YARDSTICK INTERNATIONAL COLLEGE

DEPARTMENT OF BUSINESS ADMINISTRATION

Course Name: Quantitative Analysis for Management Decisions (MBA641)

Individual Assignment 1

Name:- Gizachew Dobebo Id :- MBAO/1896/15A

Submitted to: - Dr. B. Dayal

December, 2022

Doyogena, Ethiopia

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Q1. A pharmacy has determined that a healthy person should receive 70 units of proteins, 100 units of
carbohydrates and 20 units of fat daily. If the store carries the six types of health food with their ingredients
as shown in the table below, what blend of foods satisfies the requirements at minimum cost to the
pharmacy? Make a mathematical model for the given problem.

Foods Protein units Carbohydrates units Fat units Cost per unit
A 20 50 4 2
B 30 30 9 3
C 40 20 11 5
D 40 25 10 6
E 45 50 9 8
F 30 20 10 8

Solution: Formulation of the mathematical model

Step1- First of all, we have to convert the word problem into linear programming model

Let X1, X2, X3, X4, X5 and X6 respectively denote the health food with their ingredients, A, B, C,
D, E, and F will be satisfies the requirements at minimum cost to the pharmacy

Step 2: Define the Objective

 The objective is to minimize the cost.

So, the objective function is

Z = 2X1 + 3 X2 + 5 X3 + 6 X4 + 8 X5 + 8 X6 ------------------------------------------- (1)

a) For protein: Since the minimum requirement of proteins for healthy person should be 70 units
daily.

20 X1 + 30 X2 + 40 X3 + 40 X4 + 45 X5 + 30 X6 ≥ 70 ----------------------------------- (2)

b) For carbohydrates: Since the minimum requirement of carbohydrates for healthy person
should be 100 units of carbohydrates daily.

50 X1 + 30 X2 + 20 X3 + 25 X4 + 50 X5 + 20 X6 ≥ 100 ------------------------------------ (3)

c) For fat: Since the minimum requirement of proteins for healthy person should be 20 units of
fat daily.

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 4 X1 + 9 X2 + 11 X3 + 10 X4 + 9 X5 + 10 X6 ≥ 20-----------------------------------------(4)

Since the number of units X1, X3, X4, X5 and X6 are always non-negative, therefore we have

X1, X2 X3, X4, X5, X6 ≥ 0 (5)

Generally the mathematical model becomes;

 The objective function is :-

Minimize Z = 2X1 + 3 X2 + 5 X3 + 6 X4 + 8 X5 + 8 X6

 Subject to the constraints:

20 X1 + 30 X2 + 40 X3 + 40 X4 + 45 X5 + 30 X6 ≥ 70

50 X1 + 30 X2 + 20 X3 + 25 X4 + 50 X5 + 20 X6 ≥ 100

4 X1 + 9 X2 + 11 X3 + 10 X4 + 9 X5 + 10 X6 ≥ 20

 And X1, X2 X3, X4, X5, X6 ≥ 0

Q2. A local manufacturing firm produces four different metal products, each of which must be
machined, polished and assembled. The specific time requirements (in hours) for each product are as
follows:

Machining, hours Polishing, hours Assembling,

hours
Product I 3 1 2
Product II 2 1 1
Product III 2 2 2
Product IV 4 3 1

The firm has available to it on weekly basis, 480 hours of machining time, 400 hours of polishing time
and 400 hours of assembling time. The unit profits on the product are Birr 360, Birr 240, Birr 360 and
Birr 480, respectively. The firm has a contract with adistributor to provide 50 units of product I, and 100
units of any combination of products II and III each week. Through other customers the firm can sell
each week as many units of products I, II and III as it can produce, but only a maximum of 25 units of
product IV. How many units of each product should the firm manufacture each week to meet all
contractual obligations and maximize its total profit? Make a mathematical model for the given problem.
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Assume that any unfinished pieces can be finished the following week.

Solution:
Products Machining, hours Polishing, hours Assembling, hours Profit

Product I 3 1 2 360
Product II 2 1 1 240
Product III 2 2 2 360
Product IV 4 3 1 480
Available hours 480 400 400

Let: X1= the number of unit of product I to be produced

X2= the number of unit of product II to be produced

X3= the number of unit of product III to be produced

X4= the number of unit of product IV to be produced

The objective is to maximize profit, Z:

Z= 360 times the number of Product I plus 240 times the number of Product II plus 360
times the number of Product III plus 480 times the number of Product IV.
Maximize Z = 360 X1 + 240 X2 + 360 X3 + 480 X4

Subject to the constraints:

3X1 + 2 X2 + 2 X3 + 4 X4 ≤ 480

1 X1 + 1 X2 + 2 X3 + 4 X4 ≤ 400
2 X1 + 1 X2 + 2 X3 + 1 X4 ≤ 400
X4 ≤ 25
And X1, X2 X3, X4, ≥ 0

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Q3. A firm manufactures two products; the net profit on product 1 is Rupees 3 per unit and Rupees 5 per
unit on product 2. The manufacturing process is such that each product has to be processed in two
departments D1 and D2. Each unit of product1 requires processing for 1 minute at D1 and 3 minutes at D2;
each unit of product 2 requires processing for 2 minutes at D1 and 2 minutes at D2. Machine time available
per day is 860 minutes at D1 and 1200 minutes at D2. How much of product 1 and 2 should be produced
every day so that total profit is maximum. Make the mathematical model for the given problem.

