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SOLUTION MANUAL FORVAn Introduction To Management Science Quantitative Approaches To DecisionMaking

Page 1

Part 1: Solutions Manual Contents

Chapter 1.

Introduction

2.

An Introduction to Linear Programming

3.

Linear Programming: Sensitivity Analysis and Interpretation of Solution

4.

Linear Programming Applications in Marketing, Finance and Operations Management

5.

Advanced Linear Programming Applications

6.

Distribution and Network Models

7.

Integer Linear Programming

8.

Nonlinear Optimization Models

9.

Project Scheduling: PERT/CPM

10. Inventory Models 11. Waiting Line Models 12. Simulation 13. Decision Analysis 14. Multicriteria Decision Problems 15. Forecasting 16. Markov Processes 17. Linear Programming: The Simplex Method 18. Simplex-Based Sensitivity Analysis and Duality 19. Solution Procedures for Transportation and Assignment Problems 20. Minimal Spanning Tree 21. Dynamic Programming Appendix A: Building Spreadsheet Models


Chapter 1 Introduction Learning Objectives 1.

Develop a general understanding of the management science/operations research approach to decision making.

2.

Realize that quantitative applications begin with a problem situation.

3.

Obtain a brief introduction to quantitative techniques and their frequency of use in practice.

4.

Understand that managerial problem situations have both quantitative and qualitative considerations that are important in the decision making process.

5.

Learn about models in terms of what they are and why they are useful (the emphasis is on mathematical models).

6.

Identify the step-by-step procedure that is used in most quantitative approaches to decision making.

7.

Learn about basic models of cost, revenue, and profit and be able to compute the breakeven point.

8.

Obtain an introduction to the use of computer software packages such as Microsoft Excel in applying quantitative methods to decision making.

9.

Understand the following terms: model objective function constraint deterministic model stochastic model feasible solution

infeasible solution management science operations research fixed cost variable cost breakeven point

Solutions: 1-1 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 1

1.

Management science and operations research, terms used almost interchangeably, are broad disciplines that employ scientific methodology in managerial decision making or problem solving. Drawing upon a variety of disciplines (behavioral, mathematical, etc.), management science and operations research combine quantitative and qualitative considerations in order to establish policies and decisions that are in the best interest of the organization.

2.

Define the problem Identify the alternatives Determine the criteria Evaluate the alternatives Choose an alternative For further discussion see section 1.3

3.

See section 1.2.

4.

A quantitative approach should be considered because the problem is large, complex, important, new and repetitive.

5.

Models usually have time, cost, and risk advantages over experimenting with actual situations.

6.

Model (a) may be quicker to formulate, easier to solve, and/or more easily understood.

7.

Let

d = distance m = miles per gallon c = cost per gallon,

 2d  Total Cost =  c  m  We must be willing to treat m and c as known and not subject to variation. 8.

a. Maximize 10x + 5y s.t. 5x + 2y  40 x  0, y  0 b.

Controllable inputs: x and y Uncontrollable inputs: profit (10,5), labor hours (5,2) and labor-hour availability (40)

c. 1-2 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Introduction

Profit:

$10/unit for x $ 5/ unit for y

Labor Hours:

5/unit for x 2/ unit for y 40 labor-hour capacity

Uncontrollable Inputs

Max 10 x + 5 y s.t. 10 x + 5 y  40 x  0 y  0

Production Quantities x and y Controllable Input

Projected Profit and check on production time constraint Output

Mathematical Model d.

x = 0, y = 20 Profit = $100 (Solution by trial-and-error)

e.

Deterministic - all uncontrollable inputs are fixed and known.

9.

If a = 3, x = 13 1/3 and profit = 133 If a = 4, x = 10 and profit = 100 If a = 5, x = 8 and profit = 80 If a = 6, x = 6 2/3 and profit = 67 Since a is unknown, the actual values of x and profit are not known with certainty.

10. a.

Total Units Received = x + y

b.

Total Cost = 0.20x +0.25y

c.

x + y = 5000

d. x  4000 Kansas City Constraint y  3000 Minneapolis Constraint e. Min s.t.

0.20x + 0.25y x+ x

y y

=  

5000 4000 3000

x, y  0 11. a. at $20 d = 800 - 10(20) = 600 1-3 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 1

at $70 d = 800 - 10(70) = 100 b.

TR = dp = (800 - 10p)p = 800p - 10p2

c.

at $30 TR = 800(30) - 10(30)2 = 15,000 at $40 TR = 800(40) - 10(40)2 = 16,000 at $50 TR = 800(50) - 10(50)2 = 15,000 Total Revenue is maximized at the $40 price.

d.

d = 800 - 10(40) = 400 units TR = $16,000

12. a.

