Wollega University

Department of Management

Program: MBA

Quantitative Analysis for Managerial Decision Making Individual Assignment (20%)

General Assignment Directions:

 Select one of the question randomly

 Develop LPM for the question you have chosen

 Determine the optimal solution using the appropriate method and interpret your result

 Determine either slack or surplus if any.

1. A manufacturer makes wooden desks (X) and tables (Y). Each desk requires 2.5 hours to
assemble, 3 hours for buffing, and 1 hour to crate. Each table requires 1 hour to assemble, 3
hours to buff, and 2 hours to crate. The firm can do only up to 20 hours of assembling, 30
hours of buffing, and 16 hours of crating per week. Profit is $3 per desk and $4 per table.
Maximize the profit.
2. Michigan Polar Products makes downhill and cross-country skis. A pair of downhill skis
requires 2 man-hours for cutting, 1 man-hour for shaping and 3 man-hours for finishing
while a pair of cross-country skis requires 2 man-hours for cutting, 2 man-hours for shaping
and 1 man-hour for finishing. Each day the company has available 140 man-hours for
cutting, 120 man-hours for shaping and 150 man-hours for finishing. How many pairs of
each type of ski should the company manufacture each day in order to maximize profit if a
pair of downhill skis yields a profit of $10 and a pair of cross-country skis yields a profit of
$8?
3. A fruit grower has 150 acres of land available to raise two crops, A and B. It takes one day to
trim an acre of crop A and two days to trim an acre of crop B, and there are 240 days per year
available for trimming. It takes 0.3 day to pick an acre of crop A and 0.1 day to pick an acre
of crop B, and there are 30 days per year available for picking. Find the number of acres of
each fruit that should be planted to maximize profit, assuming that the profit is $140 per acre
for crop A and $235 per acre for B.
4. The Crandon Manufacturing Company produces two principal product lines. One is a
portable circular saw, and the other is a precision table saw. Two basic operations are crucial
to the output of these saws: fabrication and assembly. The maximum fabrication capacity is
4000 hours per month; each circular saw requires 2 hours, and each table saw requires 1
hour. The maximum assembly capacity is 5000 hours per month; each circular saw requires 1
hour, and each table saw requires 2 hours. The marketing department estimates that the
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 maximum market demand next year is 3500 saws per month for both products. The average
contribution to profits and overhead is $900 for each circular saw and $600 for each table

saw. Management wants to determine the best product mix for the next year so as to
maximize contribution to profits and overhead.
5. A company manufactures two new models of ultramodern refrigerators with corresponding
names "no frost'' and" freezer ". The production area is divided in three departments:
formatting (F) where the final surfaces are formed, assembly (A), and painting (P) where the
final finishing and painting of the refrigerators are made. Each refrigerator type needs a
different number of working hours in each department. So, each batch of 12 refrigerators "no
frost" needs 60, 80 and 20 working hours in departments F, A and P respectively, while the
respective batch of 12 refrigerators "freezer" 70, 85 and 10 working hours in each of the three
departments respectively. The staffing of the departments is such, that the working hours
available to each of them are 2400, 3000 and 600 respectively during a working month.
Assuming that Company generates birr 20,000 from no frost and birr 15800 from freezer,
determine the mixes the two product that the company should produce so as to maximize
profit.
6. Ashok Chemicals Company Manufactures two chemicals A & B which are sold to the
manufacturers of soaps & detergents. On the basis of the next month’s demand the
management has decided that the total production for chemicals A & B should be 350
kilograms. Moreover a major customer’s order of 125 kilograms for product A also must be
supplied. Product A requires 2 hrs of processing time per kilogram and product B requires
one hr of processing time per kilogram. For the coming month 600 hrs of processing time is
available. The company wants to meet the above requirements at minimum total production
cost. The production costs are $2/- per kilogram for product A and $3/- for B. Ashok
chemicals company wants to determine its optimal product mix and the total minimum cost
relevant to the above. Formulate the above as a linear programming problem.
7. A firm produces products, A & B, each of which requires two resources, namely raw
materials and labour. Each unit of product A requires 2 & 4 units and each unit of product B
requires 3 & 3 units respectively of raw materials and labour. Every day at least 60 units of
raw materials and at most 96 units of labour must be used .If the unit profit contribution of
product A is $.40/-, product B is $35/- determine the number of units of each of the products
that should be made each day to maximize the total profit contribution.
8. Food X1 contains 20 units of vitamin A and 40 units of vitamin B per gramme; Food X 2
contains 30 units each of vitamin A and B per gramme. The minimum daily requirements for
an individual are 900 units of A and 1200 units of B. How many grammes of each food must
be consumed to satisfy daily vitamin requirements at minimum cost? If Food X1 costs 60
paise per gram and Food X2 costs 80 paise per gram, find the optimal solution to minimize
the costs.

