The Kuwait Drilling Company wishes to drill for oil in Yemen. Here are the project parameters:
1. The company will develop the oilfield to the drilling stage. If oil is found, it will sell it to the Yemen’s National Oil Company for $3000,000. If oil is not found, it will purchase an option for $50,000 to sell the development for $500,000 to a local entrepreneur. 2. It wishes to apply for a drilling license with the government. Cost is $100,000 3. Given that the processes for the license application is complicated, the company may elect to hire a local consultant for $25,000 to help it to obtain the license. The company’s financial director may approve the hiring of a consultant. The conditional probability of this is .707 4. A land survey consulting report – cost $20,000 – has estimated that there is a .8 probability that drilling will yield commercial quantities of oil. The cost of development to the point where this can be established is $200,000. 5. If oil is found, the company will have to spend another $500,000 on the infrastructure before it can sell the project as a turnkey project to the National Oil Company for $300,0000
Required: 1. Prepare a Decision Tree to determine the optimal strategy for this project 2. Write a Memorandum with the results of your analysis, and your recommendation.

The UAE Soft Drinks Company manufactures 3 kinds of fizzy drinks: Cola Pop Natural, Lemo Pop Concentrate, and Soda Pop Diluted. The manufactured drinks are then sold to wholesalers, who, in turn, distribute to the retailers.
The Cost Accounting Department provided the following analysis: The net profit on each block of soft drinks is as follows:
Cola Pop: 100 Dirhams Lemo Pop: 125 Dirhams Soda Pop: 150 Dirhams
The cost of material requirement for production is as follows: 3 Kg of material for Cola Pop 8 Kg of material for Lemo Pop 6 Kg of material for Soda Pop
The total available material in the company’s warehouse for the next production run is 1000 Kg.
The Sales department has provided the following data:
The company has to fulfil a minimum order from a Sharjah company for 200 blocks of Cola Pop. But no more than 30 blocks of Lemo Pop can be produced because of the imited availability of packing material.
Develop a Constrained Mathematical Model for this problem to guide an optimal production planning schedule for the UAE Soft Drinks Company.