University of Tunis Spring 2022

Tunis Business School

BCOR 230: Business Optimization

Question 1 (12 points)

Yi be the pages of magazines allocated to segment i (1points)

with i=1 for wealthy families, 2 for newlyweds, and 3 for retirees

Min Z = 600X1 + 600X2 + 600X3 + 500Y1 + 500Y2+ 500Y3 (2points)

s.t. 5X1 + 2Y1 ≥ 24 (2points)

X2 + 6Y2 ≥ 18 (2points)

3X3 + 3Y3 ≥ 24 (2points)

Xi ; Yi ≥ 0 (2points)

Question 2 (40 points)

1) For product 2 to become profitable, its profit rate must increase by at least its reduced
cost, which is $5. Therefore, it should jump from $30 to at least $35. (2points)
2) The company is willing to pay up to $10 per additional carpentry hour since this value
represents its shadow price. (2points)
3)

Basis X1 X2 X3 S1 S2 S3 S4 RHS
0 S1 0 -2 0 1 2 -8 0 24-10
20 X3 0 -2 1 0 2 -4 0 8 2points
60 X1 1 1,25 0 0 -0,5 1,5 0 2
0 S4 0 1 0 0 0 0 1 5
Z=28
C-bar 0 -5 0 0 -10 -10 0 0
 The lumbar constraint (constraint 1) is non-binding since S1 is basic and equal to 24.
Reducing the availability of lumbar by 10 units will not affect the optimal solution as
it preserves positivity of the RHS. (2points)

4) Obtaining an unlimited supply of lumbar means that we will be removing the lumbar
constraint from the LP. Since it is non-binding (inactive), it will not affect the optimal
solution. We simply remove the column and row of S1 from the optimal simplex
tableau: (2 points)

Basis x1 x2 x3 s2 s3 s4 RHS
20 x3 0 -2 1 2 -4 0 8
60 x1 1 1,25 0 -0,5 1,5 0 2 2 points
0 s4 0 1 0 0 0 1 5
cbar 0 -5 0 -10 -10 0 Z=280

5) sensitivity analysis to the second constraint:

s2 RHS
2 24
2 8
2 points
-0,5 2
0 5
-10 Z=28
0

To preserve the feasibility and hence the optimality of the current basis:
 { { {
24+2 ∆ 2 ≥ 0 2 ∆2 ≥−24 ∆2 ≥−12
8+2 ∆ 2 ≥ 0  2 ∆2 ≥−8  ∆2 ≥−4 (2points)
2−0.5 ∆2 ≥ 0 −0.5 ∆ 2 ≥−2 ∆2≤ 4

−4 ≤ ∆2 ≤ 4 (4 points)

Thus, if we keep the availability of finishing hours between 16 and 24 (2points), the current
optimal basis remains optimal. The impact of changing the availability of finishing hours on
the objective value: Z=280+10∆ 2 (2points)

Sensitivity analysis to the profit rate of product 3:

X3 is a basic variable. Therefore, changing its coefficient in the objective function will affect
the cbar values of non-basic variables. For the basis to remain optimal, the cbar row should
only include 0 and negative numbers as we are dealing with a maximization problem:

Basis x1 x2 x3 s1 s2 s3 s4 RHS
0 s1 0 -2 0 1 2 -8 0 24
20 x3 0 -2 1 0 2 -4 0 8
4points
60 x1 1 1,25 0 0 -0,5 1,5 0 2
0 s4 0 1 0 0 0 0 1 5
cbar 0 -5 0 0 -10 -10 0 Z=280

Let:∆ p 3 be the change in the coefficient of X3

c 3: Coefficient of X3 in the objective function

{ { {
−5+2 ∆ p3 ≤ 0 2 ∆ p 3 ≤5 ∆ p 3 ≤ 2.5
−10−2 ∆ p 3 ≤ 0  −2 ∆ p 3 ≤10  ∆ p 3 ≥−5
−10+ 4 ∆ p 3 ≤0 4 ∆ p 3 ≤ 10 ∆ p 3 ≤ 2.5

−5 ≤ ∆ p 3 ≤2.5 (4 points)

20−5≤ c 3 ≤20+ 2.5

15 ≤ c 3 ≤ 22.5 (2 points)

6) Adding a new variable to the primal LP is equivalent to adding a new constraint to the
dual:
 6 y 1 +2 y 2+ 2 y 3 ≥ P (2 points)

To consider new product in the production plan, the dual constraint above should be violated.
According to the optimal tableau: y 1=0 , y 2=10 , y 3=10

6 × 0+2× 10+2 ×10 ≥ P

40 ≥ P (2 points)

Therefore, to incorporate the new product in the production plan, its profit rate should be at
least $40. (2 points)

Question 3 (30 points)

1) Standard form
Maximize: 2 x1 +3 x 2 +2 x 3 + 4 x 4 +0 S 1 +0 S 2

{
2 x 1 + x 2+ 3 x 3 +2 x 4 +S 1=8 2 points
subject to 3 x 1 +2 x 2+2 x 3 + x 4 +S 2=7
x 1 , x 2 , x 3 , x 4 , S1 , S 2 ≥ 0

2) Simplex

2 3 2 4 0 0 - 5 points
X1 X2 X3 X4 S1 S2 R..H.S Ratio
0 S1 2 1 3 2(P.E) 1 0 8 4 L.V
0 S2 3 2 2 1 0 1 7 7
Zj 0 0 0 0 0 0 0
∆j 2 3 2 4 0 0 -

E.V

2 3 2 4 0 0 - 5 points
X1 X2 X3 X4 S1 S2 R..H.S Ratio
4 X4 1 1/2 3/2 1 1/2 0 4 8
0 S2 2 3/2 1/2 0 -1/2 1 3 2 L.V
Zj 4 2 6 4 2 0 16
∆j -2 1 -4 0 -2 0 -
 E.V

2 3 2 4 0 0 -
X1 X2 X3 X4 S1 S2 R..H.S
5 points
4 X4 1/3 0 4/3 1 4/3 -1/3 3
3 X2 4/3 1 1/3 0 -1/3 2/3 2
Zj 16/3 3 6 4 13/3 2/3 18
∆j -10/3 0 -4 0 -13/3 -2/3 -

This tableau is optimal as we are maximizing and all ∆j values are 0 or negative. Therefore,
the optimal solution is X1*= X3*= S1*= S2*= 0; X2*= 2; X4*= 3; Z*= 18. (2points)

3) Dual LP

Min W = 8Y1+7Y2

s.t. 2Y1+3Y2 ≥ 2

Y1+2Y2 ≥ 3 2 points

3Y1+2Y2 ≥ 2

2Y1+Y2 ≥ 4

Y1;Y2 ≥ 0

4) Graphical resolution
 X,Y (1 point)

Constraints (1 point each)

Feasible region (1 point)

W1 W2 (1 point)

5) Graphically, F is the optimal solution. Given that at optimality Z*=W*, the optimal
value is 18 with Y1*=13/3 and Y2*=2/3 (2 ponits)

Question 4 (18points)

(2 points for each answer)

Questio
Answer
n

1 d

2 c
3 c
4 b

5 c

6 a
7 d
8 c
9 b