Solving Linear

Programming Models

Chapter 3

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Chapter Topics

 Computer Solution

 Sensitivity Analysis

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Computer Solution

 Early linear programming used lengthy manual

mathematical solution procedure called the Simplex
Method (See CD-ROM Module A).
 Steps of the Simplex Method have been programmed in
software packages designed for linear programming
problems.
 Many such packages available currently.
 Used extensively in business and government.
 Text focuses on Excel Spreadsheets and QM for
Windows.

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Beaver Creek Pottery Example
Excel Spreadsheet – Data Screen (1 of 6)

Exhibit 3.1
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Beaver Creek Pottery Example
“Solver” Parameter Screen (2 of 6)

Exhibit 3.2

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Beaver Creek Pottery Example
Adding Model Constraints (3 of 6)

Exhibit 3.3
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Beaver Creek Pottery Example
“Solver” Settings (4 of 6)

Exhibit 3.4
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Beaver Creek Pottery Example
Solution Screen (5 of 6)

Exhibit 3.5
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Beaver Creek Pottery Example
Answer Report (6 of 6)

Exhibit 3.6
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Linear Programming Problem: Standard Form

 Standard form requires all variables in the constraint equations to

appear on the left of the inequality (or equality) and all numeric
values to be on the right-hand side.
 Examples:
 x3  x1 + x2 must be converted to x3 - x1 - x2  0

 x1/(x2 + x3)  2 becomes x1  2 (x2 + x3)

and then x1 - 2x2 - 2x3  0

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Beaver Creek Pottery Example
QM for Windows (1 of 5)

Exhibit 3.7
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Beaver Creek Pottery Example
QM for Windows – Data Set Creation (2 of 5)

Exhibit 3.8
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Beaver Creek Pottery Example
QM for Windows: Data Table (3 of 5)

Exhibit 3.9
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Beaver Creek Pottery Example
QM for Windows: Model Solution (4 of 5)

Exhibit 3.10
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Beaver Creek Pottery Example
QM for Windows: Graphical Display (5 of 5)

Exhibit 3.11
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Beaver Creek Pottery Example
Sensitivity Analysis (1 of 4)

 Sensitivity analysis determines the effect on the optimal solution

of changes in parameter values of the objective function and
constraint equations.

 Changes may be reactions to anticipated uncertainties in the

parameters or to new or changed information concerning the
model.

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Beaver Creek Pottery Example
Sensitivity Analysis (2 of 4)

Maximize Z = $40x1 + $50x2

subject to: x1 + 2x2  40
4x1 + 3x2  120
x 1, x 2  0

Figure 3.1
Optimal Solution Point
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Beaver Creek Pottery Example
Change x1 Objective Function Coefficient (3 of 4)

Maximize Z = $100x1 + $50x2

subject to: x1 + 2x2  40
4x1 + 3x2  120
x 1, x 2  0

Figure 3.2 Changing the x1 Objective Function Coefficient

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Beaver Creek Pottery Example
Change x2 Objective Function Coefficient (4 of 4)

Maximize Z = $40x1 + $100x2

subject to: x1 + 2x2  40
4x1 + 3x2  120
x 1, x 2  0

Figure 3.3 Changing the x2 Objective Function Coefficient

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Objective Function Coefficient
Sensitivity Range (1 of 3)

 The sensitivity range for an objective function coefficient is the

range of values over which the current optimal solution point will
remain optimal.

 The sensitivity range for the xi coefficient is designated as ci.

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Objective Function Coefficient
Sensitivity Range for c1 and c2 (2 of 3)
objective function Z = $40x1 + $50x2
sensitivity range for:
x1: 25  c1  66.67
x2: 30  c2  80

Figure 3.4 Determining the Sensitivity Range for c 1

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Objective Function Coefficient
Fertilizer Cost Minimization Example (3 of 3)

Minimize Z = $6x1 + $3x2

subject to:
2x1 + 4x2  16
4x1 + 3x2  24
x 1, x 2  0
sensitivity ranges:
4  c1  
0  c2  4.5

Figure 3.5 Fertilizer Cost Minimization Example

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Objective Function Coefficient Ranges
Excel “Solver” Results Screen (1 of 3)

Exhibit 3.12

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Objective Function Coefficient Ranges
Beaver Creek Example Sensitivity Report (2 of 3)

Exhibit 3.13
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Objective Function Coefficient Ranges
QM for Windows Sensitivity Range Screen (3 of 3)
Sensitivity ranges
for objective
function coefficients

Exhibit 3.14
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Changes in Constraint Quantity Values
Sensitivity Range (1 of 4)

 The sensitivity range for a right-hand-side value is the

range of values over which the quantity’s value can change
without changing the solution variable mix, including
the slack variables.