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9. A craftsman named Chuck Synovec builds two kinds of birdhouses, one for wrens and a
second for bluebirds. Each wren birdhouse takes 4 hours of labor and 4 units of lumber. Each
bluebird house requires 2 hours of labor and 12 units of lumber. The craftsman has available
60 hours of labor and 120 units of lumber. Wren houses yield a profit of $6 each and bluebird
houses yield a profit of $15 each.
10. The Grand Valley Company, run by the J. Motwani family, produces two products: bed
mattresses and box springs. A prior contract requires that the firm produce at least 30
mattresses or box springs, in any combination, per week. In addition, union labor agreements
demand that stitching machines be kept running at least 40 hours per week, which is one
production period. Each box spring takes 2 hours of stitching time, and each mattress takes 1
hour on the machine. Each mattress produced costs $20; each box spring costs $24.
11. Ed Silver Dog Food Company wishes to introduce a new brand of dog biscuits composed of
chicken- and liver flavored biscuits that meet certain nutritional requirements. The liver-
flavored biscuits contain 1 unit of nutrient A and 2 units of nutrient B; the chicken-flavored
biscuits contain 1 unit of nutrient A and 4 units of nutrient B. According to federal
requirements, there must be at least 40 units of nutrient A and 60 units of nutrient B in a
package of the new mix. In addition, the company has decided that there can be no more than
15 liver flavored biscuits in a package. If it costs $1 to make 1 liver-flavored biscuit and $2
to make 1 chicken-flavored, what is the optimal product mix for a package of the biscuits to
minimize the firm’s cost?
12. A company owns 2 oil mills A and B which have different production capacities for low,
high and medium grade oil. The company enters into a contract to supply oil to a firm every
week with 12, 8, 24 barrels of each grade respectively. It costs the company $1000 and $ 800
per day to run the mills A and B. On a day A produces 6, 2, 4 barrels of each grade and B
produces 2, 2, 12 barrels of each grade. Formulate an LPP to determine number of days per
week each mill will be operated in order to meet the contract economically.

13. ABC private limited company is engaged in the production of power and traction
transformers. Both of these categories of transformers pass through three basic processes:
core preparation, core to coil assembly, and vapor phase drying. A power transformer yields
a contribution of Birr 50,000 and traction transformer contributes Birr 10,000. The time
required in the production of these two products in terms of hours for each of the processes is
as follows.

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If the capacities available are 1000, 1500, and 750 machine hours in each processes respectively,
formulate the problem as LP?

14. Peniel House and Furniture manufacturer produces two products: Beds and Chairs. Each unit
of Bed requires 3 hrs in molding unit, 4hrs in painting unit, and 1 hr in finishing. On the other
hand, each unit of Chair requires 3 hrs in molding unit, 2 hrs in the paint shop and 2 hours in
finishing. Each week, there are 210 hrs available in molding, 200hrs in painting, and 120 hrs
in finishing unit. The demand for Beds cannot exceed 40 units per week. Each unit of Bed
contributes Birr 20 to profit, while each unit of chair contributes Birr 30. Determine the
number of units of each product per week to maximize the profit? (Use Graphic Method to
solve the given LP problem).
15. A firm makes two products X and Y, and has a total production capacity of 9 tones per day, x
and y requiring the same production capacity. The firm has a permanent contract to supply at
least two tones of x and at least three tones of y per day to another company. Each tone of x
requires 20 machine hours of production time and each tone of y requires 50 machine hours
of production time. The daily maximum possible number of machine hours is 360. The entire
firm’s output can be sold and the cost per tone is 100 and 120 birr respectively and the selling
price per tone of x and y is 180 and 240 Birr respectively. It is required to determine the
production schedule for maximum profit using graphic approach? What is the maximum
profit?
16. A production process for products A and B can produce A by using 2 units of chemicals and
one unit of a compound and can produce B by using 1 unit of chemicals and 2 units of
compound. Only 800 units of chemicals and 1000 units of the compound are available. The
profits available per unit of A and B are respectively birr.30/- and birr.20/-.
17. In a carpentry shop it was found that 100 sq feet of ply wood scrap and 80 square feet of
white pine scrap are in usable form for construction of tables and book-cases. It takes 16 sq
feet of plywood and 8 sq feet of white pine to make a table. 12 sq feet of plywood and 16 sq
feet of white pine are required to construct a book-case. A profit of birr.25 on each table and
birr.20 on each book case can be realized. How can the left over wood be most profitably
used? Use graphical method to solve the problem.
18. A manufacturer produces two different models X & Y of the same product. Model X makes a
contribution of birr.50/- per unit and model Y, birr.30/- per unit towards total profit. Raw
materials R1 & R2 are required for production. At least 18 kg of R1 and at least 12 kg of R2
must be used daily. Also at most 34 hours of labour are to be utilized. A quantity of 2 kg of
R1 is required for X and 1 kg of R1 is required for Y. For each of X & Y, 1 kg of R2 is
required. It takes 3 hrs to manufacture X and 2 hours to manufacture Y. a. How many units
of each model should be produced to maximize the profit
19. A manufacturer of furniture makes two products chairs and tables. Processing of these
products is done on two machines A and B. A chair requires 2 hours on machine A and 6
hours on machine B. A table requires 5 hours on machine A and no time on machine B. there
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 are 16 hours of time per day available on machine A and 30 hours on machine B. profit
gained by the manufacturer from a chair and table is birr 2 and birr 10 respectively.
20. A firm makes two types of furniture, chair and table. The contribution to profit for each
product is calculated by accounting department is birr 20 per chair and birr 30 per table. Both
products are to be produced on three machines M1, M2, M3. The time required in hours by
each product and total times available in hours per week on each machine are as follows:

