PAF- KIET - COLLEGE OF MANAGEMENT SCIENCE

ASSIGNMENT No. _01____

Name: _________________________________________________ Student I.D. _____________

Course Title: ____________________________________________ Semester : ______________
Date: ______________ Total Marks: _____________
Question # 1 A firm manufactures two goods A and B using three inputs K, L and R. The firm has at its disposal 150
units of K, 120 units of L and 40 units of R. The net profit contributed by each unit sold is £4 for A and
£1 for B. Each unit of A produced requires 3 units of K, 4 units of L plus 2 units of R. Each unit of B
produced requires 5 units of K, 3 units of L and none of R.
What combination of A and B should the firm manufacture to maximize profits given these constraints
on input availability?
Question # 2 A firm sells two versions of a device for cutting and drilling. Version A is sold direct to the public in
departmental stores, yielding a profit per unit of £50, and version B is sold to other firms for industrial
use, yielding a per-unit profit of £20. Each day the firm is able to use 400 hours of labour, 750 kg of
raw material and 240 metres of packaging material. These inputs are required to produce A and B in the
following quantities: one version A device requires 20 hours of labour, 50 kg of raw material and 20
metres of packaging, whilst one of version B only requires 20 hours of labour plus 30 kg of raw
material. How many of each version should be produced each day in order to maximize profit?
Question # 3 A firm manufactures a medicinal product containing three ingredients X, Y and Z. Each unit produced
must contain at least 100 g of X, 30 g of Y and 75 g of Z. The product is made by mixing the inputs A
and B which come in containers costing respectively £3 and £6 each.
These contain X, Y and Z in the following quantities:
1 container of A contains 50 g of X, 10 g of Y and 15 g of Z
1 container of B contains 20 g of X, 10 g of Y and 50 g of Z
What mix of A and B will minimize the cost per unit of the product subject to the above quality
constraints? (It does not matter if these minimum requirements are exceeded and all other production
costs can be ignored.)
Question # 4 Minimize the objective function C = 12A + 8B, subject to the constraints
10A + 40B ≥ 40 (1)
12A + 16B ≤ 48 (2)
A = 1.5 (3)

Question # 5 A farmer wants to customize his fertilizer for his current crop. He can buy plant food mix A and plant
food mix B. Each cubic yard of food A contains 20 pounds of phosphoric acid, 30 pounds of nitrogen
and 5 pounds of potash. Each cubic yard of food B contains 10 pounds of phosphoric acid, 30 pounds
of nitrogen and 10 pounds of potash. He requires a minimum of 460 pounds of phosphoric acid, 960
pounds of nitrogen and 220 pounds of potash. If food A costs $30 per cubic yard and food B costs $35
per cubic yard, how many cubic yards of each food should the farmer blend to meet the minimum
chemical requirements at a minimal cost? What is this cost?
Question # 6 A painter has exactly 32 units of yellow dye and 54 units of green dye. He plans to mix as many gallons
as possible of color A and color B. Each gallon of color A requires 4 units of yellow dye and 1 unit of
green dye. Each gallon of color B requires 1 unit of yellow dye and 6 units of green dye.
Find the maximum number of gallons he can mix.
Question # 7 A manufacturer makes wooden desks (X) and tables (Y). Each desk requires 2.5 hours to assemble, 3
hours for buffing, and 1 hour to crate. Each table requires 1 hour to assemble, 3 hours to buffing, and 2
hours to crate. The firm can do only up to 20 hours of assembling, 30 hours of buffing, and 16 hours of
crating per week. Profit is $3 per desk and $4 per table. Maximize the profit.
Question # 8 You make decorative stones for landscaping. A ton of coarse stones requires 2 hours of crushing, 5
hours of sifting, and 8 hours of drying. A ton of fine stones requires 6 hours of crushing, 3 hours of
sifting, and 2 hours of drying. The coarse stones sell for $400 per ton. The fine stones sell for $500 per
ton. In a work week your plant is capable of 36 hours of crushing, 30 hours of sifting, and 40 hours of
drying.
Use corner solution, to Determine:
a. How much of each kind of stones you should make to maximize your revenue.
b. How much revenue you'll make at the maximum.