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Linear Programming

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Linear Programming

  • This topic has 3 replies, 2 voices, and was last updated 1 week ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 24, 2023 at 8:24 pm #677307
    sarbrina
    Participant
    • Topics: 22
    • Replies: 49
    • ☆☆

    Hi Mr. Maffot

    I need help solving this question. The first part of the question i completely understand. Its the second part i need help with.
    Please explain the second part of the question for me. How do i find the constraints?

    Q.) W plc provides two cleaning services for staff uniforms to hotels and similar businesses. One of the
    services is a laundry service and the other is a dry cleaning service. Both of the services use the
    same resources, but in different quantities. Details of the expected resource requirements, revenues
    and costs of each service are shown below:

    Laundry Dry cleaning
    $ per service $ per service
    Selling price 7.00 12.00
    Cleaning materials ($10.00 per litre) 2.00 3.00
    Direct labour ($6.00 per hour) 1.20 2.00
    Variable machine cost ($3.00 per hour) 0.50 1.50
    Fixed costs * 1.15 2.25
    Profit 2.15 3.25

    * The fixed costs per service were based on meeting the budget demand for December 2003.
    W plc has already prepared its budget for December based on sales and operational activities of
    8,000 laundry services and 10,500 dry cleaning services. but it is now revising its plans because of
    forecast resource problems.
    The maximum resources expected to be available in December 2003 are:
    Cleaning materials 5,000 litres
    Direct labour hours 6,000 hours
    Machine hours 5,000 hours
    W plc has one particular contract which it entered into six months ago with a local hotel to
    guarantee 1,200 laundry services and 2,000 dry cleaning services every month. If W plc does not
    honour this contract it has to pay substantial financial penalties to the local hotel.
    Required:
    (a) Calculate the mix of services that should be provided by W plc so as to maximise its profit
    for December 2003.
    (9 marks)
    (b) The Sales Director has reviewed the selling prices being used by W plc and has provided
    the following further information:
    ? if the price for laundry were to be reduced to $5.60 per service, this would increase
    the demand to 14,000 services;
    ? if the price for dry cleaning were to be increased to $13.20 per service, this would
    reduce the demand to 9,975 services.
    Required:
    Assuming that such selling price changes would apply to all sales and that the resource limitations
    continue to apply, and that a graphical linear programming solution is to be used to maximise
    profit.
    (i) state the constraints and objective function; (6 marks)
    (ii) use a graphical linear programming solution to advise W plc whether it should revise its
    selling prices.

    January 25, 2023 at 7:56 am #677341
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51562
    • ☆☆☆☆☆

    Please do not type out a full question and expect to be provided with a full answer. You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.

    Have you watched my free lectures on linear programming, which explain everything needed for this question. (Of course the whole of this question could not be asked in the exam because you cannot be required to draw a graph as I do explain in my lectures.)

    January 25, 2023 at 12:24 pm #677355
    sarbrina
    Participant
    • Topics: 22
    • Replies: 49
    • ☆☆

    Hi Mr. Maffot..I actually do not have the answer to this question unfortunately. I found the question online doing questions and i searched for the answer but i couldnt find it anywhere. Please explain how to formulate the constraints. I completely understand how to find the objective function.

    Am i correct in saying that the constraints is:

    C.M = 0.2x + 0.3y=5000
    D.L = 0.2x+0.33y=6000
    V.M.C = 0.166x+0.5y=5000

    Thank you.!

    January 26, 2023 at 6:40 am #677369
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51562
    • ☆☆☆☆☆

    It is pointless attempting questions for which you do not have answers. You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and explanations. It looks as though your constraints are correct.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Linear Programming’ is closed to new replies.

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