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ECON 3300 HW#1 (SOLUTION)

Chapter 2: Homework

24. (p.75)

Kelson Sporting Equipment, Inc. makes two different types of baseball gloves: a
regular model and a catchers model. The firm has 900 hours of production time available in its
cutting and sewing department, 300 hours available in its finishing department, and 100 hours
available in its packaging and shipping department. The production time requirements and profit
contribution per glove are given in the following table.

Cutting and
Sewing
1
3/2

Production Time (hours)

Finishing
Packaging and
Shipping
1/2
1/8
1/3
1/4

Profit/Globe

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Model
Regular model
Catchers model

$5
$8

Assuming that the company is interested in maximizing the total profit contribution, answer the
following:
a) What is the linear programming model for this problem?
b) Find the optimal solution using the graphical solution procedure AND Excel. How many
gloves of each model should Kelson manufacture?
c) What is the total profit contribution Kelson can earn with the given production
quantities?
d) How many hours of production time will be scheduled in each department?
e) What is the slack time in each department?

Solution
24. a. Let R = number of units of regular model.
C = number of units of catchers model.
5R

8C

1R

1/2 R

1/ R
8
R, C 0

3/ C
2
1/3 C
1/ C
4

900

Cutting and sewing

300

Finishing

100

Packing and Shipping

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Max
s.t.

b.

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C
1000

Catcher's Model

800

600

C&

400

P&

Optimal Solution
(500,150)
S

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200
R

200

400

600

800

1000

Regular Model

c. 5(500) + 8(150) = $3,700

d. C & S
F

1(500) + 3/2(150) = 725

/2(500) + 1/3(150) = 300

P & S 1/8(500) + 1/4(150) = 100

e.

Department
C&S
F
P&S

Capacity
900
300
100

Usage
725
300
100

Slack
175 hours
0 hours
0 hours

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38. (p.79) Applied Technology, Inc. (ATI) produces bicycle frames using two fiberglass
materials that improve the strength-to-weight ratio of the frames. The cost of the standard grade
material is $7.50 per yard and the cost of the professional grade material is $9.00 per yard. The
standard and professional grade materials contain different amounts of fiberglass, carbon fiber,
and Kevlar as shown in the following table.
Fiberglass
Carbon fiber
Kevlar

Standard Grade

Professional Grade

84%
10%
6%

58%
30%
12%

ATI signed a contract with a bicycle manufacturer to produce a new frame with a carbon fiber
content of at least 20% and a Kevlar content of not greater than 10%. To meet the required weight
specification, a total of 30 yards of material must be used for each frame.

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a) Formulate a linear program to determine the number of yards of each grade of fiberglass
material that ATI should use in each frame in order to minimize total cost. Define the
decision variables and indicate the purpose of each constraint.
b) Use the graphical solution procedure to determine the feasible region. What are the
coordinates of the extreme points?
c) Compute the total cost at each extreme point. What is the optimal solution? Use the
graphical method AND Excel.

Solution
38. a. Let

Min
s.t.

S = yards of the standard grade material per frame

P = yards of the professional grade material per frame

7.50S +

9.00P
6 carbon fiber (at least 20% of 30 yards)
3 kevlar (no more than 10% of 30 yards)
30 total (30 yards)

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0.10S +
0.30P
0.06S +
0.12P
S +
P =
S, P 0

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Professional Grade (yards)

50

40

total
Extreme Point
S = 10 P = 20

30

Feasible region is the

line segment

20

kevlar
carbon fiber
10

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Extreme Point
S = 15 P = 15

10

20

30

40

50

60

Standard Grade (yards)

b.
c.

Extreme
Point
(15, 15)
(10, 20)

Cost

7.50(15) + 9.00(15) = 247.50

7.50(10) + 9.00(20) = 255.00

The optimal solution is S = 15, P = 15

d. Optimal solution does not change: S = 15 and P = 15. However, the value of
the optimal solution is reduced to 7.50(15) + 8(15) = $232.50.

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e. At $7.40 per yard, the optimal solution is S = 10, P = 20. The value of the
optimal solution is reduced to 7.50(10) + 7.40(20) = $223.00. A lower price
for the professional grade will not change the S = 10, P = 20 solution
because of the requirement for the maximum percentage of kevlar (10%).

