Question Tag: Constraints

Search 500 + past questions and counting.

PM – Nov 2024 – L2 – Q1 – Decision-Making Techniques

Optimization of Oshimiri Nigeria Limited's production plan to maximize profits under resource constraints using linear programming.

Question

Oshimiri Nigeria Limited, a company based in Aba, produces two grades of industrial vanish. The selling price and associated unit variable costs for vanish Grade A and Grade B are shown below:

Particulars	Grade A	Grade B
Selling Price	N2,100	N1,500
Material X (N240/kg)	N480	N240
Skilled Labour (N144/hr)	N720	N288
Unskilled Labour (N60/hr)	N120	N180
Variable Overhead (N84/machine hr)	N168	N336

The fixed overhead costs are N2,600,000 per month. The company plans to maximize profits.

The availability of resources for the following month is as follows:

Material X: 25,000 Kg
Skilled Labour: 48,000 hours
Unskilled Labour: 39,000 hours
Machine hours: 50,000 hours

Required:

a. Identify the objective function and the constraints of the model to be used in determining the optimum production plan for the following month. (5 Marks)

b. Determine the optimum production plan for the month and the associated profit. (5 Marks)

c. Explain the concept and significance of dual prices and slack variables in the context of the model used by the company in this scenario. (4 Marks)

d. Calculate the dual prices for constraints identified in this scenario. (10 Marks)

e. Suggest ways in which the management can overcome the capacity constraints identified above during the month and the cost implications. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capacity Constraints, Constraints, Dual Prices, Linear Programming, Objective Function, Production Plan, Slack Variables
Level: Level 2

Topic: Decision-making techniques

QTB – Nov 2014 – L1 – SA – Q7 – Operations Research

Identifies the components necessary for a linear programming problem.

Question

The building blocks for a linear programming problem are:
A. A linear objective function and equality of constraints
B. A linear objective function and inequality constraints
C. A linear objective function, structural linear inequality constraints, and non-negativity constraints on the decision variables
D. A linear objective function, structural linear inequality constraints, and negativity constraints on the decision variables
E. A linear objective function and structural non-linear inequality constraints

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Linear Programming, Objective Function
Level: Level 1

Topic: Operations Research
Series: NOV 2014

QTB – May 2016 – L1 – SB – Q2b – Mathematics

This question involves deriving the marginal revenue function and various constraints related to product demand and labor hours.

Question

i. The Students Union of a University plans to have an end-of-year party for all its members. The party is scheduled to take place at a major hotel that can accommodate up to 500 persons. The hotel was to charge N800 per person. At this gate fee, the hotel expects to sell 400 tickets. Market research postulates that for every N40 increase or reduction in the ticket price, the demand will fall or increase by 16 tickets.

Required:
If the variable cost per student for the dinner is N210, determine the Marginal Revenue (MR) function.
(6 marks)

ii. JANG PLC produces and sells two products G and H. G and H respectively make contributions of N10 and N15. The company wishes to maximize its profit. 4,150 units and 3,175 units of G and H, respectively, are to be sold. Direct labor hours per unit are 2.5 hours and 1.5 hours for G and H, while machine hours per unit are 45 minutes and 3 hours for G and H, respectively. Total direct labor hours available and total machine hours available are, respectively, 18,000 hours and 10,000 hours.

Required:
Derive the following constraints: the direct labor, machine time, sales demand for G, sales demand for H, and non-negativity constraints. (4marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Linear Programming, Marginal Revenue, Sales Demand
Level: Level 1

Topic: Mathematics
Series: MAY 2016

QTB – Nov 2015 – L1 – SB – Q6 – Operations Research

Formulate a linear programming problem for optimizing investment in conservative and speculative inventories under given constraints.

Question

Assume that the management of Community Bank Limited wants to invest up to N100,000 in inventory considered to be either conservative or speculative. The company’s board-approved investment policy is that the investment in conservative inventory should be at most N80,000, while the investment in the speculative inventory should be at least N12,000. Assume further that N1.6 return is expected on each naira invested in the conservative inventory, N2.0 return is expected on each investment in the speculative inventory, and that monetary policy regulations require that investment in the speculative inventory should be at most one-third of the investment in the conservative inventory.

Required:

a. State the type of Operations Research problem described above. (2 Marks)

b. Formulate mathematically the:

i. Objective function. (4 Marks)

ii. Constraint inequalities. (8 Marks)

iii. Investment problem. (6 Marks)

(Total: 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Inventory Management, Investment policy, Linear Programming, Optimization
Level: Level 1

Topic: Operations Research
Series: NOV 2015

MA – Nov 2019 – L2 – Q2a – Decision-Making Techniques

Explains how profit maximization leads to shareholder wealth maximization and how constraints, satisficing, and optimizing affect decision-making.

