Quiz -1(a) MBA (F&B) term 2 batch 8

Name:

Roll No:

Q1. Solve the following LP problem graphically.

Max: Z = 7X + 4Y
Subject to constraints: 9X + 8Y 72; 3X +9Y 27; 9X-15Y 0 ; all variables 0
Q2. A farmer has a 20 acre farm on which he grows a variety of crops. This year he is
thinking of growing Carrots, Potatoes and Bananas. He knows he can sell these three
crops for Rs. 4, Rs 2 and Rs. 9 per kilo respectively. Seeds cost Rs. 0.50 , 0.20 and Re 1
per kilo produced respectively for the three crops. The farmer has a maximum of Rs.
20000 to invest in seeds. He also knows that he can get 300, 500 and 300 kilos per
acre respectively for the three crops. His buyer has suggested that he will purchase as
many kilos of carrots and potatoes as the farmer produces but is only interested in a
maximum of 1000 kilos of bananas. The farmer is thinking of hiring you since you have
completed your course in Operations Research . You realize that Linear Programming
can be useful in making decision on how much to produce for each of the crops. You
are required to formulate the problem .
Solution:
Let x1 = qyt of carrots produced, x2 = qty of potatoes produced , x3 = qyt of bananas
produced.
Max Z = 3.5x1+1.8x2 + 8x3
Subject to
0.5x1+ 0.2x2+x3 <= 20000
X1/300 + x2/500 +x3/300 <= 20
X3 <= 1000
All variables greater than or equal to zero.

Quiz -1(b) MBA (F&B) term 2 batch 8

Name:

Roll No:

Q1. Solve the following LP problem graphically :

Minimize Z = 3X + 7Y
subject to constraints: 9X + 3Y 36 ; 4X + 5Y 40; X-Y 0 ; 2X 13;
all variables 0
Q2. A farmer has a two acre plot of land. He can sell all the tomatoes, drumstick or
radishes he can grow. The price he can obtain is Rs. 1.00 per kg of tomatoes, Re. 0.75
for a head of drumstick and Rs. 2.00 per kg for radishes. The average yield per acre is
2000 Kg of tomatoes, 3000 heads of drumstick, and 1000 Kg of radishes. Fertilizer is
available at Re. 0.50 per kg and the amount required per acre is 100 kg each for
tomatoes and drumstick, and 50 Kg for radishes. Labour required for sowing
cultivating and harvesting per acre is 5 man-days each for tomatoes and radishes and
6 man-days for drumstick. A total of 400 man-days of labour are available at Rs. 20
per man day. Formulate this problem as a Linear Programming model to maximize the
farmers total profit.
Solution:
Let X1 = kgs of tomatoes, x2 = no of heads of drumsticks, x3 = kgs of raddish
Calculate the profit = selling price cost of fertilizer cost of manpower
Profit = tomatoes = 0.925/kg , drum stick = 0.6934 / head , radish = 1.875 / kg
Hence obj function: 0.925x1 + 0.6934 x2 + 1.875 x3
Subject to x1/2000 + x2/3000 + x3/1000 <= 2 ( area available )
5x1/2000 + 6x2/3000 + 5x3/1000 <= 400
All variables >=0

Quiz -1(c) MBA (F&B) term 2 batch 8

Name:

Roll No:

Q1. Solve the following LP problem graphically.

Maximize Z = 3X + 7Y
Subject to the constraints: 2X +Y 6; 4X +5Y 20; 2Y 7; 2X 7; X-Y0
All variables 0
Q2. Manik Ram has two farms that grow wheat and rice. Because of differing soil
conditions, there are differences in the yields and costs of growing crops on the two
farms. The yields and costs are shown below. Each farm has 100 acres available for
cultivation; 11000 kgs of wheat and 7000 kgs of rice must be grown.
Rice yield / acre ( kgs)
Cost /acre (for rice)( Rs)
Wheat yield / acre (kgs)
Cost / acre for wheat ( Rs)

Farm 1
500
100
400
90

Farm 2
650
120
350
80

Formulate the above LP problem.

Solution:
Let x1 = acre of rice grown in farm 1, x2 = acre of wheat grown in farm 1
X3 = acre used for rice grown in farm 2 , x4 = acre used for wheat grown in farm 3
Min z = 100x1 + 90 x2 + 120 x3 + 80 x4
Sub to:
X1 + x2 100
X3 + x4 100
500x1 + 650 x2 7000
400x1 + 350 x2 11000
ALL VAariables are non negative.

Quiz -1(d) MBA (F&B) term 2 batch 8

Name:

Roll No:

Q1. Solve the following LP problem graphically.

