Lab 8: LP Modeling

PREPARATION: Download Lab3.xlsx for the starting file.

Problem 1:

a. Using 𝑥 = $ for job training, 𝑥 = $ for parks, 𝑥 = $ for sanitation, 𝑥 = $ for library,
formulate the LP for this problem.

Maximize 𝑍 = (votes)

Subject to (total $ limit)

(job training limit)

(parks limit)

(sanitation limit)

(library limit)
 (parks cannot exceed total to sanitation and library)

(job training must at least be sanitation)

(non-negativity)

b. Using the starting file, complete an Excel spreadsheet for your model, run Solver to find the
optimal solution, and generate a Sensitivity Report. Summarize the optimal solution below.

Job Training $ Parks $ Sanitation $ Library $ Maximized # Votes

c. Suppose the job training program changes to return 0.05 votes/$, but all other problem data
remains like the original problem. If possible, calculate the revised maximum votes using your
sensitivity output. If not possible, explain why. Re-solve the model in Excel to verify.

Job Training $ Parks $ Sanitation $ Library $ Maximized # Votes

d. Suppose the parks program changes to return 0.08 votes/$, but all other problem data remains
like the original problem. If possible, calculate the revised maximum votes using your sensitivity
output. If not possible, explain why. Re-solve the model in Excel to verify.

Job Training $ Parks $ Sanitation $ Library $ Maximized # Votes

e. Find the shadow prices for the total $ limit constraint from the sensitivity report.

f. Suppose that the total spending limit is changed to $4.5 million, but all other problem data
remains like the original problem (keep the individual project limits at $1.6 million). If possible,
calculate the revised maximum votes using your sensitivity output. If not possible, explain why.
Re-solve the model in Excel to verify.

Job Training $ Parks $ Sanitation $ Library $ Maximized # Votes

g. Suppose that the total spending limit is changed to 3 million, but all other problem data remains
like the original problem (keep the individual project limits at $1.6 million). If possible, calculate
the revised maximum votes using your sensitivity output. If not possible, explain why. Re-solve
the model in Excel to verify.

Job Training $ Parks $ Sanitation $ Library $ Maximized # Votes

Problem 2:

 max of 7 newspaper ads.

a. Using 𝑥 = # television commercials, 𝑥 = # newspaper ads, and 𝑥 = # radio commercials,

formulate the LP for this problem, where the objective is to minimize advertising cost.

Minimize 𝑍 = (total cost)

Subject to
 (at least twice as many radio commercials as newspaper ads)
(reach at least 100,000 customers)

(reach at least twice as many young as seniors)

(at least 30% of audience is female)

(max of 7 newspaper ads)

(non-negativity)

b. Using the starting file, complete an Excel spreadsheet for your model, run Solver to find the
optimal solution, and generate a Sensitivity Report. Summarize the optimal solution below.

# TV commercials # Newspaper Ads # Radio Commercials Amount Spent

c. Are there any practical issues with implementing this solution?

d. Suppose that the newspaper limit increases to 10, but all other problem data remains like the
original problem. If possible, calculate the revised amount spent using your sensitivity output. If
not possible, explain why. Re-solve the model in Excel to verify.

# TV commercials # Newspaper Ads # Radio Commercials Amount Spent

e. Suppose that the newspaper limit decreases to 2, but all other problem data remains like the
original problem. If possible, calculate the revised amount spent using your sensitivity output. If
not possible, explain why. Re-solve the model in Excel to verify.

# TV commercials # Newspaper Ads # Radio Commercials Amount Spent

 Based on this objective value, what can you conclude about the original problem?

Problem 3:

a. Using 𝑥 = tons of carpet shipped from city 𝑖 to city 𝑗 for 𝑖 = 𝑆, 𝑅 and 𝑗 = 𝐶, 𝐴, list all variables
and formulate the LP for this problem.

Minimize 𝑍 =

(total shipping cost)

Subject to

(tons out of St. Louis)

(tons out of Richmond)

(tons into Chicago)

(tons into Atlanta)

 (non-negativity)

b. Using the starting file, complete an Excel spreadsheet for your model, run Solver to find the
optimal solution, and generate a Sensitivity Report. Summarize the optimal solution below.

TONS SHIPPED Chicago Atlanta Tons shipped

St. Louis
Richmond
Tons delivered

Total Shipping Cost =

c. Suppose that the amount available in St. Louis increases to 275 tons, but all other problem data
remains like the original problem. If possible, calculate the revised shipping cost using your
sensitivity output. If not possible, explain why. Re-solve the model in Excel to verify.

TONS SHIPPED Chicago Atlanta Tons shipped

St. Louis
Richmond
Tons delivered

Total Shipping Cost =

d. Suppose that the amount available in St. Louis increases to 350 tons, but all other problem data
remains like the original problem. If possible, calculate the revised shipping cost using your
sensitivity output. If not possible, explain why. Re-solve the model in Excel to verify.

TONS SHIPPED Chicago Atlanta Tons shipped

St. Louis
Richmond
Tons delivered

Total Shipping Cost =

Problem 4:
Simplex Method:

2.

Solve above problems manually and verify your answers using QM software.