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A

4
5

Assembling and testing computers

6
7

Cost per labor hour assembling


Cost per labor hour testing

Basic
5
1
$150
$300
$80

15 Unit margin
16
17 Assembling, testing plan (# of computers)
18
Basic
19 Number to produce
514.2857143

23
24
25
26
27
28

Constraints (hours per month)


Labor availability for assembling
Labor availability for testing
Net profit ($ this month)

<=
600
Hours used
10000
3000

Range names used:


Hours_available
Hours_used
Maximum_sales
Number_to_produce
Total_profit

$11
$15

8
9 Inputs for assembling and testing a computer
10
11 Labor hours for assembly
12 Labor hours for testing
13 Cost of component parts
14 Selling price

20
21 Maximum sales
22

XP
6
2
$225 $
$450 $
$129

Basic
XP
$41,143 $154,800

=Model!$D$21:$D$22
=Model!$B$21:$B$22
#VALUE!
#VALUE!
$200,286

VXP
8
3
275
560
$152

XP VXP
1200 28.571429
<=
<=
1200
50

<=
<=

In general,
general, itit is
is interesting
interesting to
to check
check which
which
In
changing cells
cells are
are positive
positive (both
(both of
of them
them
changing
here) and
and which
which constraints
constraints are
are binding
binding
here)
(the XP
XP maximum
maximum sales
sales constraint
constraint and
and
(the
the first
first hour
hour availability
availability constraint).
constraint).
the

Hours available
10000
3000
VXP
$4,343

Total
$200,286

Question 2 _part b

b) If you round the values in the decision variable cells to the nearest integers, is the resu
We could solve this just by rounding the numbers to the nearest integer.
Assembling and testing computers:
Cost per labor hour assembling
Cost per labor hour testing

$11
$15

Inputs for assembling and testing a computer


Labor hours for assembly
Labor hours for testing
Cost of component parts
Selling price
Unit margin

Basic
5
1
$150
$300
$80

XP
6
2
$225
$450
$129

Basic
514
<=
600

XP
1200
<=
1200

Assembling, testing plan (# of computers)


Number to produce
Maximum sales
Constraints (hours per month)
Labor availability for assembling
Labor availability for testing
Net profit ($ this month)

Hours used
10002
3001
Basic
$41,120

<=
<=
XP
$154,800

Answer: This solution is also not feasible as it exceeds the hours constraints. A feasible s

rest integers, is the resulting solution still feasible? If not, how might you obtain a feasible solution

Range names used:


Hours_available
Hours_used
Maximum_sales
Number_to_produce
Total_profit

$
$

VXP
8
3
275
560
$152

VXP
29
<=
50
Hours available
10000
3000
VXP
$4,408

Total
$200,328

constraints. A feasible solution could be obtained by adjusting the PC with the highest cost, becau

a feasible solution that is at least close to optimal?

ghest cost, because they all have assembly labor needs that exceed the 3 hour average.

average.

Problem 4
Continuing Problem 2, suppose that you want to force the optimal solution to be intege
Assembling and testing computers
Cost per labor hour assembling
Cost per labor hour testing

$11
$15

Inputs for assembling and testing a computer


Labor hours for assembly
Labor hours for testing
Cost of component parts
Selling price
Unit margin

Basic
5
1
$150
$300
$80

XP
6
2
$225
$450
$129

Basic
500
<=
600

XP
1250
<=
1200

Assembling, testing plan (# of computers)


Number to produce
Maximum sales
Constraints (hours per month)
Labor availability for assembling
Labor availability for testing
Net profit ($ this month)

Hours used
10000
3000
Basic
$40,000

<=
<=
XP
$161,250

Answer: Between this result and the one on question #2, there are significant differenc
production quantity for Basic is less, for XP is more, and for VXP is zero. This result lead

tion to be integers.
Range names used:
Hours_available
Hours_used
Maximum_sales
Number_to_produce
Total_profit $201,250

