Chapter 3Linear Programming: Sensitivity Analysis and Interpretation of Solution

MULTIPL C!"IC 1. To solve a linear programming problem with thousands of variables and constraints a. a personal computer can be used. b. a mainframe computer is required. c. the problem must be partitioned into subparts. d. unique software would need to be developed. ANS: A PTS: 1 TOP: omputer solution

!. A negative dual price for a constraint in a minimi"ation problem means a. as the right#hand side increases$ the ob%ective function value will increase. b. as the right#hand side decreases$ the ob%ective function value will increase. c. as the right#hand side increases$ the ob%ective function value will decrease. d. as the right#hand side decreases$ the ob%ective function value will decrease. ANS: A PTS: 1 TOP: &ual price

'. (f a decision variable is not positive in the optimal solution$ its reduced cost is a. what its ob%ective function value would need to be before it could become positive. b. the amount its ob%ective function value would need to improve before it could become positive. c. "ero. d. its dual price. ANS: ) PTS: 1 TOP: *educed cost

+. A constraint with a positive slac, value a. will have a positive dual price. b. will have a negative dual price. c. will have a dual price of "ero. d. has no restrictions for its dual price. ANS: PTS: 1 TOP: Slac, and dual price

-. The amount b. which an ob%ective function coefficient can change before a different set of values for the decision variables becomes optimal is the a. optimal solution. b. dual solution. c. range of optimalit.. d. range of feasibilit.. ANS: PTS: 1 TOP: *ange of optimalit.

/. The range of feasibilit. measures a. the right#hand#side values for which the ob%ective function value will not change. b. the right#hand#side values for which the values of the decision variables will not change. c. the right#hand#side values for which the dual prices will not change. d# each of these choices are true. ANS: PTS: 1 TOP: *ange of feasibilit.

0. The 1112 *ule compares a. proposed changes to allowed changes. b. new values to original values. c. ob%ective function changes to right#hand side changes. d. dual prices to reduced costs. ANS: A PTS: 1 TOP: Simultaneous changes

3. An ob%ective function reflects the relevant cost of labor hours used in production rather than treating them as a sun, cost. The correct interpretation of the dual price associated with the labor hours constraint is a. the ma4imum premium 5sa. for overtime6 over the normal price that the compan. would be willing to pa.. b. the upper limit on the total hourl. wage the compan. would pa.. c. the reduction in hours that could be sustained before the solution would change. d. the number of hours b. which the right#hand side can change before there is a change in the solution point. ANS: A PTS: 1 TOP: &ual price

7. A section of output from The 8anagement Scientist is shown here. 9ariable 1 :ower :imit /1 urrent 9alue 111 ;pper :imit 1!1

<hat will happen to the solution if the ob%ective function coefficient for variable 1 decreases b. !1= a. Nothing. The values of the decision variables$ the dual prices$ and the ob%ective function will all remain the same. b. The value of the ob%ective function will change$ but the values of the decision variables and the dual prices will remain the same. c. The same decision variables will be positive$ but their values$ the ob%ective function value$ and the dual prices will change. d. The problem will need to be resolved to find the new optimal solution and dual price. ANS: ) PTS: 1 TOP: *ange of optimalit.

11. A section of output from The 8anagement Scientist is shown here. onstraint ! :ower :imit !+1 urrent 9alue '11 ;pper :imit +!1

<hat will happen if the right#hand#side for constraint ! increases b. !11= a. Nothing. The values of the decision variables$ the dual prices$ and the ob%ective function will all remain the same. b. The value of the ob%ective function will change$ but the values of the decision variables and the dual prices will remain the same. c. The same decision variables will be positive$ but their values$ the ob%ective function value$ and the dual prices will change. d. The problem will need to be resolved to find the new optimal solution and dual price. ANS: & PTS: 1 TOP: *ange of feasibilit.

11. The dual value on the nonnegativiti. constraint for a variable is that variable>s a. sun, cost. b. surplus value.

c. reduced cost. d. relevant cost. ANS: PTS: 1 TOP: (nterpretation of computer output

1!. The dual price measures$ per unit increase in the right hand side of the constraint$ a. the increase in the value of the optimal solution. b. the decrease in the value of the optimal solution. c. the improvement in the value of the optimal solution. d. the change in the value of the optimal solution. ANS: & PTS: 1 TOP: (nterpretation of computer output

1'. Sensitivit. anal.sis information in computer output is based on the assumption of a. no coefficient changes. b. one coefficient changes. c. two coefficients change. d. all coefficients change. ANS: ) PTS: 1 TOP: Simultaneous changes

1+. <hen the cost of a resource is sun,$ then the dual price can be interpreted as the a. minimum amount the firm should be willing to pa. for one additional unit of the resource. b. ma4imum amount the firm should be willing to pa. for one additional unit of the resource. c. minimum amount the firm should be willing to pa. for multiple additional units of the resource. d. ma4imum amount the firm should be willing to pa. for multiple additional units of the resource. ANS: ) PTS: 1 TOP: &ual price

1-. <hich of the following is not a question answered b. sensitivit. anal.sis= a. (f the right#hand side value of a constraint changes$ will the ob%ective function value change= b. Over what range can a constraint?s right#hand side value without the constraint?s dual price possibl. changing= c. ). how much will the ob%ective function value change if the right#hand side value of a constraint changes be.ond the range of feasibilit.= d. ). how much will the ob%ective function value change if a decision variable?s coefficient in the ob%ective function changes within the range of optimalit.= ANS: T$U %&ALS 1. lassical sensitivit. anal.sis provides no information about changes resulting from a change in the coefficient of a variable in a constraint. ANS: T PTS: 1 TOP: hanges in constraint coefficients PTS: 1 TOP: (nterpretation of computer output

!. The reduced cost for a positive decision variable is 1. ANS: T PTS: 1 TOP: *educed cost

'. <hen the right#hand sides of two constraints are each increased b. one unit$ the ob%ective function value will be ad%usted b. the sum of the constraints? dual prices. ANS: @ PTS: 1 TOP: Simultaneous changes

+. (f the range of feasibilit. indicates that the original amount of a resource$ which was !1$ can increase b. -$ then the amount of the resource can increase to !-. ANS: T PTS: 1 TOP: *ange of feasibilit.

