Quantitative Analysis for Management Decisions

Assignment 01

1. 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 Fat units Cost per unit

units
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

2. 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, Polishing, hours Assembling,

hours 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 a distributor 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. Assume that any unfinished pieces can be
finished the following week.

3. 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.

Quantitative Assignment Answer

Question Number 1: Healthy diet composition of a person per day at a

minimum cost to the pharmacy

Let's denote the amount of each food item (A, B, C, D, E, F) to be used in the blend as xA,
xB, xC, xD, xE, xF respectively.

The objective is to minimize the cost, so the cost function is given by:

Minimize Z=2xA+3xB+5xC+6xD+8xE+8xF

Subject to the constraints:

A. Protein constraint: 20xA+30xB+40xC+40xD+45xE+30xF≥70

B. Carbohydrates constraint: 50xA+30xB+20xC+25xD+50xE+20xF≥100
 C. Fat constraint: 4xA+9xB+11xC+10xD+9xE+10xF≥20

Then, let us set up the objective function by which will have such total cost function =
2*xA+3*xB+5*xC+6*xD+8*xE+8*xF

Finally, the value of the six food items that leads a healthy diet composition (70 units of
proteins, 100 units of carbohydrates and 20 units of fat daily) is presented as follows.

Protein= 20*xA+30*xB+40*xC+40*xD+45*xE+30*xF >70,

Carbohydrates = 50*xA+30*xB+20*xC+25*xD+50*xE+20*xF>100 and
Fat = 4*xA+9*xB+11*xC+10*xD+9*xE+10*xF>20.

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Question Number 2: Optimal units of production per week and maximize

total profit

To create a mathematical model for this optimization problem, let's define the decision
variables, the objective function, and the constraints.
Let:
x1 be the number of units of product 1 to be produced per day.
x2 be the number of units of product 2 to be produced per day.

Objective Function: The objective is to maximize the total profit, which is the sum of the
profit from product 1 (13x1) and the profit from product 2 (25x2).
Maximize Z=3x1+5x2
Subject to the following constraints:
1. Machine time available at D1: 1x1+2x2≤860
2. Machine time available at D2: 3x1+2x2≤1200
The complete mathematical model for the given problem is as follows:
Maximize Z=3x1+5x2
3. Optimal Production & profit Maximization
To solve the problem, let's denote:

x as the number of units of product 1 to be produced per day,

y as the number of units of product 2 to be produced per day.

The objective is to maximize the total profit, which is given by the sum of the profit from product 1
and product 2:

Maximize Z=3x+5y

Now, let's consider the constraints based on the manufacturing process and machine time
availability:

1. Processing time at D1 for product 1: x units require 11 minute each, so the total time is x
minutes.

2. Processing time at D1 for product 2: y units require 22 minutes each, so the total time is 2y
minutes.

3. Processing time at D2 for product 1: x units require 33 minutes each, so the total time is3x
minutes.

4. Processing time at D2 for product 2: y units require 22 minutes each, so the total time is 2y
minutes.

The total machine time available per day at D1 is 860860 minutes, and at D2 is 12001200 minutes.
Therefore, the constraints are:

1. x+2y≤860 (Machine time constraint at D1)

2. 3x+2y≤1200 (Machine time constraint at D2)

So, the complete mathematical model for the given problem is: Z=3x+5y