PROJECT TITLE An investigation in order to determine the number of birds that must be purchased in order for a small business to realize a maximum profit.‘TABLE OF CONTENTS 1 ©ENSHAGN Title Introduction Method of Data Collection Presentation of Data. Analysis of Data Discussion of Findings. Conclusion References Appendix... Page Number Page Number Page Number Page Number Page Number Page Number Page Number Page Number Page Number Dad has decided to start a small business in order to supplement his monthly income. He plans to purchase chickens and ducts weekly to retail at a profit. After hearing Dad's plan, | decided to use a branch of mathematics called linear programming to help him model his business plan. Linear programming is a mathematical technique that is used to maximize profit or minimize loss within’ a specified system, given all the constraints in the system. This technique will allow Ded to predict the exact number of birds that he should purchase weekly in order to maximize profit on his investment, without violating certain constraints. While trying to establish the business Dad may encounter limitations and restrictions. These limitations and restrictions are called constraints.1. Lvisited a poultry farm and collected the following data (i) wholesale prices of chickens and ducks (ii) the minimum number of birds that must be purchased in order to obtain the wholesale price (ii) the suggested prices at which the birds can be retailed (lv) the maximum number of birds that can be stored in the fowl run at home 2. lalso got Dad's weekly budget for the purchase of birds,‘The data collected shows, that in order to obtain wholesale and retail prices, Dad “must satisfy the following four constraints: 4. he must buy at least 10 ducks; this means that the minimum amount of ducks that he can purchase is 10 2. he must buy at least 20 chickens. this means that he must buy 20 or more chickens 3. he has storage space for only 76 birds; this means that he cannot buy more than 73 birds. 4. he only has $3,000.00 to spend on birds. Ducks cost $80.00 each and chickens: cost $30.00 each ‘The data also shows that at the end of this venture, Dad is expected to make a profit of $70.00 on each duck and $30.00 on each chicken. Intinear programming, wo use inequalities to represent real-world constraints which can then be represented graphically by ‘gions. For Dad's business model, each constraint wil give rise to an inequality In orce* to write inequalities, we must introduce variables. For this model, twittuse two variables, = and y_l.wiflet represent the number of ducks and y represent the number of chickens that Dad must purchase. 1. Dad must buy at least 10 ducks Then «must be greater than or equal to 10. This is written as => 10 2. Dad must buy at least 20 chickens. Then y must be greater than or equal to 20. This is written as y 2 20. 3. Dad has storage for only 73 birds, Then the total number of birds must be less than or equal to 73. ah This ten a2-+ 93734. The cost of « ducks at $80.00 each is $80 «. The cost of y chickens at $30.00 each is $30 y, He has only $3,000.00 to spend on birds. Then the total amount of money to be spent must be less than or equal to $3000.00. This is written as 80x + 30y < $3,000.00. {20h F the above inequalities will represent a region on a graph sheet. To identity ‘egions, we must have boundaries. The equally part of each inequality wil be used as @ boundary line for each iriequality. 1. For the region 2 10; the straight line « = 10 will be drawn as the boundary tine. 2, For the region y 2 20; the straight line y = 20 will be drawn as the boundary line. 3. For the region = + y < 78; the straight line = + y = 73 wil be crawn as the boundary line, 4 For the region 80s + 30y < 3000; he straight line 80x + 30y = 3000 will be drawn as the boundary line, To draw the line « + y = 73 ; the two points (0, 73) and (73, 0) wil be used, = 7 | v | 23 | 0 Before the line 60x + 30y = 3000 is drawn, the equation will be sinipifed by dividing by 10. ‘The equation s now 8s + 3y = 300; and the two points (0, 100) and (30, 20) will be Used to draw the boundary line. 2 0 ¥ 400) ‘The graph below represents the system of the four inequalities as stated above, ‘The shaded region $ represents Dad's degree of freedom. In this -gion he is free to purchase a combination of ducks and chickens without violating any of the four constraints, . ati Oa ° 8 8'y (NUMBER OF CHICKENS) The shaded region S represents Dad's degree of freedom Scale: 2cm =10 ducks on horizonial, 2om =10 chickens on vertical 10 C (16,87) G2+3y= 300 20 30 40 50 60 a (NUMBER OF DUCKS) 70Dadis expected to make a profit of $70.00 on each duck and $30.00 on each chicken, = ducks at $70.00 each will yield a prof of $70 « and y chickens at $30 each will yield 2 profit of $30 wy, Therefore the profit equation for Dads business Model is written as follows: P = 70x + 20y, he aim isto determine the number of ducks and chickens ‘nat Dad should purchase inorder [0 achieve the maximum profit. The four inequalities gave rise to a polygon with {he vetioes A (10, 20) B (10, 63): C (16, 57}; D (80, 20) as stovm on the graph, The fundamental theorem of linear programming states that ‘one of the four vertices ize the equation P = 70: + 30y Testing for the maximum profit we get 1. ALA (10, 20); where « = 10, y = 20 P= 70x 10+30x29 700 + 600 = $1,300.00 This means that if Dad purchases 10 ducks and 30 chickens, he wil make a profit of $1,300.00 per week 2. ALB (10, 63); where x = 10, y= 63 Po = 70x 10+30x 63 = 700+ 1,890 = $2,590.00 This means that if Dad purchases 10 ducks anc 63 chickens, he will make a profit of $2,590.00 per week. 3. ALC (16, 57); where x = 16, y= 57 Po = 70x 16+20x57 1,120 + 1,710 ne e This means that if Dad purchases 16 ducks and 57 chickens, he will ‘make a profit of $2,890.00 per week4. ALD (30, 20); where x = 30, y = 20, Pp 70 x 30 + 30 x 20 2,100 + 600 $2,700.00 ‘This means that if Dac’ purchases 30 ducks and 20 chickens, he will make a profit of $2,700.00 per week, " 0 Therefore, in order for Dad to obtain a maximum profit of $2,830, he must purchase 16 ducks and 57 chickens each week.This simple linear programming model, gives Dad a guide so that he can make an informed decision when purchasing the birds to retail at a profit. It helps him to avoid unnecessary speculations and estimates based on guesswork. For example, based on his degree of freedom, Dad knows that: 1. ithe purchases 10 ducks and 20 chickens; he will realize 4 profit of $1,300.00 per week 2. ithe purchases 10 ducks and 63 chickens; he will realizo 2 profitof $2,590.00 per week 3. ifhe purchases 16 ducks and 57 chickens; he will realize « profit of "$2,830.00 per week 4. ifhe purchases 30 ducks and 20 chickens; he will realize a profit of $2,700.00 per week Hence, Dad now knows the exact number of ducks and chickens he must purchase weekly within the given constraints in order to maximize profit on his investment. a”Based on the findings, it can be concluded that Dad must purchase 16 ducks and 57 chickens, a tolal of 73 birds in order to generate a maximum profit of $2,830.00 per week. " AGreer, A. & Layne, C. E., (1980): Certificate Mathematics: Revision Course for the Caribbean. Toolsie, R.; Mathomatics: A Complete Course with CXC Questions, Vol, 2 wwow.math.uclaedu wwsmathswork.com MATH QUOTE WILLIAM THURSTON