Question

a) Management Accountants are often engaged in decision-making processes that would yield optimal results, given a limited amount of resources available. Such decisions are expected to yield to shareholder wealth maximization through the maximization of profits. Unfortunately, however, constraints sometimes lead to satisficing rather than optimizing decision making.

Required:
i) Explain how profit maximization can lead to shareholder wealth maximization. (4 marks)

ii) Explain how constraints, satisficing, and optimizing affect the management accountant’s decision-making. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Decision Making, Optimizing, Profit Maximization, Satisficing, Shareholder Wealth Maximization

Topic: Decision making techniques
Series: NOV 2019

QT – May 2019 – L1 – Q7a – Linear Programming

Formulate a linear programming model for maximizing profit using decision variables and constraints.

Question

Joycarpap Ltd manufactures and sells three models of affordable toys: Car, Joy, and Pap. Each model requires a specific amount of fabrication hours, material worth, and assembly hours as shown in the table below:

There are 210 fabrication hours available, 170 hours of assembly available, and materials worth GH¢200 in stock. Market research conducted by the company revealed that demand for the toys is such that, in whatever combination of the three models produced, all of the output can be sold within a week.

Each Car contributes GH¢15 to profit, each Joy contributes GH¢20 to profit, and each Pap contributes GH¢14 to profit. Using $X_{1}$ , $X_{2}$ , $X_{3}$ as decision variables, and $S_{1}$ , $S_{2}$ , $S_{3}$ as slack variables, and $P$ as total profit:

Required:
i) Formulate a linear programming problem. (4 marks)

ii) Set up the initial Simplex Tableau. (4 marks)

iii) Determine the total profit in the first iteration. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Decision Variables, Linear Programming, Profit Maximization, Simplex Method
Level: Level 1

Topic: Linear Programming
Series: MAY 2019

QT – May 2017 – L1 – Q4a – Linear Programming

Graphically represent constraints and determine the optimum solution.

Question

A particular linear programming problem is formulated as follows:

Subject to the constraints:

Required:

i) Draw these constraints on the same graph paper.

ii) Determine the optimum solution.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Graphical Solution, Linear Programming
Level: Level 1

Topic: Linear Programming
Series: MAY 2017

CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics

Explain two constraints on relevance and faithful representation of financial statements.

Question

Two key constraints on relevance and faithful representation in financial statements are:

Timeliness:
- Information must be provided in a timely manner to be useful. However, if there is a delay in reporting, the relevance of the information diminishes. To achieve timeliness, financial statements may need to be prepared before all details of a transaction or event are fully known, which can impair faithful representation. Hence, there is often a trade-off between timeliness and accuracy.
Cost vs. Benefit:
- There is a balance between the cost of providing financial information and the benefit derived from it. In some cases, the cost of collecting and reporting detailed information may outweigh the benefits to users. This constraint limits how much detail can be provided, potentially affecting both the relevance and faithfulness of the representation of financial data.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Faithful Representation, Financial Reporting, Relevance
Level: Level 3

Topic: Regulatory Framework and Ethics
Series: NOV 2016

PSAF – Dec 2023 – L2 – Q5c – General purpose financial reporting framework

Explain constraints on the information included in General-Purpose Financial Reports.

Question

Many individuals with an interest in the performance of a public entity do not have the power to require the entity to produce customized financial or performance information. Instead, they rely on the General-Purpose Financial Reports that public entities provide. General-Purpose Financial Reports are designed to provide financial and, where required, performance information to a range of users. To be relevant, the information must meet the accountability and/or decision-making needs of the users.

Required:
Explain TWO (2) constraints on the information included in General-Purpose Financial Reports. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Financial Reporting, General Purpose Financial Reports
Level: Level 2

Topic: General purpose financial reporting framework
Series: DEC 2023

PM – Nov 2024 – L2 – Q1 – Decision-Making Techniques

Optimization of Oshimiri Nigeria Limited's production plan to maximize profits under resource constraints using linear programming.

Question

Oshimiri Nigeria Limited, a company based in Aba, produces two grades of industrial vanish. The selling price and associated unit variable costs for vanish Grade A and Grade B are shown below:

Particulars	Grade A	Grade B
Selling Price	N2,100	N1,500
Material X (N240/kg)	N480	N240
Skilled Labour (N144/hr)	N720	N288
Unskilled Labour (N60/hr)	N120	N180
Variable Overhead (N84/machine hr)	N168	N336

The fixed overhead costs are N2,600,000 per month. The company plans to maximize profits.

