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Required: St. Mary'S University Faculty of Business Department of Management Operation Research Assignment One (10%)

The document outlines two linear programming problems. The first involves maximizing profits for a construction firm with limited resources by determining the optimal mix of house models to build. The second involves determining the optimal combination of products a salesperson should sell to maximize profit given constraints on time, costs and expenses.

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40 views1 page

Required: St. Mary'S University Faculty of Business Department of Management Operation Research Assignment One (10%)

The document outlines two linear programming problems. The first involves maximizing profits for a construction firm with limited resources by determining the optimal mix of house models to build. The second involves determining the optimal combination of products a salesperson should sell to maximize profit given constraints on time, costs and expenses.

Uploaded by

narr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ST.

MARY’S UNIVERSITY
FACULTY OF BUSINESS
DEPARTMENT OF MANAGEMENT
OPERATION RESEARCH ASSIGNMENT ONE(10%)

1. Write the definition of operation research?


2. What is linear programming problem?
3. How will you construct a mathematical model?
4. A small construction firm specializes in building and selling single-family homes. The
firm offers two basic types of houses, model A and model B. Model A houses require
4,000 labor hours, 2 tons of stone, and 2,000 board feet of lumber. Model B houses
require 10,000 labor hours, 3 tons of stone, and 2,000 board feet of lumber. Due to long
lead times for ordering supplies and the scarcity of skilled and semiskilled workers in the
area, the firm will be forced to rely on its present resources for the upcoming building
season. It has 400,000 hours of labor, 150 tons of stone and 200,000 board feet of lumber.
Model A yields a profit of $3,000 per unit and model B yields $6,000 per unit? Assume
that the firm will be able to sell all the units it builds.
Required
A. Formulate the linear programming model
B. What mix of model A and B houses should the firm construct in order to
maximize profits using graphic approach? What is the maximum profit?

C. Interpret the result

5. Production A, B and C are sold door, product A costs $3 per unit to make, takes 10
minutes to sell and costs $0.50 to deliver to customers. B costs $5 per unit to make, takes
15 minutes to sell and is left with the customer at the time of sale. C costs $4, takes 12
minutes to sell, and costs $1 to deliver. During any given week, a sales man is allowed to
draw up to $ 500 worth of A, B and C at cost and delivery expenses not exceeding $ 75.
If a salesman’s selling time is not expected to exceed 30 hours in a week, and the
salesman’s profit (net after all expenses) is $1 each on a unit of A and B and $2 on a unit
of C. what combination of sales of A, B and C will lead to maximum profit.
Required. A. Formulate the linear programming model for the problem
B. Solve it using simplex algorithm
C. Give proper interpretation for the optimal solution.

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