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16 views3 pages

QMM Fa1

Uploaded by

lafter134
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Quantitative Methods for Management - Formative

Assignment 1
ABC Furniture Company produces two types of furniture: Chairs and Tables. The company wants to
maximize its profit. Each Chair sold brings a profit of ₹300, and each Table sold brings a profit of
₹500. The production of these items requires two resources: Labor Hours and Wood.

 Producing one Chair requires 2 hours of labor and 3 units of wood.

 Producing one Table requires 4 hours of labor and 5 units of wood.

The company has available:

 A maximum of 100 labor hours per day.

 A maximum of 120 units of wood per day.

Formulate the linear programming problem to determine how many Chairs and Tables the
company should produce to maximize profit, subject to the given constraints.

Assignment Questions:

1. Define the decision variables

2. Write down the objective function

3. List the constraints

4. Solve the problem using Simplex method

5. Provide the optimal solution

Answers:
1. Define the decision variables: Let:

 x = number of Chairs to produce

 y = number of Tables to produce

2. Write down the objective function: The objective is to maximize profit. The profit function is:

 Profit = 300x + 500y

3. List the constraints: The constraints are based on the limited resources:

 Labor constraint: 2x + 4y ≤ 100 (labor hours)

 Wood constraint: 3x + 5y ≤ 120 (units of wood)

 Non-negativity constraint: x ≥ 0, y ≥ 0 (cannot produce negative quantities)


4. Solution using Simplex Method:

Iteration 1:

 Pivot column: y (most negative coefficient in the Z-row)

 Pivot row: s1 (minimum ratio of RHS to the coefficient of y in the row)

After performing row operations to make the pivot element 1 and eliminate other elements in the
pivot column, we get:

Iteration 2:

 Pivot column: x (most negative coefficient in the Z-row)

 Pivot row: s2 (minimum ratio of RHS to the coefficient of x in the row)

After performing row operations, we get:


5. Optimal Solution:

 x = 90 (number of Chairs to produce)

 y = 10 (number of Tables to produce)

 Maximum Profit = ₹16,000

 Therefore, to maximize profit, the company should produce 90 Chairs and 10 Tables,
resulting in a total profit of ₹16,000.

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