Maryland International College

MBA Program
Course Title: Quantitative Analysis (Management Science)
Course Code: MBA-652
Instructors Name: Dr Biniam B.

Submission Date: February 26/2023

Marks: 50%

Individual Assignment

Full Name ID No. Email Phone No.

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1. A dealer wishes to purchase a number of fans and sewing machines. He has only 5760 ETB to
invest and has space for almost 20 items. A fan costs him 360 ETB and sewing machine 240 ETB.
His expectation is that he can sell a fan at profit of 22 ETB and a sewing machine at a profit of
18 ETB. Assuming that he can sell all the items that he can buy, how should he invest his money
in order to maximize his profit. (Note: ETB = Ethiopian Birr)

a. Formulate it as a linear programming problem (LPP)

b. Use the graphical method to solve it.

2. Solve this model using graphical and simplex method and compare the answers.
A transistor radio Co., manufactures models A, B, and C which have profit contribution of Birr 16,
Birr 30 and Birr 50 respectively. The weekly minimum production requirements are 20 for model A,
120 for model B, and 60 for model C. Each type of radio requires a certain amount of time for the
manufacturing of component parts, assembly and packaging.

Specifically a dozen unit of model A requires 3 hrs for manufacturing of component parts, 4b hrs
for assembly and 1 hr for packaging. The corresponding figure for a dozen unit of model B is 3.5,
5 and 1.5 and for a dozen unit of C are 5, 8, and 3 hrs. During the forth coming week, the company
has availability of 120 hrs of manufacturing, 160 hrs of assembly, and 45 hrs of packaging time.

Required:

a) Formulate the scheduling problem as LPM.

b) Solve the problem using simplex method

c) Identify basic and non basic variables at each iteration

3. A product is manufactured by four factories A, B, C and D. The unit production costs in them are
ETB 2, ETB 3, ETB 1 and ETB 5 respectively. Their production capacities are 50, 70, 30 and 50
units respectively. These factories supply the product to four stories, demands of which are 25,
35, 105, and 20 units respectively. Unit transportation cost in ETB for each factory to each store
is given in the table below.

Stores
1 2 3 4
A 2 4 6 11
Factories B 10 8 7 5
C 13 3 9 12
D 4 6 8 3

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 Determine the transportation plan to minimize the total production-cum-transportation cost by
using:
a. Vogel’s Approximation Method (VAM) for initial basic feasible solution
b. North West Corner Method (NWCM)
c. Least Cost Method (LCM)
4. Let’s consider an example. Harley’s Sand and Gravel Pit has contracted to provide topsoil
for three residential housing developments. Topsoil can be supplied from three different
“farms” as follows:
To:

From: Project #1 Project #2 Project #3 Supply

Farm A 4 2 8 100

Farm B 5 1 9 200

Farm C 7 6 3 200

Determine the transportation plan to minimize the total transportation cost by using:
a. Vogel’s Approximation Method (VAM) for initial basic feasible solution
b. North West Corner Method (NWCM)
c. Least Cost Method (LCM)

5. Consider following data. Draw activity on arc (AOA) network diagram. Find out critical path,
expected duration, slack, total and independent floats. What is the probability that it would be
completed in

a. 11 weeks and
b. 16 weeks?
Predecessor Most
Activity Optimistic Pessimistic
Activity Likely
A -- 2 3 10
B -- 2 3 4
C A 1 2 3
D A 4 6 14
E B 4 5 12
F C 3 4 5
G D, E 1 1 7

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6. Consider the following data (ETB and days).

a. Draw activity network of the project.

b. Crash the activities step by step until all paths are critical.
Activity Normal Time Normal Cost Crash Time Crash Cost
1-2 20 600 17 720
1-3 25 200 25 200
2-3 10 300 8 440
2-4 12 400 6 700
3-4 5 300 2 420
4-5 10 300 5 600
4-6 5 600 3 900
5-7 10 500 5 800
6-7 8 400 3 700
7. The Eastern Iron and steel company makes nails, bolts, and washers from steel and coats
them with zinc. The company has 24 tons of steel and 30 tons of zinc. The following table gives
the detailed information on objective of the company and items production.

Products Steel used in ton Zinc used in Profit per unit

per unit tons/unit
Nails (X1 4 2 6
Bolts (X2) 1 6 2
Washer (X3) 3 3 12
Total Resource 24 30
available
A) Formulate the model for LP.
B) Solve the LPM using simplex algorithm.
C) Interpret the optimal solution.
8. given below.
Job 1-2 1-3 2-3 2-5 3-4 3-6 4-5 4-6 5-6 6-7

Duration 15 15 3 5 8 12 1 14 3 14
( days)

Required:

a) Draw an arrow diagram representing the project.

b) Find the total float for each activity.
c) Find the critical path and the total project duration.

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9. Sony, a television company, has three major departments for the manufacture of its two models,
A and B. The monthly capacities are given as follows.

Per Unit Time Requirement (hours)

Model A Model B Hours Available this

Month

Department I 4.0 2.0 1,600

Department II 2.5 1.0 1,200

Department III 4.5 1.5 1,600

The marginal profit per unit from model A is Birr 400 and that of model B is Birr 100 per unit.
By assuming that the company can sell any quantity of either product due to favorable market
conditions, determine the optimum output for both the models, the highest possible profit for this
month in the three departments.

Required:

a) Formulate the model for LPM

b) Solve the LPM using graphical method and interpret the optimal solution.

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