Answers to Homework Problems, Cht. 3 BSNS5230, J. Wang P. 99 -#22. X1 = number of sausage biscuits to make each morning X2 = number of ham biscuits to make each morning Max s.t. 0.6X1 + 0.5X2 0.01X1 + 0.024X2 6 0.1X1 30 0.15X2 30 0.04X1 + 0.04X2 16 X1, X2 0 (Total profit of a morning) (labor hour) (sausage) (ham) (flour) Solved by QM, the optimal solution is : {X1*= 300, X2*= 100}. That is, the manager should prepare 300 sausage biscuits and 100 ham biscuits each morning. The best objective function value is $230. Problem #22. Objective: Maximize Results ---------X1 X2 RHS Dual -------------------------------------------------------------------------Maximize 0.6 0.5 Labor hour 0.01 0.024 <= 6 0 Sausage 0.1 0 <= 30 1 Ham 0 0.15 <= 30 0 Flour 0.04 0.04 <= 16 12.5 -------------------------------------------------------------------------Solution 300 100 230 Ranging ---------Variable X1 X2 Constraint Labor hour Sausage Ham Flour Value 300 100 Dual Value 0 1 0 12.5 Reduced Cost 0 0 Original Value 0.6 0.5 Lower Bound 0.5 0 Upper Bound Infinity 0.6 Slack/ Surplus 0.6 0 15 0 Original Value 6 30 30 16 Lower Bound 5.4 25.7143 15 12 Upper Bound Infinity 40 Infinity 17 #23. (a) For “sausage: Plug the optimal solution in the constraint of “sausage”: 0.1*300=30 which is equal to the RHS. So, there is no sausage left over. For “ham”: Plug the optimal solution in the constraint of “ham”: 0.15*100=15 lbs to be used. Comparing to 30 lbs of ham available, there are 15 lbs of ham left over. 1 For “labor hours”: Plug the optimal solution in the constraint of “labor hour”: 0.01*300+0.024*100=5.4, which is 0.6 less than the RHS=6. So, there is 6-5.4=0.6 labor hour left over. (b) If the unit profit for a ham biscuit were increased from $0.5 to $0.6, the current optimal solution would not change, because 0.6 is not beyond the sensitivity range for X2’s coefficient in objective function (0~0.6). (c) Change the RHS of constraint of “flour” from 16 to 18 and resolve the LP by QM, the new optimal solution is (X1=300, X2=125). (Attach QM solution) #25. X1 = number of telephone interviewers to hire X2 = number of personal interviewers to hire Min s.t. 50X1 + 70X2 80X1 + 40X2 3,000 80X1 1,000 40X2 800 X1, X2 0 (Total cost of interviewers per day) (total interviews per day) (telephone interviews per day) (personal interviews per day) By QM, the optimal solution is: {X1*= 27.5, X2*= 20}. That is, the firm should hire 27.5 telephone interviewers and 20 personal interviewers. The best objective function value is $2,775 of total cost per day. Problem #25. Objective: Minimize Results ---------X1 X2 RHS Dual -----------------------------------------------------------------------------------------------------Minimize 50 70 Total interviews / day 80 40 >= 3,000 -0.625 Telephone interviews / day 80 0 >= 1,000 0 Personal interviews / day 0 40 >= 800 -1.125 --------------------------------------------------------------------------------------------------------Solution 27.5 20 2,775 Ranging ---------Variable X1 X2 Value 27.5 20 Constraint Total interviews / day Telephone interviews / day Personal interviews / day Reduced Original Lower Cost Value Bound 0 50 0 0 70 25 Dual Value -0.625 0 -1.125 Slack/ Surplus 0 1,200 0 Original Value 3,000 1,000 800 Upper Bound 140 Infinity Lower Bound 1,800 -Infinity 0 Upper Bound Infinity 2,200 2,000 2 #26 (a) As given in the results of QM in Problem #25: Sensitivity range for daily cost of a telephone interviewer which is the coefficient of X1 in the objective function, is (0~140). Sensitivity range for number of personal interviews required which is RHS of the third constraint, is (0~2000). (b) Plug the optimal solution in the second constraint (telephone interviews per day): 80*27.5=2200 which is larger than its RHS=1000. So, the firm conducts 2200-1000=1200 more telephone interviews per day than the required. Plug the optimal solution in the third constraint (personal interviews per day): 40*20=800 which is