-. The 1112 *ule does not impl. that the optimal solution will necessaril. change if the percentage e4ceeds 1112. ANS: T PTS: 1 TOP: Simultaneous changes

/. @or an. constraint$ either its slac,Asurplus value must be "ero or its dual price must be "ero. ANS: T PTS: 1 TOP: &ual price

0. A negative dual price indicates that increasing the right#hand side of the associated constraint would be detrimental to the ob%ective. ANS: T PTS: 1 TOP: &ual price

3. (n order to tell the impact of a change in a constraint coefficient$ the change must be made and then the model resolved. ANS: T PTS: 1 TOP: hanges in constraint coefficients

7. &ecreasing the ob%ective function coefficient of a variable to its lower limit will create a revised problem that is unbounded. ANS: @ PTS: 1 TOP: *ange of optimalit.

11. The dual price for a percentage constraint provides a direct answer to questions about the effect of increases or decreases in that percentage. ANS: @ PTS: 1 TOP: &ual price

11. The dual price associated with a constraint is the change in the value of the solution per unit decrease in the right#hand side of the constraint. ANS: @ PTS: 1 TOP: (nterpretation of computer output

1!. @or a minimi"ation problem$ a positive dual price indicates the value of the ob%ective function will increase. ANS: @ PTS: 1 TOP: (nterpretation of computer output##a second e4ample 1'. There is a dual price for ever. decision variable in a model. ANS: @ PTS: 1 TOP: (nterpretation of computer output

1+. The amount of a sun, cost will var. depending on the values of the decision variables. ANS: @ PTS: 1 TOP: autionar. note on the interpretation of dual prices

1-. (f the optimal value of a decision variable is "ero and its reduced cost is "ero$ this indicates that alternative optimal solutions e4ist. ANS: T PTS: 1 TOP: (nterpretation of computer output

1/. An. change to the ob%ective function coefficient of a variable that is positive in the optimal solution will change the optimal solution. ANS: @ PTS: 1 TOP: *ange of optimalit.

10. *elevant costs should be reflected in the ob%ective function$ but sun, costs should not. ANS: T PTS: 1 TOP: autionar. note on the interpretation of dual prices

13. (f the range of feasibilit. for b1 is between 1/ and '0$ then if b1 B !! the optimal solution will not change from the original optimal solution. ANS: @ PTS: 1 TOP: *ight#hand sides

17. The 111 percent rule can be applied to changes in both ob%ective function coefficients and right#hand sides at the same time. ANS: @ PTS: 1 TOP: Simultaneous changes

!1. (f the dual price for the right#hand side of a constraint is "ero$ there is no upper limit on its range of feasibilit.. ANS: T S!"$T A'S( $ 1. &escribe each of the sections of output that come from The 8anagement Scientist and how .ou would use each. ANS: Answer not provided. PTS: 1 TOP: (nterpretation of computer output PTS: 1 TOP: *ight#hand sides

!. C4plain the connection between reduced costs and the range of optimalit.$ and between dual prices and the range of feasibilit.. ANS: Answer not provided. PTS: 1 TOP: (nterpretation of computer output

'. C4plain the two interpretations of dual prices based on the accounting assumptions made in calculating the ob%ective function coefficients.

ANS: Answer not provided. PTS: 1 TOP: &ual price

+. Dow can the interpretation of dual prices help provide an economic %ustification for new technolog.= ANS: Answer not provided. PTS: 1 TOP: &ual price

-. Dow is sensitivit. anal.sis used in linear programming= Eiven an e4ample of what t.pe of questions that can be answered. ANS: Answer not provided. PTS: 1 TOP: Sensitivit. anal.sis

/. Dow would sensitivit. anal.sis of a linear program be underta,en if one wishes to consider simultaneous changes for both the right#hand#side values and ob%ective function. ANS: Answer not provided. PTS: 1 P$")L M 1. (n a linear programming problem$ the binding constraints for the optimal solution are -F G 'H '1 !F G -H !1 a. b. @ill in the blan,s in the following sentence: As long as the slope of the ob%ective function sta.s between IIIIIII and IIIIIII$ the current optimal solution point will remain optimal. <hich of these ob%ective functions will lead to the same optimal solution= 16 !F G 1H !6 0F G 3H '6 31F G /1H +6 !-F G '-H TOP: Simultaneous sensitivit. anal.sis

ANS: a. b. -A' and !AOb%ective functions !6$ '6$ and +6 TOP: Eraphical sensitivit. anal.sis

PTS: 1

!. The optimal solution of the linear programming problem is at the intersection of constraints 1 and !. 8a4 !41 G 4!

s.t.

+41 G 14! +11 +41 G '4! /11 141 G !4! '11 4 1 $ 4! 1 Over what range can the coefficient of 41 var. before the current solution is no longer optimal= Over what range can the coefficient of 4! var. before the current solution is no longer optimal= ompute the dual prices for the three constraints.

a. b. c.

ANS: a. b. c. 1.'' c1 + .- c! 1.&ual prices are .!-$ .!-$ 1 TOP: Eraphical sensitivit. anal.sis

PTS: 1

'. The binding constraints for this problem are the first and second. 8in s.t. 41 G !4! 41 G 4! '11 !41 G 4! +11 !41 G -4! 0-1 4 1 $ 4! 1 Jeeping c! fi4ed at !$ over what range can c1 var. before there is a change in the optimal solution point= Jeeping c1 fi4ed at 1$ over what range can c! var. before there is a change in the optimal solution point= (f the ob%ective function becomes 8in 1.-41 G !4!$ what will be the optimal values of 41$ 4!$ and the ob%ective function= (f the ob%ective function becomes 8in 041 G /4!$ what constraints will be binding= @ind the dual price for each constraint in the original problem.

a. b. c. d. e.

