Harambee University Faculty of Business and Economics Master of Business Administration (MBA)
Harambee University Faculty of Business and Economics Master of Business Administration (MBA)
Harambee University Faculty of Business and Economics Master of Business Administration (MBA)
Name ID
Instructor
xxxxx
January 2022
Adama, Ethiopia
1
1 . The South fork Feed Company makes a feed mix from four ingredients oats,
corn, soybeans, and a vitamin supplement. The company has 300 pounds of oats,
400 pounds of corn, 200 pounds of soybeans, and 100 pounds of vitamin
supplement available for the mix. The company has the following requirements for
the mix:
A pound of oats costs $0.50; a pound of corn, $1.20; a pound of soybeans, $0.60;
and a pound of vitamin supplement, $2.00. The feed company wants to know the
number of pounds of each ingredient to put in the mix in order to minimize cost.
Answer
X1 = Number of lb of oats
X2 = Number of lb of corn
X3 = Number of lb of soybean
X4 = Number of lb of vitamin supplement
Min Z = 0.50x1 + 1.20x2 + 0.60x3 + 2.00x4
Subject to
X1 <=300
X2 <=400
2
X3 <=200
X4 <=100
X3/(X1 +X2 + X3 + X4) >= 0.30
X4/(X1 +X2 + X3 + X4) >= 0.20
X2/X1 <= 2/1
X1 <= X3
X1 +X2 + X3 + X4 >=500
X1 *X2 * X3 * X4 >= 0
2 - A bicycle manufacturer makes tow models – a sports cycle and racer. In order
to make a sports model, 6 man hours are needed, while a racer model requires 10
man hours. The manufacturer can employ no more than 15 men and these men
work 8 hours per day for 6 day each week. The cost of material amount to birr 500
per cycle and the manufacturer’s weekly quota of such materials may not exceed
birr 40, 000. The firm has a contract to supply at least 30 sport models and 20
racers per week. How many cycles of each type should be made in order to obtain
the maximum possible profit, if the profit on each sport cycle is birr 100 and on
each racing model is birr 300?
Answer
3
4
So, for maximum profit manufacture must produces 25 numbers of models X and 30 number of
model Y bikes.
5
Answer
6
Min = X1 + X2 + X3+ X4 + X5 + X6 ………….. X11 + X12
ST
4. The Munchies Cereal Company makes a cereal from several ingredients. Two of
the ingredients, oats and rice, provide vitamins A and B. The company wants to
know how many ounces of oats and rice it should include in each box of cereal to
meet the minimum requirements of 48 milligrams of vitamin A and 12 milligrams
of vitamin B while minimizing cost. An ounce of oats contributes 8 milligrams of
vitamin A and 1 milligram of vitamin B, whereas an ounce of rice contributes 6
milligrams of A and 2 milligrams of B. An ounce of oats costs $0.05, and an ounce
of rice costs $0.03.
Answer
7
5. The Crumb and Custard Bakery makes coffee cakes and Danish pastries in large
pans. The main ingredients are flour and sugar. There are 25 pounds of flour and
16 pounds of sugar available, and the demand for coffee cakes is 5. Five pounds of
flour and 2 pounds of sugar are required to make a pan of coffee cakes, and 5
pounds of flour and 4 pounds of sugar are required to make a pan of Danish. A pan
of coffee cakes has a profit of $1, and a pan of Danish has a profit of $5.
Determine the number of pans of cakes and Danish to produce each day so that
profit will be maximized.
8
a. Formulate a linear programming model for this problem.
b. Solve this model by using graphical analysis.
Answer
X1 = Coffee Cakes
X2 = Danish Pastries
Max Z = X1 + X2
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6. The Elixer Drug Company produces a drug from two ingredients. Each
ingredient contains the same three antibiotics, in different proportions. One gram
of ingredient 1 contributes 3 units, and 1 gram of ingredient 2 contributes 1 unit of
antibiotic 1; the drug requires 6 units. At least 4 units of antibiotic 2 are required,
and the ingredients each contribute 1 unit per gram. At least 12 units of antibiotic 3
are required; a gram of ingredient 1 contributes 2 units, and a gram of ingredient 2
contributes 6 units. The cost for a gram of ingredient 1 is $80, and the cost for a
gram of ingredient 2 is $50. The company wants to formulate a linear
programming model to determine the number of grams of each ingredient that
must go into the drug in order to meet the antibiotic requirements at the minimum
cost.
10
a. Formulate a linear programming model for this problem.
b. Solve this model by using graphical analysis.
Y<= 6
x + y <= 4
2x + 6y <= 12
x>= 0
y >= 0
After we got the points, now we can count the cost and find the minimum cost from the cost
equation, C: $80x + $50y
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