Friday 21 June 2019

Quantitative Techniques Workout Example


QTE 407 Assignments
Quantitative Techniques
Instructions: All assignments are in this document. Kindly check the due date for each of the four assignments

 Assignment One
Young Hu a roads contract has been given a contract to re-carpet Ngong road. The project manager has identified eight essential activities in this network. He has also listed the activity as below.

  Activity
Preceding
Activity
                       Time (in weeks)
   Optimistic
Most likely
    Pessimistic
       A
       -
          2
        3
            4
       B
       -
          5
        5.5
            9
       C
       -
          6
        7
            8
       D
      A
          4
        8.5
            10
       E
      C
          1
        3.5
            9
       F
    B, E
          1
        3
            5
      G
     C
          8
        9
            16
      H
    F, G
          1
        3
            5

Required
a)      Calculate the expected time and the variance of each activity                         (8 marks)
b)     Illustrate the project by an arrow diagram                                                          (4 marks)
c)      Identify the critical activities                                                                      (2 marks)
d)     Calculate the free float of each activity                                                    (4 marks)
e)      What is the probability that the project will take less than 30 weeks (2 marks)
                     


Assignment Two

(a)    Define the following terms as used in Transportation and assignment models:
(i)              Degeneracy;
(ii)            A slack variable;
(iii)          Balanced transportation model                                                 (6 marks)
(b) The table below represent the demand, supply and transportation cost of a given product.  
 Source
D1
D2
D3
D4
D5
Supply
S1
10
12
2
3
4
50,000
S2
4
10
9
2
8
20,000
S3
9
15
3
12
1
35,000
Demand
25,000
15,000
25,000
30,000
10,000

(i)                 Determine the initial allocation for the above transportation problem. 
 (4 marks)
(ii)              Test the allocation for optimality                                                             (6 marks)
(iii)            Calculate the minimum transportation cost                                          (4 marks)  
Assignment Three
(a)   You have been employed by a first growing supermarket that has no inventory control system in place. You feel this is not right and stock control should be done professionally. The managing director has given you a chance to meet. What are the advantages of inventory control that you would give him?                                                                                                                                          (6marks)
                                                                                                                       

(b)   The table has the time taken by each machine to finish a particular job

Machine 1
Machine 2
Machine 3
Machine 4
Machine 5
Job 1
3
9
2
3
7
Job 2
6
1
5
6
6
Job 3
9
4
7
10
3
Job 4
2
5
4
2
1
Job 5
9
6
2
4
6

(i)
Solve the following assignment problem to minimize machine time.           (10 marks)
(ii) Calculate the least total number of hours that the machines would take to complete the five jobs                                                                                                                  (4 marks)


Assignment Four
(a) Explain five situations where the economic order quantity may not apply.(5 marks)
(b)  A fueling station takes exactly 3 minutes to serve one vehicle. Vehicles arrive according to a Poisson process at a rate of one every 5 minutes.
Required:
(i)                 The average time a vehicle must wait for service                            (2 marks)
(ii)               The average number of clients in the system                                   (2 marks)
(iii)            The probability of having three vehicles in the system                   (2 marks)                                              
(c) Ken Metals produce three products, A, B and C. The products yield a contribution of KES 800, 500 and 1000 respectively. The products use a machine which has 400 hours capacity per month and each unit of the products uses 2, 3 and 1 hour of this machine respectively. There are only 150 units available of special component per month and products A and C use one unit each. There are 200kgs of a special alloy, product A uses 2kgs, and product C uses 4kgs per unit .There is an agreement with a trade union to produce no more than 50 units of product B in the month. The company wishes to find out the production plan which maximizes contribution,
i)        Write a linear program for this problem                                               (4 marks)                                    
ii)       The simplex solution of the above problem is given below. Interpret it
(5 marks)
       

x
y
z
S1
S2
S3
S4
b
S1
-0.5
0
0
1
-1
-0.75
0
100
z
1
0
1
1
2
0
0
150
y
0.5
1
0
0
0
0.25
0
50
x
-0.5
0
0
0
0
-0.25
1
0

450
0
0
0
1000
125
0
175000


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