ANS: a. b. c. d. e. .3 c1 ! 1 c! !.41 B !-1$ 4! B -1$ " B +0onstraints 1 and ! will be binding. &ual prices are .''$ 1$ .'' 5The first and third values are negative.6 TOP: Eraphical sensitivit. anal.sis

PTS: 1

+. C4cel?s Solver tool has been used in the spreadsheet below to solve a linear programming problem with a ma4imi"ation ob%ective function and all constraints.

Input Se*tion "+,e*tive &un*tion Coeffi*ients F + Constraints K1 K! K' "utput Se*tion -aria+les Profit Constraint K1 K! K' a. b. 1'.'''''' -'.'''''' Usage /1 +3 10.'''''' + !+ Sla*. 1.037C#11 #!./7C#11 !.//////0

H / Avail# /1 +3 !1

' ' 1

! 1

00.''''''

Eive the original linear programming problem. Eive the complete optimal solution.

ANS: a. 8a4 s.t. +F G /H

b.

'F G -H /1 'F G !H +3 1F G 1H !1 F$H1 The complete optimal solution is F B 1'.'''$ H B +$ L B 0'.'''$ S1 B 1$ S! B 1$ S' B !.//0 TOP: Spreadsheet solution of :Ps

PTS: 1

-. C4cel?s Solver tool has been used in the spreadsheet below to solve a linear programming problem with a minimi"ation ob%ective function and all constraints. Input Se*tion "+,e*tive &un*tion Coeffi*ients F Constraints K1 K! K'

H + $e/0d /1 -1 1++

+ ! 7

' 3

"utput Se*tion -aria+les Profit Constraint K1 K! K' a. b. 7./ +3 Usage /1 --.! 1++ 0.! !3.3 Sla*. 1.'-C#11 #-.! #!./!C#11

0/.3

Eive the original linear programming problem. Eive the complete optimal solution.

ANS: a. 8in s.t. -F G +H

b.

+F G 'H /1 !F G -H -1 7F G 3H 1++ F$H1 The complete optimal solution is F B 7./$ H B 0.!$ L B 0/.3$ S1 B 1$ S! B -.!$ S' B 1 TOP: Spreadsheet solution of :Ps

PTS: 1

/. ;se the spreadsheet and Solver sensitivit. report to answer these questions. a. <hat is the cell formula for )1!= b. <hat is the cell formula for 1!= c. <hat is the cell formula for &1!= d. <hat is the cell formula for )1-= e. <hat is the cell formula for )1/= f. <hat is the cell formula for )10= g. <hat is the optimal value for 41= h. <hat is the optimal value for 4!= i. <ould .ou pa. M.-1 each for up to /1 more units of resource 1= %. (s it possible to figure the new ob%ective function value if the profit on product 1 increases b. a dollar$ or do .ou have to rerun Solver= A 2 3 3 4 5 6 7 8 9 2: 22 Input Information onstraint 1 onstraint ! onstraint ' Profit "utput Information 9ariables 9ar. 1 ! ' 1 9ar. ! 1 1 + 5t.pe6 N N O Avail. +1 '1 1! ) C 1

23 23 24 25 26 27 28 29

Profit *esources onstraint 1 onstraint ! onstraint ' ;sed Sl,ASurp

B Total

Sensitivity $eport Changing Cells Cell M)M1! M M1! &inal 'ame -alue 9ariables 9ariable 1 3.+/1-'3+/! 9ariables 9ariable ! +./1-'3+/1$edu*ed Cost 1 1 "+,e*tive Coeffi*ient + Allo;a+le In*rease 0 3.Allo;a+le 1e*rease '.+ !.'''''''''

Constraints Cell M)M1M)M1/ M)M10 'ame constraint 1 ;sed constraint ! ;sed constraint ' ;sed Shado; Pri*e +1 1.-'3+/1-'3 '1 1.'10/7!'13 1'.10/7!'13 1 &inal -alue Constraint Allo;a+le $#!# Side In*rease +1 111 '1 '1 1! 1.10/7!'100 Allo;a+le 1e*rease 0 +.////////0 1CG'1

ANS: a. b. c. d. e. f. g. h. i. %. B)3P)11 B 3P 11 B)1!G 1! B)+P)11G +P 11 B)-P)11G -P 11 B)/P)11G /P 11 3.+/ +./1 .es no TOP: Spreadsheet solution of :Ps

PTS: 1

0. ;se the following 8anagement Scientist output to answer the questions. :(NCA* P*OE*A88(NE P*O):C8 8AF '1F1G'-F!G'!F' S.T. 16 'F1G-F!G!F'O71 !6 /F1G0F!G3F'N1-1 '6 -F1G'F!G'F'N1!1 OPT(8A: SO:;T(ON

Ob%ective @unction 9alue B 0/'.''' 9ariable F1 F! F' onstraint 1 ! ' 9alue 1'.''' 11.111 1.111 Slac,ASurplus 1.111 1.111 !'.''' *educed ost 1.111 1.111 11.337 &ual Price 1.003 -.--/ 1.111

O)QC T(9C OC@@( (CNT *ANECS 9ariable F1 F! F' :ower :imit '1.111 No :ower :imit No :ower :imit urrent 9alue '1.111 '-.111 '!.111 ;pper :imit No ;pper :imit '/.1/0 +!.337

*(EDT DAN& S(&C *ANECS onstraint 1 ! ' a. b. c. d. :ower :imit 00./+0 1!/.111 7/.//0 urrent 9alue 71.111 1-1.111 1!1.111 ;pper :imit 110.1+' 1/'.1!No ;pper :imit