Maximize Z = 3X + 6Y
Subject to the constraints: 7X + 6Y 42; X + 2Y 10; X4; 2Y9
All variables 0

Q2. ABC Paints Company manufactures three grades of paints Venus, Diana and Aurora. The plant operates on a
three-shift basis and the following data is available from the production records:
Grade
Availability
Venus Diana
Aurora
per month)
Requirement of resource

(capacity

Special additive (KGs. Per

litre)

0.30

0.15

0.75

600 tonnes

Milling
(Kilolitres
machine shift)

per

2.0

3.0

5.0

100 machine shifts

Packing
shift)

per

12.0

12.0

12.0

80 shifts

(Kilolitres

There are no limitations on other resources. The particulars of sales forecasts and estimated contribution to
overheads and profits are given below:
Venus
Diana
Aurora
Maximum possible sales per month (Kilolitres)

100

400

600

Contribution (Rs. Per Kilolitres)

4,000

3,500

2,000

Due to commitments already made, a minimum of 200 Kilolitres per month of Aurora has to be
necessarily supplied during the next year.

Solution:

Let amount of Venus produced is A kiloliters,

Let amount of Diana produced is B kiloliters
Let amount of Aurora produced is C kiloliters

Then objective function is Max Z = 4000A + 3500B + 2000C

Subject to the following constraint.
Special additive: 300A + 150B + 750C less than equal to
600*1000
Milling:
Packing :

2A + 3B + 5C less than equal to 100

12A + 12B + 12C less than equal to 80
A less than equal to 100
B less than equal to 400
C less than equal to 600

Must produce C greater than 200

All variables non negative.

Quiz -1(e) MBA (F&B) term 2 batch 8

Name:

Roll No:

Q1. Solve the following LP problem graphically:

Maximize Z = 4X +3.6Y
Subject to constraints:
11X + 5Y 55 ; 3X +4Y 36 ; 4X -9Y0; all variables 0
Q2. The Silver Star Bicycle Company will be manufacturing both mens and womens models
for its Easy-Pedal 10 Speed bicycles during the next two months. Management wants to
develop a production schedule indicating how many bicycles of each model should be produced
in each month. Current demand forecasts call for 150 mens and 125 womens models to be
shipped during the first month and 200 mens and 150 womens models to be shipped during
the second month. Additional data are shown.
Labor Requirements ( hours )
Unit
Production Manufacturing
Assembly
Current
Costs
Inventory
Mens
Rs. 12000
2.0
1.5
20
Womens
Rs. 9000
1.6
1.0
30
Last month the company used a total of 1000 hours of labor. The companys labor relations
policy will not allow the combined total hours of labor ( manufacturing plus assembly) to
increase or decrease by more than 100 hours from month to month. In addition, the company
charges monthly inventory at the rate of 2% of the production cost based on the inventory
levels at the end of the month. The company would like to have at least 25 units of each model
in inventory at the end of the 2 months. Formulate the problem to establish a production
schedule that minimizes production and inventory costs and satisfies the labor smoothing,
demand and inventory requirements.
Solution :
Model

Let x1 = qty of mens model in m1 , x2 =qty of mens model in m2, x3 = qty of womens model
in m1,
X4 = qty of womens model in m2. X5 = inv of mens model in end of m1 , x6 = inv of womens
model at end of m2. , x7 = inv of mens model at the end of m2 , x8 inv of womens model at
the end of m2.
Min Z = 12000(x1+x2) + 9000(x3+x4) + 240 x5 + 240 x7 +180x6+180x8
Subject to constraints.
X1-x5=130, x3-x6 = 95, x5+x2-x7 = 200, x6+x4-x8 = 150, x7>= 25, x8>=25
3.5x1+2.6x3 <= 1100, 3.5x1+2.6x3>=900,
(3.5x2+2.6x4)<= (3.5x1+2.6x2)-100
All variables greater than or equal to zero.

(3.5x2+2.6x4)<= (3.5x1+2.6x2)+100

Quiz -1(f) MBA (F&B) term 2 batch 8

Name:

Roll No:

Q1. Solve the following LP problem graphically

Max: Z= 500A+300B
Subject to constraints:
15A+5B 300
; 10A + 6B 240; 8A+12B
450
All Variables are non negative.