Machine Chair Table Available

Time
M1 3 3 36
M2 5 2 50
21. When Marie McCoy wakes up Saturday morning, she remembers that she promised the PTA
she would make some cakes and/or homemade bread for its bake sale that afternoon.
However, she does not have time to go to the store to get ingredients, and she has only a
short time to bake things in her oven. Because cakes and breads require different baking
temperatures, she cannot bake them simultaneously, and she has only 3 hours available to
bake. A cake requires 3 cups of flour, and a loaf of bread requires 8 cups; Marie has 20 cups
of flour. A cake requires 45 minutes to bake, and a loaf of bread requires 30 minutes. The
PTA will sell a cake for $10 and a loaf of bread for $6.

22. A company produces two products that are processed on two assembly lines. Assembly line 1
has 100 available hours, and assembly line 2 has 42 available hours. Each product requires
10 hours of processing time on line 1, while on line 2 product 1 requires 7 hours and product
2 requires 3 hours. The profit for product 1 is $6 per unit, and the profit for product 2 is $4
per unit

23. The Munchies Cereal Company makes a cereal from several ingredients. Two of the
ingredients, oats and rice, provide vitamins A and B. The company wants to know how many
ounces of oats and rice it should include in each box of cereal to meet the minimum
requirements of 48 milligrams of vitamin A and 12 milligrams of vitamin B while
minimizing cost. An ounce of oats contributes 8 milligrams of vitamin A and 1 milligram of
vitamin B, whereas an ounce of rice contributes 6 milligrams of A and 2 milligrams of B. An
ounce of oats costs $0.05, and an ounce of rice costs $0.03.
24. The Kalo Fertilizer Company makes a fertilizer using two chemicals that provide nitrogen,
phosphate, and potassium. A pound of ingredient 1 contributes 10 ounces of nitrogen and 6
ounces of phosphate, while a pound of ingredient 2 contributes 2 ounces of nitrogen, 6
ounces of phosphate, and 1 ounce of potassium. Ingredient 1 costs $3 per pound, and
ingredient 2 costs $5 per pound. The company wants to know how many pounds of each
chemical ingredient to put into a bag of fertilizer to meet the minimum requirements of 20

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 ounces of nitrogen, 36 ounces of phosphate, and 2 ounces of potassium while minimizing
cost.
25. The Elixer Drug Company produces a drug from two ingredients. Each ingredient contains
the same three antibiotics, in different proportions. One gram of ingredient 1 contributes 3
units, and 1 gram of ingredient 2 contributes 1 unit of antibiotic 1; the drug requires 6 units.
At least 4 units of antibiotic 2 are required, and the ingredients each contribute 1 unit per
gram. At least 12 units of antibiotic 3 are required; a gram of ingredient 1 contributes 2 units,
and a gram of ingredient 2 contributes 6 units. The cost for a gram of ingredient 1 is $80, and
the cost for a gram of ingredient 2 is $50.

26. Copperfield Mining Company owns two mines, each of which produces three grades of ore
high, medium, and low. The company has a contract to supply a smelting company with at
least 12 tons of high-grade ore, 8 tons of medium-grade ore, and 24 tons of low-grade ore.
Each mine produces a certain amount of each type of ore during each hour that it operates.
Mine 1 produces 6 tons of high-grade ore, 2 tons of medium-grade ore, and 4 tons of low-
grade ore per hour. Mine 2 produces 2, 2, and 12 tons, respectively, of high-, medium-, and
low-grade ore per hour. It costs Copperfield $200 per hour to mine each ton of ore from mine
1, and it costs $160 per hour to mine each ton of ore from mine 2. The company wants to
determine the number of hours it needs to operate each mine so that its contractual
obligations can be met at the lowest cost.

