0% found this document useful (0 votes)
238 views2 pages

Eric Geriane Bsit 3 Activity 8 A Simple Minimization Problem

M&D Chemicals produces two products, A and B. They aim to minimize total production costs by determining the optimal quantities of each product to make. Their constraints include minimum production levels for each product and a combined minimum, as well as a maximum on total production and processing time. The optimal solution has the processing time and combined minimum production constraints binding, while the minimum for product A is not binding. Increasing the combined minimum by one unit would increase costs by $4, while increasing processing time by one unit would decrease costs by $1.

Uploaded by

Erykk Geriane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
238 views2 pages

Eric Geriane Bsit 3 Activity 8 A Simple Minimization Problem

M&D Chemicals produces two products, A and B. They aim to minimize total production costs by determining the optimal quantities of each product to make. Their constraints include minimum production levels for each product and a combined minimum, as well as a maximum on total production and processing time. The optimal solution has the processing time and combined minimum production constraints binding, while the minimum for product A is not binding. Increasing the combined minimum by one unit would increase costs by $4, while increasing processing time by one unit would decrease costs by $1.

Uploaded by

Erykk Geriane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Eric Geriane BSIT 3

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.

• Production cost: Product A: $2/gallon; Product B: $3/gallon

• Objective: Minimizing the total production cost

Problem Formulation

• To find the minimum-cost production schedule:

• Define the decision variables and the objective function

Let A = number of gallons of product A

B = number of gallons of product B

• Objective function = 2A + 3B

1. Create a linear program for the M&D Chemicals Problem:

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.

You might also like