Saint Columban College

College of Business Education

Summer, S.Y. 2017-2018
MATH 109 - QUANTITATIVE TECHNIQUES IN BUSINESS

FINAL EXAMINATION

Name: ___________________________________ Course & Year: _____________ Date: ___________________

Instructor: ______________________________ Class Schedule: _____________Score: _________________

PROBLEM 1.

A company makes four products, Product A, Product B, Product C and Product D, which flow through four departments: Drill,
Mill, Lathe and Assembly. The number of hours of department time required for each of the product per unit are:

Product Drill Mill Lathe Assembly

Product A 3 0 3 4
Product B 7 2 4 6
Product C 4 4 0 5
Product D 0 6 5 3

The unit contribution of the four products and hours availability in the four departments are:
Product Profit Contribution Department Hours
Available
Product A P 9 Drill 70 hours
Product B 18 Mill 80 hours
Product C 14 Lathe 90 hours
Product D 11 Assembly 100 hours

Determine the optimal product mix.

MAXIMIZATION OF PROFIT
X1 X2 X3 X4
Decision Variables

Optimal Solution <---maximize profit

Profit Contribution

Constraints:
Contiinuation:

Problem 2 Problem 3

Maximize P= 10X1+8X2 Maximize P= 4X1+2X2+3X3

Subject to : Subject to:

1. 7X1=X2<=630 1. 2X1-X2+X3+2X4>=50

2. 2X1+5X2<=600 2. 3X1+-X3+2X4<=80

3. X1+2X2>=708 3. X1+X2+X4= 60

X1, X2 >=0 X1,X2,X3,X4>=0

Graphical Method

1. Maximize: P= 10X+20y Minimize: C= 100X1+80X2

Subject to: Subject to:

1. X+Y>=3 1. X1+X2>=5

2. X+Y<=5 2. 2X1+2X2<=20

3. X>=1 3. X1>=3

4. X<=3 4. X1<=7

Y>=0, X>=0 X1, X2 >=0