Q.

1 A manufacturer of engineering components would like to decide on the daily production

plan. The following information is available with respect to the production activity that the
manufacturer proposes to undertake.
Two major types of components are being manufactured. These are machine castings(Product
A) and cylinders (Product B).The machine required for manufacturing include CNC
lathes(Machine 1), grinding machines(Machine 2) and milling machines(Machine 3). As per
the process plan, the number of hours required in each of these machines per unit of
manufacturing is known. Furthermore, the contribution per unit of selling these products is
also known. At the moment, the manufacturer has a certain number of machines. The shop
operates in a single shift of eight hours. There is sufficient demand in the market to sell
whatever the manufacturer may chose to produce. The relevant details are given in table
below.

Machine 1 Machine 2 Machine 3 Contribution

Product A 14 minutes 15 minutes 18 minutes Rs 115
Product B 17 minutes 22 minutes 20 minutes Rs 146
No of 4 5 5
machines
available

Formulate the problem to decide on the daily production schedule for the manufacturer.
Q.2 A consumer-goods manufacturing company producing three final products needs to
decide on the capacity investment with to a new automated packaging/assembly line that it is
designing. There are three types of packaging machines available and each one of them can
pack the three products, albeit in varying capacities per hour. The shop works for 8 hours a
day. While certain minimum demand requirements are to be met, the exact amount of
packaging capacity to be invested needs to be finalized. Any additional production could be
sold in the market as there is adequate demand for the products. The relevant details for the
problem are summarized in Table below. Formulate the problem and obtain an optimal
investment plan.
Packaging Capacity Per Hour Minimum
Daily Demand
to be Met
Product A 45 60 30 1100
Product B 70 52 27 1700
Product C 26 28 41 900
Cost of the 1.65 2.12 1.6
machine(in Rs
million)

Q.3. A Logistics service provider needs to augment its fleet and has a budgetary allocation of
Rs 40 million. It is contemplating three types of vehicles. Vehicle A has a 10-ton pay load
and is expected to average 25 kmph. It costs Rs 1.6 million. Vehicle B has a 20-ton pay load
and is expected to average 15kmph. It costs Rs 2.6 million. Vehicle C is a modified version
of Vehicle B. It carries sleeping quarters for one driver and this reduces the capacity to 18
tons and raises the cost to Rs 3.0 million. Vehicle A requires a crew of one man and if driven
on three shifts per day, could run for an average of 18 hrs. Vehicles B and C require a crew of
two men each, but whereas B would be driven 18hrs per day with three shifts, Could average
21 hrs per day.The company has 150 drivers available per day and would find it difficult to
obtain further crews. Maintenance facilities are such that the total number of vehicles must
not exceed 30. Formulate this problem in order to find out the number of vehicles to be
purchased to maximize the capacity in ton-km per day.
Q.4 Flair Furniture produces inexpensive tables and chairs . The production process for each
is similar in that both require a certain number labor hours in the carpentry department and a
certain number labor hours in the painting department. Each table takes 3 hours of carpentry
work and 2 hours of painting work. Each chair requires 4 hours of carpentry and 1 hour of
painting. During the current month, 2400 hours of carpentry time and1000 hours of painting
time are available. The marketing department wants flair to make no more than 450 new
chairs this month because there is a sizable existing inventory of chairs. However , because
the existing inventory of tables is low, the marketing department wants Flair to make at least
100 tables this month. Each table sold results in a profit contribution of $7 and each chair
sold yields a profit contribution of $5.