Submited by: Abel Daniel Zeleke

Id : MBAO/5206/15A

Quantitative Analyisis for management decisions

Assigment 01
Course Instructor :- Dr B Dayal
Q-1) :- A pharmacy has determined that a healthy person should receive 70 units of proteins,100
units of carbohydrates and 20 units of fat daily. If the store carries the six types of health food
with their ingredients as shown in the table below, what blend of foods satisfies the requirements
at minimum cost to the pharmacy ? make a mathematical model for the given , what blend of
foods satisfies the requirements at minimum cost to the pharmacy ? make a mathematical model
for the given , what blend of foods satisfies the requirements at minimum cost to the pharmacy ?
make a mathematical model for the given problem.
Food proteins carbohydrates fat cost
A 20 50 4 2
B 30 30 9 3
C 40 20 11 5
D 40 25 10 6
E 45 50 9 8
F 30 20 10 8

Ans :- Minimize Z = 2X1 +3X2 +5X3 +6X4 +8X5 +8X6

Subject to the constraints :-
=20X1 +30X2 +40X3 +40X4 +45X5 +30X6 ≥70
=50X1 +30X2 +20X3 +25X4+ 50X5 +20X6 ≥100
=4X1 +9X2 +11X3 +10X4 +9X5 +10X6 ≥20
There for X1,X2,X3,X4,X5,X6 ≥0
2. A local manufacturing firm produces four different metal products, each of which must be
machined, polished and assembled. The specific time requirements (in hours) for each product
are as follows:
Machining,hours Polishing,hours Assembling,hours
Product I 3 1 2
Product II 2 1 1
 Product III 2 2 2
Product IV 4 3 1

The firm has available to it on weekly basis, 480 hours of machining time, 400 hours of
polishing time and 400 hours of assembling time. The unit profits on the productare Birr 360,
Birr 240, Birr 360 and Birr 480, respectively. The firm has a contract with a distributor to
provide 50 units of product I, and 100 units of any combination of products II and III each week.
Through other customers the firm can sell each week as many units of products I, II and III as it
can produce, but only a maximum of 25 units of product IV. How many units of each product
should the firm manufacture each week to meet all contractual obligations and maximize its total
profit? Make a mathematical model for the given problem. Assume that any unfinished pieces
can be finished the following week.

Solution
The objective is to maximize profit (z)
Z= 360 times the number product I plus 240 time the number product II plus 360 times the
number product III plus 480 times the number product IV
Maximize Z=360X1 +240X2 +360X3 +480X4
Constraints:-
3X1 +2X2+2X3 +4X4≥480
1X1 +1X2 +2X3 +3X4 ≥400
2X1+1X2 +2X3 +1X4 ≥400
X1>=50,X2&X3>=100,X4<=25
3. A firm manufactures two products; the net profit on product 1 is Rupees 3 per unit and Rupees
5 per unit on product 2. The manufacturing process is such that each product has to be processed
in two departments D1 and D2. Each unit of product1 requires processing for 1 minute at D1 and
3 minutes at D2; each unit of product 2 requires processing for 2 minutes at D1 and 2 minutes at
D2. Machine time available per day is 860 minutes at D1 and 1200 minutes at D2. How much of
product 1 and 2 should be produced every day so that total profit is maximum. Make the
mathematical model for the given problem.

Constraint
Product- 1=3X1
Product-2=5X2
Maximize Z=3X1+ 5X2
X1,X2 ≥0
Subject to constraints:
X1 +2X2 ≥ 860
3X1 + 2X2 ≥ 1200

4. Discuss few areas for application of quantitative analysis in your organization or organization
you are familiar with for decision making.
Ans:-
 To estimate the overall effect of risk on the project objectives such as cost and schedule
objectives. The results provide insight into the likelihood of project success and is used to
develop contingency reserves.
 To predict percentage of completion of the project
 to predict trends, determine the allocation of resources,and manage projects.quantitative
techniques are also used to evaluate investments.
 In such a way, organizations can determine the best assets to invest in and the best time to
do so.
 Quantitative analysis is applied to the measurement ,performance evaluation,valuation of
a financial instrument and predicting real world events such as changes in a country’s
gross domestic product.
 You can use quantitative analysis to make purchasing decisions,marketing decisions, and
even sales decisions.
5. Take the data of the output of your organisation summarise them with some tool (like bar
chart, pie chart, etc.) and discuss the result. Give your opinion to improve the results in the
future.
Ans:- we use pie chart to show the risk assesment to workers at site

Bar charts we use to show each detail item percentage of completion during reporting.

 Both pie charts and bar chart are designed to help you communicate your survey results but to
convey your findings as clearly and accurately as possible you need to choose your graphs
carefully
 Pie chart of visual come across most clearly when you are fewer different categories and can be
used fof both nomial and ordinal data
 1 2

 Bar chart have the additional advantage of coming in four different forms ;the vertical version
discussed above ,horizontal, stacked and grouped.each one can be used in defferent applications
to give you the clearest picture of your servey data.

Chart Title
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8
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Category 1 Category 2 Category 3 Category 4

Series 1 Series 2 Series 3