Q2. IPM manufactures two types of perfumes namely Brute and Chanelle. The raw material
needed to manufacture each type of perfume can be purchased for Rs. 3 per Kg. Processing 1
kg of raw material requires 1 hour of laboratory time. Each Kilogram of processed raw material
yields 3 ounces of Regular Brute Perfume and 4 ounces of Regular Chanelle Perfume. Regular
Brute can be sold for Rs. 7 per ounce and Regular Chanelle for Rs. 6 per ounce. IPM also has
the option of further processing Regular Brute and Regular Chanelle to produce Luxury Brute
sold at Rs. 18 per ounce, and Luxury Chanelle sold at Rs. 14 per ounce. Each ounce of Regular
Brute processed further requires an additional 3 hours of laboratory time and Rs. 4 processing
costs and yields 1 ounce of Luxury Brute. Each ounce of Regular Chanelle processed further
requires an additional 2 hours of laboratory time and Rs. 4 processing cost and yields 1 ounce
of Luxury Chanelle. Each year IPM has 6000 hours of laboratory time available and 4000
Kilogram of raw material . Formulate an LP that can be used to determine how IPM can
maximize profits. Assume that the cost of the laboratory hours is a fixed cost.
Solution: Let x1 = qty of ounces of regular brute, x2 = qty of ounces of luxuary brute
X3= qty of ounces of regular Channelle, x4 = quty of luxuary channelle
X5 = qty of raw material used.
Max: Z = 7x1+18x2 + 6x3+14x4-(4x2+4x4)-3X5
Subject to constraints:
X5 <= 4000, x5+3X2+2x4 <= 6000 , x1+x2 = 3x5 , x3+x4 = 4x5
All variables >=0

Quiz -1(g) MBA (F&B) term 2 batch 8

Name:

Roll No:

Q1. Solve the following LP problem graphically

Min :Obj function: 23 X + 18 Y
Constraints : 8X + 4Y 120 ;
X, Y 0

4X + 6Y 115 ;;

9X + 4 Y 116

Q2. English Motor Ltd.,(EML) has developed a new all-wheel-drive sports utility vehicle. As part
of the marketing campaign, EML has developed a video tape sales presentation to send to both
owners of current EML four-wheel-drive vehicles as well as to owners of competitors vehicle.
EML refers to these two target markets as the current customer market and the new
customer market. Individuals who receive the new promotion video will also receive a coupon
for a test drive of the new EML model for one weekend. A key factor in the success of the new
promotion is the response rate, the percentage of individuals that receives the new promotion
and test drives the new model. EML estimates that the response rate for the current customer
market is 25% and the response rate for the new customer market is 20%. For the customers
who test drive the new model the sales rate is the percentage of individuals that makes a
purchase. Marketing research studies indicate that the sales rate is 12% of the current
customer market and 20% for the new customer market. The cost for each promotion excluding
the test drive costs are Rs. 4 for each promotion sent to the current customer market and Rs. 6
for each promotion sent to the new customer market. Management has specified that a
minimum of 30000 current customers should test drive the new model and a minimum of
10000 new customers should test drive the new model. In addition, the number of current
customers that test drives the new vehicle must be at least twice the number of new
customers that test drives the new vehicle. If the marketing budget, excluding test drive costs
is Rs. 12,00,000, how many promotions should be sent to each group of customers in order to
maximize total sales? Only formulate .
Solution:
Let X1 = no of current customer who do not test drive
X2 = no of current customer who test drive
X3 = no of new customer who do not test drive
X4= no of new customer who test drive.
Max Z = 0.25X1 +0.03X2 + 0.2X3 + 0.04x4
Subject to constraint:
4x1 + 4x2+6x3+6x4 <= 1200000
X2>=30000
X4>= 10000
X2>=2x4
All variables greater than equal to zero.

Quiz -1(h) MBA (F&B) term 2 batch 8

Name:

Roll No:

Q1. Minimize Z = 4X +3.6Y

Subject to constraints:
11X + 5Y 55 ; 3X +4Y 36 ; 4X -9Y0; all variables 0
Q2. Sunco processes oil into aviation fuel and heating oil. It costs $40 to purchase 1000
barrels of oil which is then distilled and yields 500 barrels of aviation fuel and 500 barrels of
heating oil. Output from the distillation may be sold directly or processed in a catalytic cracker.
If sold after distillation without further processing, aviation fuel sells for $60 per 1000 barrels,
and heating oil sells for $ 50 per 1000 barrels. It takes 1 hour to process 1000 barrels aviation
fuel in the catalytic cracker, and these 1000 barrels can be sold for $ 130. It takes 45 minutes
to process 1000 barrels of heating oil in the cracker, and these 1000 barrels can be sold for
$90. Each day, at most 20000 barrels of oil can be purchased and 8 hours of cracker time is
available. Formulate an LP to maximize Suncos profits
Solution:
Let x1 = 1000s of barrels of aviation fuel w/o further processing.
X2 = 1000s of barrels of heating oil with further processing
X3 = 1000s barrels of aviation fuel after further processing.
X4 = 1000s of barrels of heating oil after further processing.
X5 = 1000s barrels of oil used.
Max: Z = 60x1+50x2+130x3+90x4-40x5
Subject to constraint
X1+x2+x3+x4-x5 = 0
X5<=20
X3+0.75X4 <=8
(X1+x3) = (x2+x4)
All variables greater than equal to zero.