COURSE FINAL OUTPUT

INSTRUCTIONS: Do the following as instructed. Use short bond papers as your worksheets. Encoded or
handwritten work must be submitted promptly.

FOR THE FOLLOWING, DEVISE A:

a. LINEAR PROGRAM, then solve using an appropriate method.

You need to buy some filing cabinets. You know that Cabinet X costs ₱4,500 per unit, requires six
square feet of floor space, and holds eight cubic feet of files. Cabinet Y costs ₱8,250 per unit, requires
eight square feet of floor space, and holds twelve cubic feet of files. You have been given ₱65,000 for this
purchase, though you don't have to spend that much. The office has room for no more than 72 square
feet of cabinets. How many of which model should you buy, in order to maximize storage volume?

SOLUTION:

Decision Variables:
x = number of cabinet X to buy
y = number of cabinet Y to buy

Costs Floor Space Area Volume

CABINET X ₱4,500 6 ft 2 8 ft 3
2
CABINET Y ₱8,250 8 ft 12 ft 3
2
₱65,000 72 ft -

Objective Function: Maximize: P = 8x + 12y

Constraints: Subject to: 4,500x + 8,250y ≤ 65,000
6x + 8y ≤ 72
x ≥ 0, y ≥ 0

4,500x + 8,250y = 65,000 4,500x + 8,250y = 65,000 The coordinates of vertices:

4,500x + 8,250(0) = 65,000 4,500(0) + 8,250y = 65,000 (14.44, 0) and (0, 7.88)
4,500x = 65,000 8,250y = 65,000
4,500 x 65,000 8,250 y 65,000
= =
4,500 4,500 8,250 8,250
x = 14.44 y = 7.88

6x + 8y = 72 6x + 8y = 72 The coordinates of vertices:

6x + 8(0) = 72 6(0) + 8y = 72 (12,0) and (0, 9)
6x = 72 8y = 72
6 x 72 8 y 72
= =
6 6 8 8
x = 12 y=9
 Inequalities Corresponding Equations x-intercept, y-intercept
4,500x + 8,250y ≤ 65,000 4,500x + 8,250y = 65,000 (14.44,7.88)
6x + 8y ≤ 72 6x + 8y = 72 (12,9)

Feasible Region
12

10

0
0 2 4 6 8 10 12 14 16

The coordinates of vertices of the feasible region: (0, 7.88), (5.49, 4.88), (12, 0)

Substituting these in the objection function: P = 8x + 12y

Coordinates Corresponding Values

(0,7.88) 8(0) + 12(7.88) = 94.56
(5.49,4.88) 8(5.49) + 12(4.89) = 102.6
(12,0) 8(12) + 12(0) = 96

Therefore, the decision must be x = 5.49 and y = 4.89 with maximum storage volume of 102.6 ft 3.

b. DECISION TREE, then come up with the best decision.

A business firm operates five luxury coffee shops in a country. To increase revenues, it is looking
at two options, launching loyalty cards or cut prices, across the chain. The cost of launching loyalty cards
is ₱600,000, while ₱400,000 for cutting prices. If the firm chooses to launch loyalty cards, it was
estimated that there will be a 60% probability for high sales and will result to a revenue of 1.2 million
pesos, otherwise would result to low sales of ₱950,000. If it chooses to cut prices, the probability for
high sales is 80% which will result to a high revenue of one million pesos, otherwise low sales of
₱700,000. Using the decision tree analysis, help the business firm come up with the best decision, either
launching a loyalty cards or cut prices, for it to increase revenues.
SOLUTION:

High Sales
P = .60 1,200,000 – 600,000
500,000 = 600,000
Launch loyalty cards
Low Sales 950,000 – 600,000
P = .40 = 350,000

High Sales 1,000,000 – 400,000

P = .80 = 600,000
540,000
Cut prices
Low Sales 700,000 – 400,000
P = .20 = 300,000

EV1 = .60 (600,000) + .40 (350,000) = 360,000 + 140,000 = 500,000

EV2 = .80 (600,000) + .20 (300,000) = 480,000 + 60,000 = 540,000

Decision: Therefore, the business firm should cut prices to increase revenues.

c. PERT/CPM NETWORK DIAGRAM, for this tabulated data of a construction project, indicating its
critical path and optimum completion time.

Activity Activity Description
A Excavate
B Lay the foundation
C Put up the rough wall
D Put up the roof
E Install exterior plumbing
F Install interior plumbing
G Put up exterior siding
H Do the exterior painting
I Do the electrical work
J Put up the wallboard
K Install the flooring
L Do the interior painting
M Install the exterior fixtures
N Install the interior fixtures
Expected duration
Immediate Predecessor
(in weeks)
- 2
A 4
B 10
C 6
C 4
E 5
D 7
E,G 9
C 7
F,I 8
J 4
J 5
H 2
K,L 6
SOLUTION:

Network Diagram:
G H M
7 9 2
D 5 8 9 14
A B C 6
2 4 10
1 E
2 3 4 6
4 K 13
F 11
I 5 4 N
7 7 10 6
J
8 L 12
5

Paths:

A–B–C–D–G–H-M 2+4+10+6+7+9+2 = 40
A–B–C–E–H-M 2+4+10+4+9+2 = 31
A–B–C–E–F–J–K-N 2+4+10+4+5+8+4+6 = 43
A–B–C–I–J–L-N 2+4+10+7+8+5+6 = 42

Hence, forty-three (43) weeks is the optimum completion time and the critical path is Path
A – B – C – E – F – J – K - N.