0315584 Hiu Wai Yen Diploma in Business

0315584 Hiu Wai Yen Diploma in Business 1

Business Mathematic BMAD101
Individual Assignment

Question

A car dealer has warehouses in Millville and Trenton and Camden and Atlantic City.
Every car that is sold at the dealerships must be delivered from one of the warehouse.
On a certain day the Camden dealers sell 10 cars, and the Atlantic City dealers sell 12.
The Millville warehouse has 15 cars available, and the Trenton warehouse has 10.
The cost of shipping one car is $50 from Millville to Camden, $40 from Millville to
Atlantic City, $60 from Trenton to Camden, and $55 from Trenton to Atlantic City.
How many cars should be moved from each warehouse to each dealership to fill the
orders at minimum cost?

Reference:
Stewart, J., Redlin, L. and Watson, S. (2004) College Algebra: Systems of Equations
and Inequalities. 5
th
ed. US: Brooks Cole.

Solution

Camden Atlantic Trenton
Sell(x) 10 12
Available (y) 15 10 10
The cost of shipping 50 40 55

Variables
= number of cars to be shipped from Millville to Camden
Y = number of cars to be shipped from Millville to Atlantic City

Objective Function
C = 50x + 40y + 60 (10-x) + 55 (12-y)
= 50x + 40y + 600 60x + 660 55y
= 1260 10x 15y
0315584 Hiu Wai Yen Diploma in Business

0315584 Hiu Wai Yen Diploma in Business 2

Systems of Inequalities

x + y 15
x + y 12
0 x 10
0 y 12

Solve the problem using Simultaneous Method


x + y 15
( 10 x) + 12 y 10




















Constraints
( 3 , 12 )
x=10
y=12
Feasible Region
0315584 Hiu Wai Yen Diploma in Business

0315584 Hiu Wai Yen Diploma in Business 3

Minimum Profit

Corner Point Objective Function, C= 1260 10x -15y
( 0 , 12 ) 1260 10 (0) 15 ( 12 ) = $ 1080
( 3 , 12 ) 1260 10 (3) 15 ( 12 ) = $ 1050
( 10 , 15 ) 1260 10 (10) 15 ( 5 ) = $ 1085
( 10 , 2 ) 1260 10 (10) 15 ( 2 ) = $ 1130

Conclusion

The lowest cost is incurred at ( 3 , 12 ). Thus, the dealer should ship
3 cars from Millville to Camden
12 cars from Millville to Atlantic City
7 cars from Trenton to Camden
0 cars from Trenton to Atlantic City