The availability of resources for the following month is as follows:

Material X: 25,000 Kg
Skilled Labour: 48,000 hours
Unskilled Labour: 39,000 hours
Machine hours: 50,000 hours

Required:

a. Identify the objective function and the constraints of the model to be used in determining the optimum production plan for the following month. (5 Marks)

b. Determine the optimum production plan for the month and the associated profit. (5 Marks)

c. Explain the concept and significance of dual prices and slack variables in the context of the model used by the company in this scenario. (4 Marks)

d. Calculate the dual prices for constraints identified in this scenario. (10 Marks)

e. Suggest ways in which the management can overcome the capacity constraints identified above during the month and the cost implications. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capacity Constraints, Constraints, Dual Prices, Linear Programming, Objective Function, Production Plan, Slack Variables
Level: Level 2

Topic: Decision-making techniques

QTB – Nov 2014 – L1 – SA – Q7 – Operations Research

Identifies the components necessary for a linear programming problem.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Linear Programming, Objective Function
Level: Level 1

Topic: Operations Research
Series: NOV 2014

QTB – May 2016 – L1 – SB – Q2b – Mathematics

This question involves deriving the marginal revenue function and various constraints related to product demand and labor hours.

Question

Required:
If the variable cost per student for the dinner is N210, determine the Marginal Revenue (MR) function.
(6 marks)

Required:
Derive the following constraints: the direct labor, machine time, sales demand for G, sales demand for H, and non-negativity constraints. (4marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Linear Programming, Marginal Revenue, Sales Demand
Level: Level 1

Topic: Mathematics
Series: MAY 2016

QTB – Nov 2015 – L1 – SB – Q6 – Operations Research

Formulate a linear programming problem for optimizing investment in conservative and speculative inventories under given constraints.

Question

Required:

a. State the type of Operations Research problem described above. (2 Marks)

b. Formulate mathematically the:

i. Objective function. (4 Marks)

ii. Constraint inequalities. (8 Marks)

iii. Investment problem. (6 Marks)

(Total: 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Inventory Management, Investment policy, Linear Programming, Optimization
Level: Level 1

Topic: Operations Research
Series: NOV 2015

MA – Nov 2019 – L2 – Q2a – Decision-Making Techniques

Explains how profit maximization leads to shareholder wealth maximization and how constraints, satisficing, and optimizing affect decision-making.

Question

Required:
i) Explain how profit maximization can lead to shareholder wealth maximization. (4 marks)

ii) Explain how constraints, satisficing, and optimizing affect the management accountant’s decision-making. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Decision Making, Optimizing, Profit Maximization, Satisficing, Shareholder Wealth Maximization

Topic: Decision making techniques
Series: NOV 2019

QT – May 2019 – L1 – Q7a – Linear Programming

Formulate a linear programming model for maximizing profit using decision variables and constraints.

Question

Required:
i) Formulate a linear programming problem. (4 marks)

ii) Set up the initial Simplex Tableau. (4 marks)

iii) Determine the total profit in the first iteration. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Decision Variables, Linear Programming, Profit Maximization, Simplex Method
Level: Level 1

Topic: Linear Programming
Series: MAY 2019

QT – May 2017 – L1 – Q4a – Linear Programming

Graphically represent constraints and determine the optimum solution.

Question

A particular linear programming problem is formulated as follows:

Subject to the constraints:

Required:

i) Draw these constraints on the same graph paper.

ii) Determine the optimum solution.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Graphical Solution, Linear Programming
Level: Level 1

Topic: Linear Programming
Series: MAY 2017

CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics

Explain two constraints on relevance and faithful representation of financial statements.

Question

Two key constraints on relevance and faithful representation in financial statements are:

Timeliness:
- Information must be provided in a timely manner to be useful. However, if there is a delay in reporting, the relevance of the information diminishes. To achieve timeliness, financial statements may need to be prepared before all details of a transaction or event are fully known, which can impair faithful representation. Hence, there is often a trade-off between timeliness and accuracy.
Cost vs. Benefit:
- There is a balance between the cost of providing financial information and the benefit derived from it. In some cases, the cost of collecting and reporting detailed information may outweigh the benefits to users. This constraint limits how much detail can be provided, potentially affecting both the relevance and faithfulness of the representation of financial data.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Faithful Representation, Financial Reporting, Relevance
Level: Level 3

Topic: Regulatory Framework and Ethics
Series: NOV 2016

PSAF – Dec 2023 – L2 – Q5c – General purpose financial reporting framework

Explain constraints on the information included in General-Purpose Financial Reports.

