Quantitative Analysis in Management Decision
Quantitative Analysis for Management Decisions
Assignment 1
Answer the Following Questions clearly as per the instructions.
Be sure to submit on time.
Q1. A pharmacy has determined that a healthy person should receive 70 units of proteins,
100 units of carbohydrates and 20 units of fat daily. If the store carries the six types of health
food with their ingredients as shown in the table below, what blend of foods satisfies the
requirements at minimum cost to the pharmacy? Make the mathematical model.
Foods Protein units Carbohydrates units Fat units Cost per unit
A 20 50 4 2
B 30 30 9 3
C 40 20 11 5
D 40 25 10 6
E 45 50 9 8
F 30 20 10 8
Q2. A firm manufactures two products; the net profit on product 1 is Birr 3 per unit and Birr 5
per unit on product 2. The manufacturing process is such that each product has to be
processed in two departments D1 and D2. Each unit of product1 requires processing for 1
minute at D1 and 3 minutes at D2; each unit of product 2 requires processing for 2 minutes
at D1 and 2 minutes at D2. Machine time available per day is 860 minutes at D1 and 1200
minutes at D2. How much of product 1 and 2 should be produced every day so that total
profit is maximum. (solve with graphical method)
Q3. Solve the following LP problem by graphical method: Maximise Z = 300X1 + 700X2
Subject to the constraints: X1 + 4X2 ≤ 20 2X1 + X2 ≤ 30 X1 + X2 ≤ 8 And X1, X2 ≥ 0
Q4. Discuss a few areas for application of quantitative analysis in your organisation or
organisation you are familiar with for decision making.
Q5. Take the data of the output of your organisation, summarise them with some tool (like
bar chart, pie chart, etc.) and discuss the result. Give your opinion to improve the results in
the future.