Eive the solution to the problem. <hich constraints are binding= <hat would happen if the coefficient of 41 increased b. '= <hat would happen if the right#hand side of constraint 1 increased b. 11=

ANS: a. b. c. d. 41 B 1'.''$ 4! B 11$ 4' B 1$ s1 B 1$ s! B 1$ s' B !'.''$ " B 0/'.'' onstraints 1 and ! are binding. The value of the ob%ective function would increase b. +1. The value of the ob%ective function would decrease b. 0.03. TOP: (nterpretation of 8anagement Scientist output

PTS: 1

3. ;se the following 8anagement Scientist output to answer the questions. 8(N +F1G-F!G/F' S.T. 16 F1GF!GF'N3!6 'F1G+F!G!F'O!31 '6 !F1G+F!G+F'O'!1 Ob%ective @unction 9alue B +11.111 9ariable F1 9alue 1.111 *educed ost 1.-11

F! F' onstraint 1 ! '

31.111 1.111 Slac,ASurplus -.111 +1.111 1.111

1.111 1.111 &ual Price 1.111 1.111 1.!-1

O)QC T(9C OC@@( (CNT *ANECS 9ariable F1 F! F' :ower :imit !.-11 1.111 -.111 urrent 9alue +.111 -.111 /.111 ;pper :imit No ;pper :imit /.111 No ;pper :imit

*(EDT DAN& S(&C *ANECS onstraint 1 ! ' a. b. c. d. e. :ower :imit 31.111 No :ower :imit !31.111 urrent 9alue 3-.111 !31.111 '!1.111 ;pper :imit No ;pper :imit '!1.111 '+1.111

<hat is the optimal solution$ and what is the value of the profit contribution= <hich constraints are binding= <hat are the dual prices for each resource= (nterpret. ompute and interpret the ranges of optimalit.. ompute and interpret the ranges of feasibilit..

ANS: a. b. c. d. 41 B 1$ 4! B 31$ 4' B 1$ s1 B -$ s! B +1$ s' B 1$ L B +11 onstraint ' is binding. &ual prices are 1$ 1$ and 1.!-. The. measure the improvement in L per unit increase in each right#hand side. !.- c1 N 1 c! / - c' N As long as the ob%ective function coefficient sta.s within its range$ the current optimal solution point will not change$ although L could. 31 b1 N N b! '!1 !31 b' '+1 As long as the right#hand side value sta.s within its range$ the currentl. binding constraints will remain so$ although the values of the decision variables could change. The dual variable values will remain the same. PTS: 1 TOP: (nterpretation of 8anagement Scientist output

e.

7. The following linear programming problem has been solved b. The 8anagement Scientist. ;se the output to answer the questions.

:(NCA* P*OE*A88(NE P*O):C8 8AF !-F1G'1F!G1-F' S.T. 16 +F1G-F!G3F'N1!11 !6 7F1G1-F!G'F'N1-11 OPT(8A: SO:;T(ON Ob%ective @unction 9alue B +011.111 9ariable F1 F! F' onstraint 1 ! 9alue 1+1.111 1.111 31.111 Slac,ASurplus 1.111 1.111 *educed ost 1.111 11.111 1.111 &ual Price 1.111 !.'''

O)QC T(9C OC@@( (CNT *ANECS 9ariable F1 F! F' :ower :imit 17.!3/ No :ower :imit 3.''' urrent 9alue !-.111 '1.111 1-.111 ;pper :imit +-.111 +1.111 -1.111

*(EDT DAN& S(&C *ANECS onstraint 1 ! a. b. c. d. e. f. :ower :imit ///.//0 +-1.111 urrent 9alue 1!11.111 1-11.111 ;pper :imit +111.111 !011.111

Eive the complete optimal solution. <hich constraints are binding= <hat is the dual price for the second constraint= <hat interpretation does this have= Over what range can the ob%ective function coefficient of 4 ! var. before a new solution point becomes optimal= ). how much can the amount of resource ! decrease before the dual price will change= <hat would happen if the first constraint?s right#hand side increased b. 011 and the second?s decreased b. '-1=

ANS: a. b. c. d. e. 41 B 1+1$ 4! B 1$ 4' B 31$ s1 B 1$ s! B 1$ " B +011 onstraints 1 and ! are binding. &ual price ! B !.''. A unit increase in the right#hand side of constraint ! will increase the value of the ob%ective function b. !.''. As long as c! +1$ the solution will be unchanged. 11-1

f.

The sum of percentage changes is 011A!311 G 5'-16A511-16 N 1 so the solution will not change. TOP: (nterpretation of 8anagement Scientist output

PTS: 1

11. :(N&O output is given for the following linear programming problem. 8(N 1! F1 G 11 F! G 7 F' S;)QC T TO !6 - F1 G 3 F! G - F' OB /1 '6 3 F1 G 11 F! G - F' OB 31 CN& :P OPT(8;8 @O;N& AT STCP 1 O)QC T(9C @;N T(ON 9A:;C 16 31.111111 9A*(A):C F1 F! F' *O< !6 '6 9A:;C .111111 3.111111 .111111 *C&; C& OST +.111111 .111111 +.111111 &;A: P*( C .111111 1.111111

S:A J O* S;*P:;S +.111111 .111111

NO. (TC*AT(ONSB 1 *ANECS (N <D( D TDC )AS(S (S ;N DANEC&: ;**CNT OC@@( (CNT 1!.111111 11.111111 7.111111 ;**CNT *DS /1.111111 31.111111 O)Q. OC@@( (CNT *ANECS A::O<A):C A::O<A):C (N *CASC &C *CASC (N@(N(TH +.111111 -.111111 11.111111 (N@(N(TH +.111111

9A*(A):C F1 F! F'

*O< ! ' a. b. c. d. e.

