Manarat International University

Assignment
on
Chapter 2

Course Title
Management Science
Course Code
MIS 412

Submitted to

prof. Sirajuddaula Shaheen

Dean
School of Business and Social science
Ahsanullah University of Science & Technology

prepared by

Afroza Akter
1439BBA03013

Date of Submission

02/10/2017
Assignment #1a

A company sells two different products, A and B. The selling price and incremental cost
information are as follows:

product Aproduct B
Selling price 60 40
Variable cost 30 10
profit 30 30

The two products are produced in a common production process and are sold in two different
markets. The production process has a capacity of 30000 man-hours. It takes 3 hours to produce
a unit of A and 1 hour to produce a unit of B. The market has been surveyed and the company
officials feel that the maximum number of units A that can be sold is 6000 and the maximum for
B is 12000 units. Subjects to these limitations two products can be sold in any combination.
Formulate the problem in LP.

Formulation:

Let,
X1= The Number of Units of Product A
X2= The Number of Units of Product B

The Objective Function is-

Max Z = 30X1+30X2

The Constraints are-

3X1+1X2≤ 30,000 (Production time constraint)
X1 ≤ 6,000 (Number of Units of A constraint)
X2 ≤ 12,000 (Number of Units of B constraint)
X1 , X2 ≥ 0 ( Non-negativity constraint)

Assignment # 1b

Hi-Tech world's renowned manufacturer and distributor of computer has four plants in Asia.
They are located in Dhaka , Bangkok , Singapore and Hongkong . The computers used by these
plants are produced in Japan and shipped to these plants. Computers arrive at the harbor in
Melbourne (A), Sidney (B) and Brisbane (C).
production plans for third quarter , July through September have been set. The requirements (the
demand at destination) for commuters are below-left, while the available number of computers at
harbor (the supply at origin) in time to be used in the third quarter are shown below-right.

P l a n t Computers H a r b o u r Computers

(1) Dhaka 4 0 0 (A) Melbourne 5 0 0

(2) Bangkok 9 0 0 (B) Sidney 7 0 0

(3)Singapore 2 0 0 (c) Brisbane 8 0 0

2000
(4) Hongkong 5 0 0
2000

Here, Hi-Tech must decide how many computers to send from each plant. The computers are
transported by common carrier and charges are on a per computer basis. The relevant costs are
given below,
To Destination

From Origin 1 2 3 4

A 1 3 4 6

B 6 4 1 0 1 1

C 1 0 9 1 2 4

For case of presentation, we refer to the harbor with letters and the plants with numbers, as
indicates above. Formulate it as L. Problem.