Question: QUESTION TWO (a) A factory has decided to diversify its activities. The data collected for the sales and production departments are summarized below: Potential demand


QUESTION TWO (a) A factory has decided to diversify its activities. The data collected for the sales and production departments are summarized below: Potential demand exists for two products A and B. Market can absorb any quantity of A, whereas the share of B for this organization is expected to be not more than 400 units per month. For every three units of B produced there is one unit of a by - product which sells at K3 per unit and only 100 units of this by - product can be sold per month. Contribution per unit of products A and B is expected to be K6 and K8 respectively. These products require three different processes and the time required per unit of product is given in the table below: Process Product Product B Available hours 900 600 1200 III Find the product mix to optimize the contribution by using Simplex Method. in.nannunennaiLL I manamaamalinaalinaatin Alan Find the product mix to optimize the contribution by using Simplex Method. (b) A company has 8 grade 1 and 10 grade II inspectors for quality control inspection. Atleast 1800 pieces must be inspected in an 8-hour day. Grade I inspector can check 25 pieces an hour with an accuracy of 98%. Grade II inspector can check 15 pieces an hour with an accuracy of 95%. The wage rate of a grade I inspector is K4 per hour, while that of grade II inspector is K3 per hour. Any error made by an inspector costs K2 to the company. Using Simplex method, determine the optimal assignment of inspectors that will minimize the daily inspection cost. QUESTION TWO (a) A factory has decided to diversify its activities. The data collected for the sales and production departments are summarized below: Potential demand exists for two products A and B. Market can absorb any quantity of A, whereas the share of B for this organization is expected to be not more than 400 units per month. For every three units of B produced there is one unit of a by - product which sells at K3 per unit and only 100 units of this by - product can be sold per month. Contribution per unit of products A and B is expected to be K6 and K8 respectively. These products require three different processes and the time required per unit of product is given in the table below: Process Product Product B Available hours 900 600 1200 III Find the product mix to optimize the contribution by using Simplex Method. in.nannunennaiLL I manamaamalinaalinaatin Alan Find the product mix to optimize the contribution by using Simplex Method. (b) A company has 8 grade 1 and 10 grade II inspectors for quality control inspection. Atleast 1800 pieces must be inspected in an 8-hour day. Grade I inspector can check 25 pieces an hour with an accuracy of 98%. Grade II inspector can check 15 pieces an hour with an accuracy of 95%. The wage rate of a grade I inspector is K4 per hour, while that of grade II inspector is K3 per hour. Any error made by an inspector costs K2 to the company. Using Simplex method, determine the optimal assignment of inspectors that will minimize the daily inspection cost
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