QUESTION ONE In August 2020 government through the Republican President, Zambia launched a K470 million Multi sectoral youth empowerment programme. The Head of State said during the launch in Ndola that government will listen more to young people and address their concerns. As a result of this initiative government had identified oil refining as a major business which youths can venture into. Data collected from Indeni oil refinery (specimen) shows that there are two blending processes of which the inputs and outputs per production run are as follows Inputs Outputs Crude A Crude B Petrol Kerosene Process 1 53 58 Process 2 45 44 The maximum amount available of crude A and B is 200 units and 150 units respectively. Market requirements show that at least 100 units of Petrol and 80 units of Kerosene must be produced. The profits per production run from process 1 and 2 are $3 and $4 respectively. You have been hired as a consultant to help these youth groups make refining a profitable business Required: i. From the information extracted from Indeni formulate the problem as a linear programming problem ii. Using the graphical method procedure, solve to calculate the amount of profit to be realized from this venture iii. The youth group is also keen in knowing which inputs or outputs are key to the profitability of this business. Where should they concentrate on and why?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
QUESTION ONE
In August 2020 government through the Republican President, Zambia launched a K470 million Multi sectoral youth empowerment programme. The Head of State said during the launch in Ndola that government will listen more to young people and address their concerns. As a result of this initiative government had identified oil refining as a major business which youths can venture into. Data collected from Indeni oil refinery (specimen) shows that there are two blending processes of which the inputs and outputs per production run are as follows
| Inputs | Outputs | |
| Crude A Crude B | Petrol Kerosene | |
| Process 1 | 53 | 58 |
| Process 2 | 45 | 44 |
The maximum amount available of crude A and B is 200 units and 150 units respectively.
Market requirements show that at least 100 units of Petrol and 80 units of Kerosene
must be produced. The profits per production run from process 1 and 2 are $3 and $4
respectively. You have been hired as a consultant to help these youth groups make
refining a profitable business
Required:
i. From the information extracted from Indeni formulate the problem as a linear programming problem
ii. Using the graphical method procedure, solve to calculate the amount of profit to be realized from this venture
iii. The youth group is also keen in knowing which inputs or outputs are key to the profitability of this business. Where should they concentrate on and why?
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