Great Land College

Home of Greatness
Masters of Business Administration
Project work for the course Quantitative Analysis for Managerial
Decision Making
1. A company owns two flour mills (A and B) which have different production
capacities for HIGH, MEDIUM and LOW grade flour. This company has entered
contract supply flour to a firm every week with 12, 8, and 24 quintals of HIGH,
MEDIUM and LOW grade respectively. It costs the Co. $1000 and $800 per day to
run mill A and mill B respectively. On a day, mill A produces 6, 2, and 4 quintals of
HIGH, MEDIUM and LOW grade flour respectively. Mill B produces 2, 2 and 12
quintals of HIGH, MEDIUM and LOW grade flour respectively. How many days per
week should each mill be operated in order to meet the contract order most
economically standardize? Solve graphically.

2. 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
3. Solve the following LP problems using the graphical method.
a. Max.Z=15X1-10X2 b.Max.Z=2X1+X2
St: St:
4X1+6X2 < 360 X1+2X2 < 10
3X1+0X2< 180 X1 +X2 < 6
0X1+5X2< 280 X1 - X 2 < 2
X1, X2 > 0 X1 -2X2 < 1
X1,                    X2    >0

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c. Max.Z=10X1+15X2 d. Min.Z=3X1+2X2
St: St:
2X1+X2 < 26 5X1+X2 > 10
2X1+4X2< 56 X1 +X2 > 6
-X1+X2< 5 X1 + 4 X2 > 12
X1, X2 > 0 X1,                    X2    >0
4. Solve the following LPPs using the simplex method
i. Max.Z=3x1 +5x2 ii. Max.Z=20x1 +10x2
Subject to: Subject to:
x2 < 6 5x1+4x2 < 250
3x1+2x2 < 18 2x1+5x2 < 150
x1, x2 >0 x 1, x 2 >0
5. Find the optimal solution using simplex method
i. Min Z=10x1 +5x2
Subject to:
2x1 + 5x2 > 150
3x1+ x2 > 120
x1, x2 >0
ii. Min Z=4x1 +5x2
Subject to:
x1 + 2x2 > 80
3x1+ x2 > 75
x1, x2 >0
6. A workshop prepared two articles A and B .The time required at different
stages and profit per unit are shown below. Formulate the LP model

Work
Cutting Machine Packing Profit per unit($)
center product
A 2 1 1 50
B 1 2 0.5 60
Total capacity 80 100 50

7. A farmer use his land to produce rice and wheat .Labor required per acre and
profit per acre given below. Formulate the LP model

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 8. Consider that Harley's Sand & Gravel Pit has contracted to provide topsoil for three

Labor per Profit per

Community Allocated area in acres
acre(hrs) acre($)

Rice X 2 100
Wheat Y 3/2 60
Total 200 300
residential housing developments. Topsoil can be supplied form three different
“farms" as follows:
_______________________________________________________________
Weekly Capacity
Farm (Cubic Yards)
A 100
B 200
C 200
_____________________________________________________________
Demand for the topsoil generated by the construction projects is:
_____________________________________________________________
Weekly Demand
Project (Cubic Yards)
1 50
2 150
3 300
_______________________________________________________________
The manager of the sand & gravel pit has estimated the cost per cubic yard to ship over each
of the possible routes:
_______________________________________________________________
Costs per cubic yard to
From Project # 1 Project #2 Project #3
Farm A $4 $2 $8
Farm B 5 1 9
Farm C 7 6 3

Required
Develop the initial feasible solution using NWCM & compute the total cost for this solution.

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

LCM

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

10. A firm has annual fixed costs of $3.2 million and variable costs of $7 per unit. It is
considering an additional investment of $ 800,000, which will increase the fixed costs
by $ 150,000 per year and will increase the contribution by $ 2 per unit. No change is
anticipated in the sales volume or the sales price of $15 per unit. What is the break-
even quantity if the new investment is made?