MZUMBE UNIVERSITY.

SCHOOL OF BUSINESS

(SOB)

PROGRAMME: BAF BS 2C.

SUBJECT NAME: QUANTITATIVE METHOD.

SUBJECT CODE: QMS 203.

LECTURER NAME: DR. TUKAE MBEGALO.

STUDENT NAME: VICENT R MARIKI.

REGISTRATION NUMBER: 1732161/T.22.

NATURE OF WORK: INDIVIDUAL ASSIGNMENT.

SUBMISSION DATE: 23 NOVEMBER 2023.

QUESTION

Suppose that the production constraint increases from 100 to 101. What will be the values of x
and y that could maximize the profit? Given that P =10X+20Y-0.1(X2+Y2) and X+Y≥101.
 SOLUTION

Data given.

i. Profit =10X+20Y-0.1(X2+Y2).
X+Y≥101
ii.
The derivative with respect to x and y.

Px=10-0.2x…………………..i

Py=20-0.2y……………………ii

And then lets derivative equal to zero

10-0.2x=0

10-0=0.2x

10=0.2x

X=50

20-0.2y=0

20-0=0.2y

20=0.2y

Y=100

Then

P=10(50)+20(100)-0.1(502+1002)

=500+2000-0.1(2500+10000)

=500+2000-1250

P=1250.
 100

50

Now the lagrangian function

L=10X+20Y-0.1(X2+Y2) + λ (101-X-Y)

The derivative with respect to X and Y

Lx=10-0.2x-λ

Ly=20-0.2y-λ

Multiplier condition

λ ≥0 g(x, y) ≥0 λg (x ,y)=0.

100

50 101

Then lets lambda equals to zero

Lx=10x-0.2x-λ

Ly=20y-0.2y-λ

10x-0.2x=0

X=50.
 20y-0.2y=0

Y=100.

101-X-Y≥0

101-50-100≥0

-49 ≥ 0. Not true.

Then

λ (101-X-Y)= 0……………………Condition

10-0.2X-λ =0 ……………………..i

20-0.2Y-λ =0 …………………….ii

λ=10-0.2X

λ =20-0.2Y

10-0.2X=20-0.2Y

10-20-0.2X=-0.2Y

-10-0.2X=-0.2Y

Y=X+50

Then

101-X-Y=0

101-X-(X+50) =0

49-2X=0

X=24.5
 Y= X+50

Y = 24.5+50

Y =74.5

But also,

P =10X+20Y-0.1(X2+Y2)

=10(24.5) +20(74.5)-0.1(24.52+74.52)

=245+1490-615.05

P=1119.95.

λ =10-0.2X

λ = 10-0.2(24.5)

λ =5.1

100

74.5

24.5 50 101
 REFERENCES

Barry Render & Ralph M. Stair, J. R: Quantitative Analysis Management 8 th, Prentice Hall:
Upper saddle River, 2005
Harvey M. Wagner: Principles of operations Research, Prentice-Hall of India, 2005
Richard I. Levin, David S. Rubin & Joel P. Stinsoin Quantitative approaches Management