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Ot 5

The document describes using TORA software to perform a linear programming optimization problem and sensitivity analysis. The problem involves maximizing profit of a company producing two fertilizers with constraints on sales volume and raw material availability. The optimal solution from TORA software is presented, showing the company should produce 80 units of fertilizer A and 20 units of fertilizer B daily to maximize $2600 in profit while satisfying all constraints.

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14 views8 pages

Ot 5

The document describes using TORA software to perform a linear programming optimization problem and sensitivity analysis. The problem involves maximizing profit of a company producing two fertilizers with constraints on sales volume and raw material availability. The optimal solution from TORA software is presented, showing the company should produce 80 units of fertilizer A and 20 units of fertilizer B daily to maximize $2600 in profit while satisfying all constraints.

Uploaded by

TF TECH AND GAMING
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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COURSE:

OPTIMIZATION TECHNIQUES

LAB REPORT 5

SUBMITTED TO: DR RAKHSHANDA NAVEED

SUBMITTED BY:

2021-IM-03, 04, 08, 17, 19, 22, 25

DATE OF SUBMISSION: 02-04-2024

DEPARTMENT OF INDUSTRIAL AND MANUFACTURING


ENGINEERING
UNIVERSITY OF ENGINEERING AND TECHNOLOGY
Experiment # 05
Title:
To perform sensitivity analysis of optimal solution of linear programming problem using TORA
software.
Objectives:
1. To solve problem using TORA software
Theory:
TORA:
Tora is user friendly software. It has wide range of uses like linear programming, integer
programming, queening theory, transportation model, project planning and zero sum games.

Uses of TORA software:


There are following uses of Tora software.
1. Linear equation
2. Linear programming
3. Network Model
4. Project planning:
a) Critical path method (CPM)
b) PERT (program evolution & review technique)
Linear Programming (LP):
Linear programming (LP) is one of the simplest ways to perform optimization. Linear
programming is a mathematical modeling technique that involves maximizing or minimizing a
linear function while taking into account various constraints. LP model consists of:
1. Decision variables that we seek to determine
2. Objective that we want to optimize
3. Constraints that we need to satisfy
4. Non-negativity condition the decision variables should always take non-negative
values.
Reduced Cost:
Difference of a unit price of resource and the unit profit of the resource. If it come out zero, then
the problem is in balanced condition.
Reduced cost = unit price of a resource – profit of a unit
Dual Price:
In linear programming, the dual price (also known as shadow price or marginal value) represents
the rate of change of the objective function value per unit increase in the right-hand side of a
constraint, assuming all other constraints remain binding.
A positive dual price indicates that increasing the availability of that resource will increase the
optimal objective function value, while a negative dual price indicates that increasing the
availability of that resource will decrease the optimal objective function value.
Problem 04:
A company produces two types of fertilizers, A and B. The sales volume for A is at least 80% of
the total sales of both A and B. However, the company cannot sell more than 100 units of A per
day. Both products use one raw material, of which the maximum daily availability is 240 Ib. The
usage rates of the raw material are 2 lb per unit of A and 4 lb per unit of B. The profit units for A
and B are $20 and $50, respectively. Determine the optimal product mix for the company.
Given Data:
Procedure:
 Open the TORA software and select linear programming.

 Enter the problem title, number of decision variables and number of constraints
 Press Enter/Tab to initialize input grid.
 Type the names of variables like X1, X2 etc. Enter the values of the coefficients in the
Objective function and constraints. The sign of inequality is altered using keyboard. Don’t
change the values of lower and upper bound.
 Save the file (optional) and select Solve Problem > Algebraic > Final solution

 Then click on output screen and solution will come as follow


Results:
Optimal Product Mix:
The optimal product mix indicates that the company should produce 80 units of fertilizer A
and 20 units of fertilizer B per day.
Maximized Profit:
By substituting the values of a and y into the objective function Z = 20x + 50y, we can
calculate the total profit:
Z=(20×80)+(50×20)=1600+1000=2600
Therefore, the company can achieve a maximum profit of $2600 per day by producing and
selling the optimal mix of fertilizers A and B.
Constraint Satisfaction:
 The optimal solution ensures that all constraints are satisfied:
 The sales volume constraint x > 0.8(x + y) is met.
 The maximum sales limit for A r ≤ 100 is adhered to
 The raw material constraint 2m + 4y ≤ 240 is not violated.
 The non-negativity constraint a, y > 0 is satisfied,
Sensitivity Analysis:
X1 + X2 <= 6
Min RHS = 4
6 – 4 = 2 x 0.5 = $1
So, $21 - $1 = $20

Comments:
 These findings suggest that to maximize profit, the company should focus more on producing
Fertilizer B (higher profit margin) while still meeting the minimum sales requirement for
Fertilizer A and considering raw material constraints.
 By adopting this optimal product mix strategy, the company can efficiently utilize its
resources and generate higher profits.

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