Assignment Task 

 

QUESTION ONE

A company produces two brands of flour namely; Ngano and Chapo. The brands pass through the departments X,Y and Z. Ngano takes 15 hours and 60 hours in departments Y and Z. chapo takes 24 hours, 15 hours and 30 hours in departments X,Y and Z respectively. The contribution margines for Ngano is Sh.60 and for chapo is sh.48. the total hours available for departments X,Y and Z are 600 hours, 450 hours and 1200 hours respectively. Use graphical method to determine the following

i) Maximum profit
ii) Slack and surplus
iii) Binding and non-binding constraints
iv) Shadow prices for the products

 

QUESTION TWO

A manufacturing company produces two products A and B, the cost data are as under:

Each product under goes on operation in two departments, Viz, cutting and finishing before it emerges as a finished product. The unit time taken by the products and the maximum available hours in the cutting and finishing operations are given below:

 

Required

a. Formulate an LP problem

b. Solve by using graphic method to determine the number of units of A and B to be produced to maximize the contribution 

c. State the maximum contribution obtained by your solution 

d. compute slack and surplus for each of the constraints 

e. identify binding and non-binding constraints 

f. compute shadow price for the binding constraints

 

 

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  • Uploaded By : William
  • Posted on : March 24th, 2019

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