TC = 1000 + 30x

b.

P = 40x - (1000 + 30x) = 10x - 1000

c.

Breakeven point is the value of x when P = 0 Thus 10x - 1000 = 0 10x = 1000 x = 100

13. a.

Total cost = 4800 + 60x

b.

Total profit = total revenue - total cost = 300x - (4800 + 60x) = 240x - 4800

c.

Total profit = 240(30) - 4800 = 2400

d.

240x - 4800 = 0 x = 4800/240 = 20 The breakeven point is 20 students.

14. a.

Profit = Revenue - Cost = 20x - (80,000 + 3x) = 17x - 80,000 17x - 80,000 = 0 17x = 80,000 x = 4706 Breakeven point = 4706

b.

Profit = 17(4000) - 80,000 = -12,000 Thus, a loss of $12,000 is anticipated.

c.

Profit = px - (80,000 + 3x) = 4000p - (80,000 + 3(4000)) = 0 4000p = 92,000 p = 23

d.

Profit = $25.95 (4000) - (80,000 + 3 (4000)) = $11,800 1-4 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Introduction

Probably go ahead with the project although the $11,800 is only a 12.8% return on the total cost of $92,000. 15. a. b.

Profit

= 100,000x - (1,500,000 + 50,000x) = 0 50,000x = 1,500,000 x = 30 Build the luxury boxes. Profit = 100,000 (50) - (1,500,000 + 50,000 (50)) = $1,000,000

16. a.

Max

50x + 30y  80,000 50x  50,000 30y  45,000 x, y  0

b.

17. a.

6x + 4y

sj = sj - 1 + xj - dj or sj - sj-1 - xj + dj = 0

b.

xj  cj

c. sj  Ij

1-5 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2 An Introduction to Linear Programming Learning Objectives 1.

Obtain an overview of the kinds of problems linear programming has been used to solve.

2.

Learn how to develop linear programming models for simple problems.

3.

Be able to identify the special features of a model that make it a linear programming model.

4.

Learn how to solve two variable linear programming models by the graphical solution procedure.

5.

Understand the importance of extreme points in obtaining the optimal solution.

6.

Know the use and interpretation of slack and surplus variables.

7.

Be able to interpret the computer solution of a linear programming problem.

8.

Understand how alternative optimal solutions, infeasibility and unboundedness can occur in linear programming problems.

9.

Understand the following terms: problem formulation constraint function objective function solution optimal solution nonnegativity constraints mathematical model linear program linear functions feasible solution

feasible region slack variable standard form redundant constraint extreme point surplus variable alternative optimal solutions infeasibility unbounded

2-1 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

Solutions: 1.

a, b, and e, are acceptable linear programming relationships. c is not acceptable because of −2B 2 d is not acceptable because of 3 A f is not acceptable because of 1AB c, d, and f could not be found in a linear programming model because they have the above nonlinear terms.

2.

a. B 8

4

0

4

8

4

8

A

b.

B 8

4

0

A

c.

B Points on line are only feasible points

8 4

0

4

8

A

2-2 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

3.

a. B (0,9)

A

0

(6,0)

b. B (0,60)

A

0

(40,0)

c. B Points on line are only feasible solutions (0,20) A (40,0)

0

4.

a. B

(20,0)

A

(0,-15)

2-3 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

b. B

(0,12) (-10,0)

A

c. B

(10,25)

Note: Point shown was used to locate position of the constraint line A

0

5. B

a

300

c 200

100 b A 0

100

200

300

2-4 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

6.

7A + 10B = 420 is labeled (a) 6A + 4B = 420 is labeled (b) -4A + 7B = 420 is labeled (c)

B 100 80 60 (b)

(c)

40 20

(a) A

-100

-80

-60

-40

-20

0

20

40

60

80

100

7. B 100

50

A

0 50

100

150

200

2-5 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

250


Chapter 2

8. B 200

133 1/3

(100,200)

A -200

0

-100

100

200

9.

B (150,225) 200

100

0

(150,100)

100

200

300

A

-100

-200

2-6 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

10.

B 5

4

Optimal Solution A = 12/7, B = 15/7

3 Value of Objective Function = 2(12/7) + 3(15/7) = 69/7 2

1

A

0 1

2

(1) × 5 (2) - (3)

4

5

2B 3B 10B 7B B

= 6 = 15 = 30 = -15 = 15/7

3

A 5A 5A

+ + + -

6

(1) (2) (3)

From (1), A = 6 - 2(15/7) = 6 - 30/7 = 12/7

2-7 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

11.

B A = 100

Optimal Solution A = 100, B = 50 Value of Objective Function = 750

100 B = 80

A

0 100

200

12. a.

