Eric Geriane Bsit 3 Activity 8 A Simple Minimization Problem
Eric Geriane Bsit 3 Activity 8 A Simple Minimization Problem
Activity 8
A Simple Minimization Problem
• M&D Chemicals produces two products that are sold as raw materials to companies
manufacturing bath soaps and laundry detergents.
• Based on the analysis of the current inventory levels and potential demand for the coming
month, M&D’s management specified certain production requirements.
Problem Formulation
• Objective function = 2A + 3B
Min 2A +3B
Subject To
1A >= 125
1A + 1B >= 350
2A + 1B <= 600
A,B >= 0
2. Create a Solver Answer Report for the M&D Chemicals Problem
3. What would be the optimal solution for the M&D Chemicals Problem
1. The current price of A is 2 and the current price of B is 3. The optimal solution will remain
the same even if the price of A is 3 keeping the B price still same, or if the price of B is 2
keeping A the same.
2. The binding constraints processing time and production of both products have a
Slack/Surplus values of zero. The other non binding constraints have positive/negative
slack values
3. The dual value associated with a constraint is the change in the optimal value of the
solution per unit increase in the right-hand side of the constraint, if I increased the
minimum production constraint from 350 to 351, the cost of production will increase by
$4 and if I could increase the available processing time to 601 hours instead of 600
hours, the cost will decrease by $1
Conclusion:
Both the total production constraint and the processing time constraints are binding. The
requirement that at least 125 gallons of the product a will be produced is not binding. The variable tells
how much over the both side left and right is greater-than-or-equal-to constraint is for a solution. So
therefore M&D Chemicals that produces with two products variable is subtracted from the left-hand
side of the constraint and a positive value for a variable indicates that the constraint is not binding.