Assignment-1 & 2 of Operations Research

Q.1. factory engaged in the manufacturing of piston, rings and valves for which the profit per
unit are Rs. 10, 6 and 4, respectively, wants to decide the most profitable mix. It takes one
hour of preparatory work, ten hours of machining and two hours of packing and allied
formalities for a piston. Corresponding requirements for rings and valves are 1, 4 & 2 and 1,
5 & 6 hours, respectively. The total numbers of hours available for preparatory work, packing
and allied formalities are 100, 600 & 300 respectively. Determine the most profitable mix,
assuming that what all produced can be sold.

Q.2. XYZ Company has provided the following data seeking your advice on optimum
investment strategy;

Investment
Net Return data (in paise) of selected investment Amount
Made at the
Available
beginning of
P Q R S (Lakh)
year
1 95 80 70 60 70
2 75 65 60 50 40
3 70 45 50 40 90
4 60 40 40 30 30
Maximum
Investment 40 50 60 30
(Lakh)

The Following additional information is also provided;

(i) P, Q, R & S represent the selected investments.

(ii) The company has decided to have four-year investment plan.
(iii) The policy of the company is that amount invested in any year will remain so until
the end of the fourth year.
(iv) The value (paise) in the table represent net return on investment of Re. 1 till the
end of the planning horizon (for example, a rupee invested in investment P at the
beginning of first year will grow to Rs. 1.95 by the end of the fourth year, yielding
a return of 95 paise).

Using the above, determine the optimum investment strategy.