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.