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Chapter 3: Homework

6. (p.132) Refer to the Kelson Sporting Equipment solved in Homework 2.

a) Determine and interpret the objective coefficient ranges
b) Determine and interpret the right-hand side ranges
c) How much will the value of the optimal solution improve if 20 extra hours of
packaging and shipping time are made available?
Solution
6. a.
Variable

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Regular Glove
Catchers Mitt

Objective Coefficient
Range
4 to 12
3.33 to 10

b. As long as the profit contribution for the regular glove is between $4.00 and
$12.00, the current solution is optimal.
As long as the profit contribution for the catcher's mitt stays between $3.33
and $10.00, the current solution is optimal.

The optimal solution is not sensitive to small changes in the profit

contributions for the gloves.

c. The dual prices for the resources are applicable over the following ranges:
Constraint
Cutting and
Sewing
Finishing
Packaging

Right-Hand-Side Range
725 to No Upper Limit
133.33 to 400
75 to 135

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d. Amount of increase = (28) (20) = $560

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26. (p.147) Benson Electronics manufactures three components used to produce cell
telephones and other communication devices. In a given production period, demand for
the three components may exceed Bensons manufacturing capacity. In this case, the
company meets demand by purchasing the components from another manufacturer at an
increased cost per unit. Bensons manufacturing cost per unit and purchasing cost per unit
for the three components are as follows:
Source
Manufacture
Purchase

Component 1
$4.50
$6.50

Component 2
$5.00
$8.80

Component 3
$2.75
$7.00

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Manufacturing times in minutes per unit for Bensons three departments are as follows:
Department
Production
Assembly
Testing & Packaging

Component 1
2
1
1.5

Component 2
3
1.5
2

Component 3
4
3
5

For instance, each unit of component 1 that Benson manufactures requires 2 minutes of
production time, 1 minute of assembly time, and 1.5 minutes of testing and packaging
time. For the next production period, Benson has capacities of 360 hours in the
production department, 250 hours in the assembly department, and 300 hours in the
testing and packaging department.

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a) Formulate a linear programming model that can be used to determine how many
units of each component to manufacture and how many units of each component
to purchase. Assume that component demands that must be satisfied are 6000
units for component 1, 4000 units for component 2, and 3500 units for component
3. The objective is to minimize the total manufacturing and purchasing costs.
b) What is the optimal solution? How many units of each component should be
manufactured and how many units should be purchased?
c) Which departments are limiting Bensons manufacturing quantities? Use the dual
price to determine the value of an extra hour in each of these departments.
d) Suppose that Benson had to obtain one additional unit of component 2. Discuss
what the dual price for the component 2 constraint tells us about the cost to obtain
the additional unit.

is

Solution
26. a. Let M1
M2
M3
P1
P2
P3

Th

Min 4.50 M1
2M1
1M1
1.5M1

sh

s.t.

=
=
=
=
=
=

units of component 1 manufactured

units of component 2 manufactured
units of component 3 manufactured
units of component 1 purchased
units of component 2 purchased
units of component 3 purchased

+ 5.00M2 + 2.75M3 + 6.50P1 + 8.80P2 + 7.00P3

+
+
+

3M2 +
1.5M2 +
2M2 +

4M3
3M3
5M3

M1

1P1

1M2
1M3
M1, M2, M3, P1, P2, P3 0

1P2

=
=
1P3 =

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21,600 Production
15,000 Assembly
18,000 Testing/Packa
ging
6,000 Component 1
4,000 Component 2
3,500 Component 3

b.
Source
Manufacture
Purchase

Component
1
2000
4000

Component
2
4000
0

Component 3
1400
2100

Total Cost: $73,550

c. Since the slack is 0 in the production and the testing & packaging
departments, these department are limiting Benson's manufacturing
quantities.

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Dual prices information:

Production
$0.906/minute x 60 minutes = $54.36 per hour
Testing/Packaging
$0.125/minute x 60 minutes = $ 7.50
per hour

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d. The dual price is -$7.969. this tells us that the value of the optimal solution
will worsen (the cost will increase) by $7.969 for an additional unit of
component 2. Note that although component 2 has a purchase cost per unit
of $8.80, it would only cost Benson $7.969 to obtain an additional unit of
component 2.

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