Mukesh Patel School of Technology Management and Engineering MBA (Tech) - Semester IX
Mukesh Patel School of Technology Management and Engineering MBA (Tech) - Semester IX
Note:
1. Attempt all the questions
2. Use of calculator is permitted
3. Show all the steps of calculations in the answer sheet
4. Assume suitable data, if necessary
Q.1. The ABC Company produces doors and windows. Each door takes four hours of labor
from the carpentry department and two hours of labor from the finishing department. Each
window requires three hours of carpentry and one hour of finishing. During the current week,
240 hours of carpentry time and 100 hours of finishing time are available. Each door
produced gives a profit of $70 and each window a profit of $50. Use Simplex method to find
out the optimal number of doors and windows to be produced that maximizes the profit?
(15 marks)
Maximize Z = 50X1+30X2
Subject to:
4X1 + 3X2≤ 100
3X1 + 5X2≤ 150
Q.3. Given is a data for determining the optimal product-mix, i.e. X-pods and BlueBerrys,
which will produce the maximum profit.
Hours required to produce 1 unit of
X-pods (X) BlueBerrys (Y) Available hours this week
Department
Electronic 4 3 240
Assembly 2 1 100
Profit per unit $7 $5
Analyze the sensitivity report of the excel solver output for answering the questions that
follows:
a) What is the optimal solution to this problem?
b) If a technical breakthrough occurred that raised the profit per unit of X to $8, would
this affect the optimal solution?
c) Instead of an increase in the profit coefficient X to $8, suppose that profit was
overestimated and should only have been $3. Does this change the optimal solution?
d) If the right hand side of constraint 1 were increased by 25 units, how much would the
profit increase?
e) If the right hand side of constraint 2 were increased by 25 units, how much would the
profit increase?(5 marks)