27. A small petroleum company owns two refineries. Refinery 1 costs $20,000 per day to
operate, and it can produce 400 barrels of high-grade oil, 300 barrels of medium-grade oil,
and 200 barrels of low-grade oil each day. Refinery 2 is newer and more modern. It costs
$25,000 per day to operate, and it can produce $300 barrels of high-grade oil, 400 barrels of
medium-grade oil, and 500 barrels of low-grade oil each day. The company has orders
totaling 25,000 barrels of high-grade oil, 27,000 barrels of medium-grade oil, and 30,000
barrels of low-grade oil. How many days should this petroleum company run each refinery to
minimize its costs and still refine enough oil to meet its orders? Use graphical method.

28. The Crandon Manufacturing Company produces two principal product lines. One is a portable
circular saw, and the other is a precision table saw. Two basic operations are crucial to the output of
these saws: fabrication and assembly. The maximum fabrication capacity is 4000 hours per month;
each circular saw requires 2 hours, and each table saw requires 1 hour. The maximum assembly
capacity is 5000 hours per month; each circular saw requires 1 hour, and each table saw requires 2
hours. The marketing department estimates that the maximum market demand next year is 3500 saws
per month for both products. The average contribution to profits and overhead is $900 for each
circular saw and $600 for each table saw. Management wants to determine the best product mix for
the next year so as to maximize contribution to profits and overhead. Also, it is interested in the
payoff of expanding capacity or increasing market share.

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29. X Ltd wishes to purchase a maximum of3600 units of a product two types of product a. & are
available in the market Product a occupies a space of 3 cubic Jeet & cost Rs. 9 whereas occupies a
space of 1 cubic feet & cost Rs. 13 per unit. The budgetary constraints of the company do not allow
spending more than Rs. 39,000. The total availability of space in the company's godown is 6000 cubic
feet. Profit margin of both the product a & is Rs. 3 & Rs. 4 respectively. Formulate as a linear
programming model and solve using graphical method. You are required to ascertain the best possible
combination of purchase of a & so that the total profits are maximized.
30. Alpha ltd. produces two products X and Y each requiring same production capacity. The total
installed production capacity is 9 tones per days. Alpha Ltd. Is a supplier of Beta Ltd. Which must
supply at least 2 tons of X & 3 tons of Y to Beta Ltd. Every day. The production time for X and Y is
20 machine hour pr units & 50 machine hour per unit respectively the daily maximum possible
machine hours is 360 profit margin for X & Y is Rs. 80 per ton and Rs. 120 per ton respectively.
Formulate as a LP model and use the graphical method of generating the optimal solution for
determining the maximum number of units of X & Y, which can be produced by Alpha Limited.

31. A company makes two products (X and Y) using two machines (A and B). Each unit of X
that is produced requires 50 minutes processing time on machine A and 30 minutes
processing time on machine B. Each unit of Y that is produced requires 24 minutes
processing time on machine A and 33 minutes processing time on machine B. At the start of
the current week there are 30 units of X and 90 units of Y in stock. Available processing time
on machine A is forecast to be 40 hours and on machine B is forecast to be 35 hours. The
demand for X in the current week is forecast to be 75 units and for Y is forecast to be 95
units. Company policy is to maximise the combined sum of the units of X and the units of Y
in stock at the end of the week

32. Suppose a company manufactures two products, A and B, using three inputs, labor, material
R, and materials S. To make one unit of product A requires 6 pounds of R, 7.5 pounds of S,
and 9 person-hours of labor; to make one unit of product B requires 12 pounds of R, 4.5
pounds of S, and 6 person-hours of labor. The demands for the products are such that the
company can sell as much of each product as it can produce and earn a profit of $3 per unit
of A and $4 per unit of B. However, only 900 pounds of R, 675 pounds of S, and 1200
person-hours of labor are available to the company each day.
33. (Wagner) A lumber company operates a sawmill that converts timber to lumber or plywood.
A marketable mix of 1000 board feet of lumber products requires 1000 board feet of spruce
and 4000 board feet of Douglas fir. Producing 1000 square feet of plywood requires 2000
board feet of spruce and 4000 board feet of fir. The company's timberland yields 32,000
board feet of spruce and 72,000 board feet of fir each season. Sales commitments require that
at least 5000 board feet of lumber and 12,000 board feet of plywood be produced during the
season. The profit contributions are $45 per 1000 board feet of lumber and $60 per 1000
square feet of plywood.
34. A small construction firm specializes in building and selling single-family homes. The firm
offers two basic types of houses, model A and model B. Model A houses require 4,000

