NAME :- NIKITA GUPTA

SECTION :- E
ROLL NO:- 19/20251
BUSINESS MATHEMATICS
ASSIGNMENT

CASE STUDY 1:- PROFIT MAXIMASATION IN A

PRODUCT MIX COMPANY USING LINEAR
PROGRAMMING
Linear Programming is a technique to determine the best allocation of a
firm limited resources to achieve optimum goal. The main objective of
this technique is to maximise the profit or minimise the cost. Every
industry needs it work to be effective and efficient but not always they
take a perfect decision to reduce its cost and maximise the profit. In this
case , it is a company selling its medicated soap product and need to find
a optimal profit to sale its products. The company is KASMO industry
limited from Nigeria. The product line Medicated Soap is sale in 4
different packaging size I.e. single tablet , pack of 3tablet, a dozen table
and a cartoon of soap with 120 tablet for wholesale purpose.
From the data it is found that it uses 5 raw material to make the
medicated soap I.e. Caustic Soda , Palm Kernel Oil, Colorant, Perfume
and Disinfectant.
The assumption before analysis the maximum profit of Linear
programming is there were no negetive constraints. Using the Linear
Programming Technique a mathematical program in which the objective
fuction is linear in unknown variable and the constraint have Linear
Programming is stated. Considering X1= 1 tablet pack, X2 = 3 tablet
pack, X3 = 12 tablet pack and X4 = 120 tablet pack,

RAW MATERIAL QUANTITY PER MONTH

CAUSTIC SODA 16820

PALM KERNEL OIL 40600
COLORANT 29
PERFUME 116
DISINFECTANT 522

RAW MATERIAL QUANTITY USED PER BOILING

CAUSTIC SODA 290
PALM KERNEL OIL 700
COLORANT 0.5
PERFUME 2
DISINFACTANT 9

SOAP COST PRICE SELLING PRICE UNIT SELLING

PACHAKGE
X1 15.64 30 14.36
X2 46.92 80 33.08
X3 187.68 300 112.32
X4 1876.8 2900 1023.2

WITH MAXIMISATION = 14.36X1+33.08X2+112.32X3+1023.2X4

AND USING THE SIMPLEX METHOD the result were obtain.

By the result it was considered that the four decision variable X1,X2,X3
AND ,X4 objective function were 18893,0,0 and 0.
So the conclusion says that the industry should focus on the unit sale
I.e. single tablet sale of the soap product and it will get the sale 18893
tablet per month it will provide the profit of 271,294.4 rupee with single
tablet sale profit 14.36.
Case study 2 KOTAK INSURANCE PLAN

Will we have adequate funds to provide the kind of retirement

lifestyle we envision? Remember our income will likely come
from three general sources: government pensions, employment-
related sources and your own personal investments.

our retirement will be more enjoyable if your income is

structured to fit your lifestyle choices and if you have developed
a retirement plan to protect the assets you have worked hard to
acquire.

Kotak Term Plan is a pure term insurance plan that offers

high quality life coverage at economical rates. The insured has a
choice of premium payment options; they may choose a single
premium payment or regular premium payment. ... The policy
offers further reduced rates for females and non-tobacco use
This offers high quality life coverage at economical rates. The
insured has a choice of premium payment options; they may
choose a single premium payment or regular premium payment.

BENEFITS OF KOTAK TERM PLAN

 PREFERRED RATES

 TAX BENEFITS

 ADDITIONAL ANNUITY

 HIGH PURCHASE PRICE DISCOUNT

 INTEREST RATE PURCHASE
PRICE
MONTHLY 0.080 20000
QUARTERLY 0.040 60000
SEMI- 0.020 120000
ANNUALLY
ANNUALLY 0.006 240000

PRESENT VALUE

P= R((1-(1+i)-n/2

period Present value

Monthly 16,10,420
Quarterly 16,41,329,
Semi-annually 16,30,840
Annually 16,10,420

FUTURE VALUE

F= R((1+i)n-1)/i

MONTHLY 35,00,000
QUARTELY 36,24,120
SEMI- ANUALLY 35,73,370
ANNUALLY 34,76,775

FOOTNOTE:- n = 10 years and interest is 8% annually.

CONCLUSION
The person should opt for quarterly basis plan and the interest
compounded is max there.
THANK YOU!!!!!!!