Quantitative Methods in Management

Summary:

In this Quantitative Methods in Management note, several problems related to quantitative methods in management are addressed. The first problem focuses on X company, which produces chairs. The fixed monthly cost of production is $10,000, and the variable cost per chair is $50. The selling price of each chair is $130. The total cost, revenue, and profit are calculated for a monthly volume of 250 chairs. Additionally, the break-even volume for the company is determined, and a graphical illustration of the break-even volume is provided.

The second problem concerns a company that operates two assembly lines and produces two products. The available hours for each assembly line and the hours required for each product on each line are given, along with the profit per unit for each product. A linear programming model is formulated to maximize profit, and graphical analysis is used to solve the model.

The third problem involves designing an overhead conveyor system for a manufacturing plant. The network of possible conveyor routes through the plant is provided, along with the lengths along each branch. The shortest conveyor route from the distribution/inventory centre to each of the other areas of the plant is determined.

The fourth problem requires constructing a minimum spanning tree for a given network with indicated distances between nodes. The minimum spanning tree is developed by selecting the path with the minimum distance at each step.

Lastly, the fifth problem focuses on determining the maximum flows from a source node to a destination node in a network with indicated flow capacities along each branch. The maximum flows and the flow along each branch are determined using flow analysis techniques.

Excerpt:

MAN502 – Quantitative Methods in Management 

• X company produces. The fixed monthly cost of production is $10.000, and the variable cost per chair is $50. The chairs sell for $130 apiece.
  1. For a monthly volume of 250 chairs, determine the total cost, total revenue and profit.
  2. Determine the monthly break-even volume for the X
  3. Graphically illustrate the break-even volume for the X

Answer:

1. For a monthly volume of 250 chairs, determine the total cost, total revenue and profit.

Solution:

Fixed monthly cost = Cf = $10000

Variable cost = Cv = $ 50

Sale price per unit = p = $130

Monthly volume = v = 250 chairs