B 6

5

4

Optimal Solution A = 3, B = 1.5 Value of Objective Function = 13.5

3

(3,1.5)

2

1

A

(0,0) 1

2

3

4 (4,0)

5

6

2-8 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

b.

B 3

Optimal Solution A = 0, B = 3 Value of Objective Function = 18

2

1

A

(0,0) 1 c.

2

3

4

5

6

7

8

9

There are four extreme points: (0,0), (4,0), (3,1,5), and (0,3).

13. a.

B 8

6 Feasible Region consists of this line segment only

4

2

0

A 2

b.

4

6

8

The extreme points are (5, 1) and (2, 4).

2-9 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

10


Chapter 2

c.

B 8

6

Optimal Solution A = 2, B = 4

4

2

0

A 2

14. a.

4

6

8

Let F = number of tons of fuel additive S = number of tons of solvent base Max s.t.

40F

+

30S

2/5F

+

1/ S  200 Material 1 2 1/ S  5 Material 2 5

3/ F 5 F, S  0

+

3/ S  10

21

Material 3

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An Introduction to Linear Programming

b. S

F

c.

Material 2: 4 tons are used, 1 ton is unused.

d.

No redundant constraints.

15. a.

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Chapter 2

b.

Similar to part (a): the same feasible region with a different objective function. The optimal solution occurs at (708, 0) with a profit of z = 20(708) + 9(0) = 14,160.

c.

The sewing constraint is redundant. Such a change would not change the optimal solution to the original problem.

16. a.

b.

A variety of objective functions with a slope greater than -4/10 (slope of I & P line) will make extreme point (0, 540) the optimal solution. For example, one possibility is 3S + 9D. Optimal Solution is S = 0 and D = 540.

c. Department Cutting and Dyeing Sewing Finishing Inspection and Packaging

Hours Used 1(540) = 540 5 /6(540) = 450 2 /3(540) = 360 1 /4(540) = 135

Max. Available 630 600 708 135

Slack 90 150 348 0

17. Max s.t.

5A

+ 2B

+

0S1

1A 2A 6A

- 2B + 3B - 1B

+

1S1

+ 0S2 +

0S3

+ 1S2

= 420 = 610 1S3 = 125

+ A, B, S1, S2, S3  0

18. a. Max s.t.

4A + 1B

+ 0S1

10A + 2B 3A + 2B 2A + 2B

+ 1S1

+ 0S2

+ 0S3

+ 1S2 + 1S3 A, B, S1, S2, S3  0

= 30 = 12 = 10

2 - 12 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

b.

B 14

12

10

8

6 Optimal Solution A = 18/7, B = 15/7, Value = 87/7 4

2

0 c.

A 2

4

6

8

3A +

4B

+ 0S1

+ 0S2

+ 0S3

-1A + 1A + 2A +

2B 2B 1B

+ 1S1

10

S1 = 0, S2 = 0, S3 = 4/7

19. a. Max s.t.

+ 1S2 + 1S3 A, B, S1, S2, S3  0

= 8 = 12 = 16

(1) (2) (3)

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Chapter 2

b.

B 14 (3) 12

10

(1)

8

6 Optimal Solution A = 20/3, B = 8/3 Value = 30 2/3

4

2 (2) 0

A 2

c.

4

6

8

10

12

S1 = 8 + A – 2B = 8 + 20/3 - 16/3 = 28/3 S2 = 12 - A – 2B = 12 - 20/3 - 16/3 = 0 S3 = 16 – 2A - B = 16 - 40/3 - 8/3 = 0

20. a. Max s.t.

3A

+ 2B

A 3A A A

+ B + 4B

- S1 + S2 - S3

-

- S4

B

= = = =

4 24 2 0

A, B, S1, S2, S3, S4  0

2 - 14 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

b.

c.

S1 = (3.43 + 3.43) - 4 = 2.86 S2 = 24 - [3(3.43) + 4(3.43)] = 0 S3 = 3.43 - 2 = 1.43 S4 = 0 - (3.43 - 3.43) = 0

2 - 15 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

21. a. and b. B

90

80

70 Constraint 2

60

50

40

Optimal Solution

Constraint 1

Constraint 3

30

Feasible Region

20

10

2A + 3B = 60

A

0 10 c.

20

30

40

50

60

70

80

90

100

Optimal solution occurs at the intersection of constraints 1 and 2. For constraint 2, B = 10 + A Substituting for B in constraint 1 we obtain 5A + 5(10 + A) 5A + 50 + 5A 10A A

= 400 = 400 = 350 = 35

B = 10 + A = 10 + 35 = 45 Optimal solution is A = 35, B = 45 d.

Because the optimal solution occurs at the intersection of constraints 1 and 2, these are binding constraints.

2 - 16 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

e.

