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Quezon City University: 673 Quirino Hi-Way, San Bartolome, Novaliches, Quezon City
Quezon City University: 673 Quirino Hi-Way, San Bartolome, Novaliches, Quezon City
In Partial Fulfillment
of the Requirement in the
Management Science
By:
November 2019
I. COMPANY PROFILE
WG Caña is a service entity that aims to provide clean drinking water with its convenient water
refilling station for a half-decade now, established at Bagong Silangan in the year 2014. They chose to put
up this business because the owner believes that clean and purified water is of the necessities and the
WG Caña, a water refilling station that produces water-gallon and water-gallon jugs, wants to know
the business’ optimal product mix. In order to produce the right amount of barrels of water with its selling
price of ₱ 35.00 each gallon to maximize its profit, it has to take into consideration the time (minutes),
demand (pieces), and the direct (cubic meter) and indirect costs(pesos).
Step1. Given
Product
Constraint Water-Gallons Water-Gallons Jug Sign Availability
Demand 60 pieces 10 pieces ≤ 200 pieces
Time 15 minutes 15 minutes ≤ 480 minutes
Direct Cost 0.1 cubic meter 0.9 cubic meter ≤ 1 cubic meter
Indirect Cost ₱ 100 ₱ 50 ≤ ₱ 350
Profit (Z) ₱ 35 ₱ 35 = MAX
GRAPHICAL
Step1. Given
Corner Points
A. (0, 0) Z= 0
B. (3.33, 0) Z= 116.55
Step1. Given
Iteration #0
BV X1 X2 S1 S2 S3 S4 RHS M.R.
S1 60 10 1 0 0 0 200 10/3
S2 15 15 0 1 0 0 480 32
S3 1/10 9/10 0 0 1 0 1 10
S4 100 50 0 0 0 1 350 7/2
Z -35 -35 0 0 0 0 0
Initial Solution:
Iteration #1
BV X1 X2 S1 S2 S3 S4 RHS M.R.
X1 1 1/6 1/60 0 0 0 10/3 20
S2 0 25/2 -1/4 1 0 0 430 172/5
S3 0 53/60 -1/600 0 1 0 2/3 40/53
S4 0 100/3 -5/3 0 0 1 50/3 1/2
Z 0 -175/6 7/12 0 0 0 350/3
Initial Solution:
X1= 20, X2=0,S1= 0,S2= 430, S3= 2/3, S4= 50/3, and Z= 350/3
Iteration #2
BV X1 X2 S1 S2 S3 S4 RHS M.R.
X1 1 0 1/40 0 0 -1/200 13/4 130
S2 0 0 3/8 1 0 -3/8 1695/ 1130
4
S3 0 0 17/400 0 1 -53/2000 9/40 90/17
X2 0 1 -1/20 0 0 3/100 1/2 (-)
Z 0 0 -7/8 0 0 7/8 525/4
Initial Solution:
X1= 13/4 or 3.25, X2=1/2 or 0.5,S1= 0,S2= 1695/4 or 423.75, S3= 9/40 or 0.225, S4= 0, and
Z= 525/4 or 131.25
Iteration #3
BV X1 X2 S1 S2 S3 S4 RHS
X1 1 0 0 0 -10/17 9/850 53/17
S2 0 0 0 1 -150/17 -12/85 7170/17
S1 0 0 1 0 400/17 -53/85 90/17
X2 0 1 0 0 20/17 -1/850 13/17
Z 0 0 0 0 350/17 28/85 2310/17
Optimal Solution
X1= 53/17 or 3.12, X2=13/17 or 0.76,S1= 90/17 or 5.29,S2= 7170/17 or 421.76, S3= 0, S4= 0, and Z=2310/17
or 135.88
LP1
Optimal
Solution
Corner Points
A. (0,0) Z= 0
LP2
C. (1,1) Z= 70
D. (0,1) Z= 35
B. (3,0) Z= 105
Conclusion
RECOMMENDATIONS:
We also want to add recommendation for the owner in terms of the route of their delivery since
their cost or expenses are not directly affected by the number of the orders they produce. We want to let
them know that their delivery time can be lessened and that saved time be used in producing products,
because we noticed that the higher the available time the greater revenue can be generated.
23
49 m
61 m
35
43 m 2
30 m
46 m
22 3 24
19 m 28 m 22 m
34 62 m 21 27
27 m
24 m 4
42 m 25
1
5 25 m
34 m
28m 26 20
6 36 m 81m
120 m
27m 120 m
7 28
150 m
20 m 19
57m 40m
29
37 m
32
82 m
8 180m
18
22m 36m
95m 44m
9 33 30
36m
39m 80 m
10 17
11
23m 12
19m 39m
41m 13
31
15m 14
18m 15 16
35m
10m
Conclusion:
Starting a water refilling station is easy, but success in this business depends a lot on how you