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Quiz LP

The document outlines a quiz on linear programming involving three types of lamps manufactured by the Ball Company, with constraints on man-hours and profit maximization. It also includes a scenario for a small company with two products and their production constraints, as well as a case study for Hardrock, Inc. regarding safety stock levels and inventory costs. Key questions focus on objective function coefficients, constraints, and total costs associated with safety stock levels.

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64 views2 pages

Quiz LP

The document outlines a quiz on linear programming involving three types of lamps manufactured by the Ball Company, with constraints on man-hours and profit maximization. It also includes a scenario for a small company with two products and their production constraints, as well as a case study for Hardrock, Inc. regarding safety stock levels and inventory costs. Key questions focus on objective function coefficients, constraints, and total costs associated with safety stock levels.

Uploaded by

sajoyanfroilan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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QUIZ - Linear Programming

1. The Ball Company manufactures three types of lamps, which are labeled A,B, & C. each lamp is processed in two departmen
Total available man-hours per day for departments I and II are 400 & 600, respectively. No additional labor is available. Time r
per unit for each lamp type is as follows:

A B
Man-hours required in department I 2 3
Man-hours required in department II 4 2
Profit per unit (Sales price less all variable costs) 5 4

The Company has signed you as the accounting member of its profit-planning committee to determine the numbers of types A
produce in order to maximize its total profit from sale of lamps. The following questions relate to a linear programming mode

Requirement:
1. The Coefficient of the objective function.
2. The Explicit and Implicit constraint
3. The Constraint imposed by the available man hours in department I.

2. A Small company makes only two products with the following two production constraint representing two machines and th

2X + 3Y < 18
2X + Y < 10
where X = the units of the first product
where Y = the units of the second product

If the profit equation is Z = P4X + P2Y, The maximum possible profit is?

3. Hardrock, Inc. operates a chain of hardware stores in Metro Manila. The controller wants to determine the optimum safety
The inventory manager has compiled the following data.

1. The annual carrying cost of inventory approximates 20% of the investment in inventory.
2. The inventory investment per unit average P50.
3. The stockout cost is estimated to be P5 per unit.
4. The company orders inventory on the average of ten times per year.
5. Total cost = carrying cost + Stockout cost
6. The probabilities of a stockout per order cycle with varrying levels of safety stock are as follows:

Safety Stock Stockout Probability


200 0 0
100 100 15
0 100 15
0 200 12

The total cost of safety stock on an annual basis with a safety stock level of 100 units is?
s processed in two departments - I and II.
tional labor is available. Time requirements and profit

C
1
3
3

ermine the numbers of types A,B & C lamps that it should


o a linear programming model that your group has developed.

esenting two machines and their maximum availability:

etermine the optimum safety stocks level for an air purifier unit.

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