Assignment

Sub: Operations Research Date of submission 29th March 2011 Marks 60

Department 1 Department 2

Product X 150 100

Product Y 90 120

Currently the production manager is provided with 225 hours per week in department 1 and 200 hours in department 2. The company is selling its products to countries of EEC, and can sell all it can produce of X, but the EEC quotas restrict the sale of Y to a maximum of 75 units per week. The production manager currently is manufacturing and selling 30 units of X and 75 units of Y per week. The company wishes to maximize contribution margin and therefore has directed Mr. Girish to review his production plan. Mr. Girish is considering several possibilities including. i. Altering the production plan if it could be proved that there is a better plan than the current one. ii. Increasing the availability of hours for either department 1 or department 2. The extra costs involved in increasing the capacity are Re. 0.5 per hour for each department. iii. Transfer some of their allowed sales quota for product Y to another company. Because of the commitment, the company could always retain a minimum sales level of 30 units. You are required to help Mr. Girish in the following

i.

Calculate the optimum production plan using the existing capacities and state the extra contribution that would be achieved compared with the existing plan.

ii.

Advise Mr. Girish whether the company should increase the capacity of either department 1 or department 2 and, if so, by how many hours and what the resulting increase should in contribution would be over that, calculated in the improved production plan.

iii.

Calculate the minimum price per unit for which the company could sell the rights to their sales quota, down to the minimum level, given the plan in (a) as a starting point.

Q.2 A chemical manufacturer is developing three fertilizer compounds for the agricultural industry. The product codes of these products are X1, X2 and X3 and the relevant information is summarized below. Product X1 X2 X3 Chemical constituents: percentage make up per ton Nitrate Phosphate Potash 10 10 20 10 20 10 20 10 10

Filler 60 60 60

Input prices per ton Nitrate Phosphate Potash Filler Rs. 150 Rs. 60 Rs. 120 Rs. 10

Maximum available input in ton per month 1200 2000 2200 No limit

The fertilizers will be sold in bulk and the managers have proposed the following prices per ton. X1: Rs. 83, X2: Rs. 81 and X3: Rs. 81 The manufacturing costs of each type of fertilizer, excluding materials are Rs. 11 per ton. You are required to i. ii. iii. Formulate the LPP so that the company can maximize the contribution Construct the initial table and explain what is meant by slack variables Interpret the final matrix of the simplex solution below.

B X1 X2 X6 Z

X1 1 0 0 0

X2 0 1 0 0

X3 3 -1 -0.4 22

X4 20 -10 -3 170

X5 -10 10 1 40

X6 0 0 1 0

Solution 4000 8000 600 284000

iv.

Use the above matrix to investigate a. The effect of an increase in nitrate of 100 tons per month b. The effect of minimum contract from an influential customer for 200 tons of X3 per month to be supplied.

Q.3 A manufacturer produces four products A, B, C & D each of which is processed on three machines X, Y & Z. The time required to manufacture one unit of each of the four products and the capacity of each of the three is indicated in the table below.

Product

Processing time in hours Machine X Machine Y 4 1 2 1 700 Machine Z 2 3 1 2 200

A B C D Capacity (hours)

1.5 2 4 3 550

The profit per unit of contribution of four products is Rs. 4, 6, 3 & 1 respectively. The manufacturer wants to determine his product mix. a. Formulate the above as LPP b. Solve it by simplex c. Find the optimal product mix and the maximum profit d. Which constraints are binding? e. Which machines have excess capacities? How much

f. If the profit contribution from product B increases by Rs. 2 per unit, will the optimal product mix change? g. If machine is to be shut down for repairs, will the product mix change? h. What are the shadow prices of the machine hours?

Q.4 The personnel manager of a manufacturing company is in a process of filling 175 jobs in six different entry level skills due to establishment of a third shift in the company. Union wage scales and requirement of skills are shown in the table below.

Pay scales and skill requirement Entry level skill : Wage scale (Rs.) No. required 25 29 31 40 33 17 1000 1100 1200 1300 1400 1500 A B C D E F

Two hundred and thirty applicants for the job have been tested and their aptitudes and skills for the jobs in question have been matched against the company standards and evaluated. The applicants have been grouped in four categories. Their abilities, the grouping and the values of each category to the company are shown in the table below. Category A B Category value (Rs. Per month) C D E F No. of applicants I II III IV 1000 1200 1000 1500 1100 1250 1100 1500 1500 1200 1200 1600 1400 1350 1400 1400 1400 1400 1500 1400 1450 1400 1600 1500 54 57 45 74

How many applicants of each category should the personnel manager hire and for which jobs?

Q.5 A small garment making unit has five tailors stitching five different types of garments. All the five tailors are capable of stitching all the five types of garments. The output per tailor and the profit in rupees for each type of garment are given below Garments Tailors A B C D E Profit (Rs) Per garment i. 1 7 4 8 6 7 2 2 9 9 5 5 8 3 3 4 5 7 8 10 2 4 8 7 9 10 9 3 5 6 8 8 10 9 4

Which type of garment should be assigned to which tailor in order to maximize profit assuming that there are no other constraints?

ii.

If tailor D is not available during the specific period and no other substitute tailor is available, what should be the optimal assignment?

Q.6 Five swimmers are eligible to compete in a relay team that is to consist of four swimmers swimming four different swimming styles back stroke, breast stroke, free style and butterfly. The time taken for five swimmers Anand, Bhaskar, Chandru, Dorai and Ishwar to cover a distance of 100 metres in various swimming styles are given below in minutes: seconds. Anand swims a back stroke in 1:09, the breast stroke in 1:15, and has never competed in free style or butterfly. Bhaskar is a free style specialist averaging 1:01 for 100 metres but can also swim the breast stroke in 1:16 and butterfly in 1:20. Chandru swims all the styles back stroke in 1:10, butterfly in 1:12 free style in 1:05 and breast stroke in1:20. Dorai swims only butterfly in 1:11 while Ishwar swims back stroke in 1:20, the breast stroke in 1:16, free style in 1:06 and butterfly in 1:10. Which swimmers should be assigned to which swimming style? Who will not be in the relay?