7-15: Electrocomp LP production mix solutions.

Without additional constraints on production of A/C units and Fans, the following is the corner-point solution. First the following formulas are expressed graphically:

Cornerpoint Analysis
160 140 Number of Fans 120 100 80 60 40 20 0 0 20 40 60 80 100 Number of A/C's Wiring Constraint Drilling Constraint

The cornerpoint is then calculated by solving the equations simultaneously. ( )

The cornerpoints are then (0,0), (0,120), (40,60), and (70,0) and their respective profits are $0, $1800, $1900, and $1750.

(a), With the constraint that the company produce at least 20 A/Cs but not more than 80 fans, the solution would not be affected. Therefore the solution would be 40 A/Cs and 60 Fans. For this solution there would be no slack because it is the optimal solution. (b) With the constraint that the company produce at least 30 A/Cs but not more than 50 fans. Using the corner-point graph again, this constraint shrinks the feasible area to under 50 fans. The new corner-point is calculated using the following formula:

making the new corner points (30,0), (30,50), (45,50), and (70,0), and their respective profits of $750, $1500, $1875, and $1750, therefore the solution would be to produce 45 A/Cs and 50 Fans. The slack would calculated by inputting the data back into the constraints and arriving at 0 hours drilling, 5 hours of wiring, 10 fans, and a surplus of 5 A/Cs. -----------------------------------------------------------------------------------------------------------7-17: For the Outdoor Furniture Corporation with the given constraints the following is the formulas expresses mathematically and graphically:

Outdoor Furniture Company

400 350 300 Benches 250 200 150 100 50 0 0 50 100 150 200 250 Tables Redwood Constraint Labor Constraint

The corner-point is calculated as follows: ( )

The corner-points are therefore (0,0), (0,300), (25,262.5), and (100,0) with respective profits of $0, $2700, $2862.5, and $2000. Therefore the optimal number to produce is 25 Tables and 262.5 Benches. -----------------------------------------------------------------------------------------------------------7-20: Given the constraints of the investments given including $50,000 total average risk being an index of six the constraints can be expressed mathematically as follows:

Solving these two formulas simultaneously would yield ( )

Therefore $20,000 should be invested in petrochemical, $30,000 should be invested in utility, average risk is 6, and the total return on the investment would be $2400 plus $1800 for a total of $4200. 8-2:
Variable Solution Revenue Constraints Total Funds Municipal Bonds Electronics/Aerospace, Drugs Nursing Home Stock X1 50000 0.053 X2 0 0.068 X3 0 0.049 X4 175000 0.084 X5 25000 0.118

20300 LHS 250000 0 75000 0 RHS 250000 0 0 0

1 0.8 -0.4 -0.5

1 -0.2 0.6

1 -0.2 0.6

1 -0.2 0.6

1 -0.2 -0.4 1

The optimal solution is 50,000 in LA Municipal Bonds, 175,000 in Palmer Drugs, and 25000 in nursing homes.

8-19: The solution to the problem from 8-18 is seen below using solver:
Variable Solution Revenue Constraints Max Beds Max Tests Max Xrays Max Operations X1 61.8181816 285 X2 28.1818184 303

26157.27273 LHS 90 38.60909094 19.00000006 5.63636368 RHS 90 56.6 19 7.67

1 0.3875 0.125 0

1 0.52 0.4 0.2

At the given state of our facilities the optimal use of our facilities can be achieved by adding 62 medical beds and 28 surgical beds. This configuration will generate an additional $26,154 or $9.54M per annum. There will be no empty beds with this configuration however the surgical facilities and test facilities will be under utilized with a surplus capacity of 16 and 2 procedures per day respectively. All other facilities are being used to the fullest extent. I recommend downsizing the labs and surgical staff to optimize revenue.