Sensitivity Analysis Homework
Sensitivity Analysis Homework
(individual submission; collaborative learning is encouraged but gross cheating is frowned upon!)
(modified from Taha, 7th ed) The Gutchi Company
manufactures purses, shaving bags, and backpacks.
The profit and materials and finishing hours
requirements are summarized in table.
Let x1, x2, and x3 be the number of units of purses,
bags, and backpacks produced, respectively. Thus,
the associated linear program is:
Max Z = 24x1 + 22x2 + 45x3
s.t.
2x1 + x2 + 3x3 42
2x1 + x2 + 2x3 40
x1 + 0.5x2 + x3 45
x1, x2, x3 0
Resource
Leather (ft2)
Sewing (hr)
Finishing (hr)
Profit ($)
22
Availability
(units)
42 ft2
40 hrs
45 hrs
45
(profit)
(leather)
(sewing)
(finishing)
Questions:
1. Recall your previous HW wherein this problem was solved. (The LP was previously solved in the group HW,
item3 that I just returned.) Summarize the optimal tableau.
2. Show solutions. Use simplex and/or dual simplex to recover optimality and/or feasibility resulting from the
changes described below (in cases that the changes affect optimality and/or feasibility of the current basis). The
use of revised versions of simplex and dual simplex is optional.
a. What is the optimal production schedule (i.e., how many of each products should be produced)?
b. Determine the allowable range/change in each of the resource availability that will make the optimal
solution still feasible.
c. Will you recommend having additional 2 sewing hours for $15/hr? how about at $25/hr? Explain.
d. Find the new production schedule if leather is limited to only 38 ft2.
e. Find the new production schedule if finishing hours is increased to 50 hrs.
f. Find the new production schedule if finishing hours is decreased to 25 hrs AND leather is decreased also to
41 ft2.
g. Determine the allowable range/change in the profit of each of product that will make the optimal solution
still optimal.
h. If I can market the purse at $54 per piece, will I now be starting to produce purse? Explain why or why not.
If yes, solve for the new production schedule.
i. Given the following (independent) changes in profit, determine the values of x1, x2, x3, and Z at the
optimal (feasible) solution. (i) Bag from $22 to $20; (ii) Backpack from $45 to $40.
Below are the homework items for next meeting (ensure that a copy of the HW above is kept). These are not yet
complete.
j. If due to change in purse design, only 1.5 hrs of sewing but 2 hrs of finishing are required for each purse,
how many of each items should be produced? corresponding profit?
k. What if only 1 hr of sewing is required and 1 hr of finishing? corresponding profit?
l. Due to high buyer power, the company is forced to improve the design of the bag without corresponding
change in profit (per unit). The new design requires 2 ft 2 of leather, 1 sewing hour, and 2 finishing hours.
What is the best product mix for the said situation?
m. Since based on current optimal solution, producing purse is not good/profitable, the company is considering
to introduce a new line of items leather bracelet. A unit consumes 1.5 ft2 of leather, 1 hr of sewing, and
0.5 hr of finishing. If each generates a $20-profit, should the company proceed? How abt a $25-profit?
n. If the company restricts that the total number of items produced must be at most 40 daily to minimize
handling, how does it affect the solution? at most 35 daily?