Problems Linear Programming Models
 Problems for Linear Programming Models - A, B, C Production Problem

a. The profit from the linear programming model and the associated variables are:

Profit =1986

 A B C D E F 71.4 100 243 171 514 343

b. Machines 2 ane 3 have nonzero shadow prices and are limiting the companies profit. Also the market of product B is limiting.

c. The shadow price of Mach. 2 is 0.64. Although the range on this right side allows only an increase of 100 with this unit value, it is upper bound on larger increases. The change in profit is limited from above by 1500*.64 = 1542. This does not pay back the added cost of \$1600 per week, so the change is not justified.

d. Add a new variable, B2, with the same requirements of B, except the revenue is 19. The solution finds B2 = 0, so there is no need to enter the additional market.

e.

The solution buys 100 hours of time on M2 with no extra time on the other machines.

Profit= 1995

 A B C D E F 50 100 300 150 550 400

f. Goal Programming formulation:

Operations Research Models and Methods
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by Paul A. Jensen