Hr — Part THEE “System Design 6, Briefly explain these terms: «a, Basic variable '. Shadow price c. Range of feasibility 4d, Range of optimality PROBLEMS 1. Solve these problems using graphical linear programming and answer the questions that follow. Use simultaneous equations to determine the optimal values ofthe decision variables. a. Maximize Z= 4x, + 3x Subjeet to Material 6x, + 4x5 48 Ib Labor yy + 8x 5 80 xuneo b Maximize Z= 2x, + 10s Subject 10 Durability 10x, + 4x, 2 40 wie Strength Ix, + 6 = 24 psi Time ly +205 14h Xone & Maximize 2 = 64 + 3B (revenue) Subject to Material 204 + 6B 600 Ib Machinery 254 + 208 = 1,000 he Labor 204 + 308 = 1,200 he ABEO (@) What are the optimal values ofthe decision variables and Z? (@) Do any constraints have (nonzero) slack? If yes, which one(s) and how much slack does cach have? {@) Doany constraints have (nonzero) surphis? yes, which one(s) and how much surplus does ‘eech have? (4) Are any constraints redundant? If yes, which one(s)? Explain briefly 2, Solve these problems using graphical linear programming and then answer the questions tha follow. Use simultaneous equations fo determine the optimal values ofthe decision variables. @ Minimize = Z= 1808+ 2207 Subject to Potassium 59+ 8T=200 gr Carbohydrate 155+ 6r= 240 gr Prosein 48+ 127 = 180 gr r T= 10g Srz0 Zain +3n 4x, + 2m, 220 E 2 + 6g = 18 F yy #24512 xu BOSupplement to Chapter Six Linea: Programing (1) What are the optimal values of the decision variables and 2? @) Doany constraint have (nonzero) slack? If yes, which one(s) and how much slack does each, have? @) Do any constraints have (nonzero) surplus? If yes, which one(s) and how much surplus does. each have? (4) Ave any constraints redundant? If yes, which one(s)? Explain briefly 3. An appliance manufacturer produces two models of microwave ovens: H{ and W. Both models re {quire fabrication and assembly work; each H uses four hours of fabrication and two hours of assem- bly, and each W uses two hours of fabrication and six hours of assembly. There are 600 fabrication hours available this week and 480 hours of assembly. Each H contributes $40 to profits, and exch W ‘contributes $30 to profits. What quantities of H and W will maximize profits? 4. A small eandy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has % pound raisins and pound peanuts, and the standard mix has % pound raisins and i pound peanuts por bag, The shop has 90 pounds of raisins and 60 pounds of peanuts to work with. eanats cos $.60 per pound and raisins cost $1.50 per pound. The deluxe mix will sll for $2.90 per pound, and the standard mix will sell for $2.85 per pound. The owner estimates that no more {han 110 bags of one type ean be sold. «a, Ifthe goal isto maximize profits, how many bags of each type should be prepared? +b. What isthe expected profit? ‘5. A retired couple supplement their income by making fruit pies, which they sell toa local grocery store. During the month of September, they produce apple and grape pies. The apple pies are sold TorSI.50 to the grocer, and the grape pies are sold for $1.20. The couple is able o sel ll ofthe pies they produce owing to their high quality. They use fresh ingredients, Flour and sugar are purchased ‘once each month, For the month of Soptember, they have 1,200 cups of sugar and 2,100 cups of flour. Each apple pie requires 1X cups of sugar and 3 cups of flour, and each grape pie requires 2 ‘cups of sugar and 3 cups of flour. 4 Determine the number of grape and the number of apple pies that will meximize revenues ifthe couple working together ean make an apple pie in six minutes and a grape pie in thre minutes. ‘They plan to work no more than 60 hours. ~ b, Determine the amounts of suger, flour, and time that will be unused. 6, Solve each ofthese problems by computer and obtain the optimal values of the decision and the abjectve function. @ Maximize dx, + 2 + 58 Subject to ay + Dey + by $25, lay t4y +255 40 Bx tan + iy S30 intaeks 20 1B Maximize 10x, + 6; + 3x5 Subject to Ix, + ly +255 $25 2x, + Im Fay < 40 Ixy + 2x + 3x5 240 sui O 7. For Problem 6a, determine the following 4, The range of feasibility for each constraint. ‘The range of optimality forthe coefficients ofthe objective function. 8, For Problem 66: «a, Find the range of feasibility for each constraint, nd interpret your answers. > Determine the range of optimality for each coefficient ofthe objective function, Interpret your results, 21SS 292 Part Three Sytem Design (5st em nest sinter dics, lo ene tet re consng 10. 