$
$

VXP
8
3
275
560
$152

VXP
0
<=
50
Hours available
10000
3000
VXP
Total
$0 $201,250

nificant differences in production quantity and net profit. The solution suggest optimal
o. This result leads to the Net Profit to increase by $964

t optimal

A
5
6

Assembling and testing computers

7
8
9

Cost per labor hour assembling


Cost per labor hour testing, line 1
Cost per labor hour testing, line 2

17 Selling price
18 Unit margin, tested on line 1
19 Unit margin, tested on line 2
20
21 Assembling, testing plan (# of computers)
22
23 Number tested on line 1
24 Number tested on line 2
25 Total computers produced
26
27
28
29
30
31
32
33
34
35
36
37

Maximum sales
Constraints (hours per month)
Labor availability for assembling
Labor availability for testing, line 1
Labor availability for testing, line 2
Net profit ($ per month)
Tested on line 1
Tested on line 2

$11
$19
$17

10
11 Inputs for assembling and testing a computer
12
Model 1
13 Labor hours for assembly
4
14 Labor hours for testing, line 1
15 Labor hours for testing, line 2
16 Cost of component parts

1.5
2
$150
$350
$128
$122

Model 2
5
2
2.5
$225
$450
$132
$128

Model 3
5
2
2.5
$225
$460
$142
$138

Model 4
5
2
2.5
$225
$470
$152
$148

Model 5
5.5
2.5
3
$250
$500
$142
$139

Model 6
5.5
2.5
3
$250
$525
$167
$164

Model 7
5.5
2.5
3.5
$250
$530
$172
$160

Model 8
6
3
3.5
$300
$600
$177
$175

Model 1
1500
0
1500
<=
1500

Model 2
0
0
0
<=
1250

Model 3
0
0
0
<=
1250

Model 4
125
475
600
<=
1250

Model 5
0
0
0
<=
1000

Model 6
0
1000
1000
<=
1000

Model 7
1000
0
1000
<=
1000

Model 8
0
0
0
<=
800

Hours used
20000
5000
4187.5
Model 1
$191,250
$0

<=
<=
<=
Model 2
$0
$0

Hours available
20000
5000
6000
Model 3
$0
$0

Model 4
$19,000
$70,063

Model 5
Model 6
Model 7
$0
$0 $172,000
$0 $163,500
$0

Model 8
Totals
$0 $382,250
$0 $233,563
$615,813

As always,
always, itit i
As
binding (the
(the m
m
binding
6, and
and 7,
7, and
and
6,
and which
which pro
pro
and
(the positive
positive v
(the
model, itit is
is no
n
model,
product is
is pro
pro
product
they are
are teste
teste
they

Total_computers_produced_1

Total_computers_produced_2

Total_computers_produced_3

Total_computers_produced_4

Total_computers_produced_5

Total_computers_produced_6

Oneway analysis for Solver model in Model worksheet

1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

600
600
600
600
600
600
600
600
600
600
600
600
600
600
600
600

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000

Assembling labor (cell $B$3) values along side, output cell(s) along top

$5
$6
$7
$8
$9
$10
$11
$12
$13
$14
$15
$16
$17
$18
$19
$20

Sensitivity of Total profit to labor cost(assembly)

10

11

Assembling labor ($B$3)

12

13

Total_computers_produced_7

Total_computers_produced_8

Hours_used_1

Hours_used_2

Hours_used_3

Total_profit

1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000

5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000

4187.5
4187.5
4187.5
4187.5
4187.5
4187.5
4187.5
4187.5
4187.5
4187.5
4187.5
4187.5
4187.5
4187.5
4187.5
4187.5

$735,813
$715,813
$695,813
$675,813
$655,813
$635,813
$615,813
$595,813
$575,813
$555,813
$535,813
$515,813
$495,813
$475,813
$455,813
$435,813

Answer: the solver table produced a data chart


clearly confirms the relationship that as labor c
(assembly) increase one; as more is spent on la
less is realized in profit. However, it mat have b
expected that considering the increase in cost
the research for an optimal profit would have r
in a change in the production quantity of PC's a
was not the case.

t to labor cost(assembly)

10

11

g labor ($B$3)

12

13

14

15

16

Total_computers_produced_1

Sensitivity of Total_computers_produced_1 to Assembling labor


Data for chart
When you select an output from the
dropdown list in cell $O$4, the chart will
adapt to that output.

1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500

er table produced a data chart that


the relationship that as labor cost
ase one; as more is spent on labor
profit. However, it mat have been
nsidering the increase in cost that
an optimal profit would have resulted
e production quantity of PC's and this
.