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 labour hours, 2 tons of stone, and 2,000 board feet of lumber. Model B houses require 10,000
labour hours, 3 tons of stone, and 2,000 board feet of lumber. Due to long lead times for
ordering supplies and the scarcity of skilled and semiskilled workers in the area, the firm will
be forced to rely on its present resources for the upcoming building season. It has 400,000
hours of labour, 150 tons of stone and 200,000 board feet of lumber. What mix of model A
and B houses should the firm construct if model As yield a profit of $1,000 per unit and
model Bs yield $2,000 per unit? Assume that the firm will be able to sell all the units it
builds.
35. A retired couple supplement their income by making fruit pies, which they sell to a local
grocery store. During the month of September, they produce apple and grape pies. The apple
pies are sold for $1.50 to the grocer, and the grape pies are sold for $1.20. The couple is able
to sell all of the pies they produce owing to their high quality. They use fresh ingredients.
Flour and sugar are purchased once each month. For the month of September, they have
1,200 cups of sugar and 2,100 cups of flour. Each apple pie requires 11/2 cups of sugar and 3
cups of flour, and each grape pie requires 2 cups of sugar and 3 cups of flour.
36. Farmer Jones must determine how many acres of corn and wheat to plant this year. An acre
of wheat yields 25 bushels of wheat and requires 10 hours of labor per week. An acre of corn
yields 10 bushels of corn and requires 4 hours of labor per week. All wheat can be sold at $4
a bushel, and all corn can be sold at $3 a bushel. Seven acres of land and 40 hours per week
of labor are available. Government regulations require that at least 30 bushels of corn be
produced during the current year
37. Truckco manufactures two types of trucks: 1 and 2. Each truck must go through the painting
shop and assembly shop. If the painting shop were completely devoted to painting Type 1
trucks, then 800 per day could be painted; if the painting shop were completely devoted to
painting Type 2 trucks, then 700 per day could be painted. If the assembly shop were
completely devoted to assembling truck 1 engines, then 1,500 per day could be assembled; if
the assembly shop were completely devoted to assembling truck 2 engines, then 1,200 per
day could be assembled. Each Type 1 truck contributes $300 to profit; each Type 2 truck
contributes $500. Formulate an LP that will maximize Truckco’s profit.
38. An appliance manufacturer produces two models of microwave ovens: H and W. Both
models require fabrication and assembly work; each H uses four hours of fabrication and two
hours of assembly, and each W uses two hours of fabrication and six hours of assembly.
There are 600 fabrication hours available this week and 480 hours of assembly. Each H
contributes $40 to profits, and each W contributes $30 to profits. What quantities of H and W
will maximize profits?
39. The Electrocomp Corporation manufactures two electrical products: air conditioners and
large fans. The assembly process for each is similar in that both require a certain amount of
wiring and drilling. Each air conditioner takes 3 hours of wiring and 2 hours of drilling. Each
fan must go through 2 hours of wiring and 1 hour of drilling. During the next production

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 period, 240 hours of wiring time are available and up to 140 hours of drilling time may be
used. Each air conditioner sold yields a profit of $25. Each fan assembled may be sold for a
$15 profit. Formulate and solve this LP production mix situation to find the best combination
of air conditioners and fans that yields the highest profit. Use the corner point graphical
approach.
40. The Outdoor Furniture Corporation manufactures two products, benches and picnic tables,
for use in yards and parks. The firm has two main resources: its carpenters (labor force) and a
supply of redwood for use in the furniture. During the next production cycle, 1,200 hours of
labor are available under a union agreement. The firm also has a stock of 3,500 feet of good-
quality redwood. Each bench that Outdoor Furniture produces requires 4 labor hours and 10
feet of redwood; each picnic table takes 6 labor hours and 35 feet of redwood. Completed
benches will yield a profit of $9 each, and tables will result in a profit of $20 each.
41. The dean of the Western College of Business must plan the school’s course offerings for the
full semester. Student demands make it necessary to offer at least 30 undergraduate and 20
graduate courses in the term. Faculty contracts also dictate that at least 60 courses be offered
in total. Each undergraduate course taught costs the college an average of $2,500 in faculty
wages, and each graduate course costs $3,000.
42. An advertising agency wishes to reach two types of audiences, customers with monthly
incomes greater than $15,000/- (target audience A) and customers with monthly incomes less
than $ 15,000/- (target audience B). The total advertising budget is $.2, 00, 000 /-. One
programme of TV advertising costs $. 50, 000/-. One programme of radio advertising costs
$20, 000/-. For contract reasons at least 3 programmes ought to be on TV and number of
radio programmes must be limited to 5. A survey indicates that a single TV programme
reaches 4, 50, 000 customers in target audience A and 50, 000 in target audience B. One
radio programme reaches 20, 000 customers in target audience A and 80,000 in target
audience B.
43. A dealer wishes to purchase a number fans and sewing machines. He has only Rs.5760/- to
invest and has space utmost for 20 items. A fan costs him Rs 360 and a sewing machine Rs
240. His expectation is that he can sell a fan at a profit of Rs 22 and sewing machine at a
profit of Rs 18. Assuming that he can sell all the items that he can buy, how should he invest
his money in order to maximize his profit?
44. A firm produces products A, B & C each of which passes through three departments
Fabrication, Finishing & Packaging. Each unit of product A requires 3, 4 & 2, a unit of
product B requires 5, 4 & 4 while each unit of C requires 2, 4 & 5 hours respectively in the
three departments. Everyday 60 hours are available in Fabrication, 72 hours are available in
Finishing and 100 hours in Packaging department. If the unit contribution of product A is
$5/, product B is $10/-, product C is $.8/-, determine the number of units of each of the
products, that should be made each day to maximize the total contribution.