Constraint 3 is the nonbinding constraint. At the optimal solution 1A + 3B = 1(35) + 3(45) = 170. Because 170 exceeds the right-hand side value of 90 by 80 units, there is a surplus of 80 associated with this constraint.

22. a.

C 3500

3000

2500

Inspection and Packaging

2000

Cutting and Dyeing

5 1500

Feasible Region

4 1000

Sewing 3 5A + 4C = 4000

500

0

2 1

500

1000 1500 2000 2500 Number of All-Pro Footballs

A 3000

b. Extreme Point 1 2 3 4 5

Coordinates (0, 0) (1700, 0) (1400, 600) (800, 1200) (0, 1680)

Profit 5(0) + 4(0) = 0 5(1700) + 4(0) = 8500 5(1400) + 4(600) = 9400 5(800) + 4(1200) = 8800 5(0) + 4(1680) = 6720

Extreme point 3 generates the highest profit. c.

Optimal solution is A = 1400, C = 600

d.

The optimal solution occurs at the intersection of the cutting and dyeing constraint and the inspection and packaging constraint. Therefore these two constraints are the binding constraints.

e.

New optimal solution is A = 800, C = 1200 Profit = 4(800) + 5(1200) = 9200

2 - 17 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

23. a.

Let E = number of units of the EZ-Rider produced L = number of units of the Lady-Sport produced Max s.t.

2400E

+

6E

+

2E

+

1800L 3L  2100 L  280 2.5L  1000 E, L  0

Engine time Lady-Sport maximum Assembly and testing

b. L 700

Number of EZ-Rider Produced

600

Engine Manufacturing Time

500

400

Frames for Lady-Sport

300

Optimal Solution E = 250, L = 200 Profit = $960,000

200

100 Assembly and Testing 0

E 100

300

200

400

500

Number of Lady-Sport Produced

c. 24. a.

The binding constraints are the manufacturing time and the assembly and testing time. Let R = number of units of regular model. C = number of units of catcher’s model. Max s.t.

5R

+

8C

1R

+

1/ R 2 1/ R 8

+

3/ C 2 1/ C 3 1/ C 4

+

900

Cutting and sewing

300

Finishing

100

Packing and Shipping

R, C  0

2 - 18 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


.

An Introduction to Linear Programming

b.

C 1000

F

Catcher's Model

800 600

C&

400

S

P&

Optimal Solution (500,150) S

200 R 0

200

400

600

800

1000

Regular Model c.

5(500) + 8(150) = $3,700

d.

C&S

1(500) + 3/2(150) = 725

F

1/ (500) + 1/ (150) = 300 2 3

P&S

1/ (500) + 1/ (150) = 100 8 4

e. Department C&S F P&S 25. a.

Usage 725 300 100

Slack 175 hours 0 hours 0 hours

Let B = percentage of funds invested in the bond fund S = percentage of funds invested in the stock fund Max s.t.

b.

Capacity 900 300 100

0.06 B

+

0.10 S

B 0.06 B B

+ +

0.10 S S

  =

0.3 0.075 1

Bond fund minimum Minimum return Percentage requirement

Optimal solution: B = 0.3, S = 0.7 Value of optimal solution is 0.088 or 8.8%

2 - 19 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

26. a.

a.

Let N = amount spent on newspaper advertising R = amount spent on radio advertising Max s.t.

50N

+ 80R

N N

+

N

R = 1000 Budget  250 Newspaper min. R  250 Radio min. -2R  0 News  2 Radio

N, R  0 b. R

1000

Radio Min

Optimal Solution N = 666.67, R = 333.33 Value = 60,000

Budget

N = 2R

500

Newspaper Min Feasible region is this line segment N 0

27.

5 00

1000

Let I = Internet fund investment in thousands B = Blue Chip fund investment in thousands Max s.t.

0.12I

+

0.09B

1I 1I 6I

+

1B

+ 4B I, B  0

  

50 35 240

Available investment funds Maximum investment in the internet fund Maximum risk for a moderate investor

2 - 20 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

B

Blue Chip Fund (000s)

60

Risk Constraint Optimal Solution I = 20, B = 30 $5,100

50

40

Maximum Internet Funds

30

20

10

Objective Function 0.12I + 0.09B

Available Funds $50,000

0

I 10

30

20

40

50

60

Internet Fund (000s)

Internet fund Blue Chip fund Annual return b.

$20,000 $30,000 $ 5,100

The third constraint for the aggressive investor becomes 6I + 4B  320 This constraint is redundant; the available funds and the maximum Internet fund investment constraints define the feasible region. The optimal solution is: Internet fund Blue Chip fund Annual return

$35,000 $15,000 $ 5,550

The aggressive investor places as much funds as possible in the high return but high risk Internet fund. c.

