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Sales and Operations Planning - Tutorial Questions

This document contains three questions related to solving linear programming problems using graphical and algebraic methods. Question 1 asks to (a) formulate and solve a linear programming model to determine the optimal number of regular and sweet crusts to maximize revenue, and (b) solve the problem graphically. Question 2 asks to formulate and solve a linear programming model to determine the optimal number of regular and sweet pie crusts a retired couple can make given constraints on materials and time. Question 3 asks to (a) formulate a linear programming model to determine the optimal workforce levels and production quantities to satisfy bicycle demand each quarter while minimizing costs, given constraints and data on demand, production capacity, hiring and firing costs.

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390 views1 page

Sales and Operations Planning - Tutorial Questions

This document contains three questions related to solving linear programming problems using graphical and algebraic methods. Question 1 asks to (a) formulate and solve a linear programming model to determine the optimal number of regular and sweet crusts to maximize revenue, and (b) solve the problem graphically. Question 2 asks to formulate and solve a linear programming model to determine the optimal number of regular and sweet pie crusts a retired couple can make given constraints on materials and time. Question 3 asks to (a) formulate a linear programming model to determine the optimal workforce levels and production quantities to satisfy bicycle demand each quarter while minimizing costs, given constraints and data on demand, production capacity, hiring and firing costs.

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hfjffj
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© © All Rights Reserved
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COMM 225: POM

TOPIC: SALES AND OPERATIONS PLANNING– TUTORIAL QUESTIONS

(a) Formulate an LP model to determine the


Q1 (Ref: 13 SUPPLEMENT 1 13-1, p 25-26): Solve number of regular and sweet crusts that will
these problems using the graphical solution method and maximize revenues if the couple working
answer the questions that follow. Use simultaneous together can make a crust of either type in six
equations to determine the optimal values of the minutes. They plan to work no more than 60
decision variables. hours.
(b) Solve this problem using graphical solution
method. Determine the optimal solution, and
(a) Maximize Z= 4x1+ 3x2 the amounts of sugar, flour, and time that will
be unused.
Subject to:
Material 6x1 + 4x2 ≤ 48 kg
Q3 (Ref: 13 SUPPLEMENT 2 13-1, p 17-18): The
Labour 4x1 + 8x2 ≤ 80 hr
Seymore Bicycle Manufacturing Company of Boise,
x1, x2 ≥ 0 Idaho, has developed the following demand forecast for
next year’s bicycle:
(b) Maximize Z = 2x1 + 10x2
Subject to: Quarter sales
R 10x1 + 4x2 ≥ 40 1 5,000
S 1x1 + 6x2 ≥ 24
T 1x1 + 2x2 ≤ 14 2 10,000
3 8,000
x1, x2 ≥ 0
4 2,000
(c) Maximize Z = 6A + 4B
Subject to:
On January 1, there are 1,000 units in inventory. The
Material 20A + 6B ≤ 600 kg firm has prepared the following data:
Machinery 25A + 20B ≤ 1,000 hr Hiring cost per employee =$200.
Firing cost per employee =$400.
Labour 20A + 30B ≤1,200 hr Beginning workforce =60 employees
A, B ≥ 0 Stockout cost =$50 per unit.
Regular payroll =$1,200 per employee per quarter.
i. What are the optimal values of the decision Overtime cost =$2 per unit, limited to 40 units per
variables and Z? employee per quarter.
ii. Do any constraints have slack? If yes, which Each employee can produce 100 units per quarter on
one(s) and how much slack does each have? regular time.
iii. Do any constraints have surplus? If yes, which Demand not satisfied in any quarter is lost.
one(s) and how much surplus does each have?
iv. Are any constraints redundant? If yes, which (a) Formulate a linear programming model for
one(s)? Explain briefly. the above problem.
Q2 (Ref: 13 SUPPLEMENT 1 13-5, p 26): A retired
couple supplement their income by making pie crusts,
which they sell to a local grocery store. During the
month of September, they produce regular and sweet
crusts. The regular crusts are sold for $1.20 per unit, and
the sweet crusts are sold for $1.50 per unit. The couple
is able to sell all of the crusts they produce. Flour and
sugar are purchased once each month. For the month of
September, they have 1,200 cups of sugar and 2,100
cups of flour. Each regular crust requires 11/2 cups of
sugar and 3 cups of flour, and each sweet crust requires
2 cups of sugar and 3 cups of flour.

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