13. ‘of milling, inspection, and érilling. Product A requires 12 minutes of milling, 5 minutes for inspec tion, and 10 minutes of drilling per unit; product B requires 10 minutes of milling, 4 minutes for in spection, and 8 minutes of crilling per unit; and product C requires 8 minutes of milling, 4 minutes for inspection, and 16 minutes of drilling. The department has 20 hours available during the next period for milling, 15 hours for inspection, and 24 hours for drilling, Product A contributes $2.40 per unit profit, B contributes $2.50 per unit, and C contributes $3.00 per unit. Determine the op= ‘ticsal mix of products in terms of maximizing contribution to profits for the period. Then, find the range of optimality forthe profit coefficient ofeach vatiebe. Formulate and then solve a linear programming mode! ofthis problem, to determine how many con- ‘ainers of each product to produce tomorrow to maximize profits. The company makes four juice ‘Products using orange, grapetuit, and pineapple juice Product Retail rice por Quart Orange juice sia0 Grapetnitjuice 30 Pineapple juice a0 Alien 10 ‘The All-in-One juice has equal pars of orange, arapefrit, and pineapple juice. Bach product is pro- duced in one-quart size (there are four uaris in a gallon). On hand are 400 gallons of orange juice, 300 gallons of grapefruit juice, and 200 gallons of pineapple juice. The cost er gallon is $2.00 for ‘mage juice, $1.60 for grapefruit juice, and $1.40 for pineapple juice In addition, the manager wants grapefruit juice to be used for no more than 30 percent of the ‘number of containers produced, She wants the ratio ofthe number of containers of orange juice to the number of containers of pineapple juice tobe at least 7105. ‘A wood products firm uses availabe time at the end of each week to make goods for stock. Cure renily, two products on the list of items are produced for stock: a chopping board and a knife holder. Both items require thee operations: cuting, gluing, and finishing. The manager of the frm has co: lected the following data on these produets: “TIME PER UNIT (BNUTES) te Profit Cutting Gh i Chopping board 2 “a 5 2 Knife holder 8 08 3 ‘The manager has also determined that, during each week, 36 minutes are available for cutting, 650 ‘minutes are available for gluing, and 360 minutes are avilable for finishing. 4. Determine the optimal quanttios ofthe decision vatiabes. 4. Which resources are not completely used by your solution? How much of each resource is unused? ‘The manager of the deli sction of grocery superstore has just learned tht the department has 112 ppounal of mayonnaise, of which 70 pounds is approaching its expiration date and must be used. To use up the mayonnaise, the manager has decided to prepare two items: a hem spread and a deli spread, Each pan ofthe ham spread will require 14 pounds of mayonnaise, and each pan of the deli spread will require 1.0 poune. The manager has received an order for 10 pans of ham spread and 8 Pans of the deli spread. In addition, the manager has decided to have at leat 10 pans ofeach spread available forsale. Both spreads will cost $3 per pan to make, but ham spread sells for $S per pan and deli spread sells for $7 per pan. 4, Determine the solution that will minimize cost. '. Determine the solution that will maximize profit, ‘A manager wants to know how many units of each product to produce on a daily basi in order to achieve the highest contribution to profit. Production requirements forthe products are showa inthe following table.‘Supplement to Chapter Six \-LiseerProsrmvaing 293 Materia? Labor Product (pounds) thous) a 2 3 a 8 ' 5 18 c 5 = 20 Material I costs $5 a pound, material 2 costs $4 a pound, and labor costs $10 aa hou, Product A sells for $80. unit, product B sells for $90 a unit, and product C sells for $70 a unit. Available resources ‘each day are 200 pounds of material |; 300 pounds of materiel 2; and 150 hours of labor. The manager must satisfy certain output requirements: The output of product A should not be ‘more than one-third of the total numberof units produced: the ratio of units of product A to units of product B should be 3 to 2; and there isa standing order for $ unite of product A each dey. Formu- late linear programming model for this problem, and then solve. 14, A chocolate maker has contracted to operate a small candy counter in a fashionable store. To start With, the selection of offerings willbe intentionally Imited. The counter will offer a repuler mix of candy made up of equal pars of cashews, raisins, caramels, and chocolates, anda dehuve mis that is ‘one-half cashews and one-half chocolates, which will be sold in one-pound boxes. In addition, the candy counter wil ofer individual one-pound boxes of cashews, raisins, caramels, and chocolates Ammajor attraction ofthe candy counters tha ll eandies are made fresh at the counter Howeves, ‘storage space for supplies and ingredients is limited. Bins are avilable that can hold the amounts show inthe table: pacity Ingredient {pounds por doy) Ceshows 10 Reicine 200 Caramels 100 Chocolates 160 Inonderto presenta good image and to encourage purchases, the counter will make at least 20 boxes ‘of each type of product each day. Any leftover baxes atthe end of the day will be removed and given, i to nearby nursing home for goodwil ‘The profit per box forthe various items has been determined as follows: Profit per Box Regular S20 Deluxe 0 Cashews 0 Aaisins 0 Ceramals 0 Choeaetes 18 4. Formulate the LP model. ‘4. Solve for the optimal values ofthe decision variables and the maximum profit. 15, Given this linear programming model, solve the model and then answer the questions that follow. j Maximize 12x, + 18x + 15% ‘where x, = the quantity of product | to make ete, Subject to Machine Sx + 4xy + 3x, = 160 minutes Labor xy + 10%; + 4x5 288 hours Materials 2x; + 2x, + 4xy = 200 pounds Product 2 2a 16 units spy zo ————— 294 cast Part Three System Design 16. 