The third constraint for the conservative investor becomes 6I + 4B  160 This constraint becomes a binding constraint. The optimal solution is Internet fund Blue Chip fund Annual return

$0 $40,000 $ 3,600 2 - 21

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

The slack for constraint 1 is $10,000. This indicates that investing all $50,000 in the Blue Chip fund is still too risky for the conservative investor. $40,000 can be invested in the Blue Chip fund. The remaining $10,000 could be invested in low-risk bonds or certificates of deposit. 28. a.

Let W = number of jars of Western Foods Salsa produced M = number of jars of Mexico City Salsa produced Max s.t.

1W

+

1.25M

5W 3W + 2W + W, M  0

7M 1M 2M

  

4480 2080 1600

Whole tomatoes Tomato sauce Tomato paste

Note: units for constraints are ounces b.

Optimal solution: W = 560, M = 240 Value of optimal solution is 860

29. a.

Let B = proportion of Buffalo's time used to produce component 1 D = proportion of Dayton's time used to produce component 1

Buffalo Dayton

Maximum Daily Production Component 1 Component 2 2000 1000 600 1400

Number of units of component 1 produced: 2000B + 600D Number of units of component 2 produced: 1000(1 - B) + 600(1 - D) For assembly of the ignition systems, the number of units of component 1 produced must equal the number of units of component 2 produced. Therefore, 2000B + 600D = 1000(1 - B) + 1400(1 - D) 2000B + 600D = 1000 - 1000B + 1400 - 1400D 3000B + 2000D = 2400 Note: Because every ignition system uses 1 unit of component 1 and 1 unit of component 2, we can maximize the number of electronic ignition systems produced by maximizing the number of units of subassembly 1 produced. Max 2000B + 600D In addition, B  1 and D  1.

2 - 22 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

The linear programming model is: Max s.t.

2000B

+ 600D

3000B B

+ 2000D

= 2400 1 1 0

D B, D

The graphical solution is shown below. D 1.2

1.0

30

.8

00 B+ 20

.6

00 D =2 40

.4

0

Optimal Solution

2000B + 600D = 300

.2

B 0

.2

.4

.6

.8

1.0

1.2

Optimal Solution: B = .8, D = 0 Optimal Production Plan Buffalo - Component 1 Buffalo - Component 2 Dayton - Component 1 Dayton - Component 2

.8(2000) = 1600 .2(1000) = 200 0(600) = 0 1(1400) = 1400

Total units of electronic ignition system = 1600 per day.

2 - 23 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

30. a.

Let

E = number of shares of Eastern Cable C = number of shares of ComSwitch

Max s.t.

15E

+ 18C

40E 40E

+ 25C

25C 25C E, C  0

   

50,000 15,000 10,000 25,000

Maximum Investment Eastern Cable Minimum ComSwitch Minimum ComSwitch Maximum

b. C

Number of Shares of ComSw itch

2000

Minimum Eastern Cable

1500

Maximum Comswitch

1000

Maximum Investment 500 Minimum Conswitch

0

500 1000 1500 Number of Shares of Eastern Cable

E

c.

There are four extreme points: (375,400); (1000,400);(625,1000); (375,1000)

d.

Optimal solution is E = 625, C = 1000 Total return = $27,375

2 - 24 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

31.

B 6

Feasible Region

4

2

A 0

2

4

6 3A + 4B = 13

Optimal Solution A = 3, B = 1 Objective Function Value = 13 32. A B A

B A

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Chapter 2

Extreme Points (A = 250, B = 100) (A = 125, B = 225) (A = 125, B = 350)

Objective Function Value 800 925 1300

Surplus Demand 125 — —

Surplus Total Production — — 125

Slack Processing Time — 125 —

33. a.

xB2 6

4

2

0

xA1 2

4

6

Optimal Solution: A = 3, B = 1, value = 5 b. (1) (2) (3) (4)

3 + 4(1) = 7 2(3) + 1 = 7 3(3) + 1.5 = 10.5 -2(3) +6(1) = 0

Slack = 21 - 7 = 14 Surplus = 7 - 7 = 0 Slack = 21 - 10.5 = 10.5 Surplus = 0 - 0 = 0

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An Introduction to Linear Programming

c. B

A

Optimal Solution: A = 6, B = 2, value = 34 34. a. B x2 4

3 Feasible Region

2

(21/4, 9/4)

1

(4,1) x1A 0

1

2

3

4

5

b.

There are two extreme points: (A = 4, B = 1) and (A = 21/4, B = 9/4)

c.

The optimal solution is A = 4, B = 1

6

2 - 27 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

35. a. Min s.t.

