JINNAH UNIVERSITY FOR WOMEN

GROUP MEMBERS NAME: SAMREEN LODHI SAHAR KHAN HIRA KHAN ALEENA SOHAIL FARYAL JAVED CLASS: MBA -I SUBJECT: INTRODUCTION TO MANAGEMENT SCIENCE

SUBMITTED TO: MISS, MAHEEN

ACKNOWLEDGEMENT
C K N O W L E D G E M E N T

We thank Allah for guiding us through the phases of compiling this report and helping us out in all the difficulties. We would like to take this opportunity to thank MISS, MAHEEN our teacher for the course of INTRODUCTION TO MANAGEMENT SCIENCE at JINNAH UNIVERSITY FOR WOMEN, for her valuable support and encouragement, which she has offered. This report is a joint effort of all the group members SAHAR KHAN, ALEENA SOHAIL, HIRA KHAN, FARYAL JAVED and our group leader SAMREEN LODHI and we could not have been made possible without the immense help and cooperation of our family members. Without their support and the amount of time that they gave us, this report would not have existed.

Thanks a lot.

STATEMENT:
A manufacturer makes wooden tables (X) and chair (Y) .Each table requires 2.5hr to assemble, 3hr for buffing and 1hr to crate .Each chair requires 1hr to assemble, 3 hr to buffing and 2hr to crate .The firm can do only up to 20 hrs of assembling, 30hr hrs of buffing and 16 hours of crating per week. Profit is 3$ per table and 4$ per chair. Maximize the profit

OBJECTIVE:
Maximize total profit

CONSTRAINTS:
Total numbers of hours used should be less than or equal to hours available.

DECISION VARIABLE (CONTROLLABLE FACTORS)

No. Of wooden tables = X No. of wooden chair = y

OBJECTIVE IN TERMS OF DECISION VARIABLE.

1) Total profit contribution made by X i.e. wooden tables. 2) Total profit contribution made by Y i.e. wooden chairs. Maximize total profit =3x + 4y

CONSTRAINTS IN TERMS OF DECISION VARIABLES:

CONSTRAINTS 1: Hours used for assembling tables & chairs < Hours available for assembling tables & chairs. 2.5x + y < 20 CONSTRAINTS 2: Hours used for buffing tables & chairs < Hours available for buffing tables & chairs. 3x + 3y < 30 CONSTRAINTS 3:

Hours used for crating tables & chairs < Hours available for crating tables & chairs. X + 2y < 16 Non-Negatively X>0 Y>0

MATHEMATICAL STATEMENTS:
Maximize 3x + 4y Subject To: 2.5x + y < 20 3x + 3y < 30 X + 2y < 16 X>0 Y>0 assembling buffing crating

GRAPHICAL SOLUTION:

FOR ASSEMBLING: 2.5X + Y < 20 Y 25 1) X = 0 Y= 20 20 15 2.5X + Y < 20 10 2) X = 8 5

Y=0 5 10 15 20 X

FOR BUFFING: 3X + 3Y < 30 1) X = 0 Y = 10 2) X = 10 Y=0 20 15 10

3X + 3Y < 30 5

5 FOR CRATING: X + 2Y < 16 1) X = 0 Y=8 2) X = 16 Y=0 5 20 15 10 5 Y

10

15

20

X + 2Y < 16

10 15 20

COMBINED-CONSTRAINT GRAPH SHOWING FEASIBLE REGION:

Y 30 25 20 15 10 X + 2Y < 16 3X + 3Y < 30 2.5X + Y < 20

10

15

20

25

30

SELECTED PROFIT LINES (FEASIBLE REGION):

Y 3X + 4Y =32 3X +4Y = 24 3X + 4Y = 16 6 3X +4Y = 8 4 2 10 8

Maximum profit line 3x + 4y =36

optimal solutions (4, 6)

10

The extreme points of feasible region:

(0, 0)
(0, 8)

10 8 6 4 2 optimum solution
Maximum profit line 3x + 4y =36

(4, 6) (8, 0)

10

W1 Intersection point of buffing and crating: 3x + 3y = 30 3(x + 2y =16)

3x + 3y = 30 3x + 6y = 48 -3y = -18 =6y

For x put y = 6 X = - 2(6) + 16 = -12 + 16 X=4

For maximum profit put all optimal points in profit function i.e. 3x + 4y (0, 8) 3(0) + 4(0) = 0 (0, 8) 3(0) + 4(8) = 32 (4, 6) 3(4) + 4(6) = 36

So the optimum solution given maximum profit is to sell 4 units of tales and 6 units of chairs.