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Changes in Constraint Quantity Values
Increasing the Labor Constraint (2 of 4)

Maximize Z = $40x1 + $50x2

subject to: x1 + 2x2 + s1 = 40
4x1 + 3x2 + s2 = 120
x 1, x 2  0

Figure 3.6 Increasing the Labor Constraint Quantity

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Changes in Constraint Quantity Values
Sensitivity Range for Labor Constraint (3 of 4)

Figure 3.7 Determining the Sensitivity Range for Labor Quantity

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Changes in Constraint Quantity Values
Sensitivity Range for Clay Constraint (4 of 4)

Figure 3.8 Determining the Sensitivity Range for Clay Quantity

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Constraint Quantity Value Ranges by Computer
Excel Sensitivity Range for Constraints (1 of 2)

Exhibit 3.15
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Constraint Quantity Value Ranges by Computer
QM for Windows Sensitivity Range (2 of 2)

Exhibit 3.16
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Other Forms of Sensitivity Analysis
Topics (1 of 4)

 Changing individual constraint parameters

 Adding new constraints

 Adding new variables

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Other Forms of Sensitivity Analysis
Changing a Constraint Parameter (2 of 4)

Maximize Z = $40x1 + $50x2

subject to: x1 + 2x2  40
4x1 + 3x2  120
x 1, x 2  0

Figure 3.9 Changing the x1 Coefficient in the Labor Constraint

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Other Forms of Sensitivity Analysis
Adding a New Constraint (3 of 4)
Adding a new constraint to Beaver Creek Model:
0.20x1+ 0.10x2  5 hours for packaging
Original solution: 24 bowls, 8 mugs, $1,360 profit

Exhibit 3.17
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Other Forms of Sensitivity Analysis
Adding a New Variable (4 of 4)
Adding a new variable to the Beaver Creek model, x3, for a third
product, cups
Maximize Z = $40x1 + 50x2 + 30x3
subject to:
x1 + 2x2 + 1.2x3  40 hr of labor
4x1 + 3x2 + 2x3  120 lb of clay
x 1, x 2, x 3  0
Solving model shows that change has no effect on the original solution
(i.e., the model is not sensitive to this change).

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Shadow Prices (Dual Variable Values)

 Defined as the marginal value of one additional unit

of resource.

 The sensitivity range for a constraint quantity value is

also the range over which the shadow price is valid.

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Excel Sensitivity Report for Beaver Creek Pottery
Shadow Prices Example (1 of 2)
Maximize Z = $40x1 + $50x2 subject to:
x1 + 2x2  40 hr of labor
4x1 + 3x2  120 lb of clay
x1, x2  0

Exhibit 3.18
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Excel Sensitivity Report for Beaver Creek Pottery
Solution Screen (2 of 2)

Exhibit 3.19
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Example Problem
Problem Statement (1 of 3)
 Two airplane parts: no.1 and no. 2.
 Three manufacturing stages: stamping, drilling, finishing.
 Decision variables: x1 (number of part no. 1 to produce)
x2 (number of part no. 2 to produce)

 Model: Maximize Z = $650x1 + 910x2

subject to:
4x1 + 7.5x2  105 (stamping,hr)
6.2x1 + 4.9x2  90 (drilling, hr)
9.1x1 + 4.1x2  110 (finishing, hr)
x 1, x 2  0

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Example Problem
Graphical Solution (2 of 3)

Maximize Z = $650x1 + $910x2

subject to:
4x1 + 7.5x2  105
6.2x1 + 4.9x2  90
9.1x1 + 4.1x2  110
x 1, x 2  0
s1 = 0, s2 = 0, s3 = 11.35 hr
485.33  c1  1,151.43
89.10  q1  137.76

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Example Problem
Excel Solution (3 of 3)

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