6A

+

4B

+

0S1

2A 1A

+ +

1B 1B 1B

-

S1

+

-

0S2

+

0S3

S2 +

S3

= = =

12 10 4

A, B, S1, S2, S3  0 b.

The optimal solution is A = 6, B = 4.

c.

S1 = 4, S2 = 0, S3 = 0.

36. a.

Let

Max s.t.

T = P =

number of training programs on teaming number of training programs on problem solving

10,000T

+

8,000P

+ +

P P 2P

T T 3T

   

8 10 25 84

Minimum Teaming Minimum Problem Solving Minimum Total Days Available

T, P  0

2 - 28 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

b. P Minimum Teaming

Number o f Probl em-Solv ing Pro grams

40

30 Minimum Total 20

Days Available

Minimum Problem Solving

10

0

10 20 Number of Teaming Programs

c.

There are four extreme points: (15,10); (21.33,10); (8,30); (8,17)

d.

The minimum cost solution is T = 8, P = 17 Total cost = $216,000

30

T

37. Mild Extra Sharp

Regular 80% 20%

Zesty 60% 40%

8100 3000

Let R = number of containers of Regular Z = number of containers of Zesty Each container holds 12/16 or 0.75 pounds of cheese Pounds of mild cheese used

= =

0.80 (0.75) R + 0.60 (0.75) Z 0.60 R + 0.45 Z

Pounds of extra sharp cheese used = =

0.20 (0.75) R + 0.40 (0.75) Z 0.15 R + 0.30 Z

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Chapter 2

Cost of Cheese

= = = =

Cost of mild + Cost of extra sharp 1.20 (0.60 R + 0.45 Z) + 1.40 (0.15 R + 0.30 Z) 0.72 R + 0.54 Z + 0.21 R + 0.42 Z 0.93 R + 0.96 Z

Packaging Cost = 0.20 R + 0.20 Z Total Cost

= (0.93 R + 0.96 Z) + (0.20 R + 0.20 Z) = 1.13 R + 1.16 Z

Revenue

= 1.95 R + 2.20 Z

Profit Contribution = Revenue - Total Cost = (1.95 R + 2.20 Z) - (1.13 R + 1.16 Z) = 0.82 R + 1.04 Z Max s.t.

0.82 R

+

1.04 Z

0.60 R + 0.15 R + R, Z  0

0.45 Z 0.30 Z

 

8100 3000

Mild Extra Sharp

Optimal Solution: R = 9600, Z = 5200, profit = 0.82(9600) + 1.04(5200) = $13,280 38. a.

Let

S = yards of the standard grade material per frame P = yards of the professional grade material per frame

Min s.t.

7.50S

+ 9.00P

0.10S + 0.30P 0.06S + 0.12P S + P S, P  0

 6  3 = 30

carbon fiber (at least 20% of 30 yards) kevlar (no more than 10% of 30 yards) total (30 yards)

2 - 30 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

b. P

Professional Grad e (yards)

50

40

total Extreme Point S = 10 P = 20

30

Feasible region is the line segment

20

kevlar carbon fiber

10

Extreme Point S = 15 P = 15 S 0

10

20

30

40

50

60

Standard Grade (yards)

c. Extreme Point (15, 15) (10, 20)

Cost 7.50(15) + 9.00(15) = 247.50 7.50(10) + 9.00(20) = 255.00

The optimal solution is S = 15, P = 15 d.

Optimal solution does not change: S = 15 and P = 15. However, the value of the optimal solution is reduced to 7.50(15) + 8(15) = $232.50.

e.

At $7.40 per yard, the optimal solution is S = 10, P = 20. The value of the optimal solution is reduced to 7.50(10) + 7.40(20) = $223.00. A lower price for the professional grade will not change the S = 10, P = 20 solution because of the requirement for the maximum percentage of kevlar (10%).

39. a.

Let S = number of units purchased in the stock fund M = number of units purchased in the money market fund Min s.t.

8S

+

50S 5S

+ +

3M

100M 4M M S, M,  0

  

1,200,000 Funds available 60,000 Annual income 3,000 Minimum units in money market

2 - 31 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

Units of Money Market Fund

x2 M

20000 + 3M = 62,000 8x8S 1 + 3x2 = 62,000

15000 Optimal Solution .

10000

5000

0

5000

10000

15000

20000

x1S

Units of Stock Fund Optimal Solution: S = 4000, M = 10000, value = 62000

40.

b.

Annual income = 5(4000) + 4(10000) = 60,000

c.

Invest everything in the stock fund. Let P1 = gallons of product 1 P2 = gallons of product 2 Min s.t.

