Chapter 8

Problem 1. Given Data

The Dakota Furniture company manufactures desk, tables, and chairs. The manufacturer of each type of
furniture requires lumber and two types of skilled labor: finishing and carpentry. The amount of each
resource needed to make each type of furniture is given in the table below.
Resource Desk Table Chair
Carpentry hours 2 hours 1.5 hours 0.5 hours
Finishing hours 4 hours 2 hours 1.5 hours
Lumber 8 board ft 6 board ft 1 board ft
At present, 48 board feet of lumber, 20 finishing hours, 8 carpentry hours are available. A desk sells for
$60, a table for $30, and a chair for $ 20.
Dakota believes that demand for desks and chairs is unlimited, but at most 5 tables can be sold. Since
the available resources have already been purchased, Dakota wants to maximize total revenue.

x1 = number of desks manufactured

x2 = number of tables manufactured
x3 = number of chairs manufactured
The objective function:
Maximize z = 60 x1 + 30 x2 + 20 x3
The constraints:
8 x1 + 6 x2 + x3 <= 48
4 x1 + 2 x2 + 1.5 x3 < = 20
2 x1 + 1.5 x2 + 0.5 x3 < = 8
x1 , x2 , x3 >= 0

X1 X2 X3      
Profit per Unit
60 30 20      
             
Constraints       LHS   RHS
Constraint 1 8 6 1 24 <= 48
Constraint 2 4 2 1.5 20 <= 20
Constraint 3 2 1.5 0.5 8 <= 8
       
Decision Variables 2 0 8

Objective 280
Questions:
1. What is the optimal solution? What are the values of the decision variables?

Profit = 60(2) + 30(0) + 20(8) = 120 + 0 + 160 = 280

2. What are the basic variables? Non-basic variables?

Desks and chairs are basic while tables are non-basic

3. What are the binding constraints? Non-binding constraints?

Constraint 1 Non-Binding
Constraint 2 Binding
Constraint 3 Binding

4. What are the slacks?

Constraint 1 Slack = 48 -24 = 24
Constraint 2 Slack = 0
Constraint 3 Slack = 0

Adjustable Cells
    Final Reduced Objective Allowable Allowable
Valu Coefficien
Cell Name e Cost t Increase Decrease
$B$
9 Decision Variables X1 2 0 60 20 4.00
$C$
9 Decision Variables X2 0 -5.00 30 5.00 1E+30
$D$
9 Decision Variables X3 8 0 20 2.5 5

Constraints
Constrain
    Final Shadow t Allowable Allowable
Valu
Cell Name e Price R.H. Side Increase Decrease
$E$
5 Constraint 1 LHS 24 0 48 1E+30 24
$E$
6 Constraint 2 LHS 20 10 20 4 4
$E$
7 Constraint 3 LHS 8 10 8 2 1.33

5. What is the range of optimality for the coefficient of the first variable) ?
[60 - 4, 60 + 20] = [56, 80]
6. If the coefficient of x2 is changed from 30 to 32. How does the optimal solution change?
change from 30 to 32 increase of 2 within limits
same DVs Change = 2 x 0 = 0
New Objective = 280 + 0 = 280

7. If the coefficient of x2 is changed from 30 to 25. How does the optimal solution change?
change from 30 to 25 decrease of 5 within limits
same DVs Change = -5 x 0 = 0
New Objective = 280 + 0 = 280

8. If the coefficient of x1 is changed from 60 to 62. How does the optimal solution change?
change from 60 to 62 increase of 2 within limits
same DVs Change = 2 x 2 = 4
New Objective = 280 + 4 = 284

9. If the coefficient of x3 is changed from 20 to 23. How does the optimal solution change?
change from 20 to 23 increase of 3 within limits
same DVs Change = 3 x 8 = 24
New Objective = 280 + 24 = 304

10. If the RHS of the first constraint is changed from 48 to 52. How does the optimal solution
change?
increase of 4 within limits same mix
Change in the objective = 4(0) = 0
New Objective = 280 + 0 = 280

11. If the RHS of the first constraint is changed from 48 to 20. How does the optimal solution
change?
Decrease of 28 outside limits new solution

12. If the RHS of the second constraint is changed from 20 to 22. How does the optimal solution
change?
Increase of 2 within limits same mix
Change = 2 (10) = 20
New objective = 280 + 20 = 300