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45. A paper mill produces two grades of paper namely X and Y. Because of raw material
restrictions, it cannot produce more than 400 tons of grade X and 300 tons of grade Y in a
week. There are 160 production hours in a week. It requires 0.2 and 0.4 hours to produce a
ton of products X and Y respectively with corresponding profits of Rs.200 and Rs.500 per
ton. Formulate the above as a LPP to maximize profit
46. Tailor has the following materials available. 16 square meters of cotton, 11 square meters of
silk, and 15 square meters of wool. He can make out two products from these three materials,
namely dress and suite. A dress requires the following: 2 square meters of cotton, 1 square
meter of silk and 1 square meter of wool. A suite requires 1 square meter of cotton, 2 square
meter of silk and 3 square meter of wool. If the gross profit realized from a dress and as suite
is respective $30 and $50.
47. A company owns two flour mills (A and B) which have different production capacities for
HIGH, MEDIUM and LOW grade flour. This company has entered contract supply flour to a
firm every week with 12, 8, and 24 quintals of HIGH, MEDIUM and LOW grade
respectively. It costs the Co. Birr 1000 and Birr 800 per day to run mill A and mill B
respectively. On a day, mill A produces 6, 2, and 4 quintals of HIGH, MEDIUM and LOW
grade flour respectively. Mill B produces 2, 2 and 12 quintals of HIGH, MEDIUM and LOW
grade flour respectively. How many days per week should each mill be operated in order to
meet the contract order most economically standardize?
48. A jewelry store makes necklaces and bracelets from gold and platinum. The store has 18
ounces of gold and 20 ounces of platinum. Each necklace requires 3 ounces of gold and 2
ounces of platinum, whereas each bracelet requires 2 ounces of gold and 4 ounces of
platinum. The demand for bracelets is no more than four. A necklace earns $300 in profit and
a bracelet, $400. The store wants to determine the number of necklaces and bracelets to make
in order to maximize profit.
49. XYZ Ltd. Co. Wishes to purchase a maximum of 3600 units of two types of product, A & B
are available in the market. Product A occupies a space of 3 cubic feet & cost Birr 9 whereas
B occupies a space of 1 cubic feet & cost Birr 13 per unit. The budgetary constraints of the
company do not allow spending more than Birr 39,000. The total availability of space in the
company's good own is 6000 cubic feet. Profit margin of both the product A & B is Birr 3 &
Birr 4 respectively.
50. Alpha Limited produces & sells 2 different products under the brand name black & white.
The profit per unit on these products is Birr 50 & Birr 40 respectively. Both black & white
employ the same manufacturing process which has a fixed total capacity of 50,000 man-hour.
As per the estimates of the marketing research department of Alpha Limited, there is a
market demand for maximum 8,000 units of Black & 10,000 units of white. Subject to the
overall demand, the products can be sold in any possible combination. If it takes 3 hours to
produce one unit of black & 2 hours to produce one unit of white.

