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    Management Science: Assignment # 2

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    Aneeqa Kiran
    The document presents a linear programming model to allocate a $75 million health budget across 8 areas to minimize total health diseases. The model must allocate at least $22 million combined to 3 areas and at least 25% of the requested amount to each area. It provides the optimal allocation amounts that achieve the minimum 5.0135% total health diseases ratio. The allocation results in $29.85 million of unallocated budget and surpluses allocated to some areas to meet the constraints.

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    Management Science: Assignment # 2

    Uploaded by

    Aneeqa Kiran
    60 views5 pages
    The document presents a linear programming model to allocate a $75 million health budget across 8 areas to minimize total health diseases. The model must allocate at least $22 million combined to 3 areas and at least 25% of the requested amount to each area. It provides the optimal allocation amounts that achieve the minimum 5.0135% total health diseases ratio. The allocation results in $29.85 million of unallocated budget and surpluses allocated to some areas to meet the constraints.

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    Management Science

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    The document presents a linear programming model to allocate a $75 million health budget across 8 areas to minimize total health diseases. The model must allocate at least $22 million combined to 3 areas and at least 25% of the requested amount to each area. It provides the optimal allocation amounts that achieve the minimum 5.0135% total health diseases ratio. The allocation results in $29.85 million of unallocated budget and surpluses allocated to some areas to meet the constraints.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    60 views5 pages

    Management Science: Assignment # 2

    Uploaded by

    Aneeqa Kiran
    The document presents a linear programming model to allocate a $75 million health budget across 8 areas to minimize total health diseases. The model must allocate at least $22 million combined to 3 areas and at least 25% of the requested amount to each area. It provides the optimal allocation amounts that achieve the minimum 5.0135% total health diseases ratio. The allocation results in $29.85 million of unallocated budget and surpluses allocated to some areas to meet the constraints.

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    Management Science

    Assignment # 2
    Presented by members of Group# 16
    Shahrukh Ahmed Khan (40859)
    Fahad Fida (40860)
    Danish Khan (21587)
    The state agency has a budget of $ 75 Million in the form of grants for projects in the area of
    Health from Government. A management review team consisting of Doctors, Pharmacists &
    food technologist and bureaucrats initiates study to identify the problems related to health face
    by the citizens and to access that which key functions and areas needed to work for or to make
    them work with full capacity to prevent these diseases and illness. Management reviewed
    different functions of health in terms of the most needed to the citizens and they have
    identified with the most mandatory eight needed functions for development and budget
    release which needs to be done on urgent basis. Each of the function have been evaluated and
    scored in relation to the health diseases occurred from it to citizens due to the unavailability or
    lacking of proper functionality of these projects cause of many reasons. The estimated health
    diseases ratio causes to the people in the state from each of the area is given below:

    Health disease ratio Requested level of


    Functions/Area in citizens (%age) funding ($ in millions)
    Food authority 10 10
    District Health Authority 11 12
    Provision of medicines 9 15
    Free dialysis facilities 4 7.2
    Primary & Secondary healthcare 8 10.8
    Clean water program 17 24
    Lady Health program 7 9
    Laboratories 6 8

    Above table also shows the requested level of funding asked from respective departments
    related to health state agency. These figures represent the maximum amount, which will be
    awarded to any project. The agency can give any amount up to the indicated maximum for a
    given project. Similarly, Primer of the state mandated that the clean water program should be
    given at least 60% of the requested amount.

    Following constraints should also be considered,

    1. Combined funding for the food authority, district health authority and provisions of
    medicines should be at least $22 million.
    2. Each project should receive at least 25% of the requested amount.

    Formulate a LP model to determine the amount of money to be awarded to each of the project
    in order to minimize health diseases ratio.
    C= 0.086X1 + 0.11X2 + 0.09X3 + 0.04X4 + 0.08X5 + 0.17X6 + 0.07X7 + 0.06X8

    s.t : X1 + X2 + X3 + X4 + X5 + X6 + X7 + X8 <= 75
    X6 >= 14.4
    X1 + X2 + X3 >= 22
    X1>= 2.5
    X2>= 3
    X3>= 3.75
    X4>= 1.8
    X5>= 2.7
    X6>= 6
    X7>= 2.25
    X8>= 2
    X1<= 10
    X2<= 12
    X3<= 15
    X4<= 7.2
    X5<= 10.8
    X6<= 24
    X7<= 9
    X8<= 8

    Solution

    Optimal Values of Variable :

    Allocated budget after management review


    Functions/Area
    ($ in millions)
    Food authority 10
    District Health Authority 3
    Provision of medicines 9
    Free dialysis facilities 1.8
    Primary & Secondary healthcare 2.7
    Clean water program 14.4
    Lady Health program 2.25
    Laboratories 2
    Slacks/Surplus and the objective function

    Slack 1 29.85
    Surplus 4 7.5
    Surplus 6 5.25
    Surplus 9 8.4
    Slack 15 5.4
    Slack 16 8.1
    Slack 17 9.6
    Slack 18 6.75
    Slack 19 6
    Optimal Value (Z) 5.0135

    Slack 1 29.85 budget left after allocation from 75 Million


    Surplus 4 7.5 Additional 7.5 Million provided to Food Authority due to constraint that Combined
    funding for the Food Authority, District Health Authority and Provisions of Medicines
    should be at least $22 million
    Surplus 6 5.25 Additional 5.25 Million provided to Provision of Medicine due to constraint that
    Combined funding for the Food Authority, District Health Authority and provisions of
    Medicines should be at least $22 million
    Surplus 9 8.4 Additional 8.4 Million provided to clean water program due to constraint that Primer
    requested that it should be given at least 60% of demanded budget which is 24
    Million. 14.4 Million is allocated which should have been 6 million which is 25% of
    demanded 24 Million, so additional 8.4 Million provided in Prime Minister request
    Slack 15 5.4 5.4 million saved after allocation of 1.8 million from demanded 7.2 Million (Free
    dialysis facilities )
    Slack 16 8.1 8.1 million saved after allocation of 2.7 million from demanded 10.8 Million (Primary
    & Secondary healthcare)
    Slack 17 9.6 9.6 million saved after allocation of 14.4 million from demanded 24 Million (Water
    Program )
    Slack 18 6.75 6.75 million saved after allocation of 2.25 million from demanded 9 Million (Lady
    Health Worker Program )
    Slack 19 6 6 million saved after allocation of 2 million from demanded 8 Million (Laboratories )
    Solving Equation for optimal solution

    Health disease Allocated budget


    Variable
    Functions/Area ratio in citizens after management
    Total
    (%age) review ($ in millions)
    Food authority 0.09 10 0.86
    District Health Authority 0.11 3 0.33
    Provision of medicines 0.09 9 0.81
    Free dialysis facilities 0.04 1.8 0.072
    Primary & Secondary healthcare 0.08 2.7 0.216
    Clean water program 0.17 14.4 2.448
    Lady Health program 0.07 2.25 0.1575
    Laboratories 0.06 2 0.12
    Optimal Solution after solving equation 5.0135

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