MODULE 4

Module Title: Graphical and Algebraic Methods in Minimization of Costs

PROGRAM: BSMA Year Level: I Section ________

COURSE CODE: ACCT06 COURSE DESCRIPTION: Management Science

Prepared Reviewed and Checked

AFRO L. REYES, CPA, MBA LAWRENCE ZYRIL D. LIZARDO, CPA, MBA

Instructor Program Head
Recommending Approval Approved

TANAUAN CITY COLLEGE COURSE CODE: ACCT06/MODULE NUMBER 4COURSE NAME: MANAGEMENT SCIENCE
 DR. JOEVELL P. JOVELLANO, CSAS PROF. MICHAEL E. LIRIO, CPA, MMPA
Vice President for Academic Affairs President and College Administrator

LEARNING MODULE

Program: BSMA Topic: Graphical and Algebraic Methods in

Minimization of Costs
Course: Management Science Instructor: Afro L. Reyes, CPA, MBA
Code ACCT06 Module #: 4 of 6 Week #: 4 #of Pages: 5

I. Preliminaries
Introduction to the This module tackles the graphical approach in linear programming to determine the optimum
Module Objective product mix to minimize costs. An illustrative problem is presented to show the application of
the steps in using the approach. The algebraic method to confirm the optimum solution is also
discussed.

Selected problem is included in the learning activities.

This module is intended for the fourth week, out of six weeks of meetings in midyear.

Section Topics
1. Illustrative Problem
Assessment/
Learning Outcomes Evaluation Modality
At the end of this module, the students The performance Visual and
should be able to: indicators will be auditory
the scores modalities will be
(1) use the graphical approach in achieved by the adopted thru on
solving decision problems on students in the line meeting and
minimization of costs. written works and messaging.
(2) use the algebraic method to performance tasks.
confirm the optimum solution obtained These are detailed
using the graphical approach. further in section IV
of this module,
below.

II. Instructions
KEYWORDS AND CONCEPTS

TANAUAN CITY COLLEGE COURSE CODE: ACCT06/MODULE NUMBER 4COURSE NAME: MANAGEMENT SCIENCE
The procedure followed in maximizing profit is observed also.

Illustrative Problem

A certain type of generator burns two kinds of fuel, namely, low sulfur and high sulfur. Each emits
sulfur dioxide to generate electricity. The cost per gallon, the quantities of sulfur dioxide emitted
and electricity generated are as follows:

Per Gallon

Cost Sulfur Dioxide Electricity

Low sulfur ₱ 80 3 units 5 kilowatts

High sulfur 90 4 3

Maximum allowed 24 units/hr.

Minimum required 30 kilowatts

The objective and constraints are formulated as follows:

Objective: To minimize cost = 80x + 90y

Constraints: 3x + 4y ≤ 24
5x + 3y ≥ 30
x, y ≥ 0

To reflect the constraints on a graph, the points on the x and y axes are determined by assuming
exclusivity in the use of low or high sulfur:

x y

Sulfur dioxide (24/3) 8 0

(24/4) 0 6

Electricity (30/5) 6 0
(30/3) 0 10

The graph would appear as follows:

TANAUAN CITY COLLEGE COURSE CODE: ACCT06/MODULE NUMBER 4COURSE NAME: MANAGEMENT SCIENCE
Considering the fact that the area of feasible solution is as shown in the preceding graph, the
vertices therein are (6,0), (8,0) and the point of intersection. The latter is computed as follows:

3x + 4y = 24
5x + 3y = 30

Multiply the first equation by (5/3) to reduce x to zero and subtract the second equation:

(3x + 4y = 24) x 5/3 = 5x + 6 2/3y = 40

5x + 3y = 30
0 + 3 2/3y = 10
y = 10 / (3 2/3)
y = 10 / 3.66
y = 2.73

Substituting the equivalent of y in the first equation,

3x + 4 (2.73) = 24
3x = 24 - 10.91
x = 13.09 / 3
x = 4.36

The vertices in the area of feasible solution and their values are the following:

Vertices 80x + 90y

(6,0) 80(6) + 90(0) = 480

(8,0) 80(8) + 90(0) = 640

(4.4, 2.7) 80(4.4) + 90(2.7) = 595

The vertex with the smallest value (6,0) is the answer inasmuch as the objective is to minimize
cost.

Vertex – in geometry, the point of intersection of the two sides of an angle.

TANAUAN CITY COLLEGE COURSE CODE: ACCT06/MODULE NUMBER 4COURSE NAME: MANAGEMENT SCIENCE
III. Viable and Vibrant Activities

Learning Activities

Learning activities (answers to questions or solutions to problems) are to be submitted on or

before the deadline set at the end of every module.

Learning activities and other instructions will be made known to the students through the module
and group chat, many days before the deadline.

Submission on or before deadline earns credit; late submission (in spite of whatever valid reason)
loses the credit.

However, if the student fails to meet the deadline, the student is still required to submit the late
papers or else the student gets Incomplete grade, if the weighted average of the student is
passing.

Problem

Modern Nutritionists, Inc. requires at least 8 kilos of lean meat and at most 2 kilos of fat from beef
and/or pork. The following data are given:

Beef Pork

Cost per kilo ₱ 120 ₱ 80

Contents:

Lean meat 90% 75%

Fat 10% 25%

How much beef and/or pork must be purchased to minimize cost? Use the graphical and algebraic
methods.

IV. Opportunity to reflect and articulate students’ acquired knowledge.

Purpose of the activity

It is hoped that problem solving activity will develop in the student a skill in solving problems in
linear programming..

TANAUAN CITY COLLEGE COURSE CODE: ACCT06/MODULE NUMBER 4COURSE NAME: MANAGEMENT SCIENCE
Criteria for Evaluation

Written Works (WW)

Solutions to problems at the end of every module, submitted on or before deadline, (40%).

Performance Tasks (PT)

Unlike during the semester, the instructor of this course is not requiring the student to
submit any learning journal after every module, this midyear.
Punctuality in the submission of every task, (15%).
Attendance in on-line meetings, (15%). Joining an on-going Google meet will be denied for
those coming late, more than 60 minutes after the official start time of the course.
Attitude and behavior, (10%).

Term Assessments (TA)

Midterm or final term examination, (20%).

Term Grade (TG) = 40% WW + 40% PT + 20% TA

Semestral Grade = 60% Final Term Grade + 40% Midterm Grade

Summary and Reflection

Unlike during the semester, the instructor of this course is not requiring the student to submit any
learning journal after every module, this midyear.

V. Textbooks and Other References

Mejorada, N.D. Management services. Quezon City: JMC

TANAUAN CITY COLLEGE COURSE CODE: ACCT06/MODULE NUMBER 4COURSE NAME: MANAGEMENT SCIENCE