1P1

+

1P2

1P1

+

1P1

1P2 2P2 + P1, P2  0

  

30 20 80

Product 1 minimum Product 2 minimum Raw material

2 - 32 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

P2

Feasible Region

P +1

1

60

1P =

2

55

Number of Gallons of Product 2

80

40

20

Use 80 gal s.

(30,25) 0

40 20 60 80 Number of Gallons of Product 1

P1

Optimal Solution: P1 = 30, P2 = 25 Cost = $55 41. a.

Let R = number of gallons of regular gasoline produced P = number of gallons of premium gasoline produced Max s.t.

0.30R

+

0.50P

0.30R 1R

+ +

0.60P 1P 1P

  

18,000 50,000 20,000

Grade A crude oil available Production capacity Demand for premium

R, P  0

2 - 33 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

b. P

Gallons o f Premiu m Gasoli ne

60,000

50,000 Production Capacity 40,000

30,000 Maximum Premium

20,000

Optimal Solution R = 40,000, P = 10,000 $17,000

10,000

Grade A Crude Oil 0

R 10,000 20,000 30,000 40,000 50,000 60,000 Gallons of Regular Gasoline

Optimal Solution: 40,000 gallons of regular gasoline 10,000 gallons of premium gasoline Total profit contribution = $17,000 c. Constraint 1 2 3

d.

Value of Slack Variable 0 0 10,000

Interpretation All available grade A crude oil is used Total production capacity is used Premium gasoline production is 10,000 gallons less than the maximum demand

Grade A crude oil and production capacity are the binding constraints.

2 - 34 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

42. B x2

14 Satisfies Constraint # 2

12 10 8

Infeasibility

6 4

Satisfies Constraint # 1

2 0

4

2

6

8

10

12

x1A

43. Bx 2 4 Unbounded

3 2 1

0

1

2

3

x1A

44. a.

xB2 Objective Function Optimal Solution (30/16, 30/16) Value = 60/16

4

2 0 b.

2

4

xA1

New optimal solution is A = 0, B = 3, value = 6.

2 - 35 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

45. a. B

A A

A

46.

B A

b.

Feasible region is unbounded.

c.

Optimal Solution: A = 3, B = 0, z = 3.

d.

An unbounded feasible region does not imply the problem is unbounded. This will only be the case when it is unbounded in the direction of improvement for the objective function. Let

N = number of sq. ft. for national brands G = number of sq. ft. for generic brands

Problem Constraints: N N

+

G G

  

200 120 20

Space available National brands Generic

2 - 36 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

Extreme Point 1 2 3

N 120 180 120

G 20 20 80

a.

Optimal solution is extreme point 2; 180 sq. ft. for the national brand and 20 sq. ft. for the generic brand.

b.

Alternative optimal solutions. Any point on the line segment joining extreme point 2 and extreme point 3 is optimal.

c.

Optimal solution is extreme point 3; 120 sq. ft. for the national brand and 80 sq. ft. for the generic brand.

2 - 37 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

47. Bx2

e Tim ing cess Pro

600

500 400

300 Alternate optima (125,225)

200

100

(250,100)

0

100

200

300

400

xA 1

Alternative optimal solutions exist at extreme points (A = 125, B = 225) and (A = 250, B = 100). Cost

= 3(125) + 3(225) = 1050

Cost

= 3(250) + 3(100) = 1050

or

The solution (A = 250, B = 100) uses all available processing time. However, the solution (A = 125, B = 225) uses only 2(125) + 1(225) = 475 hours. .

Thus, (A = 125, B = 225) provides 600 - 475 = 125 hours of slack processing time which may be used for other products.

2 - 38 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

48.

Possible Actions: i.

Reduce total production to A = 125, B = 350 on 475 gallons.

ii.

Make solution A = 125, B = 375 which would require 2(125) + 1(375) = 625 hours of processing time. This would involve 25 hours of overtime or extra processing time.

iii. Reduce minimum A production to 100, making A = 100, B = 400 the desired solution. 49. a.

Let

P = number of full-time equivalent pharmacists T = number of full-time equivalent physicians

The model and the optimal solution are shown below: MIN 40P+10T S.T. 1) 2) 3)

P+T >=250 2P-T>=0 P>=90

Optimal Objective Value 5200.00000 Variable P T

Value 90.00000 160.00000

Reduced Cost 0.00000 0.00000

2 - 39 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

Constraint 1 2 3

Slack/Surplus 0.00000 20.00000 0.00000

Dual Value 10.00000 0.00000 30.00000

The optimal solution requires 90 full-time equivalent pharmacists and 160 full-time equivalent technicians. The total cost is $5200 per hour. b. Pharmacists Technicians

Current Levels 85 175

Attrition 10 30

Optimal Values 90 160

New Hires Required 15 15

The payroll cost using the current levels of 85 pharmacists and 175 technicians is 40(85) + 10(175) = $5150 per hour. The payroll cost using the optimal solution in part (a) is $5200 per hour. Thus, the payroll cost will go up by $50 50.

