#5) Solve the following LP a) Write the original optimal solution and objective function value. b) What is the optimal solution and objective function value if the profit for oak tables increases to $83? c) What is the optimal solution and objective function value if the profit for pine chairs decreases to $13? d) What is the optimal solution and objective function value if the profit for pine tables increases by $20? e) What is the optimal solution and objective function value if the company is required to make at least 20 pine chairs? f) What is the optimal solution and objective function value if the company is required to make no more than 55 cherry chairs?

#5) Solve the following LP a) Write the original optimal solution and objective function value. b) What is the optimal solution and objective function value if the profit for oak tables increases to $83? c) What is the optimal solution and objective function value if the profit for pine chairs decreases to $13? d) What is the optimal solution and objective function value if the profit for pine tables increases by $20? e) What is the optimal solution and objective function value if the company is required to make at least 20 pine chairs? f) What is the optimal solution and objective function value if the company is required to make no more than 55 cherry chairs?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 59P

See similar textbooks

Similar questions

Simplex Method Solve the following LP problem using the simplex method. Maximize: P = 9x + 7ySubject to:2x + y ≤ 40 x + 3y ≤ 30x, y ≥ 0 What is the entering variable and leaving variable in Table 1? Choices: A. Entering Variable: y and Leaving Variable: S1 B. Entering Variable: x and Leaving Variable: S1 C. Entering Variable: x and Leaving Variable: S2 D. Entering Variable: y and Leaving Variable: S2
Simplex Method Solve the following LP problem using the simplex method. Maximize: P = 9x + 7ySubject to:2x + y ≤ 40x + 3y ≤ 30x, y ≥ 0 What is the entering variable and leaving variable in Table 2? a. Entering Variable: x and Leaving Variable: S2 b. Entering Variable: y and Leaving Variable: S2 c. Entering Variable: y and Leaving Variable: S1 d. Entering Variable: x and Leaving Variable: S1
3. A company produces three products: A,B and C. Each product requires two raw materials; steel and aluminum. The following LP model describes the company’s product mix problem x1, x2, and x3 represent the number of units of product A, B and C respectivelyMax Z = 30x1 + 10x2 + 50x3Subject to6 x1+ 3 x2 + 5 x3 ≤ 450 (steel)3 x1 + 4 x2+ 5 x3 ≤ 300 (alumimium), X1, x2, x3 ≥ 0 Identify the two production methods that optimize the company’s profit (hint: Use simplex method)
Solve this using Simplex method Maximize: 4x1 + 2x2 + 5x3 S.t. x1 + 2x2 + x3 <=25 x1 + 4x2 + 2x3<=40 3x1 + 3x2 + x3 <= 30 x1, x2, x3>=0
Consider the following LP problem: Min 6X+ 27Y Subject to : 2 X + 9Y => 25, and X + Y <= 75. Pick a suitable statement for this problem: a. X=37.5, Y=37.5 is the only optimal solution. b. Optimal Obj. function value is 75 c. X = 0, Y = 0 is the only optimal solution. d. Optimal Obj. function value is 0
b) Consider the LP below:Solve using the big M- methodMinimize Z = 20X1 + 10X2s.t X1 + 2X2 ≤ 403X1 + X2 ≥ 304X1 + 3X2 ≥ 60X1, X2, ≥ 0
25. Consider the following list of retail items sold in a small neighborhood gift shop.Average ProfitItem Annual Volume per ItemGreeting cards 3,870 $ 0.40T-shirts 1,550 1.25Men’s jewelry 875 4.50Novelty gifts 2,050 12.25Children’s clothes 575 6.85Chocolate cookies 7,000 0.10Earrings 1,285 3.50Other costume jewelry 1,900 15.00a. Rank the item categories in decreasing order of the annual profit. Classify eachin one of the categories as A, B, or C.b. For what reason might the store proprietor choose to sell the chocolate cookieseven though they might be her least profitable item?
Based on the following sensitivity analysis, which of the following products would be considered most sensitive to changes or errors in the objective function coefficient? A. Product_2 B. Product_1 C. Product_3 Variable Cells Cell Name Final Value Reduced Cost Objective Coefficient AllowableIncrease AllowableDecrease $B$2 Product_1 0 −2 25 13 5 $B$3 Product_2 175 0 25 8 9 $B$4 Product_3 0 −1.5 25 11 3 Constraints Cell Name Final Value Shadow Price Constraint R.H.Side AllowableIncrease AllowableDecrease $H$9 Resource_A 0 0 100 1E+30 100 $H$10 Resource_B 525 0 800 1E+30 275 $H$11 Resource_C 700 1.75 700 366.6666667 700
4 Sunco processes oil into aviation fuel and heating oil. Itcosts $40 to purchase each 1,000 barrels of oil, which isthen distilled and yields 500 barrels of aviation fuel and 500barrels of heating oil. Output from the distillation may besold directly or processed in the catalytic cracker. If soldafter distillation without further processing, aviation fuelsells for $60 per 1,000 barrels, and heating oil sells for $40per 1,000 barrels. It takes 1 hour to process 1,000 barrels ofaviation fuel in the catalytic cracker, and these 1,000 barrelscan be sold for $130. It takes 45 minutes to process 1,000barrels of heating oil in the cracker, and these 1,000 barrelscan be sold for $90. Each day, at most 20,000 barrels of oilcan be purchased, and 8 hours of cracker time are available.Formulate an LP to maximize Sunco’s profits.
The board of directors of General Wheels Company is considering seven large capital investments. Each investment can be made only once. These investments differ in the estimated long-run profit (net present value) that they will generate as well as in the amount of capital required, as shown by the following table. Investment Opportunity 1 2 3 4 5 6 7 Estimated Profit ($million) 17 10 15 19 7 13 9 Capital Required for Investment Opportunity ($million) Capital Available ($million) 1 2 3 4 5 6 7 Capital 43 28 34 48 17 32 23 100 The total amount of capital available for these investments is $100 million. Investment opportunities 1 and 2 are mutually exclusive, and so are 3 and 4. Furthermore, neither 3 nor 4 can be undertaken unless one of the first two opportunities is undertaken. There are no such restrictions on investment opportunities 5, 6, and 7. The objective is to select the combination of capital investments that will maximize the total estimated long-run…
b) Maximize Z = −40X1 −100X2s.t 10X1 + 5X2 ≤ 2502X1 + 5X2 ≤ 1002X1 + 3X2 ≤ 90X1, X2 ≥ 0Solve by simplex method, what are the solutions? Show that this problem hasmultiple solutions and find the solutions?
Ariel holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock’s beta, is listed in the following table: Stock Investment Beta Standard Deviation Andalusian Limited (AL) $3,500 0.80 15.00% Kulatsu Motors Co. (KMC) $2,000 1.50 12.00% Western Gas & Electric Co. (WGC) $1,500 1.20 16.00% Makissi Corp. (MC) $3,000 0.50 22.50% Suppose all stocks in Ariel’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Makissi Corp. Andalusian Limited Western Gas & Electric Co. Kulatsu Motors Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of standalone risk? Western Gas & Electric Co. Makissi Corp. Andalusian Limited Kulatsu Motors Co. If the risk-free rate is 4% and the market risk premium is 6%, what is Ariel’s…