1.

Discuss the project life cycle

2. Explain terms budget and budgetary control as applied to management.

3. A company purchasing scrap material has two types of scarp materials available. The
first type has 30% of material X, 20% of material Y and 50% of material Z by weight.
The second type has 40% of material X, 10% of material Y and 30% of material Z.
The costs of the two scraps are $0.120 and $0.160 per kg respectively. The company
requires at least 240 kg of material X, 100 kg of material Y and 290 kg of material Z.
Find the optimum quantities of the two scraps to be purchased so that the company
requirements of the three materials are satisfied at a minimum cost
4. A juice company has its products viz. canned apple and bottled juice with profit
margin $0.4 and $0.2 respectively pre-unit. The following table shows the labour,
equipment, and ingredients to produce each product per unit.
Canned Apple Bottled Juice Total
Labour 2.0 3.0 12.0
Equipment 3.2 1.0 8.0
Ingredients 2.4 2.0 9.0
Formulate the linear programming problem (model) specifying the product mix which
will maximize the profit without exceeding the levels of resources.

5. An organization is interested in the analysis of two products which can be produces

from the idle time of labour, machine and investment. It was notified on investigation
that the labour requirement of the first and the second products was 4 and 5 units
respectively and the total available man hours was 48. Only first product required
machine hour utilization of one hour per unit and at present only 10 spare machine
hours are available. Second product needs one unit of by product per unit and the
daily availability of the by product is 12 units. According to the marketing department
the sales potential of first product cannot exceed 7 units. In a competitive market, first
product can be sold at a profit of $6 and the second product at a profit of $10 per unit.
Formulate the problem as a linear programming model. Also determine graphically
the feasible region. Identify the redundant constraints if any.

6. A bed mart company is in the business of manufacturing beds and pillows. The
company has 40 hours for assembly and 32 hours for finishing work per day.
Manufacturing of a bed requires 4 hours for assembly and 2 hours in finishing.
Similarly a pillow requires 2 hours for assembly and 4 hours for finishing.
Profitability analysis indicates that every bed would contribute $80, while a pillow
contribution is $55 respectively. Find out the daily production of the company to
maximize the contribution (profit).
7. Solve the following LP problem graphically
Maximize
2x1 + 3x2
Subject to:
x1 – x2 ≤ 1
x1 + x2 ≥ 3
x1, x2 ≥ 0
8. Graphically solve the following problem of LP
Maximize
 3x1 + 2x2
Subject to:
2x1 – 3x2 ≥ 0
3x1 + 4x2 ≤ -12
x1, x2 ≥ 0

Simplex Questions
9. A soft drinks company has two products viz. Coco-cola and Pepsi with profit of $2 an
$1 per unit. The following table illustrates the labour, equipment and materials to
produce per unit of each product. Determine suitable product mix which maximizes
the profit using simplex method.

Pepsi Coco-cola Total Resources

Labour 3 3 12
Equipment 2 2 6.9
Material 1 1 4.9

10. A factory produces three using three types of ingredients viz. A, B and C in different
proportions. The following table shows the requirements o various ingredients as
inputs per kg of the products.

Ingredients
Product A B C
1 4 8 8
2 4 6 4
3 8 4 0

The three profits coefficients are 20, 20 and 30 respectively. The factory has 800 kg of
ingredients A, 1800 kg of ingredients B and 500 kg of ingredient C. Determine the product
mix which will maximize the profit and also find out maximum profit.

11. Solve the following linear programming problem using two phase and M method.
Maximize
12x1 + 15x2 + 9x3
Subject to:
8x1 + 16x2 + 12x3 ≤ 250
4x1 + 8x2 + 10x3 ≥ 80
7x1 + 9x2 + 8x3 =105
x1, x2, x3 ≥ 0

12. Solve the following linear programming problem using simplex method.
Maximize
3x1 + 2x2
Subject to:
x1 –x2 ≤ 1
x1 + x2 ≥ 3
x1, x2 ≥ 0
13. Solve the following linear programming problem using simplex method.
Maximize : x1 + x2
Subject to:
-2x1 + x2 ≤ 1
x1 ≤ 2
x1 + x2 ≤ 3
x1, x2, x3 ≥ 0
14. Maximize
P = 3x1 + 4x2 + x3
Subject to:
x1 + 2x2 + x3 ≤ 6
2x1 +2x3 ≤ 4
3x1 + x2 + x3 ≤ 9
x1, x2, x3 ≥ 0
15. A foundry company has to transport the finished goods from the factory to the store
house. The path from the foundry to the store house is through certain intermediate
stations as indicated in the following diagram. The company executive wants to identify
the path with the shortest distance so as to minimize the transportation cost. The problem
is to achieve this objective

16. Explain the shortest path problem.

17. Explain the algorithm for a shortest path problem
18. Find the shortest path of the following network

19. Explain the terms: event, predecessor event, successor event, activity, dummy
activity, network.
20. Construct the network diagram for the following project:
21. The following details are available regarding a project: Determine the critical path, the
critical activities and the project completion time

22. METHUB is a small manufacturer of steel balls for ball mills whose management has
decided to move into the market for medium- and high-priced steel balls. METHUB’s
distributor is enthusiastic about the new product line and has agreed to buy all the
steel balls METHUB produces over the next three months. After a thorough
investigation of the steps involved in manufacturing a steel ball, management
determined that each steel ball produced will require the following operations:
1. Cutting and dicing
2. Stainless steel plating
3. Finishing
4. Inspection and packaging
The production manager analyzed each of the operations and concluded that if the company
produces a medium-priced standard model, each ball will require ⁷⁄ ₁₀ hour in the cutting and
dicing department, ¹⁄₂ hour in the stainless steel plating department, 1 hour in the finishing
department, and ¹⁄₁₀ hour in the inspection and packaging department. The more expensive
deluxe model will require 1 hour for cutting and dicing, ⁵⁄₆ hour for stainless steel plating, ²⁄ ₃
hour for finishing, and ¹⁄₄ hour for inspection and packaging. METHUB production is
constrained by a limited number of hours available in each department. After studying
departmental workload projections, the production manager estimates that 630 hours for
cutting and dicing, 600 hours for plating, 708 hours for finishing, and 135 hours for
inspection and packaging will be available to produce steel balls during the next three
months.

The accounting department analyzed the production data, assigned all relevant variable costs,
and arrived at prices for both balls that will result in a profit contribution of $10 for every
standard ball and $9 for every deluxe ball produced.

a) Develop a mathematical model of the METHUB that can be used to determine the
number of standard balls and the number of deluxe balls to produce in order to
maximize total profit contribution
b) Use the graphical method to determine the number of balls of each type that must be
produced in order to maximize profits

23. Determine the idle capacity in each production department in Question A1 The
management is concerned about the fluctuations in prices of raw materials, product
demand and stock prices. What is the profit contribution range per ball that the
marketing department must negotiate within in order to maintain the product
distribution determined in previous question