Question Bank Solution & Case Study

Management Science
Course Code: 4102

Completed By

Ashiqur Rahman Shihab

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 Table of Contents
24th Batch (Semester Final) .............................................................................................. 3
External Important Maths (Previous Years) .....................................................................10
Transportation (19th & 20th Batch) ........................................................................................................10
LP & Matrix (18th Batch) ........................................................................................................................12
Network Analysis (19th Batch) ...............................................................................................................17
**Problem 9.2 – Decision Theory (21st & 25th Mid)** ..........................................................................19
Risk & Opportunity Loss (21st Batch) .....................................................................................................20
LP – 19th & 21st Batch .............................................................................................................................21
Matrix - 21st , 24th – Mid, 20th – Mid ......................................................................................................22
LP – (Sharif Sir Warehouse Math) .........................................................................................................26
Previous Year (Risk Calculation) ............................................................................................................32
Matrix – 24th Mid - 1 ..............................................................................................................................33
LP – 20th Batch .......................................................................................................................................34
More Maths ....................................................................................................................35

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24th Batch (Semester Final)

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5
6
7
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External Important Maths (Previous Years)
Transportation (19th & 20th Batch)

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LP & Matrix (18th Batch)

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14
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Network Analysis (19th Batch)

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**Problem 9.2 – Decision Theory (21st & 25th Mid)**

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Risk & Opportunity Loss (21st Batch)

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LP – 19th & 21st Batch
Suppose a farmer has 75 acres on which to plant three crops: wheat, barley, and comm. To produce
these crops. it costs the farmer (for seed, fertilizer, etc.) $120 per acre for the wheat, $210 per acre for
the barley, and $151 for the com. The farmer has $15,000 available for expenses. But after the harvest,
the farmer must store the crops while awaiting favourable market conditions. The farmer has storage
space for 4,000 bushels. Each acre yields an average of 110 bushels of wheat or 30 bushels of barley or
125 bushels of corn. If the net profit per bushel of wheat (after all expenses have been subtracted) is
$1.30, for barley is $2.00 and for corn is $1.56, how should the farmer plant the 75 acres to maximize
profit? Formulate the linear programming problem to maximize profit. What would be the number of
basic solutions for the given problem?

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Matrix - 21st , 24th – Mid, 20th – Mid

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LP – (Sharif Sir Warehouse Math)

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Previous Year (Risk Calculation)

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Matrix – 24th Mid - 1
The company A has a daily budget of 320 hours of labor and 350 units of raw material to manufacture
two products namely product P and product Q. If necessary the company can employ up to 8 hours daily
of overtime labor hours at the additional cost of $3 an hour. It takes 2 labor hour and 3 units of raw
materials to produce one unit of product P, and 3 labor hours and 2 unit of raw material to produce 1
unit of product Q. The profit per unit of product P is $15 and product Q is $12. Formulate the linear
programming problem to find the quantity of P and Q. What would be the number of basic solutions for
the given problem? Find one basic solution using matrix form.

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LP – 20th Batch
The owner of Metro Sports wishes to determine how many advertisements to place in the selected
quarterly magazines A, B and C. His objective is to advertise in such a way that the total exposure to
principal buyers of expensive sports good is maximised. Percentage of readers for each magazine are
known. Exposure in any particular magazine is the number of advertisements placed multiplied by the
number of principal buyers. The following data may be used.

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More Maths
A dairy firm wants to determine the quantity of butter it should produce to meet the demand. The past
records have shown the following demand patterns;

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Solution:

The numbers of copies for purchases and for sales are 10, 11, 12, 13 and
14. These are his sales magnitudes. There is no reason for him to buy
less than 10 or more than 14 copies. Stocking 10 copies each day will
always result in profit TK200 irrespective of demand.
For instance, even if the demand on some day is more than 10 copies,
he can sell only 10 and hence his conditional profit is TK200. When he
stocks 11 copies, his conditional profits is TK220 on days buyers request
11, 12, 13 or 14 copies. But on days when he has 11 copies on stock and
buyers buy only 10 copies, his profit will be TK 170.
The profit of TK 200 on the 10 copies sold must be reduced by TK 30, the
cost of one copy left unsold. The same will be true when he stocks 12,
13, or 14 copies. The conditional profit is given below;

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Thus the newsboy must order 12 copies to earn highest possible average daily
profit. This stocking will maximize the total profits over a period of time. Ofcourse
there is no guarantee that he will make a profit of TK222.5 tomorrow. However,
if he stocks 12 copies each day under the condition given, he will have average
profit of TK 222.5 per day. This is the best he can do because choice of any of the
other four possible stock actions result in a lower daily profit.

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