Queens’ College MBA Students Exercise:

1. DeReal international, produces wooden doors and chairs. Each doors sells for $27, uses
$10 of raw materials and takes $14 of labor& overhead costs. Each chairs sells for $21,
uses $9 of raw materials, and takes $10 of overhead costs. Each doors needs 2 hours
finishing and 1 hour carpentry; each chairs needs 1 hour finishing and 1 hour carpentry.
Raw materials are unlimited, but only 100 hours of finishing and 80 hours of carpentry
are available each week. Demand for chairs is unlimited; but at most 40 doors can be sold
each week. How many of each should be made each week to maximize profits.
2. 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.

Maximize Z = 30x + 40x

1 2
Subject to, 60x + 120x < 12,000
1 2
8x + 5x < 600
1 2
3x + 4x < 500
1 2
x x >0
1, 2
3. Solve the following LPP using simplex method. A firm that manufactures both lawn
mowers and snow blowers:
X =the number of lawn mowers
1
X =the number of snow blowers
2
Max.Z=$30x +$80x
1 2
Subject to:
2 x +4x < 1000 Labor hours available
1 2
6x 2x < 1,200 pound of steel available
1+ 2
x < 20 snow blower engine available
2
x , x >0
1 2
a. What is the best product mix? What is the optimal profit?
4. Horizon’s wheat is harvested in the Midwest and stored in grain elevators in three different
cities Jimma, Mekelle, and Bahi Dar. These grain elevators supply three flour mills, located in
Addis Ababa, Dire dawa, and Dilla. Grain is shipped to the mills in trucks, each truck capable of
holding one ton of wheat. Each grain elevator is able to supply the following number of tons
(i.e., trucks) of wheat to the mills on a monthly basis.

Grain Elevator Supply

1. Jimma 150

2. Mekelle 175

3. Bahir Dar 275

Total 600 tons

Each mill demands the following number of tons of wheat per month
Mill Demand
A. Addis Ababa 200
B. Dire Dawa 100
C. Dilla 300
Total 600 tons
The cost of transporting one ton of wheat from each grain elevator (source) to each mill
(destination) differs according to the distance and road system.

Mill

Grain elevator A. Addis Ababa B. Dire Dawa C. Dilla

1. Jimma 6 8 10

2. Mekelle 7 11 11

3. Bahir Dar 4 5 12

Required
A.Formulate LPM
B.Minimize the transportation cost Using NWC, LCM, and VAM methods