2ND SEMESTER 2021/2022 ACADEMIC YEAR

MID SEMESTER EXAMINATION ANSWER BOOKLET

THE FOLLOWING DETAILS MUST BE COMPLETED BY THE STUDENT

ABS20B00124Y
STUDENT’S ID NUMBER: _______________________________ 300
LEVEL:__________

MANAGEMENT SCIENCE
MS101 COURSE TITLE:_________________________________
COURSE CODE: _________

EMMANUEL KOFI ATTAH

LECTURER’S NAME: (Refer to the Question Paper) ________________________________
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QUESTION NUMBER: (e.g. Q1) ________SUB-QUESTION (e.g. 1(a))_____________

PART A

For calculating and answering this question, i need to solve it in excel only,

But don't worry will explain each and every steps with screen shots and details, so, it would be easy
for you to understand

Step 1: Steps put and arrange all data in the format given below

Balanced transportation is said when the demand and supply quantity are exactly equal to each other,
whereas, unbalanced transportation is when demand is more or less than the supply capacity, so it is
unbalanced transportation. While calculating we can see here in given case, the demand is 250 and
the supply capacity is 300, which shows the demand is lesser than the supply capacity, thus this is a
problem of unbalanced transportation.

Step 2: Now to calculate this problem, let’s evaluate as follow

Step 3: Desired minimized transportation cost as highlighted in yellow color below

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QUESTION NUMBER: (Q1) ________SUB-QUESTION 1(B)_____________

LP model is formulated as below:

Let Xij be the number of units to be transported from source i to destination j

Min 9X11+14X12+12X13+11X21+10X22+6X23+12X31+8X32+15X33

s.t.

X11+X12+X13 <= 130

X21+X22+X23 <= 70

X31+X32+X33 <= 100

X11+X21+X31 = 80

X12+X22+X32 = 110

X13+X23+X33 = 60

Xij >= 0

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QUESTION NUMBER: (Q1) ________SUB-QUESTION 1(C)_____________

As per Solution output,

80 units should be shipped from Koforidua to Sunyani

10 units should be shipped from Accra to Cape Coast

60 units should be shipped from Accra to Ho

100 units should be shipped from Kumasi to Cape Coast

Total transportation cost = 80*9+10*10+60*6+100*8

= 1980

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QUESTION NUMBER: (Q3) ________SUB-QUESTION 3(A)_____________

D= annual call for

90 x 50

= 4500 devices

S= ordering price according to order

= $ 50000

H= holding cost in line with unit in line with annum

= $ 3000 x 0.15

= 450

P= purchase cost in keeping with unit

= $ 3000

EOQ before the pricing exchange:

Monetary order amount (EOQ) =

= SQRT ((2*D*S)/H) = SQRT ((2*4500*50000)/450) = 1000 gadgets

Order cycle time= 4500/one thousand = 4.5 times according to 12 months for instance, after every
eleven weeks

Re-order stage = anticipated call for \ the duration of lead time = ninety gadgets

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overall annual stock price= (Q/2) x H= (1000/2) x 450= $ 225000

QUESTION NUMBER: (Q3) ________SUB-QUESTION 3(B)_____________

Preceding total price

= (Q/2) x H + (D/Q x S+PD

= (2000/2) x 450 + (4500/2000) x 50000+3000 x 4500= 450000+450000+13500000
= $14400000

Revised general cost (TC)

= (Q/2) x H + (D/Q) x S+PD
= (1000/2) x 450 + (4500/one thousand) x 50000+3000 x 4500= 225000+225000+13500000
= $ 13950000

Annual savings
= 14400000- 13950000
= $ 450000

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QUESTION NUMBER: (Q3) ________SUB-QUESTION 3(C)_____________

Order policy =

Order amount = a thousand units

Reorder point = 90 gadgets

Order cycle time = 11 weeks

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QUESTION NUMBER: (Q4) ________SUB-QUESTION 4(A)_____________

Average time for customer arrival = 6

average service time =5

Customer Arrival Rate( λ ) = 0.17

Service rate(μ) = 0.2

Server Utilization P = 8.83

Number in the Queue Lq = 4.17

Number in the System Lr = 5.00

Waiting time In Queue Wq = 25

Waiting time in System Ws = 30

Therefore before the service starts, the average wait time in the system is 30 minutes.

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QUESTION NUMBER: (Q4) ________SUB-QUESTION 4(B)_____________

The average waiting time in queue is 25 min, customer has to wait 25 min before its turn come for
service. The proportion with total waiting time in the system is 25/30 minutes

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QUESTION NUMBER: (Q4) ________SUB-QUESTION 4(C)_____________

Financial gain= Price sold−purchase price

Purchase price

= 3000 – 250/ 250

= 2750/250

=11

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QUESTION NUMBER: (Q5) ________SUB-QUESTION 5(A)_____________

PART B

As per the given problem we have to formulate linear programming model where we have to assign
manager to a particular region so that we maximize the sales.

