RIFT VALLEY UNIVERSITY – CHIRO CAMPUS

Course Title: QUANTITATIVE TECHNIQUES FOR MANAGEMENT DECISIONS

Course code:
Credit Hours: 3

Name______________________________________

I.D.: ________________

 Instructions: Read the questions carefully and do it independently

1. Diet Problem

Assume you are deciding to consume sufficient amount of nutrients that constitute protein,
Vitamin C and Iron from five food items: Apple, Banana, Carrots, Dates (Temir) and Eggs.
Based on the table below given, decide the optimal level of each food item consumed that
minimizes your total costs.

Food Units Nutrients Vitamin C Iron Price (Birr)

Protein
Apple 1 units 0.4 6 0.4 8
Banana 1 units 1.2 10 0.6 10
Carrots 1 units 0.6 3 0.4 3
Dates 1 units 0.6 1 0.2 20
Eggs 1 units 12.2 2.6 15

2. Maximize profit = $85X + $1.50Y

subject to 30X + 0.5Y ≤ 2,000
18X + 0.4Y ≤ 800
2X + 0.1Y ≤ 200
X, Y ≥ 0 and X integer

3. Maximize profit = 28X1 + 21X2 + 0.25X22

subject to X1 + X2 ≤ 1,000 (units of production capacity)

0.5X1 + 0.4X2 ≤ 500 (hours of sales time available)
X1, X2 ≥ 0
4. Minimize total cost = 5X11 + 4X12 + 3X13 + 8X21 + 4X22 + 3X23 + 9X31 +7X32 + 5X33
Subject to:
X11 + X12 + X13 ≤ 100 (A supply)
X21 + X22 + X23 ≤ 300 (B supply)
X31 + X32 + X33 ≤ 300 (C supply)
X11 + X21 + X31 = 300 (D demand)
X12 + X22 + X32 = 200 (E demand)
X13 + X23 + X33 = 200 (F demand)
Xij ≥ 0 for all i and j.
5. Use Hungarian technique to assign each person to each project
PROJECT
PERSON 1 2 3
Adams $11 $14 $6

Brown 8 10 11

Cooper 9 12 7

6. The following table represents a network with the arcs identified by their starting and
ending nodes. Draw the network and use the minimal-spanning tree technique to find the
minimum distance required to connect these nodes.

ARC DISTANCE
1–2 12
1–3 11
2–3 6
2–4 4
2–5 9
3–4 4
3–5 12
4–5 15
4–6 5
5–6 9
 7. Suppose Rift Valley University is installing a new computer system for its finance administration.
Several things must be done to make sure the system works properly before all the accounts are
put into the new system. The following table provides information about this project. How long
will it take to install the system? What is the critical path?
ACTIVITY IMMEDIATE PREDECESSORS TIME (WEEKS)
A — 3
B — 4
C A 6
D B 2
E A 5
F C 2
G D, E 4
H F, G 5

Assume further that the University’s administration has decided that the system must be up and
running in 16 weeks. Consequently, information about crashing the project was put together and
is shown in the following table:
IMMEDIATE NORMAL TIME CRASH TIME NORMAL CRASH
ACTIVITY PREDECESSORS (WEEKS) (WEEKS) COST (ETB) COST (ETB)
A — 3 2 8,000 9,800
B — 4 3 9,000 10,000
C A 6 4 12,000 15,000
D B 2 1 15,000 15,500
E A 5 3 5,000 8,700
F C 2 1 7,500 9,000
G D, E 4 2 8,000 9,400
H F, G 5 3 5,000 6,600

i. If the project is to be finished in 16 weeks, which activity or activities should be crashed to do

this at the least additional cost? What is the total cost of this?
ii. List all the paths in this network. After the crashing in part (i) has been done, what is the time
required for each path? If the project completion time must be reduced another week so that
the total time is 15 weeks, which activity or activities should be crashed? Solve this by
inspection.

8. XYZ Electric Company, located in Chiro area, produces two products popular with home
renovators: old-fashioned chandeliers and ceiling fans. Both the chandeliers and the fans
require a two-step production process involving wiring and assembly. It takes about 3
hours to wire each chandelier and 3 hours to wire each ceiling fan. Final assembly of the
chandeliers and fans requires 7 and 6 hours, respectively. The production capability is
such that only 27 hours of wiring time and 42 hours of assembly time are available. If
each chandelier produced nets of $7 and each fan nets of $6, XYZ’s production mix
decision:
i. Formulate the LPP and solve with EXCEL SOLVER
ii. Consider both products to be INTEGER, solve the problem with EXCEL
SOLVER
iii. Let’s now look at the situation in which XYZ’s management wants to relocate its
production area. Hence, the management team has stated the following objectives
to be achieved in the production season. Moreover, assume that all of the goals
are equally important.
Goal 1: to produce profit of $30 if possible during the production period
Goal 2: to fully utilize the available wiring department hours
Goal 3: to avoid overtime in the assembly department
Goal 4: to meet a contract requirement to produce at least seven ceiling fans
 Find the optimal solution using a QM Window.