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The document summarizes an LP model that HIDec uses to determine the optimal production levels of two electronic gadget models given resource constraints. The optimal solution is to produce 450 units of Model 1 and 100 units of Model 2 for a maximum revenue of $1750. The dual prices and feasibility ranges for the dual prices are also determined. Additional questions analyze how changes to the resource availability or prices would impact the optimal solution.

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Mohamed Hassan
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415 views

11

The document summarizes an LP model that HIDec uses to determine the optimal production levels of two electronic gadget models given resource constraints. The optimal solution is to produce 450 units of Model 1 and 100 units of Model 2 for a maximum revenue of $1750. The dual prices and feasibility ranges for the dual prices are also determined. Additional questions analyze how changes to the resource availability or prices would impact the optimal solution.

Uploaded by

Mohamed Hassan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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11- HIDec produces two models of electronic gadgets that use resistors, capacitors, and

chips. The following table summarizes the data of the situation:

Unit resource requirement


Model 1 (units) Model 2 (units)
Resource Maximum availability (units)
Resistor 2 3 1200
Capacitors 2 1 1000
Chips 0 4 800
Unit price ($) 3 4
Let x 1and x 2be the amount produced of model 1 and 2, respectively. Following are LP model
and its associated optimal simplex tableau.
Maximize z=3 x 1+ 4 x 2
Subject to:
2 x1 +3 x 2 ≤ 1200

2 x1 + x 2 ≤ 100

4 x2 ≤ 800

x1 , x2 ≥ 0

Basic x1 x1 x1 x1 x1 Solution
4 1
Z 0 0 0 1750
5 4
−1 3
x1 1 0 0 450
4 2
x1 0 0 -2 2 1 400
1 −1
x1 0 1 0 100
2 2

(a) Determine the status of each resource.


(b) In terms of the optimal revenue, determine the dual prices for the resistors, capacitors,
and chips.
(c) Determine the feasibility ranges for the dual prices obtained in (b)
(d) If the available number of resistors is increased to 1300 units. Find new optimum
solution.
(e) If the available number of chips is reduced to 350 units, will be able to determine the
new optimum solution directly from the given information? Explain.
(f) If the availability of capacitors is limited by the feasibility range computed in (c),
determine the corresponding range of the optimal revenue and the corresponding range
for the numbers of units to be produced of model 1 and 2.
(g) A new contractor is offering to sell HiDec additional resistors at 40 cent each, but only if
HiDec would purchase at least 500 units. Should HiDec accept the offer?
Solution
z=$ 1750 x1 =450 x 2=100

(a)

Resource Slack variable Status


Resistors s1=0 Scarce
Capacitor s2=0 Scarce
s
Chips s3=400 Abundant
4 1
(b) z + s 1+ s 2=1750
5 4

Resource Dual price


Resistors $ 1.25
Capacitors $0.25
Chips $0
(c) Conditions:
1 3
x 1=450− D1+ D 2 ≥ 0
4 4
s3=400−2 D 1 +2 D2+ D 3 ≥ 0

1 1
x 2=100+ D1− D2 ≥0
2 2
Feasibility range:
1
450− D 1 ≥ 0
4
400−2 D1 ≥ 0

1
100+ D1 ≥ 0
2
−200 ≤ D 1 ≤ 200

1
450− D 2 ≥ 0
4
400−2 D 2 ≥ 0

1
100+ D 2 ≥ 0
2
−200 ≤ D 2 ≤ 200

400+ D3 ≥ 0

−400≤ D 3 <∞
(d) D1=1300−1200=100

The allowance range −200 ≤ D 1 ≤ 200


∆ z=100 × 1.25=$ 125
x 1=450−0.25 ×100=425

x 2=100−0.5× 100=150

New z=1750+∆ z=$ 1875


(e) D 3=350−800=−450 , which falls outside the allowance range −400≤ D3 <∞ thus, basic
solution and the dual price range and the problem cannot be solved
(f) −200 ≤ D 2 ≤ 200, dual price =0.25
Thus
−200 ×0.25 ≤ ∆ z ≤ 200 ×0.25
50 ≤ ∆ z ≤ 50
1700 ≤ z ≤1800
450−0.75 ×200 ≤ x 1 ≤ 450+0.75 ×200

1 1
100− (−200)≤ x 2 ≤ 100− (+200)
2 2
(g) Cost of purchasing 500 additional resistors ¿ 500 ×0.40=$ 200

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