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Lyra Kate Mae P. Salvador BSA-1 MANSCI-446 Course Final Requirement

The document describes a linear programming problem to maximize storage volume when purchasing filing cabinets given a budget and space constraint. It provides the solution showing the optimal number of each cabinet type to purchase is 6.1 of cabinet X and 4.4 of cabinet Y, for a maximum storage volume of 101.6 cubic feet. A decision tree analysis problem is presented to determine whether a business should launch a loyalty program or cut prices. The solution shows launching loyalty cards has the higher expected value of 687,500 pesos. A PERT/CPM network diagram problem involves constructing a project schedule with activities and durations. The critical path is identified as 13.5 months, involving 7 key activities.

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Lyra Kate Mae Salvador
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42 views

Lyra Kate Mae P. Salvador BSA-1 MANSCI-446 Course Final Requirement

The document describes a linear programming problem to maximize storage volume when purchasing filing cabinets given a budget and space constraint. It provides the solution showing the optimal number of each cabinet type to purchase is 6.1 of cabinet X and 4.4 of cabinet Y, for a maximum storage volume of 101.6 cubic feet. A decision tree analysis problem is presented to determine whether a business should launch a loyalty program or cut prices. The solution shows launching loyalty cards has the higher expected value of 687,500 pesos. A PERT/CPM network diagram problem involves constructing a project schedule with activities and durations. The critical path is identified as 13.5 months, involving 7 key activities.

Uploaded by

Lyra Kate Mae Salvador
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Lyra Kate Mae P.

Salvador BSA-1
MANSCI-446
COURSE FINAL REQUIREMENT
INSTRUCTIONS: Do the following as instructed. Use short bond papers as your worksheets.
Encoded or handwritten work must be submitted promptly.
FOR THE FOLLOWING, DEVISE A:
a. LINEAR PROGRAM, then solve using an appropriate method. You need to buy some
filing cabinets. You know that Cabinet X costs ₱6,500 per unit, requires six square feet of
floor space, and holds eight cubic feet of files. Cabinet Y costs ₱10,250 per unit, requires
eight square feet of floor space, and holds twelve cubic feet of files. You have been
given ₱85,000 for this purchase, though you don't have to spend that much. The office
has room for no more than 72 square feet of cabinets. How many of which model
should you buy, in order to maximize storage volume?

Solution:

Let x = the number of X cabinet; and y = the number of Y cabinet; and


V = storage volume

Product Feet of files Floor space Cost of cabinet per unit


(in pesos)
x (X cabinet) 8 cu ft 6 sq. ft. 6,500
y (Y cabinet) 12 cu ft 8 sq. ft. 10,250
72 sq. ft. 85,000

Objective Function: Maximize: V = 8x + 12y


Constraints: Subject to: 6,500x + 10,250y ≤ 85,000
6x + 8y ≤ 72
x ≥ 0; y ≥ 0

Inequalities Corresponding equation Coordinates of X- Coordinates of Y-


intercept intercept
6,500x + 10,250y ≤ 85,000 6,500x + 10,250y = 85,000 (13.1, 0) (0, 8.3)
6x + 8y ≤ 72 6x + 8y = 72 (12, 0) (0, 9)
Graph the constraints:

2 4 6 8 10 12 14

The point (6, 4.5) which is the intersection of the lines is obtained by solving the solution
set of 6,500x + 10,250y = 85,000 and 6x + 8y = 72.

Vertices Objective Function:


V = 8x + 12y
( 0, 8.3) 8(0) + 12(8.3) = 99.6
(12, 0 ) 8(12) + 12(0) = 96
(6.1, 4.4) 8(6.1) + 12(4.4) = 101.6

The coordinates (6.1,4.4) give the largest amount in the objective function.

Therefore, the decision must be: x = 6.1 ------ the number of X cabinet
y = 4.4 ------ the number of Y cabinet
The maximum profit is ₱101.6.

b. DECISION TREE, then come up with the best decision.

A business firm operates five luxury coffee shops in a country. To increase revenues, it is
looking at two options, launching loyalty cards or cut prices, across the chain. The cost
of launching loyalty cards is ₱200,000, while ₱100,000 for cutting prices. If the firm
chooses to launch loyalty cards, it was estimated that there will be a 55% probability for
high sales and will result to a revenue of 1 million pesos, otherwise would result to low
sales of ₱750,000. If it chooses to cut prices, the probability for high sales is 65% which
will result to a high revenue of one 800 thousand pesos, otherwise low sales of
₱500,000. Using the decision tree analysis, help the business firm come up with the best
decision, either launching a loyalty cards or cut prices, for it to increase revenues.

Solution:

High sales 1,000,000 – 200,000


P= .55

Launching 687,500
loyalty cards
Low sales
P= .45 750,000 – 200,000
687,500

Cut prices High sales


P= .65
800,000 – 100,000
595,000
Low sales
P= .35 500,000 – 100,000

Launching loyalty cards:


EV1 = .55 (800,000) + .45 (550,000) = 440,000 + 247,500 = 687,500
Cut prices:
EV2 = .65 (700,000) + .35 (400,000) = 455,000 + 140,000 = 595,000

DECISION: The business firm should launch loyalty cards to increase revenues.

c. PERT/CPM NETWORK DIAGRAM, for this tabulated data of a construction project,


indicating its critical path and optimum completion time.

Activity Activity description Immediate Expected duration


Predecessor (in months)
A Evacuate - 0.5
B Lay in the foundation A 1
C Put up the rough wall B 3
D Put up the roof C 2
E Install exterior plumbing C 0.5
F Install interior plumbing E 0.5
G Put up exterior siding D 1
H Do the exterior painting E, G 4
I Do the electrical wallboard C 2
J Put up the wallboard F, I 3
K Install the flooring J 2
L Do the interior painting J 3
M Install the exterior fixtures H 1
N Install the interior fixtures K, L 1

Solution:

NETWORK DIAGRAM:
G (1) H (4)
6 7 10

D (2) M (1)

Start Finish
A (0.5) B (1) C (3) E (0.5)
1 2 3 4 5 13

F (0.5) N (1)
I (2)
11
K (2)

8 9
J (3)
L (3) 12

Paths: A-B-C-D-G-H-M -------- 0.5 + 1 + 3 + 2 +1 + 4 + 1 = 12.5


A-B-C-E-H-M ----------- 0.5 + 1 + 3 + 0.5 + 4 + 1 = 10
A-B-C-E-F-J-K-N ------- 0.5 + 1 + 3 + 0.5 + 0.5 + 3 + 2 + 1 = 11.5
A-B-C-E-F-J-L-N ------- 0.5 + 1 + 3 + 0.5 + 0.5 + 3 + 3 + 1 = 12.5
A-B-C-I-J-K-N ------- 0.5 + 1 + 3 + 2 + 3 + 2 + 1 = 12.5
A-B-C-I-J-L-N ------- 0.5 + 1 + 3 + 2 + 3 + 3 + 1 = 13.5

Therefore, the critical path is A-B-C-I-J-L-N and the optimum completion time is 13.5
months.

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