Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
294 views1 page

Problem 8

A factory can produce 4 products (P1-P4) that require processing in 2 workshops. The processing times vary by product and workshop. There is 400 hours of labor available in each workshop. The profit margins also vary by product. To maximize profits, a linear program is formulated with constraints on workshop capacities and non-negativity conditions. Solving the linear program reveals: 1) The optimal units of P1, P2, P3, P4 to produce. 2) A mistake reducing P3 units decreases profits. 3) The range the P1 profit margin can vary without changing the optimal solution.

Uploaded by

ebrahem_sahil5188
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
294 views1 page

Problem 8

A factory can produce 4 products (P1-P4) that require processing in 2 workshops. The processing times vary by product and workshop. There is 400 hours of labor available in each workshop. The profit margins also vary by product. To maximize profits, a linear program is formulated with constraints on workshop capacities and non-negativity conditions. Solving the linear program reveals: 1) The optimal units of P1, P2, P3, P4 to produce. 2) A mistake reducing P3 units decreases profits. 3) The range the P1 profit margin can vary without changing the optimal solution.

Uploaded by

ebrahem_sahil5188
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Problem

A factory can produce four products denoted by P1, P2, P3 and P4. Each product must be
processed in each of two workshops. The processing times (in hours per unit produced) are given
in the following table.

Workshop 1
Workshop 2

P1
3
6

P2
4
2

P3
8
5

P4
6
8

400 hours of labour are available in each workshop. The pro_t margins are 4, 6, 10, and 9 dollars
per unit of P1, P2, P3 and P4 produced, respectively. Everything that is produced can be sold.
Thus, maximizing pro_ts, the following linear program can be used.
MAX
4 X1 + 6 X2 + 10 X3 + 9 X4
SUBJECT TO
3 X1 + 4 X2 + 8 X3 + 6 X4 <= 400
6 X1 + 2 X2 + 5 X3 + 8 X4 <= 400
X1, X2, X3, X4 >= 0

Row 1
Row 2

Introducing slack variables s1 and s2 in Rows 1 and 2, respectively, and applying the simplex
method, we get the final tableau:
z
1
0
0

x1
0.5
0.75
4.5

x2
0
1
0

x3
2
2
1

x4
0
1.5
5

s1
1.5
0.25
-0.5

s2
0
0
1

RHS
600
100
200

(a) How many units of P1, P2, P3 and P4 should be produced in order to maximize profits?
(b) Assume that 20 units of P3 have been produced by mistake. What is the resulting decrease in
profit?
(c) In what range can the profit margin per unit of P1 vary without changing the optimal basis?
(d) In what range can the profit margin per unit of P2 vary without changing the optimal basis?
(e) What is the marginal value of increasing the production capacity of Workshop 1?
(f) In what range can the capacity of Workshop 1 vary without changing the optimal basis?
(g) Management is considering the production of a new product P5 that would require 2 hours in
Workshop 1 and ten hours in Workshop 2. What is the minimum profit margin needed on this
new product to make it worth producing?

You might also like