Question

Required:
Explain TWO (2) constraints on the information included in General-Purpose Financial Reports. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constraints, Financial Reporting, General Purpose Financial Reports
Level: Level 2

Topic: General purpose financial reporting framework
Series: DEC 2023

Question Tag: Constraints

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

PM – Nov 2024 – L2 – Q1 – Decision-Making Techniques

Optimization of Oshimiri Nigeria Limited's production plan to maximize profits under resource constraints using linear programming.

You're reporting an error for "PM – Nov 2024 – L2 – Q1 – Decision-Making Techniques"

QTB – Nov 2014 – L1 – SA – Q7 – Operations Research

Identifies the components necessary for a linear programming problem.

You're reporting an error for "QTB – Nov 2014 – L1 – SA – Q7 – Operations Research"

QTB – May 2016 – L1 – SB – Q2b – Mathematics

This question involves deriving the marginal revenue function and various constraints related to product demand and labor hours.

You're reporting an error for "QTB – May 2016 – L1 – SB – Q2b – Mathematics"

QTB – Nov 2015 – L1 – SB – Q6 – Operations Research

Formulate a linear programming problem for optimizing investment in conservative and speculative inventories under given constraints.

You're reporting an error for "QTB – Nov 2015 – L1 – SB – Q6 – Operations Research"

MA – Nov 2019 – L2 – Q2a – Decision-Making Techniques

Explains how profit maximization leads to shareholder wealth maximization and how constraints, satisficing, and optimizing affect decision-making.

You're reporting an error for "MA – Nov 2019 – L2 – Q2a – Decision-Making Techniques"

QT – May 2019 – L1 – Q7a – Linear Programming

Formulate a linear programming model for maximizing profit using decision variables and constraints.

You're reporting an error for "QT – May 2019 – L1 – Q7a – Linear Programming"

QT – May 2017 – L1 – Q4a – Linear Programming

Graphically represent constraints and determine the optimum solution.

You're reporting an error for "QT – May 2017 – L1 – Q4a – Linear Programming"

CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics

Explain two constraints on relevance and faithful representation of financial statements.

You're reporting an error for "CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics"

PSAF – Dec 2023 – L2 – Q5c – General purpose financial reporting framework

Explain constraints on the information included in General-Purpose Financial Reports.

You're reporting an error for "PSAF – Dec 2023 – L2 – Q5c – General purpose financial reporting framework"

PM – Nov 2024 – L2 – Q1 – Decision-Making Techniques

Optimization of Oshimiri Nigeria Limited's production plan to maximize profits under resource constraints using linear programming.

You're reporting an error for "PM – Nov 2024 – L2 – Q1 – Decision-Making Techniques"

QTB – Nov 2014 – L1 – SA – Q7 – Operations Research

Identifies the components necessary for a linear programming problem.

You're reporting an error for "QTB – Nov 2014 – L1 – SA – Q7 – Operations Research"

QTB – May 2016 – L1 – SB – Q2b – Mathematics

This question involves deriving the marginal revenue function and various constraints related to product demand and labor hours.

You're reporting an error for "QTB – May 2016 – L1 – SB – Q2b – Mathematics"

QTB – Nov 2015 – L1 – SB – Q6 – Operations Research

Formulate a linear programming problem for optimizing investment in conservative and speculative inventories under given constraints.

You're reporting an error for "QTB – Nov 2015 – L1 – SB – Q6 – Operations Research"

MA – Nov 2019 – L2 – Q2a – Decision-Making Techniques

Explains how profit maximization leads to shareholder wealth maximization and how constraints, satisficing, and optimizing affect decision-making.

You're reporting an error for "MA – Nov 2019 – L2 – Q2a – Decision-Making Techniques"

QT – May 2019 – L1 – Q7a – Linear Programming

Formulate a linear programming model for maximizing profit using decision variables and constraints.

You're reporting an error for "QT – May 2019 – L1 – Q7a – Linear Programming"

QT – May 2017 – L1 – Q4a – Linear Programming

Graphically represent constraints and determine the optimum solution.

You're reporting an error for "QT – May 2017 – L1 – Q4a – Linear Programming"

CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics

Explain two constraints on relevance and faithful representation of financial statements.

You're reporting an error for "CR – Nov 2016 – L3 – Q5d – Regulatory framework and ethics"

PSAF – Dec 2023 – L2 – Q5c – General purpose financial reporting framework

Explain constraints on the information included in General-Purpose Financial Reports.

You're reporting an error for "PSAF – Dec 2023 – L2 – Q5c – General purpose financial reporting framework"

Our offerings

Contact Info

Customer

Get In Touch

admin