ABM 54 (Production Management) Final Exam - Take Home SY 2012-2013 - 1st Semester

 ABM 56

Production Management

 FINAL EXAM

Name: ________________________________                                 Date: ____________

 Course/Section: ________________________                                  Rating: ___________

Test Problem (20 points each)

1. The following list of activities must be accomplished in order to complete a construction project:

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Activity             Time, weeks                             Predecessors

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A                                 3                                              None

B                                  8                                              None

C                                 4                                              A, B

D                                 2                                              B

E                                  1                                              A

F                                  7                                              C

G                                 5                                              E, F

H                                 6                                              D, F

I                                   8                                              G, H

J                                   9                                              I

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Construct the PERT diagram for this project. Note: This diagram will require dummy activities. Compute the expected project completion time and the early start, late start, and slack time for each activity. Determine the critical activities and critical path.

2. You have begun a business of your own and have decided to produce one or more of products A, B, C, and D. You have approached four banks—W, X, Y, and Z—with your ideas on these projects in order to obtain the necessary financing. The following table reflects the level of financing required for each project, the interest rate each of the banks is willing to charge on loans for each of the projects, and the total line of credit each of the banks is willing to lend you.

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                                                                   Project (Interest Rate)

Bank                     ----------------------------------------------------    Max. Credit

A             B               C             D

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W                                   16%        16%           19%         17%                 20,000.00

X                                    15           17             20           16                    10,000.00

V                                    17           16             18           18                    20,000.00

Z                                    18           19             19           18                    30,000.00

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Amount required                40,000   30,000.00  20,000.00  20,000.00

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As each project should be as attractive profitwise as any other, you have decided to undertake all or part of any number of projects you can at the lowest total payment of interest. Which projects should you adopt and from which banks should you finance them.    .

3. Jim Jones manufactures inexpensive set-it-up-yourself furniture for students. He currently makes two products—bookcases and tables. Each bookcase contributes Php16 to profit, and each table, Php15. Each product passes through two manufacturing points, cutting and finishing. Bookcases take 4 hours a unit in cutting and 4 hours in finishing, Tables 'require 3 hours a unit in cutting and 5 in finishing. There are currently 40 hours available in cutting and 30 in finishing. Find by graphic linear programming the product mix that would produce the maximum contribution for Jim.

4. The purchasing agent of the Acme Plumbing Company wishes to purchase 3,000 feet of pipe A, 2,000 feet of pipe B, and 3,000 feet of pipe C. Three manufacturers (X, Y, and Z) are willing to provide the needed pipe at the costs given below (in pesos per 1,000 feet). Acme wants delivery within 1 month. Manufacturer X can produce up to 6,000 feet of pipe (total of types A, B, and C). Manufacturer Y can provide 5,000 feet, and Manufacturer Z can produce 3,000 feet,

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Type of pipe

(cost /1,000 ft)

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Manufacturer                A                     B                      C                     Available

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X                                 Php290            Php300            Php260            6,000

Y                                 310                  280                  290              5,000

Z                                 300                  280                  280              3,000

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Amount required           3,000ft             2,000ft             3,000 ft ..

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Determine what Acme’s least-cost purchasing plan for the pipe should be.

5. The Westmoreland Company produces two brands of rabbit food called Diet Sup and Gro-More. Contribution from Diet-Sup is Php1.50 per 7-pound bag while Gro-More yields a contribution of Php1.10 per 3-pound bag. Both products are blended from two basic ingredients—a protein source and a carbohydrate source. The products require the following ingredients:

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                                                            Protein                         Carbohydrate

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Diet-Sup (74b bag)                              4 lb                              3 lb

Gro-More (34b bag)                            2 lb                              1 lb

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 During the coming week, the company wishes to produce the largest profit possible in order to help alleviate a serious shortage: of cash. For the week only 700 pounds of protein source and 500 pounds of carbohydrate source are available. How many bags of each product should be produced to maximize profit? Use graphic linear programming to find the answer.

Note: Deadline for submission on Friday October 19, 2012 - 5:00 pm ( No extension)