SMB 3425 Operations Research I
SMB 3425 Operations Research I
Three machine shops A, B, c produces three types of products X,Y, Z respectively. Each product
involves operation of each of the machine shops. The time required for each operation on various
products is given as follows:
Machine shops
Products A B C Profit per unit
X 10 7 2 $12
Y 2 3 4 $3
Z 1 2 1 $1
Available 100 77 80
hours
Formulate a linear programming model to maximize the objective function. (20 Marks)
a) A manufacturing company owns three factories (sources) and distribute his products to
five different retail agencies (destinations). The following table shows the capacities of
the three factories, the quantity of products required by the various retail agencies and the
cost of shipping one unit of the product from each of the three factories to each of the five
retail agencies.
Retail Agency
Factories 1 2 3 4 5 Capacity
1 1 9 13 36 51 50
2 24 12 16 20 1 100
3 14 33 1 23 26 150
Requirement 100 60 50 50 40 300
Use the North West corner method to determine the basic feasible solution.(10 Marks)
b) A workshop contains four persons available for work on the four jobs. The following
table shows the cost of assigning each person to job. Assign persons to jobs such that the
total assignment cost is a minimum. Use Hungarian method to solve.
4
Store house
40 6
2
65 40
40
35 5
Factory
1 20
100
6 2 8
2 4 12
4 12 24
, 0, 0 (10 Marks)
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QUESTION FIVE (20 MARKS)
a) State five basic functions of inventory. (5 Marks)
b) A manufacturer uses an item at a uniform rate of 25,000 units per year. Assume that no
shortage is allowed and delivery is at an infinite rate. The ordering, receiving and hauling
cost is Rs 23 per order, while inspection cost is RS 22 per order . Interest costs is
RS.0.056 and deterioration and obsolescence cost is RS.0.004 respectively per year for
each item actually held in inventory plus RS.0.02 per year per unit based on the
maximum number of units in inventory. Determine the EOQ. If lead time is 40 days , find
reorder level. (15 Marks)