*(EDTDAN& S(&C *ANECS A::O<A):C A::O<A):C (N *CASC &C *CASC +.111111 (N@(N(TH (N@(N(TH -.111111

<hat is the solution to the problem= <hich constraints are binding= (nterpret the reduced cost for 41. (nterpret the dual price for constraint !. <hat would happen if the cost of 41 dropped to 11 and the cost of 4! increased to 1!=

ANS: a. b. c. d. e. 41 B 1$ 4! B 3$ 4' B 1$ s1 B +$ s! B 1$ " B 31 onstraint ! is binding. c1 would have to decrease b. + or more for 41 to become positive. (ncreasing the right#hand side b. 1 will cause a negative improvement$ or increase$ of 1 in this minimi"ation ob%ective function. The sum of the percentage changes is 5!6A5+6 G !A- N 1 so the solution would not change. TOP: (nterpretation of :(N&O output

PTS: 1

11. The :P problem whose output follows determines how man. nec,laces$ bracelets$ rings$ and earrings a %ewelr. store should stoc,. The ob%ective function measures profitR it is assumed that ever. piece stoc,ed will be sold. onstraint 1 measures displa. space in units$ constraint ! measures time to set up the displa. in minutes. onstraints ' and + are mar,eting restrictions. :(NCA* P*OE*A88(NE P*O):C8 8AF 111F1G1!1F!G1-1F'G1!-F+ S.T. 16 !6 '6 +6 F1G!F!G!F'G!F+N113 'F1G-F!GF+N1!1 F1GF'N!F!GF'GF+O-1

OPT(8A: SO:;T(ON Ob%ective @unction 9alue B 0+0-.111 9ariable F1 F! F' F+ onstraint 1 ! ' + 9alue 3.111 1.111 10.111 ''.111 Slac,ASurplus 1.111 /'.111 1.111 1.111 *educed ost 1.111 -.111 1.111 1.111 &ual Price 0-.111 1.111 !-.111 !-.111

O)QC T(9C OC@@( (CNT *ANECS 9ariable F1 F! F' F+ :ower :imit 30.-11 No :ower :imit 1!-.111 1!1.111 urrent 9alue 111.111 1!1.111 1-1.111 1!-.111 ;pper :imit No ;pper :imit 1!-.111 1/!.-11 1-1.111

*(EDT DAN& S(&C *ANECS

onstraint 1 ! ' +

:ower :imit 111.111 -0.111 3.111 +1.-11

urrent 9alue 113.111 1!1.111 !-.111 -1.111

;pper :imit 1!'.0-1 No ;pper :imit -3.111 -+.111

;se the output to answer the questions. a. b. c. d. e. f. g. h. i. %. ,. l. Dow man. nec,laces should be stoc,ed= Now man. bracelets should be stoc,ed= Dow man. rings should be stoc,ed= Dow man. earrings should be stoc,ed= Dow much space will be left unused= Dow much time will be used= ). how much will the second mar,eting restriction be e4ceeded= <hat is the profit= To what value can the profit on nec,laces drop before the solution would change= ). how much can the profit on rings increase before the solution would change= ). how much can the amount of space decrease before there is a change in the profit= Hou are offered the chance to obtain more space. The offer is for 1- units and the total price is 1-11. <hat should .ou do=

ANS: a. b. c. d. e. f. g. h. i. % ,. l. 3 1 10 '' 1 -0 1 0+030.1!.1 Sa. no. Although 1- units can be evaluated$ their value 511!-6 is less than the cost 51-116. TOP: (nterpretation of 8anagement Scientist output

PTS: 1

1!. The decision variables represent the amounts of ingredients 1$ !$ and ' to put into a blend. The ob%ective function represents profit. The first three constraints measure the usage and availabilit. of resources A$ )$ and . The fourth constraint is a minimum requirement for ingredient '. ;se the output to answer these questions. a. Dow much of ingredient 1 will be put into the blend= b. Dow much of ingredient ! will be put into the blend= c. Dow much of ingredient ' will be put into the blend= d. Dow much resource A is used= e. Dow much resource ) will be left unused= f. <hat will the profit be= g. <hat will happen to the solution if the profit from ingredient ! drops to += h. <hat will happen to the solution if the profit from ingredient ' increases b. 1= i. <hat will happen to the solution if the amount of resource increases b. != %. <hat will happen to the solution if the minimum requirement for ingredient ' increases to

1-= :(NCA* P*OE*A88(NE P*O):C8 8AF +F1G/F!G0F' S.T. 16 !6 '6 +6 'F1G!F!G-F'N1!1 1F1G'F!G'F'N31 -F1G-F!G3F'N1/1 G1F'O11

OPT(8A: SO:;T(ON Ob%ective @unction 9alue B 1//.111 9ariable F1 F! F' onstraint 1 ! ' + 9alue 1.111 1/.111 11.111 Slac,ASurplus '3.111 !.111 1.111 1.111 *educed ost !.111 1.111 1.111 &ual Price 1.111 1.111 1.!11 !./11

O)QC T(9C OC@@( (CNT *ANECS 9ariable F1 F! F' :ower :imit No :ower :imit +.'0No :ower :imit urrent 9alue +.111 /.111 0.111 ;pper :imit /.111 No ;pper :imit 7./11

*(EDT DAN& S(&C *ANECS onstraint 1 ! ' + ANS: a. b. c. d. e. f. g. h. i. 1 1/ 11 ++ ! 1// rerun L B 10/ L B 1/3.+ :ower :imit 3!.111 03.111 31.111 3.337 urrent 9alue 1!1.111 31.111 1/1.111 11.111 ;pper :imit No ;pper :imit No ;pper :imit 1/'.''' !1.111

%.