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51. Two workers, A and B, earn $6 per hour and $8 per hour respectively. A makes 6 products of
P1 and 4 products of P2 per hour. B makes 10 products of P1 and 2 products of P2 per hour.
It is necessary to manufacture 148 of P1 and 52 of P2 to complete an order. How many hours
should each work to fill the order at minimum labour cost?
52. A firm produces products, A & B, each of which requires two resources, namely raw
materials and labour. Each unit of product A requires 2 & 4 units and each unit of product B
requires 3 & 3 units respectively of raw materials and labour. Every day at least 60 units of
raw materials and at least 96 units of labour are to be used. If unit production cost of product
A is birr40 and product B is birr35 determine the number of units of each of the products that
should be made each day to minimize the total cost of production.
53. Copperfield Mining Company owns two mines, each of which produces three grades of ore
high, medium, and low. The company has a contract to supply a smelting company with at
least 12 tons of high-grade ore, 8 tons of medium-grade ore, and 24 tons of low-grade ore.
Each mine produces a certain amount of each type of ore during each hour that it operates.
Mine 1 produces 6 tons of high-grade ore, 2 tons of medium-grade ore, and 4 tons of low-
grade ore per hour. Mine 2 produces 2, 2, and 12 tons, respectively, of high-, medium-, and
low-grade ore per hour. It costs Copperfield $200 per hour to mine each ton of ore from mine
1, and it costs $160 per hour to mine each ton of ore from mine 2. The company wants to
determine the number of hours it needs to operate each mine so that its contractual
obligations can be met at the lowest cost.
54. A lumber mill can produce pallets or high quality lumber. Its lumber capacity is limited by its kiln
size. It can dry 200 mbf per day. Similarly, it can produce a maximum of 600 pallets per day. In
addition, it can only process 400 logs per day through its main saw. Quality lumber sells for $490 per
mbf, and pallets sell for $9 each. It takes 1.4 logs on average to make one mbf of lumber, and four
pallets can be made from one log. Of course, different grades of logs are used in making each
product. Grade 1 lumber logs cost $200 per log, and pallet-grade logs cost only $4 per log. Processing
costs per mbf of quality lumber are $200 per mbf, and processing costs per pallet are only $5. How
many pallets and how many mbf of lumber should the mill produce?
55. The Primal Paper Company can produce low, medium and high grades of paper. Each carload of low
grade paper produces a net revenue of $700, each carload of medium grade paper produces a net
revenue of $840, and each carload of high grade paper produces a net revenue of $900. For the
present planning period Primal Paper has 92 units of aspen and 36 units of pine to process. To
produce a carload of low grade paper, 3 units of aspen and 1 unit of pine are required. To produce a
carload of medium grade paper, 2 units of aspen and 2 units of pine are required. To produce a
carload of high grade paper, 1 units of aspen and 3 units of pine are required. Primal Paper wants to
determine how many carloads or partial carloads of each paper grade to produce so that net revenue is
maximized
56. The ABC furniture company manufactures tables, chairs, desks, and bookcases. A table requires 5
feet of softwood and 2 feet of hardwood, and takes 3 hours of labor to produce. A chair requires 1
foot of softwood, 3 feet of hardwood, and 2 hours of labor; a desk requires 9 feet of softwood, 4 feet
of hardwood, and 5 hours of labor; finally, a bookcase requires 12 feet of softwood, 1 foot of

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 hardwood, and 10 hours of labor to produce. The company has available only 1500 feet of softwood,
and 1000 feet of hardwood. The factory employs 10 people, each of which works 8 hours per day;
overtime is not permitted. The firm plans its production for a 10-day period, according to the
estimated demands projected by the sales manager. The sales manager has asked for at least 40 tables,
130 chairs, and 30 desks, and says he can sell any amount in excess of these minimum requirements.
There is little demand for bookcases, so there is no minimum requirement, but the sales manager does
not think he could accept more than 10 for sale. Softwood costs $2 per foot, hardwood $5 per foot,
and labor $10 per hour. These products can be sold for the following prices: table, $62/unit; chair,
$42/unit; desk, $103/unit; and bookcase, $139/unit.
57. The forestry club is planning its fund raising activities for the year. Two major activities are being
considered: 1) selling t-shirts and hats and 2) selling Christmas trees. The club wants to make as
much income as it can. T-shirts, hats and trees must be contracted for in advance, so current-year
revenues cannot be spent on purchasing this year’s trees, tshirts and hats. However, the club has
$2,610 left over after last year’s conclave that can be used. Both t-shirts and hats can be purchased for
$6 and can be sold for $14. Trees can be purchased for $9 each and can be sold for $30. The trees will
have to be cut down and shipped to the university, where they will be sold. Only 2 weekends are
available for cutting trees, and the maximum number of trees that can be harvested with the available
labor is 240 trees. The club members also estimate that they can sell at most 100 t-shirts and 50 hats.
The club members will have to volunteer time for selling both Christmas trees and t-shirts and hats.
On average, it takes about 12 minutes of sales time per tree sold and 20 minutes of sales time per t-
shirt or hat. Club members will be able to volunteer a maximum of 80 hours of sales time.
58. The Pacific International Corporation produces two type of paper, both newsprint and magazine
quality. Both softwood and hardwood are used as raw materials in different combinations to produce
a ton of each quality paper. To produce one ton of newsprint, 1 ton of hardwood and 2 tons of
softwood are required. Similarly, to produce one ton of magazine grade paper, 2 tons of hardwood
and 1 ton of softwood are necessary. The sale price per ton of newsprint is $600.
59. A patient has been recommended two nutrients N1 and N2 everyday. Minimum intake is 10g for N1
and 15g for N2 everyday. These nutrients are available in two products P1 and P2. One unit of P1
contains 2g of N1 and 3g of N2. One unit of P2 contains 1g of N1 and 2g of N2. Cost per unit is Rs.
200 for P1 and Rs. 150 for P2
60. Two vitamins A and B are to be given as health supplements on daily basis to students. There are two
products Alpha & Beta which contain vitamins A and B. One unit of Alpha contains 2g of A and 1g
of B. One unit of Beta contains 1g of A and 2g of B. Daily requirements for A and B are at least 10g
each. Cost per unit of Alpha is Rs. 20 and of Beta is Rs. 30
61. A firm makes two products P1 & P2 and has production capacity of 18 tonnes per day. P1 & P2
require same production capacity. The firm must supply at least 4 t of P1 & 6 t of P2 per day. Each
tonne of P1 & P2 requires 60 hours of machine work each. Maximum machine hours available are
720. Profit per tonne for P1 is Rs. 160 & P2 is Rs. 240. Find optimal solution by graphical method.
62. A firm produces two products P and Q. Daily production upper limit is 600 units for total production.
But at least 300 total units must be produced every day. Machine hours consumption per unit is 6 for
P and 2 for Q. At least 1200 machine hours must be used daily. Manufacturing costs per unit are Rs.
50 for P and Rs. 20 for Q. Find optimal solution for the LPP graphically.

