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Pe 2

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24 views2 pages

Pe 2

Uploaded by

pranav.garg1006
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Practice Exercise 2:

1. Hanson Industries Inc. produces two stereo models, Model X1 and Model X2. Hanson
wishes to maximize the profits it earns from sales of these two models. It has developed
the following linear programming model for determining the number of each model
(X1 and X2) to produce each day:

Maximize: Z = 4X1 + 5X2 (Profit $)


Subject to: X1 + 2X2 <= 10 (Material lbs)
6X1 + 6X2 <= 36 (Labor, hours)
X1 <= 4 (Demand for Model X1)
X1, X2 >= 0 (Non-negativity)

a. Solve the model using EXCEL and obtain the optimal solution and maximum
profit
b. For the optimal solution obtained in part a., indicate the slack or surplus, if any,
for each constraint
c. What would be the effect on the optimal solution if the profit from Model X1 were
increased to $8 per unit?
d. In the original objective function, what would be the profit per unit for Model X2
have to be increased to so that Model X1 would not be produced?

Answer:
a. X1 = 2, X2 = 4, Z = 28
b. Both resources (material and labor) are fully used with zero slack. But the 4 units
of demand for Model X2 is not fully met – a slack of 2.
c. The optimal solution will change to X1 = 4, X2 = 2, Z = 42
d. The maximum allowable increase is $3 – have to increase $8 or more.

2. A farmer raises beef cattle and at least once a week the cattle are fed a mixture of syrup
and grain to promote rapid growth. The famer has developed the following linear
programming model to indicate the number of gallons to meet minimum requirements
for carbohydrates and protein and mix weight.

Minimize: Z = 1.3X1 + 0.75X2 (Cost $)


Subject to: 5X1 + X2 >= 30 (Mix weight lbs)
30X1 + 20X2 >= 500 (Carbohydrates, grams)
8X1 + 20X2 >= 240 (Protein, grams)
X1, X2 >= 0 (Non-negativity)

Solve the model using EXCEL and use the outputs to answer the following
questions
a. What is the optimal solution? What is the minimum cost?
b. Would the amount of syrup and grain contained in the optimal mix change if the
cost of syrup was reduced to $1.05 per pound?
c. Use the 100% rule to assess whether the optimal solution obtained in part a. might
change if the costs for syrup and grain are $1.5 per pound and $0.60 per pound
respectively? Will the minimum cost change?

3
Answer (refer to the excel outputs):

a. Optimal solution: X1 = 1.43, X2 = 22.86, Z = $19


b. The allowable decrease for the coefficient of X1 is 0.175, meaning the lower bound
is $1.125. Since $1.05 is below this lower bound, the optimal solution is likely to
change. Solving the model with the new coefficient yields: X1 = 11.82, X2 = 7.27,
Z = $17.86
c. According to the 100% rule, the sum of % changes = 0.2/2.49 + 0.15/0.49 < 100%
is less than 100%. Therefore, the optimal solution does not change. Nevertheless,
the minimum cost will change to: 1.43*1.5 + 22.86*0.6 = 15.86

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