Lp Formulation, Simulation
MGMT 2012- Introduction to Quantitative MethodsGraded Assignment One
Students should note that this assignment should submitted in two files: Excel for
Question 1 A and Word for the other questions.
Question 1 A
The Eastern Caribbean Central Bank has estimated that the outflow of US$ (foreign currency) to purchase motorcars is putting a terrible strain on the exchange rate. The Governments subsequently entered in negotiations with Nissan Motors of Japan, with the view to establishing an assembly plant in the OECS.
Nissan conducted a feasibility study and concluded that if the deal were to go through then four plants would be needed. The following cost and requirements table was obtained:
PLANT
COST (US$)
LABOUR
RAW MATERIAL
1 (St Kitts/Nevis)
7,500
2
3
2 (Antigua)
5,000
3
4
3 (Grenada)
4,500
4
5
4 (Belize)
5,500
5
6
The costs given are to produce a car at each plant, respectively. Nissan must produce exactly 1,000 cars.
At least 300 must be produced at plant 3. No more than 500 must be produced at plant 1. Labour hours available are at most 3,300, while raw material availability does not exceed 4000. Formulate an LP using the template given and solve in Excel to enable Nissan Motors to minimize the cost of production
20 marks (15 marks to formulate and 5 marks to solve in excel)
.
Question 1B
The Southfork Feed Company makes a feed mix from four ingredients oats, corn, soybeans, and a vitamin supplement. The company has 300 pounds of oats, 400 pounds of corn, 200 pounds of soybeans, and 100 pounds of vitamin supplement available for the mix. The company has the following requirements for the mix:
•
•
•
•
•
At least 30% of the mix must be soybeans.
At least 20% of the mix must be the vitamin supplement.
The ratio of corn to oats cannot exceed 2 to 1.
The amount of oats cannot exceed the amount of soybeans.
The mix must be at least 500 pounds.
A pound of
Students should note that this assignment should submitted in two files: Excel for
Question 1 A and Word for the other questions.
Question 1 A
The Eastern Caribbean Central Bank has estimated that the outflow of US$ (foreign currency) to purchase motorcars is putting a terrible strain on the exchange rate. The Governments subsequently entered in negotiations with Nissan Motors of Japan, with the view to establishing an assembly plant in the OECS.
Nissan conducted a feasibility study and concluded that if the deal were to go through then four plants would be needed. The following cost and requirements table was obtained:
PLANT
COST (US$)
LABOUR
RAW MATERIAL
1 (St Kitts/Nevis)
7,500
2
3
2 (Antigua)
5,000
3
4
3 (Grenada)
4,500
4
5
4 (Belize)
5,500
5
6
The costs given are to produce a car at each plant, respectively. Nissan must produce exactly 1,000 cars.
At least 300 must be produced at plant 3. No more than 500 must be produced at plant 1. Labour hours available are at most 3,300, while raw material availability does not exceed 4000. Formulate an LP using the template given and solve in Excel to enable Nissan Motors to minimize the cost of production
20 marks (15 marks to formulate and 5 marks to solve in excel)
.
Question 1B
The Southfork 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:
•
•
•
•
•
At least 30% of the mix must be soybeans.
At least 20% of the mix must be the vitamin supplement.
The ratio of corn to oats cannot exceed 2 to 1.
The amount of oats cannot exceed the amount of soybeans.
The mix must be at least 500 pounds.
A pound of