Quantitative Analysis

Mid Term Exam

Problem 1

ESLSCA Textile Company produces two models of men jackets; new style fashion and
standard style fashion. The production process for each is similar in that both require a
certain number of hours of production department and a certain number of hours in the
finishing department. The company is planning next production order, which has to
achieve a maximum of 450 new style fashion jackets and a maximum of 700 standard
style fashion jackets. Each new style requires 2 hours of production and 2 hours in the
finishing department. Each standard style requires 2 hours in production and 1 hour in
the finishing department. During the current production period, at least 1800 hours of
production time and at least 1200 hours of finishing time are required. Each new style
jacket costs the company $400 and each standard style jacket costs $300.

a) What type of linear program is this problem? Grade: 2

b) Show a table of all the constraints, decision variables and the objective Grade: 4
function
c) Formulate the model of this problem Grade: 2
d) Write the problem in its standard format Grade: 2
e) Solve this Linear Program using the Graphical Method to find the best Grade: 5
combination of new style and standard style fashion jackets.
f) Show the feasible region and find the optimal solution and define how Grade: 5
many extreme points are there?
g) What are the values and interpretations of all slack and surplus variables? Grade: 3
h) Which constraints are binding Grade: 2
Solve ONLY one of the following either i) or j):
i) As the consultant to ESLSCA management show how to use the Grade: 5
sensitivity analysis method to help them compute the range of optimality
for the coefficients of the costs (c1 and c2) of both types of products
j) If a reduction of 20 hrs are planned in the production department, Grade: 5
compute the change in the optimal solution in terms of $ per hour.

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Problem 2

ESLSCA Computer Company produces four products, laptops, desktops, monitors and
printers/ after asking the financial department how much each product cost to produce,
ESLSCA Management found that the cost per unit of the laptops is $450, while that for
desktops is $600 and that for monitors is $400 and that for printers is $200. Gathering
more information from the production department, ESLSCA Management also found
that labours hour per unit for laptops is 2, and that for desktops is 3 and that for
monitors is 2 and that for printers is 1. The manufacturer has a daily production budget
of $15,000 and a maximum of 660 hours of labors. For this current production period,
ESLSCA Management calculated the maximum monthly customer demand to be 500
laptops, 600 desktops, 200 monitors and 100 printers. Knowing that the selling price per
unit for laptops is $650 and for desktops is $700 and for monitors is $500 and for
printers $300 the company wants to know the optimal product mix that will maximize
its total profit.

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