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63. A furniture manufacturer makes two products - tables and chairs. Processing of these products is done
on two types of machines A and B. A chair requires 2 hours on machine type A and 6 hours on
machine type B. A table requires 5 hours on machine type A and no time on Machine type B. There
are 16 hours/day available on machine type A and 30 hours/day on machine type B. Profits gained by
the manufacturer from a chair and a table are Rs. 2 and Rs. 10 respectively. What should be the daily
production of each of the two products? Use graphical method of LPP to find the solution.
64. A house wife wishes to mix two types of food F1 and F2 in such a way that the vitamin contents of
the mixture contain at least 8 units of vitamin A and 11 units of vitamin B. Food F1 costs E60/Kg and
Food F2 costs E80/kg. Food F1 contains 3 units/kg of vitamin A and 5 units/kg of vitamin B while
Food F2 contains 4 units/kg of vitamin A and 2 units/kg of vitamin B.
65. A furniture company produces inexpensive tables and chairs. The production process for each is
similar in that both require a certain number of hours of carpentry work and a certain number of
labour hours in the painting department. Each table takes 4 hours of carpentry and 2 hours in the
painting department. Each chair requires 3 hours of carpentry and 1 hour in the painting department.
During the current production period, 240 hours of carpentry time are available and 100 hours in
painting is available. Each table sold yields a profit of E7; each chair produced is sold for a E5 profit.
Find the best combination of tables and chairs to manufacture in order to reach the maximum profit.
66. A farmer has ten pigs and feeds them on fish meal and sterilized meat scraps. He wants to feed the
pigs at minimum cost but must ensure that they get enough protein, enough of certain specified amino
acids and not too much calcium. Fish meal costs £150 a tonne while meat scraps cost £120 a tonne. 1
tonne = 1000 kilograms. Each kilogram of fish meal contains 600 gm of protein, 50 gm of calcium
and 180 gm of the specified amino acids. Each kilogram of meat scraps contains 500 gm of protein,
110 gm of calcium and 50 gm of the amino acids. Each pig requires at least 1.6 kg of protein and 0.3
kg of the amino acids a day, but must not have more than 0.3 kg of calcium a day. Formulate the
problem as a linear programming model.
67. The Grand Valley Company, run by the J. Motwani family, produces two products: bed mattresses
and box springs. A prior contract requires that the firm produce at least 30 mattresses or box springs,
in any combination, per week. In addition, union labor agreements demand that stitching machines be
kept running at least 40 hours per week, which is one production period. Each box spring takes 2
hours of stitching time, and each mattress takes 1 hour on the machine. Each mattress produced costs
$20; each box spring costs $24.
68. MSA Computer Corporation manufactures two models of minicomputers, the Alpha 4 and the Beta 5.
The firm employs 5 technicians, working 160 hours each per month, on its assembly line.
Management insists that full employment (that is, all 160 hours of time) be maintained for each
worker during next month’s operations. It requires 20 labor-hours to assemble each Alpha 4 computer
and 25 labor-hours to assemble each Beta 5 model. MSA wants to see at least 10 Alpha 4s and at least
15 Beta 5s produced during the production period. Alpha 4s generate a $1,200 profit per unit, and
Betas yield $1,800 each.
69. The Denver advertising agency promoting the new Breem dishwashing detergent wants to get the best
exposure possible for the product within the $100,000 advertising budget ceiling placed on it. To do
so, the agency needs to decide how much of the budget to spend on each of its two most effective
media: (1) television spots during the afternoon hours and (2) large ads in the city’s Sunday
newspaper. Each television spot costs $3,000; each Sunday newspaper ad costs $1,250. The expected
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 exposure, based on industry ratings, is 35,000 viewers for each TV commercial and 20,000 readers
for each newspaper advertisement. The agency director, Deborah Kellogg, knows from experience
that it is important to use both media in order to reach the broadest spectrum of potential Breem
customers. She decides that at least 5 but no more than 25 television spots should be ordered, and that
at least 10 newspaper ads should be contracted. How many times should each of the two media be
used to obtain maximum exposure while staying within the budget?

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