Old hens can be bought for Birr 2 each but young ones costs Birr 5 each. The old hens lay 3 eggs

INSTRUCTIONS TO CANDIDATES

ANSWER ALL QUESTIONS

Instruction: Solve the Following Questions

 

1. Old hens can be bought for Birr 2 each but young ones costs Birr 5 each. The old hens lay 3 eggs per week and the young ones lay 5 eggs per week. Each egg costs Birr 0.30. A hen costs Birr 1 per week to feed. If the financial constraint is to spend Birr 80 per week for hens and the capacity constraint is that total number of hens cannot exceed 20 hens and the objective is to earn a profit more than Birr 6 per week, find the optimal combination of hens.

Required:

 

A. Formulate the given problem as Linear Programming Model.(2 points)

B. Solve the LPP using the Graphical Method and interpret the result. (3 points)

 

2. The ABC Corporation has decided to produce three new products. Five branch plants now have excess product capacity. The unit transportation cost of the first product would be BIRR 31, BIRR 29, BIRR 32, BIRR 28, and BIRR 29 in Plants 1, 2, 3, 4, and 5, respectively. The unit transportation cost of the second product would be BIRR 45, BIRR 41, BIRR 46, BIRR 42, and BIRR 43 in Plants 1, 2, 3, 4, and 5,

respectively. The unit transportation cost of the third product would be BIRR 38, BIRR 35, and BIRR 40 in Plants 1, 2, and 3, respectively, whereas Plants 4 and 5 do not have the capability for transporting this product. Sales forecasts indicate that 600, 1,000, and 800 units of products 1, 2, and 3, respectively, should be produced

per day. Plants 1, 2, 3, 4, and 5 have the capacity to produce 200, 600, 200, 600, and 800 units daily, respectively, regardless of the product or combination of products involved.

Assume that any plant having the capability and capacity to produce them can produce any combination of the products in any quantity. Management wishes to know how to allocate the new products to the plants to minimize total transportation cost.

 

 

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