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    LP Practice Answers

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    Nahidul Islam IU
    The document describes a linear programming problem faced by the Puck and Pawn Company to determine the optimal production quantities of hockey sticks and chess sets to maximize profit given constraints on machine center capacity. The optimal solution is to produce 24 hockey sticks and 4 chess sets for a maximum profit of $64. At the optimal solution, Machine Centers X and Y are fully utilized while Machine Center Z has 6 hours of excess capacity remaining.

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    LP Practice Answers

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    Nahidul Islam IU
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    The document describes a linear programming problem faced by the Puck and Pawn Company to determine the optimal production quantities of hockey sticks and chess sets to maximize profit given constraints on machine center capacity. The optimal solution is to produce 24 hockey sticks and 4 chess sets for a maximum profit of $64. At the optimal solution, Machine Centers X and Y are fully utilized while Machine Center Z has 6 hours of excess capacity remaining.

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    The document describes a linear programming problem faced by the Puck and Pawn Company to determine the optimal production quantities of hockey sticks and chess sets to maximize profit given constraints on machine center capacity. The optimal solution is to produce 24 hockey sticks and 4 chess sets for a maximum profit of $64. At the optimal solution, Machine Centers X and Y are fully utilized while Machine Center Z has 6 hours of excess capacity remaining.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    280 views3 pages

    LP Practice Answers

    Uploaded by

    Nahidul Islam IU
    The document describes a linear programming problem faced by the Puck and Pawn Company to determine the optimal production quantities of hockey sticks and chess sets to maximize profit given constraints on machine center capacity. The optimal solution is to produce 24 hockey sticks and 4 chess sets for a maximum profit of $64. At the optimal solution, Machine Centers X and Y are fully utilized while Machine Center Z has 6 hours of excess capacity remaining.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 3

    LP Practice Question

    The Puck and Pawn Company manufactures hockey sticks and chess sets. Each hockey stick yields an
    incremental profit of $2, and each chess set, $4. A hockey stick requires four hours of processing at Machine
    Center X, and two hours at Machine Center Y. A chess set requires six hours at Machine Center X, six hours
    at Machine Center Y, and one hour at Machine Center Z. Machine Center X has a maximum of 120 hours of
    available capacity per day, Machine Center Y has 72 hours and Machine Center Z has 10 hours. The company
    would like to determine how many hockey sticks and how many chess sets to produce in order to maximize
    their overall profit.

    A linear programming formulation for this problem is shown below, along with a graph of the constraints.

    Maximize Z = 2H + 4C

    Subject to:
    Machine Center X 4H + 6C <= 120 (series 1 on graph)
    Machine Center Y 2H + 6C <= 72 (series 2 on graph)
    Machine Center Z C <= 10 (series 3 on graph)
    H, C >= 0

    25

    Series1
    20
    Series2
    Series3
    15
    C

    10

    0
    0 10 20 30 40
    H

    a) How many of each product should the Puck and Pawn Company produce to maximize profit and how
    much profit can they make?

    b) At the optimal solution point, how many hours are left over at Machine Centers X, Y, and Z?
    c) Are any of the constraints considered redundant? Why or why not?

    d) Are any of the constraints considered binding constraints? Why or why not?

    Using the following Solver table, answer the questions below.

    Adjustable Cells
    Final Reduced Objective Allowable Allowable
    Cell Name Value Cost Coefficient Increase Decrease
    $B$12 Hockey Sticks H 0 2 0.666666667 0.666666667
    $B$13 Chess Sets H 0 4 2 1

    Constraints
    Final Shadow Constraint Allowable Allowable
    Cell Name Value Price R.H. Side Increase Decrease
    $E$7 X Usage 0.333333333 120 24 36
    $E$8 Y Usage 0.333333333 72 18 12
    $E$9 Z Usage 0 10 1E+30 6

    e) What is the limit to which you could increase the Right-hand-side value of Machine Center X to
    increase profits? What is the new profit achieved?

    f) If you could acquire additional resources for Machine Center Z at a price of $.50, would you? Why or
    why not?

    g) If the objective function coefficient for chess sets increased to $5, would the optimal combination
    your determined change? Determine the new profit level for given this new objective coefficient (if
    it is possible to calculate it).

    h) If the firm introduced a new constraint that required the company to produce no more than 35
    hockey sticks, would the feasible solution space be impacted? Why or why not?
    LP Practice Question Solutions

    a) 24 hockey sticks, 4 chess sets for a maximized revenue =


    z = 2(24) + 4(4) = 48 + 16 = $64

    b) Hours left at Machine Center X = 0


    Hours left at Machine Center Y = 0
    Hours left at Machine Center Z = 6

    c) No, they all impact the feasible solution space.

    d) Although all of the constraints form the feasible solution space, the X and Y constraints are
    truly binding because their intersection creates the optimal solution point.

    e) Allowable increase = 24. Thus, 120 + 24 = 144


    24 x shadow price of $.33 = $7.92
    Add this to original of $64 and get new revenue amount of $71.92

    f) No, you already have slack of Machine Center Z (shadow price = $0)

    g) No, optimal combination remains the same because it is in the allowable range (maximum upper
    end limit is $6). New profit = 2H + 5C = 2(24) + 5(4) = 48 + 20 = $68

    h) No, its a redundant constraint. Feasible solution space is already to the left of the new
    constraint.

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