INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM) MBA 2011-13 SECOND SEMESTER QUANTITATIVE ANALYSIS FOR MANAGEMENT 2 (QUAM 2) ASSIGNMENT

ENT - I Ten problems are given below. Formulate their primal and dual LPP. Provide graphical solutions wherever asked. 1. A Home decorator manufactures two types of lamps, alpha and delta. Both these lamps require the services of a cutter and a finisher. Alpha requires 3 hours of cutters time and 2 hours of finishers time. Delta requires 2 hours of cutters time and 1 hour of finishers time. The cutter has 180 hours and finisher 110 hours time each month. If one alpha gives a profit of Rs.10.00 and delta a profit Rs. 7.00, formulate this as a L.P. Problem and solve it graphically. A firm makes tow types of furniture: Chair and tables. The contributions for each product as calculated by accounting department are Rs. 20 per chair and Rs. 30 per table. Both products are processed on three machines M1, M2 and M3. The time required for each product and total time available per week on each machine are as follows: Machine M1 M2 M3 Chair 3 5 2 Table 3 2 6 Available hours 36 50 60

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Formulate the above as a L.P.P. and solve it graphically. 3. A multi-plant company has three manufacturing plants, A, B and C and two wssz markets, X and Y. The productions cost per piece in A, B and C is Rs.1500 Rs.1,600 and Rs.1,700 respectively. The selling price of X and Y are Rs.4400 and Rs.4700 respectively. Demand for X and Y is 3500 and 3600pieces respectively. The unit transportation costs are as follows: From A B C To X 1000 2000 1500 Y 1500 3000 2500

Formulate a Linear Programming model.

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Two products L and K are processed on 3 machines M1, M2 and M3. The processing time per unit, machine availability and profit per unit are as follows: 1

Machine M1 M2 M3 Profit per unit in(Rs) L 2 3 1 10

Processing Time in Hrs. K 3 2 1 12

Availability in Hrs. 1500 1500 1000

Formulate a L.P.P. and solve graphically. 5. A company manufactures two products. The basic time data, machine capacity and profit contribution is given in the table below: Machine Lathes Milling Profit per unit (Rs) Machine hrs Required per unit Product-I Product-II 1 1 1 2 6 8 Machine hrs. Available per week 80 120

Formulate the problem as a linear programming problem and obtain the graphical solution. 6. The owner of a sports company wishes to determine how many advertisements to place in three selected monthly magazines A, B, and C. His objective is to advertise in such way that total exposure to principal buyers of expensive sports goods is maximized. Percentages of readers for each magazine are known. Exposure in any particular magazines is the number of advertisements placed multiplied by the number of principal buyers. Following is the relevant data: Exposure Category Readers ( in lakhs) Principal Buyers Cost per advt. (in Rs.) Magazines B 0.6 15% 4500

A 1 10% 5000

C 0.4 7% 4250

The budget amount is at the most Rs.1 lakh for the advertisements. The owner has already decided that magazine A should have no more than 6 advertisements and that B and C have at least two advertisements. Formulate the problem as L.P.P. 7. A furniture manufacturing company plans to make two products chair and tables from its available resources, consisting of 400 board feet of mahogany timber and 450 man hours of labor. It know that to make chair requires 5 board feet and 10 man hours and yield a profit of Rs.45, while each table uses 20 board feet and 15 man- hours and has a profit of Rs.80. The problem is to determine how many chairs and tables the company can make keeping within its resource constrains, so that it maximize the profit. Formulate a liner programming model and provide its graphical solution. 2

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A firm produces three products. These products are processed on three different machines. The time required for manufacturing one unit of each of the three products and daily capacity of the three machines are given in the table below. Time per unit (minutes) Machin e M1 M2 M3 Product -1 2 4 2 Product -2 3 5 Product -3 2 3 Machine Capacity (Minutes per day) 440 470 430

It is required to determine the daily number of units to be manufactured for each product. The profit per unit for products 1, 2 and 3 is Rs.4, Rs.3 and Rs.6 respectively. It is assumed that all the units produced are consumed in the market. Formulate the L.P Model. 9. A Company machines and drills two castings X and Y. The time required to machine and drill one casting including machine set-up time is as follows: Casting X Y Machine Hours 4 2 Drilling Hours 2 5

There are two lathes and three drilling machines. The working week is of 40 hours; there is no overtime and lost time. Variable costs for both castings are Rs. 120 per unit while total fixed costs amount to Rs.1, 000 per week. The selling price of casting X is Rs.300 per unit and that of Y is Rs.360 per unit. There are no limitation on the number of X and Y castings that can be sold. The company wishes to maximize its profit. Formulate a linear programming model for the problem. 10. Mohan Meakins Breweries Ltd. has two bottling plants, one located at Sloan and the other at Mohan Nagar. Each plant produces three drinks: whisky, beer and fruit juices named A, B and C respectively. The number of bottle produced per day is as follows: Plant At Sloan Mohan Nagar (S) (M) Whisky (A) 1,500 1,500 Beer (B) 3,000 1,000 Fruit Juices [C] 2,000 5,000 A market survey indicates that during the month of April, there will be a demand of 20,000 bottles of whisky, 40,000 bottles of beer and 44, 000 bottles of fruit juices. The operating costs per day for the plants at Sloan and Mohan Nagar are 600 and 400 monetary units. For how many days should each plant be run in April so as to minimize the production cost while still meeting the market demand? Formulate the problem as a LPP.