13. If the RHS of the second constraint is changed from 20 to 25. How does the optimal solution
change?
Increase of 5 outside range new solution

14. If the RHS of the third constraint is changed from 8 to 9. How does the optimal solution change?
Increase of 1 within limits same mix
 Change = 1(10) = 10
New objective = 280 + 10 = 290

15. If the RHS of the third constraint is changed from 8 to 9 and the RHS of the second constraint
decreased by 2 at the same time, How would these changes affect the optimal solution?
Increase of 1 within limits same mix
Change = 1(10) = 10
New objective = 280 + 10 = 290
Problem 1. Given Data
Objective: minimize daily dose cost in cents.

4A + 7B + 6C + 3D

Subject to
A + B + C + D  36 (Daily dose requirement)
3A + 4B + 8C + 10D  280 (Chemical X requirement)
5A + 3B + 6C + 6D  200 (Chemical Y requirement)
10A + 25B + 20C + 40D  1050 (Chemical Z max limit)
A, B, C, D  0

The Solver Output

Adjustable Cells
    Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$5 # of ounces Ingr A 10.250 0.000 4.000 3.500 2.500
$C$5 # of ounces Ingr B 0.000 5.688 7.000 1E+30 5.688
$D$5 # of ounces Ingr C 4.125 0.000 6.000 15.000 2.333
$E$5 # of ounces Ingr D 21.625 0.000 3.000 3.800 1E+30
Constraints
    Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$F$11 Chemical Z 1050.000 -0.238 1050.000 47.143 346.000
$F$8 Daily dosage 36.000 3.750 36.000 16.500 1.278
$F$9 Chemical X 280.000 0.875 280.000 41.000 11.000
$F$10 Chemical Y 205.750 0.000 200.000 5.750 1E+30
Use the model and the solver output to answer the following questions:

Questions:

1. What are the basic variables? Non-basic variables?

A, C, and D are basic while B are non-basic

2. What are the binding constraints? Non-binding constraints?

Constraint 1 Non-Binding
Constraint 2 Binding
Constraint 3 Binding

3. What is the range of optimality for the coefficient of the first variable) ?
[36 - 4, 420 + 20] = [32, 440]

4. What are the ranges of optimality for each of the different constraints?

[56 - 4, 970 + 20] = [52, 990]

5. If the cost of ingredient A increased to 5 cents, what is the effect of the solution?
A increased by 5% within limits
same DVs Change = +1.36
New Objective = 148.2 + 1.36 = 149.56

6. If the cost of ingredient B decreased to 6 cents, what is the effect of the solution?
B decreased by 6% within limits
same DVs Change = -1.302
New Objective = 148.2 + 1.302 = 146.898

7. If the cost of ingredient D increased to 8 cents, what is the effect of the solution?
D increased by 8% within limits
same DVs Change = +17.572
New Objective = 148.2 + 17.572 = 165.457

8. If we have to use one unit of B in the diet, what is the effect of the solution?
 Using B as a 01 unit within limits
same mix Change in the objective = -4.584
New Objective = 148.2 – 4.584 = 143.616

9. What is the cost of each additional unit of chemical X required to be present in the drink?
X increase by 1 outside limits new solution
same mix Change in the objective = +35.8
New Objective = 280 + 35.8 = 315.8

10. What is the cost of each additional unit of chemical Y required to be present in the drink?
Y increase by 1 outside limits new solution
same mix Change in the objective = +45.9
New Objective = 200 + 45.9 = 245.9

11. What is the cost of each additional unit of chemical Z required to be present in the drink?
Z increase by 1 outside limits new solution
same mix Change in the objective = +35.5
New Objective = 1050 + 35.5 = 1085.5

12. What is the effect on the solution if the required daily dosage increased to 40?
Increase by 40 within limits same mix
Change = + 69.6
New objective = 148.2 + 69.6 = 217.8

13. What is the effect on the solution if the required daily dosage decreased to 30?
Decrease by 30 within limits same mix
Change = - 104.4
New objective = 148.2 – 104.4 = 43.8
14. What is the effect on the solution if the requirement from Chemical Z decreased by 100?
Z decrease by 100 within limits same mix
Change = - 73.2
New objective = 148.2 – 73.2 = 75