L B 1-' TOP: (nterpretation of 8anagement Scientist output

PTS: 1

1'. The :P model and :(N&O output represent a problem whose solution will tell a specialt. retailer how man. of four different st.les of umbrellas to stoc, in order to ma4imi"e profit. (t is assumed that ever. one stoc,ed will be sold. The variables measure the number of women?s$ golf$ men?s$ and folding umbrellas$ respectivel.. The constraints measure storage space in units$ special displa. rac,s$ demand$ and a mar,eting restriction$ respectivel.. 8AF + F1 G / F! G - F' G '.- F+ S;)QC !6 '6 +6 -6 CN& O)QC T(9C @;N T(ON 9A:;C 16 '13.11111 9A*(A):C F1 F! F' F+ *O< !6 '6 +6 -6 9A:;C 1!.111111 .111111 1!.111111 /1.111111 *C&; C& OST .111111 .-11111 .111111 .111111 &;A: P*( C !.111111 .111111 1.-11111 !.-11111 T TO ! F1 G ' F! G ' F' G F+ NB 1!1 1.- F1 G ! F! NB -+ ! F! G F' G F+ NB 0! F! G F' OB 1!

S:A J O* S;*P:;S .111111 '/.111111 .111111 .111111

*ANECS (N <D( D TDC )AS(S (S ;N DANEC&: ;**CNT OC@@( (CNT +.111111 /.111111 -.111111 '.-11111 ;**CNT *DS 1!1.111111 -+.111111 0!.111111 1!.111111 O)Q. OC@@( (CNT *ANECS A::O<A):C A::O<A):C (N *CASC &C *CASC 1.111111 !.-11111 .-11111 (N@(N(TH !.-11111 .-11111 (N@(N(TH .-11111

9A*(A):C F1 F! F' F+

*O< ! ' + -

*(EDTDAN& S(&C *ANECS A::O<A):C A::O<A):C (N *CASC &C *CASC +3.111111 !+.111111 (N@(N(TH '/.111111 !+.111111 +3.111111 1!.111111 1!.111111

;se the output to answer the questions. a. b. c. d. e. f. g. h. i. %. ,. l. Dow man. women?s umbrellas should be stoc,ed= Dow man. golf umbrellas should be stoc,ed= Dow man. men?s umbrellas should be stoc,ed= Dow man. folding umbrellas should be stoc,ed= Dow much space is left unused= Dow man. rac,s are used= ). how much is the mar,eting restriction e4ceeded= <hat is the total profit= ). how much can the profit on women?s umbrellas increase before the solution would change= To what value can the profit on golf umbrellas increase before the solution would change= ). how much can the amount of space increase before there is a change in the dual price= Hou are offered an advertisement that should increase the demand constraint from 0! to 3/ for a total cost of M!1. <ould .ou sa. .es or no=

ANS: a. b. c. d. e. f. g. h. i. %. ,. l. 1! 1 1! /1 1 13 1 '13 1 /.+3 Hes. The dual price is 1.- for !+ additional units. The value of the ad 51+651.-6B!1 e4ceeds the cost of !1. TOP: (nterpretation of solution

PTS: 1

1+. Cight of the entries have been deleted from the :(N&O output that follows. ;se what .ou ,now about linear programming to find values for the blan,s. 8(N / F1 G 0.- F! G 11 F' S;)QC T TO !6 !- F1 G '- F! G '1 F' OB !+11 '6 ! F1 G + F! G 3 F' OB +11 CN& :P OPT(8;8 @O;N& AT STCP ! O)QC T(9C @;N T(ON 9A:;C 16 /1!.-1111

9A*(A):C F1 F! F' *O< !6 '6

9A:;C IIIIIIII IIIIIIII !0.-11111

*C&; C& OST 1.'1!-11 IIIIIIII IIIIIIII &;A: P*( C .1!-111 .031!-1

S:A J O* S;*P:;S IIIIIIII IIIIIIII

NO. (TC*AT(ONSB ! *ANECS (N <D( D TDC )AS(S (S ;N DANEC&: ;**CNT OC@@( (CNT /.111111 0.-11111 11.111111 ;**CNT *DS !+11.111111 +11.111111 O)Q. OC@@( (CNT *ANECS A::O<A):C A::O<A):C (N *CASC &C *CASC IIIIIIIII IIIIIIIII 1.-11111 !.-11111 -.111111 '.-01+!7 *(EDTDAN& S(&C *ANECS A::O<A):C A::O<A):C (N *CASC &C *CASC 1111.111111 711.111111 !+1.111111 1!-.01+'11

9A*(A):C F1 F! F'

*O< ! '

ANS: (t is easiest to calculate the values in this order. 41 B 1$ 4! B +-$ reduced cost ! B 1$ reduced cost ' B 1$ row ! slac, B 1$ row ' slac, B 1$ c 1 allowable decrease B 1.'1!-$ allowable increase B infinit. PTS: 1 TOP: (nterpretation of solution

1-. Portions of a 8anagement Scientist output are shown below. ;se what .ou ,now about the solution of linear programs to fill in the ten blan,s. :(NCA* P*OE*A88(NE P*O):C8 8AF 1!F1G7F!G0F' S.T. 16 !6 '6 +6 'F1G-F!G+F'N1-1 !F1G1F!G1F'N/+ 1F1G!F!G1F'N31 !F1G+F!G'F'O11/

OPT(8A: SO:;T(ON Ob%ective @unction 9alue B ''/.111 9ariable F1 F! 9alue IIIIII !+.111 *educed ost 1.111 IIIIII

F' onstraint 1 ! ' +

IIIIII Slac,ASurplus 1.111 IIIIII IIIIII 1.111

'.-11 &ual Price 1-.111 1.111 1.111 IIIIII

O)QC T(9C OC@@( (CNT *ANECS 9ariable F1 F! F' :ower :imit -.+11 !.111 No :ower :imit urrent 9alue 1!.111 7.111 0.111 ;pper :imit No ;pper :imit !1.111 11.-11

