# SMU MBA ASSIGNMENTS

## An organisation produces X1 and X2 units of products R and S, respectively. In this case, the objective function and constraints are expressed as follows:

December 02, 2017 By: Meliza Category: 1st SEM

1. An organisation produces X1 and X2 units of products R and S, respectively. In this case, the objective function and constraints are expressed as follows:

Maximise

Maximise                        Z = 60X1 + 120X2

Subject to,                     3X1 + 6X2   ≤   240         Raw material constraint

2X1 + 4X2   ≤   800        Labour hours constraint

X1, X2         ≥   0            Non-negativity condition

Use graphical method to determine how many units of products R and S the organisation should produce to maximise its profits.

Answer 2(b) – Here,

Let us plot the constraint lines on a graph by calculating the values of x1 and x2 with the help of the terminal points. The calculation of x1 and x2 values with the help of terminal points is given as follows:

For constraint equation: 3X1 + 6X2   ≤   240 ,

Substitute x1 = 0 in the equation, then x2 = 240/6

X2 = 40

In case, substituting x2 = 0,

Then,  x1 = 240/3

X1 = 80

Similarly, for constraint equation 2×1 + 4×2 ≤800,

substituting x1 = 0, Then, x2 = 800/4

x2 = 200

In case, substituting x2 = 0,

Then, x1 = 800/2

x1 = 400

Let us plot the calculated equations of x1 and x2 on a graph, which is shown in Fig——————