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The document outlines an assignment for a Bachelor of Science in Accountancy and Bachelor of Commerce program, due on December 3, 2018. It includes four questions related to linear programming, inventory management, and project management using the Critical Path Method (CPM). Each question requires formulation and graphical solutions for production and inventory scenarios, as well as project duration estimation and crashing techniques.

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3 views2 pages

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The document outlines an assignment for a Bachelor of Science in Accountancy and Bachelor of Commerce program, due on December 3, 2018. It includes four questions related to linear programming, inventory management, and project management using the Critical Path Method (CPM). Each question requires formulation and graphical solutions for production and inventory scenarios, as well as project duration estimation and crashing techniques.

Uploaded by

lizkalesh1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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BACHELOR OF SCIENCE IN ACCOUNTANCY AND BACHELOR

OF COMMERCE
ASSIGNMENT
Date Due: 3rd DEC 2018 at 5.30pm
Answer ALL Questions
Q1: A company is involved in the production of two items (X1 and X2). The resources
needed to produce X1 and X2 are twofold, namely machine time for automatic processing
and craftsman time for hand finishing. The table below gives the number of minutes
required for each item:
Machine time Craftsman time
Item X 12 20
Y 20 30

The company has 42 hours of machine time available in the next working week but only 36
hours of craftsman time. Machine time is costed at £10 per hour worked and craftsman
time is costed at £2 per hour worked. Both machine and craftsman idle times incur no
costs. The revenue received for each item produced (all production is sold) is £20 for X
and £30 for Y. The company has a specific contract to produce 10 items of X per week for
a particular customer.

Required:

• Formulate the problem of deciding how much to produce per week as a linear
program.
• Solve this linear program graphically.

Q2. Malowa General Merchants supplies tyres in a Kasugum township. The major
customer f or tyres is the County Government. From past experience, the average the
monthly demand for the tyres is 3600. The following additional information is also
available:

Storage space charges per year $1.5

Heating and lighting per year $3

Insurance premium $4.5

Advertising charges per tender $10

Inspection and testing costs $7

Administrative costs $3

Selling price per tyre $75

Required
Assuming one year is 10months;

(a) Compute the optimal stockholding for the firm


(b) How may orders will be placed in order to fulfil the demand
(c) The time between orders/order cycle
(d) The total inventory

Q3: A carpenter makes tables and chairs. Each table can be sold for a profit of £30 and
each chair for a profit of £10. The carpenter can afford to spend up to 40 hours per week
working and takes six hours to make a table and three hours to make a chair. Customer
demand requires that he makes at least three times as many chairs as tables. Tables take up
four times as much storage space as chairs and there is room for at most four tables each
week.

Required

(a) Formulate this problem as a linear programming problem


(b) Solve the LP problem graphically.
(c) List any limitations of using LP model in solving the problem business problems

Q4: The following activities relate to the relocation of an office to a new site
# Activity Description Predecessor Duration (weeks) Crash cost
A Select Office Site - 3 3000
B Develop financial plan - 5 2000
C Determine personnel requirements B 3 1500
D Design office layout A,C 4 2500
E Construct Office monitor D 8 1000
F Select personnel to move C 2 2000
G Hire new employees F 4 1500
H Move records and personnel F 2 500
I Make financial arrangements B 5 1500
J Train new personal ,E,G 3 3000

Required

(a) Using CPM, estimate the project duration


(b) Crash the project by 3weeks so as to end in 20weeks.

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