A
5
6

Assembling and testing computers

7
8
9

Cost per labor hour assembling


Cost per labor hour testing, line 1
Cost per labor hour testing, line 2

17 Selling price
18 Unit margin, tested on line 1
19 Unit margin, tested on line 2
20
21 Assembling, testing plan (# of computers)
22
23 Number tested on line 1
24 Number tested on line 2
25 Total computers produced
26
27
28
29
30
31
32
33
34
35
36
37

Maximum sales
Constraints (hours per month)
Labor availability for assembling
Labor availability for testing, line 1
Labor availability for testing, line 2
Net profit ($ per month)
Tested on line 1
Tested on line 2

$11
$19
$17

10
11 Inputs for assembling and testing a computer
12
Model 1
13 Labor hours for assembly
4
14 Labor hours for testing, line 1
15 Labor hours for testing, line 2
16 Cost of component parts

1.5
2
$150
$350
$128
$122

Model 2
5
2
2.5
$225
$450
$132
$128

Model 3
5
2
2.5
$225
$460
$142
$138

Model 4
5
2
2.5
$225
$470
$152
$148

Model 5
5.5
2.5
3
$250
$500
$142
$139

Model 6
5.5
2.5
3
$250
$525
$167
$164

Model 7
5.5
2.5
3.5
$250
$530
$172
$160

Model 8
6
3
3.5
$300
$625
$202
$200

Model 1
1500
0
1500
<=
1500

Model 2
0
0
0
<=
1250

Model 3
0
0
0
<=
1250

Model 4
125
475
600
<=
1250

Model 5
0
0
0
<=
1000

Model 6
0
1000
1000
<=
1000

Model 7
1000
0
1000
<=
1000

Model 8
0
0
0
<=
800

Hours used
20000
5000
4187.5
Model 1
$191,250
$0

<=
<=
<=
Model 2
$0
$0

Hours available
20000
5000
6000
Model 3
$0
$0

Model 4
$19,000
$70,063

Model 5
Model 6
Model 7
$0
$0 $172,000
$0 $163,500
$0

Model 8
Totals
$0 $382,250
$0 $233,563
$615,813

As always,
always, itit i
As
binding (the
(the m
m
binding
6, and
and 7,
7, and
and
6,
and which
which pro
pro
and
(the positive
positive v
(the
model, itit is
is no
n
model,
product is
is pro
pro
product
they are
are teste
teste
they

Total_computers_produced_3

Total_computers_produced_4

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

600
600
600
600
600
125
125
125
125
125
125
125
125
125
125
125
125
125
125
125
125

Total_computers_produced_6

Total_computers_produced_2

1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500

Total_computers_produced_5

Total_computers_produced_1

Oneway analysis for Solver model in Model worksheet


model 8 selling price (cell $I$13) values along side, output cell(s) along top

$500
$525
$550
$575
$600
$625
$650
$675
$700
$725
$750
$775
$800
$825
$850
$875
$900
$925
$950
$975
$1,000

0
1000
0
1000
0
1000
0
1000
0
1000
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091
0 559.09091

Total_computers_produced_8

Total_profit

1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000

0
0
0
0
0
800
800
800
800
800
800
800
800
800
800
800
800
800
800
800
800

$615,813
$615,813
$615,813
$615,813
$615,813
$633,261
$653,261
$673,261
$693,261
$713,261
$733,261
$753,261
$773,261
$793,261
$813,261
$833,261
$853,261
$873,261
$893,261
$913,261
$933,261

Total_computers_produced_1

Total_computers_produced_7

Sensitivity of Total_computers_produced_1 to model 8


Data for chart

1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500
1500

When you select an output fr


dropdown list in cell $L$4, the
adapt to that output.

Sensitivity of Total_c

puters_produced_1 to model 8 selling price

When you select an output from the


dropdown list in cell $L$4, the chart will
adapt to that output.