SLACK VARIABLES:
CONSTRAINTS HOURS REQUIRED X = 4, Y = 6 ASSEMBLING BUFFING CRATING 2.5(4) + 6 = 16 3(4) + 3(6) = 30 4 + 2(6) = 16 20 30 16 4 0 0 HOURS AVAILABLE UNUSED HOURS

Maximize 3x + 4y + 0S1 + 0S2 + 0S3 Subject To 2.5x + y + S1 3x + 3y + S2 X + 2y + S3 = 20 = 30 = 16

X, y, S1, S2, S3 > 0

STATEMENT
SUIT Eastern oil company produces two grades of oil regular and premium. The cost to produce regular oil is 20$ per ton and 30$ per ton for premium oil .Total production of two grades of oil can not exceed 120 tones per week .Time taken to produce one ton of regular oil is 2 hour and 1 hour for premium oil .Total production hours can not exceed 150 hours per week .It is expected that the demand of premium oil for this week can be 15 tones or even more than that, than regular oil. How many tones of regular and premium oil should be producing this week to minimize cost?

OBJECTIVE:
Minimize total cost

CONSTRAINTS:
1) Total production unit should not exceed 120 tones. 2) Total production time should not be more than 150 hours. 3) Demand of premium oil is greater than regular oil by 15 tones or more.

DECISION VARIABLE:
Tones of regular oil = X Tones of premium oil =Y

OBJECTIVE IN TERMS OF DECISION VARIABLE:

Minimize total cost 20X + 30Y

CONSTRAINTS IN TERMS OF DECISION VARIABLES:

1) Total production unit should be less than or equal to 120 tones. X + Y < 120 2) Total production time should be less than or equal to 150 hours. 2X + Y < 150 3) Demand of premium oil is greater than or equal to 150 tones ,than regular oil Y X > 15 :. X + Y > 15 4) Non negativity constraints.

X>0 Y>0

MATHEMATICAL STATEMENT:
Min (X, Y) = 20X + 30Y

Subject To:
X + Y < 120 2X + Y < 150 -X + Y > 15 X>0 Y>0

FEASIBLE REGION:
X + Y < 120 Y 120 100 1) X = 0 Y = 120 2) X = 120 Y=0 80 60 40 20 X + Y < 120

20

40

60

80

100

120

Y 160 2X + Y < 150 140 120 1) X =0 Y = 150 100 80 60 2) Y + 0 X =75 40 20 2X + Y < 150

20

40

60

80

100

120

140

160 X

Y For - X + Y > 15

X=0 Y = 15 - X + Y > 15

20 Y=0 X = -15 -X -20 -20 20 X

- Y

COMBINED ALL LINES FOR FEASIBLE REGION:

Y 160 140 120 100 80 60 40 20 X + Y < 120 2X + Y < 150 -X + Y >15

-X

-20 -20

20

40

60

80

100

120

140 160

-Y

WI
Point of intersection point of X + Y > 15 and 2X + Y < 150 - X + Y =15 2X + Y = 150 -3X = -135
X = 45

-X + Y = 15 45 + 15 = X
Y = 60

For Minimum cost

20X + 30Y (0, 15) 20(0) + 30(15) = 450 (45, 60) 20(45) + 30(60) =2700

(75, 0) 20(75) + 30(0) = 1500

FEASIBLE REGION:

Y 80 70 60 50 40 30 20 10 OPTIMIUM SOLUTION

10 Y 80 70
20(75) + 30(0) =1500

20

30

40

50

60

70

80

60 50

20(45) + 30(60) =2700

40
20(0) + 30(15) =450

30 20 10

OPTIMIUM SOLUTION

10

20

30

40

50 60

70

80

SURPLUS VARIABLES:
CONSTRAINTS: USED U/ H USED U/ H AVAILABLE UNUSED U/ H

X = 0, Y = 15

Production unit:

0 + y =15

120

105

Production time:

2(0) + (15) =15

150

135

Demand of premium oil:

-0 + 15 = 15 =15

15

SURPLUS VARIABLE IN STANDARD FORM:

Min cost (X, Y, S1, S2, S3) =20x +30y + OS1+ OS2 + OS3 S.t X +Y + 1S1 2X + Y + 1S2 = 120 =150

-X + Y

- 1S3

= 15

X Y, S1, S2, and S3 > 0