Operations research UE Past Papers Questions.

Define the term “Break Even Point” as used in Management Science and briefly explain its economic importance to the agribusiness manager.

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Machinga makes handcrafted dolls, which he sells at craft fairs. He is considering mass production of dolls to sell in big outlets. He estimates that the initial investment for plant and equipment will be Tshs 25,000, whereas labor, material, packaging, and shipping will be about Tshs 10 per doll. If the dolls are sold for Tshs 30 each, what sales volume is necessary for machinga to break even?

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The Morogoro Textile Mill produces bed sheets. The fixed monthly cost is Tshs 21,000, and the variable cost per pair of bed sheets is Tshs 0.45. The mill sells a pair of bed sheet at Tshs 1.30.

1. For a monthly volume of 18,000 pair of bed sheets, determine the total cost, total revenue, and profit
2. Determine the annual break-even volume for Morogoro textile Mill.

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Why is the term linear is used in linear programming?

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The Kalo fertilizer company makes a fertilizer using two chemicals that provide nitrogen, phosphate, and potassium. A kilogram of ingredient 1 contributes 10 grams of nitrogen and 6 grams of phosphate, while a kilogram of ingredient 2 contributes 2 grams of nitrogen, 6 grams of phosphate, and 1 gram of potassium. Ingredient 1 costs $3 per kilogram, and ingredient 2 costs $5 per kilogram. The company wants to know how many kilogram of each chemical ingredient to put into a bag of fertilizer to meet the minimum requirements of 20 grams of nitrogen, 36 grams of phosphate, and 2 grams of potassium while minimizing  cost.

1. Formulate a linear programming model for this problem
2. Write the model into standard form for solving by simplex method.

Answer / Solution

UNSOLVED