4, Aze any constraint binding? If so, which one(s)? 4 Ifthe profit on product 3 was changed to $22 a unit, what would the values ofthe decision vari- ables be? The objective function? Explain «. Ife profit on product 1 was changed to $22 unit, what would the values ofthe decision vari ables be? The objective function? Explain, 4. IE10 hours less of labor ime wore avilable, what would the values ofthe devision variables be? “The objective function? Explain, «Ifthe manager decided that as mony as 20 units of product 2 could be produced (instead of 16), ‘how much atonal profit would be generated? 4. lf profit per unit on exch product inreased by 1, would the optimal values ofthe decision vari- ables change? Explain, What would the optimal vale ofthe objective function be? {A gaiden sore prepares varios grades of pine bark for mulch: nuggets (1), mini-muggets (1) and ‘hips (4) The process requires pine rk, machin ime, labor time, and storage space. The follow- ing model hasbeen developed Maximize 9x, + 8x, + Gry (profit) Subject to Bark Say + 6x, + 355 = 600 pounds Machine 2x, + dx; + 5x 660 minutes Labor 2x, + 4x; + 3x, < 480 hours Storage Lx, + Lxy + Ixy $ 150 bags j i i ‘ Xpxp m5 20 ‘2, What is the marginal'value of a pound of pine bark? Over what range is this price value appropriate? b Whats the maximum price the store would be justified in paying for additional pine batk? Whats the marginal value of lnbor? Over what range i this value in effect? 4. The manager obtained additional machine time through better scheduling, How much additional _machine time can be effectively used for this operation? Why? fe. If the manager can obtain either additional pine bark or additional storage space, which one should she choose and how much (assuming additional quantities cost the same as usual)? ‘fa change in the chip operation increased the profit on chips from $6 per bag to $7 per bag, ‘would the optimal quantities change? Would the value of the objective function change? If so, ‘what would the new value(s) be? _g. If profits on chips increased to $7 per bag and profits on nuggets decreased by $.60, woud the optimal quantities change? Would the value ofthe objective function change? If so, what would the new value(s) be? ‘h. If te amount of pine bark available decreased by 15 pounds, machine time decreased by 27 min- utes, and storage capacity increased by five bags, would this fallin the range of feasibility for ‘multiple changes? If so, what would the value ofthe objective function be? Son, Ltd, manufactures a variety of chemical products used by photoprocessors. Son was recently bought out by 8 conglom- crate, and managers ofthe two organizations have been works ing together to improve the efficiency of Son's operations. ‘Managers have been asked to avhere to weekly operating budgets and to develop operating plans using quantitative methods whenever possible. The manager of one department has been given a weekly operating budget of S11,980for pro- \uction of three chemical products, which for convenience shall be reforred to as 0, R, and W. The budget is intended to pay for drectlabor end meterials. Processing requirements for the three products, on a per unit basis, are shown inthe table. The company has 2 contractual obligation for 85 units of product R perwask. ‘Material A costs $4 per pound, as does material B. Labor costs $8 an hour Product Qsollsfor $122 aunt, product R sels for$1152 unit, ‘and product W sells for $762 unit (continued)foonchided) ‘The menageris considering a numberof different proposals regarding the quantity of each product to produce. The man- ager is primarily interested in maximizing contibution. More- aver, tha menager wants to know how much tabor will be needed, as woll as the amount of each material to purchase. ‘quantities of labor and materials wil be needed? How much less will total contribution be if this proposal is adopted? How would you formulate the constraint for material A iit was determined that there isa S percent waste factor forma- torial A and equal quanttos of each product are required? Labor Material A Material B Questions Product___(howrs)__{pounds) _(pounds) Prepare a roport that addrasses the following issues: a 7 i: ; 1. The optims! quantities of products andthe necessary quan- a ‘ : Be tities oflebor and materials, 7 | 7 2 One proposal is to make equal amounts of the products What amount of each will maximize contribution, and what Bierman, Harold, Charles P. Bonini, and Warren H. Ragsdale, Cliff T, Spreadsheet Modeling and Decision SELECTED avemsan. Qnontitarive Analyte for Busines Deci- Analyste A Practical Inioduction to Management BIBLIOGRAPHY sions, he Burr Ridge TL: Richard. Irwin, 1997, Science. Cambridge, MA: Cours Technology, 1955 AND FURTHER (Gas, S.1An Mustrated Guide Linear Programming. Stevens, W.1. Induction to Management Science ‘New York: Dover, 1990 3ed ed. Burr Ridge, IL: Richard D. Irwin, 1998. READING Hi Frederick S., Mark S. Hille, and Gerald Licberman, inedution to Management Science Burr Ridge, IL: Iewn/ MeGraw Hil, 2000 ‘Tylor, Berard. nroduoton to Manegement Sclence. ‘th ed, Upper Sade River, NI: Prentice Hal 1969.