SECOND INTERNAL EVALUATION

Students are to submit the following Assignment on 07th September 2016

without fail.
Late submissions will not be accepted.
CRs of the respective Divisions are to collect the same and hand it over to the
undersigned during the days session. The responsibility, however, rests with the
students to hand their assignments over to the respective CRs.
Students are liberty to refer to books/browse the net and can discuss the case
within themselves, if they so desire. However, the solutions/answers are to
be written on their own. In case it is found that the written solutions
have been copied, no marks will be given.
The assessment is for 20 marks.
Gp Capt Suhas Jagdale VSM
Faculty Operations Research

The knitting department in a firm developed a LP model for a decision being

sought on maximization of profit. The decision variables selected were x 1, x2 and
x3 that were used to represent the number of units of Products 1, 2 and 3
respectively to be produced.
The problem was solved using MS-Excel. The Answer Report and the Sensitivity
Report that were generated are given below.

ANSWER REPORT
Objective Cell (Max)
Cell
$G$5

Name
Profit Total

Original
Value
0

Final
Value
58800

Original
Value

Final
Value

Integer

48

Contin

Contin

28

Contin

Formula
$F$7<=$
H$7

Status

Slac
k

Binding

Variable Cells
Cell
$C$4
$D$4
$E$4

Name
Quantity of
Product 1
Quantity of
Product 2
Quantity of
Product 3

Constraints
Cell

Name

Cell
Value

$F$7

Labour usage

360

$F$8

Machine time
usage

264

$F$9

Materials usage

600

$F$8<=$
H$8
$F$9<=$
H$9

Not Binding

36

Binding

SENSITIVITY REPORT
Variable Cells
Cell
$C$
4
$D$
4
$E$
4

Name
Quantity of
Product 1
Quantity of
Product 2
Quantity of
Product 3

Final Reduc
Valu
ed
e
Cost

Objectiv Allowab Allowabl

e
le
e
Coefficie Increas Decreas
nt
e
e

48

700

650

100

-450

300

450

1E+30

28

900

150

4.3333

Constraints
Cell
$F$
7
$F$
8
$F$
9

Name

Final Shado
Valu
w
e
Price

Constrai
nt R.H.
Side

Allowab Allowabl
le
e
Increas Decreas
e
e

Labour usage
Machine time
usage

360

130

360

25.7143

93.3333

264

300

1E+30

36

Materials usage

600

20

600

210

90

You are the manager of the department and have been asked to prepare for a
meeting with higher-ups in the firm. You are preparing for the meeting. Using the
two Reports, answer the following questions.
Questions
1)
2)

3)
4)

5)
6)

What are the values of x1, x2, x3, and Z in the optimal solution?
Why isnt any Product 2 called for in the optimal solution? When would it be
worthwhile to produce Product 2?
What is the range of optimality for the profit per unit of Product 1?
What would the values in the optimal solution and the objective function be,
if the objective coefficient of x1 were to increase by Rs. 300?
What is the range of feasibility of the labour constraint?
What would be the impact on the optimal solution if the amount of labour
available decreased by 10 hours? Use sensitivity analysis to explain the
impact.

7)

8)

9)

If the manager could obtain additional material, how much more could be
used effectively? What would happen if the manager obtained more than this
amount?
If it is possible to obtain an additional amount of one of the resources, which
one should be obtained, and how much can be effectively used? Explain.
If the manager is able to obtain an additional 100 kgs of material at the
usual price, what impact would that have on the optimal value of the
objective function?

10) If the manager is able to obtain an additional 100 kgs of material but has to
pay a premium of Rs 5.00 a kg, what will the net profit be?
11) If knitting machines operate for 10 hours a day, and one of the machines will
be out of service for two and a half days, what impact will this have on the
optimal value of Z?