*(EDT DAN& S(&C *ANECS onstraint 1 ! ' + :ower :imit 1+-.111 IIIIII IIIIII 111.!3/ urrent 9alue 1-1.111 IIIIII IIIIII 11/.111 ;pper :imit 1-/.//0 /+.111 31.111 1!1.111

ANS: 4' B 1 because the reduced cost is positive. 41 B !+ after plugging into the ob%ective function The second reduced cost is 1. s! B !1 and s' B !! from plugging into the constraints. The fourth dual price is 1/.- from plugging into the dual ob%ective function$ which .our students might not understand full. until hapter /. The lower limit for constraint ! is ++ and for constraint ' is -3$ from the amount of slac, in each constraint. There are no upper limits for these constraints. PTS: 1 TOP: (nterpretation of solution

1/. A large sporting goods store is placing an order for bic.cles with its supplier. @our models can be ordered: the adult Open Trail$ the adult it.scape$ the girl?s Sea Sprite$ and the bo.?s Trail )la"er. (t is assumed that ever. bi,e ordered will be sold$ and their profits$ respectivel.$ are '1$ !-$ !!$ and !1. The :P model should ma4imi"e profit. There are several conditions that the store needs to worr. about. One of these is space to hold the inventor.. An adult?s bi,e needs two feet$ but a child?s bi,e needs onl. one foot. The store has -11 feet of space. There are 1!11 hours of assembl. time available. The child?s bi,e need + hours of assembl. timeR the Open Trail needs - hours and the it.scape needs / hours. The store would li,e to place an order for at least !0- bi,es. a. @ormulate a model for this problem. b. Solve .our model with an. computer pac,age available to .ou. c. Dow man. of each ,ind of bi,e should be ordered and what will the profit be= d. <hat would the profit be if the store had 111 more feet of storage space= e. (f the profit on the it.scape increases to M'-$ will an. of the it.scape bi,es be ordered= f. Over what range of assembl. hours is the dual price applicable= g. (f we require - more bi,es in inventor.$ what will happen to the value of the optimal solution= h. <hich resource should the compan. wor, to increase$ inventor. space or assembl. time=

ANS: NOTC TO (NST*; TO*: The problem is suitable for a ta,e#home or lab e4am. The student must formulate the model$ solve the problem with a computer pac,age$ and then interpret the solution to answer the questions. a. 8AF '1 F1 G !- F! G !! F' G !1 F+ S;)QC !6 '6 +6 b. T TO ! F1 G ! F! G F' G F+ NB -11 - F1 G / F! G + F' G + F+ NB 1!11 F1 G F! G F' G F+ OB !0-

O)QC T(9C @;N T(ON 9A:;C 16 /3-1.1111 9A*(A):C F1 F! F' F+ *O< !6 '6 +6 9A:;C 111.111111 .111111 10-.111111 .111111 *C&; C& OST .111111 1'.111111 .111111 !.111111 &;A: P*( C .111111 3.111111 11.111111

S:A J O* S;*P:;S 1!-.111111 .111111 .111111

NO. (TC*AT(ONSB ! *ANECS (N <D( D TDC )AS(S (S ;N DANEC&: O)Q. OC@@( (CNT *ANECS ;**CNT A::O<A):C A::O<A):C 9A*(A):C OC@@( (CNT (N *CASC &C *CASC F1 '1.111111 (N@(N(TH !.-11111 F! !-.111111 1'.111111 (N@(N(TH F' !!.111111 !.111111 !.111111 F+ !1.111111 !.111111 (N@(N(TH ;**CNT *DS -11.111111 1!11.111111 !0-.111111 *(EDTDAN& S(&C *ANECS A::O<A):C A::O<A):C (N *CASC &C *CASC (N@(N(TH 1!-.111111 1!-.111111 111.111111 !-.111111 '-.111111

*O< ! ' + c. d. e. f. g. h.

Order 111 Open Trails$ 1 it.scapes$ 10- Sea Sprites$ and 1 Trail )la"ers. Profit will be /3-1. /3-1 No. The M11 increase is below the reduced cost. 1111 to 1'!(t will decrease b. -1. Assembl. time.

PTS: 1

TOP: @ormulation and computer solution

10. A compan. produces two products made from aluminum and copper. The table below gives the unit requirements$ the unit production man#hours required$ the unit profit and the availabilit. of the resources 5in tons6. Product 1 Product ! Available Aluminum 1 1 11 opper 1 1 / 8an#hours ! ' !+ ;nit Profit -1 /1

The Management Scientist provided the following solution output: Ob%ective @unction 9alue B -+1.111 9A*(A):C F1 F! ONST*A(NT 1 ! ' 9A:;C /.111 +.111 *C&; C& OST 1.111 1.111 &;A: P*( C '1.111 1.111 11.111

S:A JAS;*P:;S .111 !.111 1.111

*ANECS (N <D( D TDC )AS(S (S ;N DANEC&: ;**CNT OC@@( (CNT -1.111 /1.111 ;**CNT *DS 11.111 /.111 !+.111 O)Q. OC@@( (CNT *ANECS A::O<A):C A::O<A):C (N *CASC &C *CASC 11.111 11.111 1-.111 11.111 *(EDTDAN& S(&C *ANECS A::O<A):C A::O<A):C (N *CASC &C *CASC !.111 1.111 (N@(N(TH !.111 !.111 +.111

9A*(A):C F1 F!

ONST*A(NT 1 ! ' a. b. c. d. e. f. g.

