Group/Individual Assignment

A. Instructions:
– Use your existing group to do this assignment
– Submit a written response to the questions below before 5:30 PM of the last date when
class ends. Each days of late submission will cost you 5 marks each.

Case one: Mathematical model using LP

Case: A firm has just finished a new project scheduled to
produce two new micro computers (PC1 and PC2). Each type
of microcomputer will require assembly time,
time inspection time
and storage space.
space The amount of each of these resources that
can be devoted to the production of the micro computers is
limited.
limited The profit contributions from each computers, the
resources required to produce each types of micro-computers
and the maximum resources available to the firm are presented
in the next slide.
 Computers Production case Cont…
• The following additional information is
provided.
Variables PC 1 PC 2
1. Profit per unit 160 120
2. Assembly time/unit 14hrs 10hrs
3. Inspection time/unit 12hrs 10hrs
4. Storage space/ unit 10 cubic feet 5 cubic feet
5. Resources available:
• Assembly time 500hrs
• Inspection time 250 hrs
• Storage space 500 cubic feet
 Do the following questions based on the case given:

1. Formulate the mathematical model using LP (5

points)
2. Solve the problem using the Simplex method and
advise the manager of the firm what quantities of
each of the micro-computers to produce in order to
maximize the firm’s profit. What will be the
maximum profit? (10 points)
3. Solve the optimization problem using the Excel
solver method, and confirm if your findings using
the Simplex method converge with the Excel solver
(10 points). In the report present the results of the
Excel Solver and the Simplex method.
Case two: Choose any product or service which is going to be
launched and supplied by a company through a project
and undertake the following analysis (5 points each)

1. Make a market situation analysis and describe the

marketing channels of the product/service
2. Describe and discuss the structure of the market
for the product/service of your choice
3. Describe and discuss the pricing strategy of the
company