Let

M = number of Mount Everest Parkas R = number of Rocky Mountain Parkas Max s.t.

100M

+

150R

30M 45M 0.8M

+ + -

20R 15R 0.2R

  

7200 Cutting time 7200 Sewing time 0 % requirement

Note: Students often have difficulty formulating constraints such as the % requirement constraint. We encourage our students to proceed in a systematic step-by-step fashion when formulating these types of constraints. For example: M must be at least 20% of total production M  0.2 (total production) M  0.2 (M + R) M  0.2M + 0.2R 0.8M - 0.2R  0

2 - 40 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


An Introduction to Linear Programming

The optimal solution is M = 65.45 and R = 261.82; the value of this solution is z = 100(65.45) + 150(261.82) = $45,818. If we think of this situation as an on-going continuous production process, the fractional values simply represent partially completed products. If this is not the case, we can approximate the optimal solution by rounding down; this yields the solution M = 65 and R = 261 with a corresponding profit of $45,650. 51.

Let

C = number sent to current customers N = number sent to new customers

Note: Number of current customers that test drive = .25 C Number of new customers that test drive = .20 N Number sold = .12 ( .25 C ) + .20 (.20 N ) = .03 C + .04 N Max s.t.

.03C

+

.04N

.25 C .20 N .25 C - .40 N 4C + 6N C, N,  0

30,000  10,000  0   1,200,000

Current Min New Min Current vs. New Budget

2 - 41 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

Current Min.

N 200,000

Current  2 New

Budget

.03 C

+. 04

N

=6

00 0

100,000

Optimal Solution C = 225,000, N = 50,000 Value = 8,750 New Min.

0

52.

Let

100,000

200,000

S = number of standard size rackets O = number of oversize size rackets Max s.t.

10S

+

15O

0.8S 10S 0.125S

+ + S, O,  0

0.2O 12O 0.4O

  

0 4800 80

% standard Time Alloy

2 - 42 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

300,000

C


An Introduction to Linear Programming

53. a.

Let

R = time allocated to regular customer service N = time allocated to new customer service Max s.t.

1.2R

+

N

R 25R -0.6R

+ + +

N 8N N

  

80 800 0

R, N,  0 b. Optimal Objective Value 90.00000 Variable R N

Value 50.00000 30.00000

Reduced Cost 0.00000 0.00000

Constraint 1 2 3

Slack/Surplus 0.00000 690.00000 0.00000

Dual Value 1.12500 0.00000 -0.12500

Optimal solution: R = 50, N = 30, value = 90 HTS should allocate 50 hours to service for regular customers and 30 hours to calling on new customers. 54. a.

Let

M1 = number of hours spent on the M-100 machine M2 = number of hours spent on the M-200 machine

Total Cost 6(40)M1 + 6(50)M2 + 50M1 + 75M2 = 290M1 + 375M2 Total Revenue 25(18)M1 + 40(18)M2 = 450M1 + 720M2 Profit Contribution (450 - 290)M1 + (720 - 375)M2 = 160M1 + 345M2

2 - 43 © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Chapter 2

Max s.t.

160 M1

+

345M2

M1 M2 M1 40 M1

+

M2 50 M2

    

15 10 5 5 1000

M-100 maximum M-200 maximum M-100 minimum M-200 minimum Raw material available

M1, M2  0 b. Optimal Objective Value 5450.00000 Variable M1 M2

Value 12.50000 10.00000

Reduced Cost 0.00000 145.00000

Constraint 1 2 3 4 5

Slack/Surplus 2.50000 0.00000 7.50000 5.00000 0.00000

Dual Value 0.00000 145.00000 0.00000 0.00000 4.00000

The optimal decision is to schedule 12.5 hours on the M-100 and 10 hours on the M-200. 55.

Mr. Krtick’s solution cannot be optimal. Every department has unused hours, so there are no binding constraints. With unused hours in every department, clearly some more product can be made.

56.

No, it is not possible that the problem is now infeasible. Note that the original problem was feasible (it had an optimal solution). Every solution that was feasible is still feasible when we change the constraint to less-than-or-equal-to, since the new constraint is satisfied at equality (as well as inequality). In summary, we have relaxed the constraint so that the previous solutions are feasible (and possibly more satisfying the constraint as strict inequality).

57.

Yes, it is possible that the modified problem is infeasible. To see this, consider a redundant greaterthan-or-equal to constraint as shown below. Constraints 2, 3, and 4 form the feasible region and constraint 1 is redundant. Change constraint 1 to less-than-or-equal-to and the modified problem is infeasible.

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