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Assignment 2

This document contains an assignment with 4 problems related to linear programming and decision making. Problem 1 and 2 involve solving linear programming problems using Excel Solver to find optimal solutions. Problem 3 involves allocating shelf space to brands under different profitability scenarios. Problem 4 involves formulating a production planning problem as a linear program to maximize profit based on machine times and component profits. It asks to solve the problem, interpret the solution ranges, and consider additional questions related to available machine time and product pricing.

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Aditi Rustagi
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22 views

Assignment 2

This document contains an assignment with 4 problems related to linear programming and decision making. Problem 1 and 2 involve solving linear programming problems using Excel Solver to find optimal solutions. Problem 3 involves allocating shelf space to brands under different profitability scenarios. Problem 4 involves formulating a production planning problem as a linear program to maximize profit based on machine times and component profits. It asks to solve the problem, interpret the solution ranges, and consider additional questions related to available machine time and product pricing.

Uploaded by

Aditi Rustagi
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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OPSM 507: Decision Sciences and Data Analytics II

Assignment 2
(Due Date: 03/02/2023, 11:59 P.M.)

Problem 1. Consider the following linear problem:


Maximize Z = 3x1 + 2x2
Subject to,
x1+x2 ≤ 4
x1+ 3x2 ≤ 6
x1 ≥ 0, x2 ≥ 0

(a) Solve the above problem using Excel Solver and write down the optimal solution.

Problem 2. Minimize Z = 6x1 + 4x2


Subject to,
2x1 + x2 ≥ 12
x1 + x2 ≥ 10
x2 ≤ 4
x1 ≥ 0, x2 ≥ 0

(a) Solve the above problem using Excel Solver and write down the optimal solution.

Problem 3. The manager of a small independent grocery store is trying to determine the best use
of her shelf space for soft drinks. The store carries national and generic brands and currently has
200 square feet of shelf space available. The manager wants to allocate at least 60% of the space
to the national brands and regardless of the profitability, allocate at least 10% of the space to the
generic brands.
(a) How many square feet of space should the manager allocate to the national brands and
generic brands under the following circumstances?
A. The national brands are more profitable than the generic brands.
B. The generic brand is more profitable than the national brand.
C. Both brands are equally profitable.

Problem 4. Vollmer Manufacturing makes three components for sale to refrigeration


companies. The components are processed on two machines: a shaper and a grinder. The times
(in minutes) required on each machine are as follows:
Component Machine
Shaper Grinder
1 6 4
2 4 5
3 4 2

The shaper is available for 120 hours, and the grinder is available for 110 hours. No more than
200 units of component 3 can be sold, but up to 1000 units of each of the other components
can be sold. In fact, the company already has orders for 600 units of component 1 that must be
satisfied. The profit contributions for components 1, 2, and 3 are $8, $6, and $9, respectively.

a. Formulate and solve for the recommended production quantities using Excel Solver.
b. What are the objective coefficient ranges for the three components? Interpret these ranges
for company management.
c. What are the right-hand-side ranges? Interpret these ranges for company management.
d. If more time could be made available on the grinder, how much would it be worth?
e. If more units of component 3 can be sold by reducing the sales price by $4, should the
company reduce the price?

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