Answer: The new optimal model shows that production quantity of PC8's priced at $625

Sensitivity of Total_computers_produced_1 to model 8 selling price

tity of PC8's priced at $625 each is recommended to be 800 units.

price

Question 30_part a

Algebraic Equation
Taste index = ( 85 per snack bar) * (# ofserves of snack bar) + (95 per ice cream) * (# of serv
Using Decision variables S and I
Maximize = 85S + 95I
Constrain
( 120 cals per snack bar) * (# ofserves of snack bar) + (160 cals per ice cream
120S + 160I 450
( 5 fat per snack bar) * (# ofserves of snack bar) + (10 fat per ice cream) * (# o
5S + 10I cream) 25
(37 g per snack bar) * (# ofserves of snack bar) + (65g per ice cream) * (# of s
37S + 65I 120
Maggie's Dessert Plan
part a
Snack Bars
Ice Cream
Constraints
Grams
37
65 Total
Calories
120
160
440
<=
Fat
5
10
25
<=
167
>
Nr of Serves
Grams

Taste Index
Maxium

1
37

2
130

Total
85

95

275

Answer: According to Solver Report, the total taste index is 275. Maggie's selection

Answer: According to Solver Report, the total taste index is 275. Maggie's selection

part b - ignored
part c - in the following sheet

(95 per ice cream) * (# of serves of ice cream)

ar) + (160 cals per ice cream) * (# of serves of ice cream) 450

+ (10 fat per ice cream) * (# of serves of ice cream) 25

+ (65g per ice cream) * (# of serves of ice cream) 120

450
25
120

x is 275. Maggie's selection should be 1 snack and 2 ice creams.

x is 275. Maggie's selection should be 1 snack bad and 2 ice-creams.

Twoway analysis for Solver model in Sheet1 worksheet

Input1 (cell $B$4) values along side, Input2 (cell $C$4) values along top, output cell in corn
$D$14
80
90
100
110
120
130
140 Not
150 Not
160 Not
170 Not
180 Not
190 Not
200 Not

120
275
275
275
275
275
275
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

130
275
275
275
275
275
275
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

140
275
275
275
275
275
275
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

150
275
275
275
275
275
275
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

160
275
275
275
275
275
275
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

170
275
275
275
275
190
190
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

Answer: According to Solver Report, the total taste index is 275.

180
275
275
190
190
190
190
feasibl
feasibl
feasibl
feasibl
feasibl
feasibl
feasibl

p, output cell in corner

Not
Not
Not
Not
Not
Not
Not

190
190
190
190
190
190
190
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

200
190
190
190
190
190
190
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

210
190
190
190
190
190
190
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

220
190 Not
190 Not
190 Not
190 Not
190 Not
190 Not
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

230
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

240
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

250
feasibl
feasibl
feasibl
feasibl
feasibl
feasibl
feasibl
feasibl
feasibl
feasibl
feasibl
feasibl
feasibl

Not
Not
Not
Not
Not
Not
Not
Not
Not
Not
Not
Not
Not

260
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

270
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

280
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

290
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot
feasiblNot

300
1
feasiblOutputVal
feasible
feasible
feasible
feasible
feasible
feasible
feasible
feasible
feasible
feasible
feasible
Not
feasible
Not
Not
Not

$D$14

Sensitivity of $D$14 to Input2


Output and Input1 value for c
Output

275
275
275
275
275
275
275
190
190
190
190
feasible
feasible
feasible
feasible

Not feasible
Not feasible
Not feasible

Sensitivity of $D$14

80

ot
ot
ot
ot

feasible
feasible
feasible
feasible

Sensitivity of $D$14 to Input1


Output and Input2 value for chart
Output
Input2 value
$D$14

ensitivity of $D$14 to Input2


utput and Input1 value for chart
Input1 value
1
OutputVal

Not
Not
Not
Not
Not
Not
Not

120

By making appropriate s
$Z$4, and $AA$4, you ca
or column (in right chart

275
275
275
275
275
275
feasible
feasible
feasible
feasible
feasible
feasible
feasible

ot feasible
ot feasible
ot feasible

Sensitivity of $D$14 to Input2

Sensitivity o
300
250
200
150
100
50
0

By making appropriate selections in cells $V$4, $W$4,


$Z$4, and $AA$4, you can chart any row (in left chart)
or column (in right chart) of any table to the left.