<hat is the optimal production schedule= <ithin what range for the profit on product ! will the solution in 5a6 remain optimal= <hat is the optimal profit when c! B 01= Suppose that simultaneousl. the unit profits on x1 and x! changed from -1 to -- and /1 to /- respectivel.. <ould the optimal solution change= C4plain the meaning of the S&;A: P*( CSS column. Eiven the optimal solution$ wh. should the dual price for copper be 1= <hat is the increase in the value of the ob%ective function for an e4tra unit of aluminum= 8an#hours were not figured into the unit profit as it must pa. three wor,ers for eight hours of wor, regardless of the number of man#hours used. <hat is the dual price for man#hours= (nterpret. On the other hand$ aluminum and copper are resources that are ordered as needed. The unit profit coefficients were determined b.: 5selling price per unit6 # 5cost of the resources per unit6. The 11 units of aluminum cost the compan. M111. <hat is the most the

compan. should be willing to pa. for e4tra aluminum= ANS: a. b. c. d. e. f. g. / product 1$ + product !$ Profit B M-+1 )etween M-1 and M0-R at M01 the profit is M-31 NoR total 2 change is 3' 1A'2 N 1112 &ual prices are the shadow prices for the resourcesR since there was unused copper 5because S! B !6$ e4tra copper is worth M1 M'1 M11R this is the amount e4tra man#hours are worth The shadow price is the SpremiumS for aluminum ## would be willing to pa. up to M11 G M'1 B M+1 for e4tra aluminum TOP: (nterpretation of solution

PTS: 1

13. Eiven the following linear program: 8AF s.t. -x1 G 0x! x1 / !x1 G 'x! 17 x 1 G x! 3 x 1$ x ! 1

The graphical solution to the problem is shown below. @rom the graph we see that the optimal solution occurs at x1 B -$ x! B '$ and z B +/.

a. b.

alculate the range of optimalit. for each ob%ective function coefficient. alculate the dual price for each resource.

ANS: a. b. *anges of optimalit.: 1+A' c1 0 and - c! 1-A! Summari"ing$ the dual price for the first resource is 1$ for the second resource is !$ and for the third is 1 TOP: (ntroduction to sensitivit. anal.sis

PTS: 1 17.

onsider the following linear program: 8AF s.t. 'x1 G +x! 5M Profit6 x1 G 'x! 1! !x1 G x ! 3 x1 ' x 1$ x ! 1

The Management Scientist provided the following solution output: OPT(8A: SO:;T(ON Ob%ective @unction 9alue B !1.111 9ariable F1 F! onstraint 1 ! ' 9alue !.+11 '.!11 Slac,ASurplus 1.111 1.111 1./11 *educed ost 1.111 1.111 &ual Price 1.111 1.111 1.111

O)QC T(9C OC@@( (CNT *ANECS 9ariable F1 F! :ower :imit 1.''' 1.-11 urrent 9alue '.111 +.111 ;pper :imit 3.111 7.111

*(EDT DAN& S(&C *ANECS onstraint 1 ! ' a. b. c. d. :ower :imit 7.111 +.111 !.+11 urrent 9alue 1!.111 3.111 '.111 ;pper :imit !+.111 7.111 No ;pper :imit

<hat is the optimal solution including the optimal value of the ob%ective function= Suppose the profit on x1 is increased to M0. (s the above solution still optimal= <hat is the value of the ob%ective function when this unit profit is increased to M0= (f the unit profit on x! was M11 instead of M+$ would the optimal solution change= (f simultaneousl. the profit on x1 was raised to M-.- and the profit on x! was reduced to M'$ would the current solution still remain optimal=

ANS: a. b. c. d. x1 B !.+ and x! B '.!$ and z B M!1.11. Optimal solution will not change. Optimal profit will equal M!7./1. )ecause 11 is outside the range of 1.- to 7.1$ the optimal solution li,el. would change. Sum of the change percentages is -12 G +12 B 712. Since this does not e4ceed 1112 the optimal solution would not change. TOP: (nterpretation of solution

PTS: 1 !1.

onsider the following linear program: 8(N s.t. /x1 G 7x! 5M cost6 x 1 G !x ! 3 11x1 G 0.-x! '1 x! ! x1$ x! 1

The Management Scientist provided the following solution output: OPT(8A: SO:;T(ON Ob%ective @unction 9alue B !0.111 9ariable F1 F! onstraint 1 ! ' 9alue 1.-11 !.111 Slac,ASurplus !.-11 1.111 1.111 *educed ost 1.111 1.111 &ual Price 1.111 1./11 +.-11

O)QC T(9C OC@@( (CNT *ANECS 9ariable F1 F! :ower :imit 1.111 +.-11 urrent 9alue /.111 7.111 ;pper :imit 1!.111 No ;pper :imit

*(EDT DAN& S(&C *ANECS onstraint 1 ! ' a. b. c. :ower :imit -.-11 1-.111 1.111 urrent 9alue 3.111 '1.111 !.111 ;pper :imit No ;pper :imit --.111 +.111

<hat is the optimal solution including the optimal value of the ob%ective function= Suppose the unit cost of x1 is decreased to M+. (s the above solution still optimal= <hat is the value of the ob%ective function when this unit cost is decreased to M+= Dow much can the unit cost of x! be decreased without concern for the optimal solution changing=

d. e.

(f simultaneousl. the cost of 41 was raised to M0.- and the cost of x! was reduced to M/$ would the current solution still remain optimal= (f the right#hand side of constraint ' is increased b. 1$ what will be the effect on the optimal solution=

ANS: a. b. c. d. e. x1 B 1.- and x! B !.1$ and the ob%ective function value B !0.11. + is within this range of 1 to 1!$ so the optimal solution will not change. Optimal total cost will be M!+.11. x! can fall to +.- without concern for the optimal solution changing. Sum of the change percentages is 71.02. This does not e4ceed 1112$ so the optimal solution would not change. The right#hand side remains within the range of feasibilit.$ so there is no change in the optimal solution. Dowever$ the ob%ective function value increases b. M+.-1. TOP: (nterpretation of solution

PTS: 1