SOLUTION

D1( process) in D2( process) in Net profit/Rupees per

Products unit
minutes Minutes
1 3 3
Product-1
2 2 5
Product-2
860 1200
Daily minutes

Let X1= the number of unit of Product 1 to be Produced

X2= the number of unit of Product 2 to be produced

The objective is to maximize profit, Z:
Z= 3 times the number of Product 1 plus 5 times the number of Product 2

Maximize :

Z = 3 X1 + 5 X2

Subject to the constraints:

1 X1 + 2 X2 ≤ 860

3 X1 + 2 X2 ≤ 1200

And X1 , X2 ≥ 0

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Q4. I am working part time as an Accountant Zenebech Bakery at Doyogena City from which the
bread distributed for Hotels, Café’s,Fast Food houses and Restaurants.

The data consist of total amount of raw materials (flour, sugar, butter, yeast, and water) available for
daily production of three different sizes of bread (small bread, medium bread and large bread) and
profit contribution per each unit size of bread produced. The content of each raw material per each unit
product of bread produced is shown below.

Assumptions
 It is assumed that the raw materials required for production of bread are limited (scarce)
 It is assumed that an effective allocation of raw materials to the variables (small, medium and large
bread) will aid optimal production and at the same time maximizing the profit of then bakery.
 It is assumed that the qualities of raw materials used in bread production are standard.
 Data Presentation and Analysis

Flour
Total amount of flour variable=50000g

Each unit of small bread requires 167g of flour

Each unit of medium bread requires 455g of flour

Each unit of large bread requires 714g of flour

Sugar
Total amount of sugar available=6750g

Each unit of small bread requires 23g of sugar

Each unit of medium bread requires 61g of sugar

Each unit of large bread requires 96g of sugar

Butter
Total amount of butter available =1250g
Each unit of small bread requires 4g of butter
Each unit of medium bread requires 11g of butter Each
unit of large bread requires 18g of butter

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Yeast

Total amount of yeast available=150g

Each unit of small bread requires 0.5g of yeast

Each unit of medium bread requires 1.4g of yeast Each

unit of large bread requires 2.2g of yeast

Water
Total amount of yeast available=37500ml
Each unit of small bread requires 125ml of water

Each unit of medium bread requires 341ml of water

Each unit of large bread requires 536ml of water

 Profit contribution per unit product (size) of bread produced

Each unit of big loaf = N6

Each unit of medium loaf = N53

Each unit of small loaf = N69

The above data can be summarized in a tabular form.

Raw material Product Total available raw

material
Small bread Medium bread Large bread

Flour (g) 167g 455g 714g 50000g

Sugar (g) 23g 61g 96g 6750g

Butter(g) 4g 11g 18g 1250g

Yeast(g) 0.5g 1.4g 2.2g 150g

Water(g) 125ml 341ml 536ml 37500ml

Profit (N) 6 53 69

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 Formulation of the mathematical model
Let X1 = the quantity of small bread to be produced

X2 = the quantity of medium bread to be produced

X3 = the quantity of large bread to be produced

Let Z denote the profit to be maximize

The linear programming model for the above production data is given by
Maximize

Z = 6 X1 + 53 X2 + 69 X3
Subject to:
167 X1 + 455 X2 + 714 X3 ≤ 50000

23 X1 + 61 + 96 6750

4 X1 + 11 + 18 1250

0.5X1 + 1.4 + 2.2 150

125 X1 + 341 + 536 37500

X1 , X2 , X3 ≥ 0

Converting the model into its corresponding standard form

Maximize

Z = 6 X1 + 53 X2 + 69 X3 + 0S1 + 0S2 + 0S3 + 0S4 + 0S5

Subject to:

167 X1 + 455 X2 + 714 X3 + 69 X3 + 0S1 + 0S2 + 0S3 + 0S4 + 0S5 = 50000

23 X1+ 61 + 69X3 + 0S1 + S2 + 0S3 + 0S4 + 0S5 = 6750

4X1 + 11 X2 + 18X3 + 0S1 + 0S2 + S3 + 0S4 + 0S5 = 1250

0.5X1 + 1.4 X2 + 2.2X3 + 0S1 + 0S2 + 0S3 + S4 + 0S5 = 150
125X1 + 341X2 + 536X3 + 0S1 + 0S2 + 0S3 + 0S4 + S5 = 37500

And X1, X2 , X3 , S1, S2, S3, S4, S5 ≥ 0

The above linear programming model was solved and which gives an optimal solution of:
X1 = 0.0, X2 = 107 , X3 = 0.0 Z =5678.5714

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The result shows that 0 unit of small bread, 107 units of medium bread and 0 unit of large should be
produced respectively in order to make an optimum profit of N 5,678.5714. This therefore indicates
that the medium bread contributes objectively to the profit. Hence, more of it is needed to be produced
and sold in order to maximize the profit.

Q5. Take the data of the output of your organization summaries them with some tool (like bar chart,
pie chart, etc.) and discuss the result. Give your opinion to improve the results in the future.

As I mentioned above, I’m part time accountant at Zenebech Bakery and evaluate which type of
bread should commit more of its resources in order to maximize its profit.

The result shows that 0 unit of small bread, 107 units of medium bread and 0 unit of large should be
produced respectively in order to make an optimum profit of N5,678.5714. This therefore indicates
that the medium bread contributes objectively to the profit. Hence, more of it is needed to be
produced and sold in order to maximize the profit.

120

100

80

60

40

20

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Small bread Medium bread Large bread