tent requires 1 labor-hour from the cutting department and
3labor-hours from the assembly department. Each SUPER tent requires 2 labor-hours from
the cutting department and 4 labor-hours from the assembly department .The maximum
labor hours available per week in the cutting department and the assembly department are
32 and 84 respectively. Moreover, the distributor, because of demand, will not take more than
12 SUPER tents per week. The manufacturer sales each REGULAR tents for $160 and
costs$110 per tent to make. Where as SUPER tent ales for $210 per tent and costs $130 per
tent to make.

Required:
A. Formulate the mathematical model of the problem
B. Using the simplex method, determine how many of each tent the company should
manufacture each tent the company should manufacture each week so as to maximize its
profit?

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C. What is this maximum profit assuming that all the tents manufactured in each week are sold
in that week?

10. Solve graphically the following LPP

Maximize Z = X1 + 3X2

Subject to
X1 + 4X2 ≤ 11
X1 + 2X2 ≤ 9
X1 – X2 ≥ 2
X1,X2 >0

11. A Juice Company has available two kinds of food Juices: Orange Juice and Grape Juice. The
company produces two types of punches: Punch A and Punch B. One bottle of punch A
requires 20 liters of Orange Juice and 5 liters of Grape Juice.1 Bottle of punch B requires 10
liters of Orange Juice and 15 liters of Grape Juice.

From each of bottle of Punch A a profit of $4 is made and from each bottle of Punch B a profit of
$3 is made .Suppose that the company has 230 liters of Orange Juice and 120 liters of Grape
Juice available

Required:
a. Formulate this problem as a LPP
b. How many bottles of Punch A and Punch B the company should produce in order to
maximize profit? (Using the simplex method)
c. What is this maximum profit?

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12. Consider the following transportation problem in our context

To

Store 1 Store 2 Store 3 Supply

From

Warehouse A 12 20 15 50

Warehouse B 9 11 4 15

Warehouse C 20 14 8 55

Demand 25 50 45 120

a) Develop an initial feasible solution using the north-west corner and least cost methods.
b) Compute the total transportation cost for each initial feasible solution.
c) Find the optimal solution.
d) What is the total cost for at optimal solution?
e) What is its application of this transportation problem in our context?

13. Determine an initial feasible solution to the following transportation problem using
LCM

A B C D Supply
S1 1 5 3 3 34
S2 3 3 1 2 15
S3 0 2 2 4 12
S4 2 7 2 4 19
demand 21 25 17 17

14. Below is a transportation problem for EFG company.

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 S1 S2 S3 S4 Supply
A 30
5 10 15 8

B 40
14 13 10 9
C 25
15 11 13 25
30

Demand 15 20 15 45

Required: Find an initial feasible solution to the following transportation problem and calculate
the minimum cost associated with it using
a) North West Corner Method(NWCM)
b) Vogel’s Approximation method (VAM)

14. A marketing manager in XYZ Company wants to assign 4 salespersons to 4 regions. The
table below summarizes the expected monthly sales revenue (in 1000’s of Br.) that can be
generated by each sales person in each region.

Regions

Sales West South East North

Perso
n
Alemu 50 40 35 42
Abdi 35 30 29 27
Chaltu 28 40 25 38
Ahme 26 35 30 34
d

Required:

a. Form the general linear programing/ the standard form.

b. Find the assignment schedule that maximizes expected sales revenue.
c. What is the expected total revenue?

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