QT Formulation Exercises - Q1 A manufacture produces five products A B C D and E The requirements of raw material per ton for each of the products are

QT Formulation Exercises - Q1 A manufacture produces five...

This preview shows page 1 - 3 out of 5 pages.

Q1. A manufacture produces five products A, B, C, D and E. The requirements of raw material per ton for each of the products are as indicated below: Products Raw Materials A B C D E Availability (tons/day) Gluten 48% 0.75 0.54 0.11 0 0 12 Corn-Hust 18% 0.25 0.66 0.9 1 0 18.2 Corn-Strip Solid 0 0 0 0 0.5 2.5 Contribution (Rs. Per Ton) 400 252 180 150 125 The marketing constraints for product A is such that not more than 10 tons can be sold per day and that of B is such that not more than 15 tons can be sold per day. (a) If 5 4 3 2 1 , , , x and x x x x respectively represent the tons of products A, B, C, D and E to be produced per day, test whether the following solutions are feasible : X 1 X 2 X 3 X 4 X 5 i) 8.4 0 12 0 2.5 ii) 5 11 0 19 5 iii) 10 12 4.2 4 5 iv) 6 9 15 -1 2.5 (b) Test whether any of the above solutions is optimal. (c) The Manufacture is considering the possibility of expanding sales of the products A and B by increasing promotional expenditure. Which of the following alternatives should be adopting? (i) Do not promote A or B (ii) Promote A but not B (iii) Promote B but not A (iv) Promote both A and B Q2. Miss Shoorpanakha, Managing Director of Lankapuri textiles had called an emergency meeting to finalize the production and the sales program for the coming six month. The board of management that was responsible for the preparation of these plans was not able to give its recommendation because of sharp differences of opinion among some of its members on continuation of products classified in product group ‘C’. Miss Shoorpankha had called the meeting to resolve these differences. Lankapuri Textile manufactured products to meet the needs of a wide range of markets, ranging from masses to classes. As a result of their rigid quality control standards, and ability to see the Source for all these exercise problems is IIM Ahmedabad Case Material “Quantitative Methods-I & II” (2004-2005)
Image of page 1

Subscribe to view the full document.

market needs it was to sell all it could produce in spite of serve completive condition in the industry. The product produced by Lankapuri Textiles were many in number but they could be classified in three groups A, B and C. Products within each group were quite similar in terms of the manufacturing processes they had to undergo, in terms of the manufacturing in each of the processes, in terms of variables cost per unit and finally in terms of the prices fetched by them.
Image of page 2
Image of page 3
  • Fall '15
  • II & III, Lankapuri Textiles

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes