Section A [45 marks]

Answer all question in this section

1. Mr. Faris places a fix deposit of RM 10 000.00 in a bank, earning a simple interest of 16% per
annum. Mr. Fung places the same amount of fixed deposit which is enables Mr Fung to earn an
annual interest of 13% compounded every 3 months.
Determine whether Mr. Faris or Mr. Fung earns more interest at the end of
(a) 3 years [3m]
(b) 6 years [3m]

2. The demand for a campus newspaper is 2300 copies each week if the newspaper is free of charge,
it drops to 1300 copies each week if the new paper cost RM 0.25 per copy. The university is
prepared to supply 500 copies each week free of charge or alternatively 2000 copies each week at
RM 0.30 per copy.
(a) Find the linear demand and supply functions. [4m]
(b) Determine the price at which the newspaper is to be sold so that there is
neither a shortage nor a surplus. [2m]

3. A chemical company produces two types of organic fertilisers at its factory. Three types of raw
materials P, Q and R are mixed to produce Type X and Type Y fertilisers. Each ton of Type X
fertiliser is a mixture of 0.4 ton of P and 0.6 ton of R, while each ton of Type Y fertilisers is a
mixture of 0.5 ton of P, 0.2 ton of Q and 0.3 ton of R. The profit yields for each ton of Type X and
Type Y fertilisers are RM 400 and RM 300 respectively. The quantities of raw materials useable
per week are shown in the following table.

Raw material Quantity of material useable per week (tons)

P 20
Q 5
R 21

(a) If x and y represent the quantities, in tons, of Type X and Type Y fertilisers produced each
week, formulate a linear programming model that can be used in order to maximise total profit
per week. [4m]
(b) Construct the initial tableau for the linear programming model [2m]
(c) Based on the following final tableau, state the quantity of each type of fertilisers that should be
produced per week in order to maximise the total profit and calculate the total profit. [2m]

Basic x y s1 s2 s3 Solution
y 0 1 10 0 20 20
−
3 9
s2 0 0 2 1 4 1
−
3 9
x 1 0 5 0 25 25
−
3 9
4. Sinar Enterprise was awarded a project. A project consists of the following activities :
Activity Preceding activity Duration (in days)
A - 4
B - 6
C - 3
D C 7
E B, D 4
F A, E 3
G A, E 6
H F 2
I G 4
(a) Draw an AOA network and determine the critical path and minimum completion time of the
project [6m]
(b) If the project starts on 20 February 2020, when should it be completed? [1m]
(c) Find the total float for each of the activities F and H. If activity H is delayed for 6 days, will it
affect the completion time of the project? Give your reasons. [3m]

5. Best Enterprise has a product with the ordering policy based on the EOQ model with planned
shortages. The annual demand of the product is 10000 units. The ordering cost is RM 120 per
order, the holding cost is RM6.00 per unit per year and the backorder cost is RM 8.00 per unit per
year. The company operates 250 days per year.
Determine the optimal order quantity, the optimal number of backorders and the cycle time [6m]

6. The pay-off matrix of a game for player X and player Y is shown in the table below:

I II III
I 3 1 2
II 1 2 0
Using a graphical method, determine the value of the game and the optimal mixed strategy for
each player [8m]

Section B (15 marks)

Answer one question only in this section.
7. A factory produces two types of products, A and B. Each unit of product A requires 2 labour
hours and 1machine hour, whereas each unit of product B requires 2 labour hours and 4 machine
hours. There are not more than 120 labour hours and not more than 96 machine hours available in
the factory each day. The factory also decided that the number of units of product B produced
each day should not be more than 60 % of the total daily production of both products A and B.
The profit for each unit of A is RM 120 and each unit of B is RM 200. The factory intends to
maximize the total profit each day.
(a) Formulate the problem as a linear programming problem. [6m]
(b) Using the graphical method, determine the number of units of product A and product B that
should be produced daily on order to maximize the total profit , and find the maximum total daily
profit. [9m]
8. Beuty Enterprise sells a lipstick which has an annual demand of 10000 units. Each lipstick which
kept in stock incurs a cost of RM2.00 per year. The ordering cost is RM 400 per order. The
replenishment is instantaneous and no shortages are allowed.
(a) Determine the total annual inventory cost if the company buys all 10000 lipstick at one time at the
beginning of the year. [3m]
(b) Calculate the optimal order quantity, the optimal cycle time and the optimal total annual inventory
cost. [7m]
(c) If the lead time order is one month, determine the reorder point. [2m]
(d) Sketch the inventory graph for the optimal inventory policy for one year [3m]