equal to its RHS. So, the firm conducts no more personal interviews than the required. (c) If total personal interview must be at least 1,200, we need to change RHS of the third constraint from 800 to 1200 and resolve it by QM. The new optimal solution would be (X1=22.5, X2=30). (QM result should be attached) #27. (a) The dual value for “personal interviews” 1.125. That means that the total cost will be worse off by 1.125 (i.e., increase by 1.125) if the required personal interviews increases by 1 from 800 to 801. That is, the total cost will be better off by 1.125 (i.e., decrease by 1.125) if the required personal interviews is reduced by 1 to 799. The shadow price for “telephone interviews” is 0, which tells that there is no effect on the total cost by changing the required telephone interviews that is currently 1,000. Therefore, daily personal interview requirement should be reduced because it would bring the total cost down more. After reducing personal interview requirement by 1 from 800 to 799, QM results tell that the total optimal cost is reduced by 1.125 to 2773.875 with the new optimal solution {X1*= 27.5125, X2*= 19.975}. (Attach QM solution) (b) The sensitivity range for the cost of a personal interviewer, which is the coefficient of X2 in the objective function, is (25 ). The sensitivity range for number of total interviews that must be done per day, which is the RHS of the first constraint, is (1,800 ). #46. X1 = number of cartons of “own brand” milk to stock X2 = number of cartons of “local brand” milk to stock X3 = number of cartons of “national brand” milk to stock Max s.t. 0.97X1 + 0.83X2 + 0.69X3 16X1 + 16X2 + 16X3 5184 (Total profit) (space in inch2) 3 X1 3X1 X2 + X3 0 X3 0 X2 120 X1, X2, X3 0 (local brand supply) Note: (i) 1 foot = 12 inches; 1 foot2 = 144 inches2. 5184 (inches2) of RHS of constraint 1 is obtained from 36*144. (ii) 120 in constraint four is obtained from 10*12. (1 dozen = 12) By QM, the optimal solution is : {X1*= 54, X2*= 108, X3*= 162}. That is, store should stock 54 cartons of “own brand” milk, 108 cartons of “local brand” milk, and 162 cartons of “national brand” milk. The best objective function value is $253.8 of total profit. Problem #42. Objective: Maximize Results ---------X1 X2 X3 RHS Dual -----------------------------------------------------------------------------------------Maximize 0.97 0.83 0.69 Space in inches2 16 16 16 <= 5,184 0.049 Constraint 2 -1 -1 1 >= 0 -0.0467 Constraint 3 3 0 -1 <= 0 0.0467 Local brand 0 1 0 <= 120 0 -----------------------------------------------------------------------------------------Solution 54 108 162 253.8 Ranging ---------Variable X1 X2 X3 Constraint Space in inches2 Constraint 2 Constraint 3 Local brand Value 54 108 162 Dual Value 0.049 -0.0467 0.0467 0 Reduced Cost 0 0 0 Slack/ Surplus 0 0 0 12 Original Lower Value Bound 0.97 0.83 0.83 0.76 0.69 -0.8767 Original Value 5,184 0 0 120 Lower Bound 0 -18 -36 108 Upper Bound 1.25 0.97 0.7833 Upper Bound 5,760 162 324 Infinity #47. (a) The dual value for “space” is 0.049, which means that for each additional inch2 the total profit will increase by $0.049. Each carton takes 16 inches2. Each additional carton implies additional 16 inches2. So, each additional carton space would make additional $0.049*16=$0.784 in profit. But the above dual value is true only when the total space does not exceed 5760 inches2 since the upper limit for the RHS of “space” constraint is 5760. (b) Getting more supply of the local brand milk will not increase the total profit, since the shadow price for “local brand supply” is 0. (c) The discount would change the objective function to 4 Max 0.86X1 + 0.83X2 + 0.69X3 and change the third constraint to 1.5X1 X3 0. The new optimal solution by QM is {X1*= 108, X2*= 54, X3*= 162}. (QM solution should be attached) The best objective function value is 249.48. Since the total profit is lower than that without discount, the discount should not be implemented. 5