Decision Variable:

Region

Manager 1 2 3 4 5 6

A a b c d e f

B g h i j k l

C m n o p q r

D s t u v w x

E y z a1 b1 c1 d1

Let a be the region 1 assigned to manager A

Let b be the region 2 assigned to manager A
Let c be the region 3 assigned to manager A
Let d be the region 4 assigned to manager A
Let e be the region 5 assigned to manager A
Let f  be the region 6 assigned to manager A
Let g be the region 1 assigned to manager B
Let h be the region 2 assigned to manager B
Let i be the region 3 assigned to manager B
Let j be the region 4 assigned to manager B
Let k be the region 5 assigned to manager B
Let l be the region 6 assigned to manager B

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Let m be the region 1 assigned to manager C

Let n be the region 2 assigned to manager C
Let o be the region 3 assigned to manager C
Let p be the region 4 assigned to manager C
Let q be the region 5 assigned to manager C
Let r be the region 6 assigned to manager C
Let s be the region 1 assigned to manager D
Let t be the region 2 assigned to manager D
Let u be the region 3 assigned to manager D
Let v be the region 4 assigned to manager D
Let w be the region 5 assigned to manager D
Let x be the region 6 assigned to manager D
Let y be the region 1 assigned to manager E
Let z be the region 2 assigned to manager E
Let a1 be the region 3 assigned to manager E
Let b1 be the region 4 assigned to manager E
Let c1 be the region 5 assigned to manager E
Let d1 be the region 6 assigned to manager E
Objective Function
Obj-Fun(max sale) =
73*a+91*b+87*c+82*d+78*e+80*f+81*g+85*h+69*i+76*j+74*k+85*l+75*m+72*n+83*o+84*p
+78*q+91*r+93*s+96*t+86*u+91*v+83*w+82*x+93*y+91*z+79*a1+89*b1+69*c1+76*d1
Constraints: each manger can be assigned to single region and each region can be assigned to
single manager
1. a+b+c+d+e+f=1
2. g+h+i+j+k+l=1
3.m+n+o+p+q+r=1
4. s+t+u+v+w+x =1
5. y+z+a1+b1+c1+d1 =1
6. a+g+m+s+y =1
7 b+h+n+t+z =1
8. c+i+o+u+a1 =1
9. d+j+p+v+b1 =1
10. e+k+q+w+c1 =1
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11. f+l+r+x+d1 = 1

QUESTION NUMBER: (Q5) ________SUB-QUESTION 5(B)_____________

As per the above solution using excel solver based on maximum sales/ profit, the optimal
arrangement is as follow:

Manager "A" is assigned to Region 3.

Manager "B" is assigned to Region 2.

Manager "C" is assigned to Region 6.

Manager "D" is assigned to Region 4.

Manager "E" is assigned to Region 1.

Which gives us the maximum profit.

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QUESTION NUMBER: (Q5) ________SUB-QUESTION 5(C)_____________

As per the assignment problem, you can assign only one manager to each region and a single region
to each manager, i.e ratio of 1:1

As per the problem, the objective function should be maximum sales

Given solution, the optimal assignment is A->3 =1

B->2=1

C->6=1

D->4=1

E->1 = 1

The objective function is =

73*0+91*0+87*1+82*0+78*0+80*0+81*0+85*1+69*0+76*0+74*0+85*0+75*0+72*0+83*0+84*0
+78*0+91*1 93*0+96*0+86*0+91*1+83*0+82*0+93*1+91*0+79*0+89*0+69*0+76*0

= 447

Therefore this is the maximum sales and satisfies all the constraints.

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QUESTION NUMBER: (Q3) ________SUB-QUESTION 3(A)_____________

A software company has just won a contract worth 80 Million Ghana Cedis. A successful product on
time, but only 40 million Ghana Cedis. The work would cost 20 million Ghana Cedis. The contract is
at a further cost of 10 million Ghana Cedis. The subcontract of 50 million Ghana Cedis still has to be
paid. All the amount mentioned above are in Ghana Cedis.

The answer is scanned and inserted into this file;

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QUESTION NUMBER: (Q3) ________SUB-QUESTION 3(B)_____________

Given the local subcontractor has a chance of producing it late as 50/50 (it is taken as 50% chance of
producing it late and 50% chance of producing it on time.

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QUESTION NUMBER: (Q3) ________SUB-QUESTION 3(C)_____________

For the work in-house:

Successful product:

E(X) = 80m

Not successful product:

E(X) = 40m

For subcontract:

The software is successful:

E(X) = 20 x 0.9 = 18m

The software is not successful:

Late rejection of the contract:

E(X) = 10m

Late subcontracting of the work:

E(X) = 0.5 x 50 = 25m

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