Jimma University

College of Business and Economics

Department of Management
MA Program in Logistics & Supply Chain Management
Individual Assignment for the course Quantitative Analysis for Decision making in
Logistics & Supply Chain Management
1. Distinguish between quantitative and qualitative decision making process.
2. Why are models required?
3. Identify application areas of Operations Research in business.
4. Briefly explain the criteria of model classification.
5. Give examples of allocation models.
6. Explain the milestones in the development of OR/MS/DS/SS.
Attempt all the following word problems and show all the necessary steps you
follow to answer the required questions.
7. The Flair Furniture Company produces inexpensive tables and chairs. The production
process for each is similar in that both require a certain number of hours of carpentry
work and a certain number of labor hours in the painting and varnishing department.
Each table takes 4 hours of carpentry and 2 hours in the painting and varnishing shop.
Each chair requires 3 hours in carpentry and 1 hour in painting and varnishing. During
the current production period, 240 hours of carpentry time are available and 100
hours in painting and varnishing time are available. Each table sold yields a profit of
$70; each chair produced is sold for a $50 profit. Flair Furniture’s problem is to
determine the best possible combination of tables and chairs to manufacture in order
to reach the maximum profit.
Required:
A. Develop a Linear Programing Model.
B. Solve the LPP by using;
i. Graphical method
ii. Simplex algorithm method
 8. A Medical Supply Company produces catheters in packs at three productions facilities.
The company ships the packs from the production facilities to four warehouses. The
table shows the costs per pack to ship to the four warehouses.

To Seattle New York Phoenix Miami Supply

From
19 3 7 21 100

Juarez
Seoul 15 21 18 6 300

Telaviv 11 14 15 22 200

Demand 150 100 200 150 600

Required:

i. Form a general linear programing form (standard form).

ii. Find the optimum solution by using; 1. NWM, 2. Least-cost method, 3. VAM and
check its optimality by using;

a. Stepping-stone method

b. MODI for evaluation purpose.

9. A marketing manager in XYZ Company wants to assign 4 salespersons to 4 regions. The

table below summarizes the expected monthly sales revenue (in 1000’s of Br.) that can
be generated by each sales person in each region.
 Regions

Sales West South East North

Perso
n
Alemu 50 40 35 42
Bedad 35 30 29 27
a
Chaltu 28 40 25 38
Ahme 26 35 30 34
d

Required:

a. Form the general linear programing/ the standard form.

b. Find the optimal assignment schedule that maximizes expected sales revenue.

c. What is the expected total revenue?

10. A small ink manufacturer produces a certain type of ink at a total average cost 3 birr
per bottle and sells at a price of 5 birr per bottle. The ink is produced over the week-
end and is sold during the following week. According to the past experience the weekly
demand has never been less than 78 or greater than 80 bottle in his place. From his
experience the manufacturer determined probability of occurrence for the three
events 0.2, 0.5 and 0.3 from the first to the third events respectively. The manufacturer
has 0.7 % of level of optimism. Based on the given information You are required to
a. Formulate pay off table.
b. Select the best strategy based on uncertain environment
c. Select the best strategy based on uncertain environment