SMK SACRED HEART, SIBU Section A [45 marks] Answer all questions in this section. 1.

A factory in Sibu manufactures three products X, Y and Z. The production of these products require two types of raw materials, M and N as the table below, Raw materials Mass (g) required per unit of the product X Y Z M 2 2 3 N 3 4 10 Profit (RM ) per unit 1 3 6 The daily supplies of M and N respectively are limited to 5 kg and 12 kg. (a) Formulate the problem as a linear programming model [ 4 marks ] (b) By using the simplex method, find the maximum daily profit. [ 4 marks ] Consider the payoff table below that shows the percentage increase in market share for Company A for each combination of Company A and Company B strategies. Company B Increase Quantity Extend Advertising Discounts Warranty b1 b2 b3 Increase Advertising a1 4 3 2 Company A Quantity Discounts a2 -1 4 1 Extend Warranty a3 5 -2 5 (a ) Assume that Company B implements a mixed strategy by using b2 with probability 0.5 and strategy b3 with probability 0.5. Company B decides never to use strategy b1. (i) What is the expected payoff to Company A under each of its three strategies ? (ii) What strategies company A will use? (iii) Determine the value of the game. [ 10 marks ] 3 A company want to commence on a building project for a new factory. The major activities of the project are listed in the table below. Preceding Duration Number of activities (days) workers required A Commission contractor B,C 14 2 B Prepare the plan 10 3 C Obtain approval 15 2 D Prepare materials A 7 4 E Prepare site C 12 2 F Construct the building E 29 15 G Prepare wiring D,E 20 5 H Conduct inspection G 8 3 (a) Draw an AON activity network for the project. [ 5 marks ] (b) (i) Determine the critical path [ 1 mark ] (ii) Find the minimum time required to complete the project [ 1 mark ] (c) Draw a Gnatt chart and draw the resource histogram for the project if all activities start as early as possible. [ 4 marks ] 4 Gabriel want to invest RM 20 000 for 30 years at 11 % interest compounded quarterly. How much money will he has at the end of the 30 years ? [ 3 marks ] If he starts to invest RM 500 quarterly at the first quarter of second year, how much money will he has at the end of the 30 years ? [ 3 marks ] Activity

A toy store must pay $10.25 each for a popular computer game. The store's fixed cost for this game is $1302. The store sells each one of these games for $15.50. a) Write the cost function [ 1 mark ] b) write the revenue function [ 1 mark ] c) write the profit function [ 1 mark ] d) find the break-even quantity. [ 2 marks ] Pretty Soap company has a product for which the assumptions of the inventory model with backorders are valid. Information obtained by the company is as follows, Demand per year : 2000 units, Cost per unit : RM 50 Holding cost : RM 10 per unit per year Ordering Cost : RM 25 per order The company is considering the possibility of allowing some backorders to occur for the product. The annual backorder cost is estimated to be RM 30 per unit per year. Find the optimal order quantity and the planned backorders . Hence, find the value of maximum inventory . [ 5 marks ] Section B [15 marks] Answer one question in this section

(a) Nicholas buys a unit af the flat for RM 90 000. He puts RM 10 000 down and then finances the rest at 9 % interest compounded monthly for 25 years. (i) find his monthly payments, [ 3 marks ] (ii) find the total amounts he pays for the flat. [ 2 marks ] (b) Assume that the fixed cost is $1000 and the average variable cost of producing q units is 500 0.4q . What should you set as the selling price if you want to break even when output is 800 units? [ 5 marks ] (c) Using a graphical method, find the maximum value of the function f x 4 y 2 y x 10, subject to the following inequalities : 2 y 3 x 24, [ 5 marks ] x 0, y 0 y 4x

8.

Winwin Auto purchases a component used in the manufature automobile generators directly from the supplier. Winwin,s generator production operation, which is operated at a constant rate, will require 1000 components per month throughout the year . ( 12 000 units annually ) Assume that the ordering cost are $ 25 per order, the unit cost is $ 2.50 per component and annual holding costs are 20 % of the value of the inventory. Winwin has 250 working days per year and a lead time of 5 days. Answer the following inventory policy questions. (a) (i) What is the EOQ for this component ? (ii) What is the reorder point ? (iii) What is the cycle time ? (iv) What are the total annual holding and ordering costs associated with your recommended EOQ ? (b) Suppose the Winwin Auto decided to operate with a backorder inventory policy. Backorder costs are estimated to be $ 5 per unit per year. Identify the following : (i) Minimum cost order quantity. (ii) Maximum number of backorders (iii) Maximum inventory (iv) Cycle time (v ) Total annual cost [ 15 marks ]