Sensitivity of $D$14 to Input1

$D$14

Question # 34 - p.127
Algebraic Formulation

Total cost= ($1500 a ton of factory 1) * (# ton of factory 1) +($1000 a ton of factory 2) * (# ton of
Using Decision variables Factory1(F1), Factory2(F2) and Factory(F3)
Minimize = $1500F1 + $1000F2 + $2000F3
Constrains
(Reduces P1 by 0.1)*(# ton of factory1) + (Reduces P1 by 0.2)*(# ton of fa
0.1F1 + 0.2F2 + 0.4F3 30
(Reduces P2 by 0.45)*(# ton of factory1) + (Reduces P2 by 0.25)*(# ton o
0.45F1 + 0.25F2 + 0.3F3 40

a) Use Solver to determine how to minimize the cost of reducing pollution by the desire
Solver Solution
part a)
Factory
Cost per ton
P1 Reduced
P2 Reduced
Unit Processed
Total P1 Reduced
Total P2 Reduced
Total Cost

1
1500
0.1
0.45

2
1000
0.2
0.25

3
2000
0.4
0.3

146

30 >=
40.1 >=

30
40

158000

Answer: If the level of any activity is multiplied by a constant factor, then the contributi
The additively property implies that the sum of the contribution from the various activi
When both integer and non integer levels of the activities are allowed, then, divisisbilit

ton of factory 2) * (# ton of factory 2) +($2000 a ton of factory 3) * (# ton of factory 3)

duces P1 by 0.2)*(# ton of factory2) + (Reduces P1 by 0.4)*(# ton of factory3) 30

educes P2 by 0.25)*(# ton of factory2) + (Reduces P2 by 0.3)*(# ton of factory3) 40

g pollution by the desired amounts. Are the LP assumptions (proportionality, additivity, divisibil

actor, then the contribution of this activity to the objective is multiplied by the same factor; Prop
n from the various activities to a particular constraint equal the total contribution to that constr
allowed, then, divisisbility satisfied (Source: Practical Management Science)

onality, additivity, divisibility) reasonable in this problem?

ed by the same factor; Proportionality is satisfied


contribution to that constraint

Question#34_part b

b) Do the amounts processed at the three factories and the total cost change in a linear
Twoway analysis for Solver model in Sheet1 worksheet

P1 Reduced (cell $D$10) values along side, P2 Reduced (cell $D$11) values along top, output cell i
$B$13
10
20
30
40
50
60
70
80
90
100

10
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000

20
73500
100000
150000
200000
250000
300000
350000
400000
450000
500000

30
104000
115500
150000
200000
250000
300000
350000
400000
450000
500000

40
135000
147000
158000
200000
250000
300000
350000
400000
450000
500000

50
168000
177500
189000
200000
250000
300000
350000
400000
450000
500000

60
201000
208000
220000
231000
250000
300000
350000
400000
450000
500000

70
233500
239000
250000
262000
274000
300000
350000
400000
450000
500000

Answer: from the charts, it is concluded that total cost increases in a linear manner.

st change in a linear manner?

along top, output cell in corner


80
267000
270000
281000
293000
304000
315500
350000
400000
450000
500000

a linear manner.

90
300000
300000
312000
324000
335000
346500
358000
400000
450000
500000

100
1
334500 OutputValu
334500
343000
354000
365500
377500
389000
400000
450000
500000

$B$13

Sensitivity of $B$13 to P2 Reduced


Output and P1 Reduced value for chart
Output
P1 Reduced value
10

50000
73500
104000
135000
168000
201000
233500
267000
300000
334500

Sensitivity of $B

1
OutputValu

Sensitivity of $B$13 to P1 Reduced


Output and P2 Reduced value for chart
Output
P2 Reduced value
$B$13

P2 Reduced
value for chart

10

50000
100000
150000
200000
250000
300000
350000
400000
450000
500000

Sensitivity of $B$13 to P2 Reduced

By making appropriate selections in cells


and $R$4, you can chart any row (in left c
right chart) of any table to the left.

appropriate selections in cells $M$4, $N$4, $Q$4,


you can chart any row (in left chart) or column (in
of any table to the left.

Sensitivity of $B$13 to P1 Reduced

10

20

30

40

50

60

P1 Reduced ($D$10)

70

80

90

100

90

100

$B$13

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