Ch14 Evans BA1e

a.
Requirement
b.
Limitation (or Bound depending on the text)
c.
Balance
d.
Proportional relationship
e.
Limitation
f.
Requirement (or Bound depending on the text)
g.
Limitation
1-BD
2-BD
3-BD
Number to build
Unit Profit $
40.45
45.00 $
67.42
60.00 $
Budget $
Total Units Possible
1 BD Req
2 BD Req
3 BD Req
450.00 $
1
0.85
-0.25
-0.25
600.00 $
1
-0.15
0.75
-0.25
161.80
75.00 $ 18,000.00 TOTAL PROFIT
750.00 $ 180,000.00
1
269.66
-0.15
0.00
-0.25
0.75
94.38
<=
<=
>=
>=
>=
Based on the sensitivity report below, if we had up to roughly $36 million more, we would make $3.6 million more profit.
Adjustable Cells
Cell
$C$4
$D$4
$E$4
Final
Name
Value
Number to build 1-BD 40.45
Reduced
Cost
-
Objective
Coefficient
45
60
75
Allowable
Increase
Constraint
R.H. Side
180000
325
0
0
0
Allowable
Increase
36937.5
1E+30
112
102.4390244
94.38202247
0
0
1E+30
Constraints
Cell
$F$7
$F$8
$F$9
$F$10
$F$11
Final
Shadow
Name
Value
Price
Budget
$ 180,000.00 $
0.10
Total Units Possible
269.66
1 BD Req
0.00
2 BD Req
3 BD Req
94.38
-
$ 180,000.00 (in thousands)

325 (=40.625 * 8)
0
0
0
make $3.6 million more profit.
Allowable
Decrease
445
267
0
Allowable
Decrease
180000
55.33707865
37.89473684
63.82978723
1E+30
MAX
45 X1 + 60 X2 +75 X3
Subject To
450 X1 + 600 X2 + 750 X3 <= 180,000 (in thousands)
X1 + X2 + X3 <= 325
X1 >= 15% ( X1 + X2 + X3)
X2 >= 25% ( X1 + X2 + X3)
X3 >= 25% ( X1 + X2 + X3)
X1, X2, X3 >= 0
Midterm
Weights assigned
Final
20%
>=
SCORES
Participation Bound
M vs A
F vs A
3 BD Req
>=
10%
86%
1.00
1.00
Assignments Participation
60%
10%
10%
>=
>=
10%
10%
10%
94%
93%
85%
1.00
1.00
(2.00)
(3.00)
1.00
1.00
1.00
91%
0.10
0.00
0.30
1.00
Intuitive Solution
Participation is the lowest score so it would take the lowest weight, 10%.
The rest would split 90% in the appropriate ratios, with A at 15%, M at 30% and F at 45%
WEIGHTED SCORE
<=
>=
>=
=
15% (in thousands)

(=40.625 * 8)
1.00
MAX
Subject To
.86 M + .94 F + .93 A + .85 P
P <= 15%
M >= 2 A
F >= 3 A
M+F+A+P=1
M, F, A, P >= 10%
M, F, A, P >= 0
PREMIUM
DUKE GREY
BREAKFAST
Pounds to produce
22500
35000
0
Net Profit $
0.50 $
0.30 $
0.20 $ 21,750.00 TOTAL PROFIT
Indian
Chinese
California
Premium
40%
20%
40%
Duke Grey
30%
50%
20%
Breakfast
40%
40%
20%
Amount available
19500
22000
16000
<=
<=
<=
Based on the sensitivity report, we can talk about how Breakfast blend would be profitable.
Also, we can discuss how much we would be willing to pay for more of different types of tea leaves (based on shadow prices)
Microsoft Excel 14.0 Sensitivity Report

Worksheet: [Evans 1e Ch14 Solutions_AP.xlsx]14.4 AP
Report Created: 3/21/2012 11:13:13 AM
Variable Cells
Cell
$C$4
$D$4
$E$4
Final
Name
Value
Pounds to produce PREMIUM
22500
Pounds to produce DUKE35000
GREY
Pounds to produce BREAKFAST0
Reduced
Cost
Final
Value
19500
22000
16000
Shadow
Price
0
0
-0.0875
Objective
Coefficient
0.5
0.3
0.2
Allowable
Increase
0.1
0.95
0.0875
Constraint
R.H. Side
20000
22000
16000
Allowable
Increase
1E+30
2000
571.4285714
Constraints
Cell
$F$9
$F$10
$F$11
Name
Indian
Chinese
California
0
0.125
1.1875
MAX 0.50 P + 0.30 D + 0.20 B

Subject To
.4 P + .3 D + .4 B <= 20000
.2 P + .5 D + .4 B <= 22000
.4 P +.2 D + .2 B <= 16000
P, D, B >= 0
Amount available
20000
22000
16000
aves (based on shadow prices)
Allowable
Decrease
0.38
0.05
1E+30
Allowable
Decrease
500
14000
7200
Young Energy
A
Proportion to Mix
Unit Cost
0.2
$2.49
0
$3.04
0
$2.99
Ash%
Moisture %
BTU/lb
A
13%
10%
11,500
B
10%
8%
11,800
C
12%
8%
12,200
0.8
$2.61 $
D
12%
8%
12,100
1
2.59
12.20%
8.40%
11,980.00
If the ash% restriction is relaxed, there would be savings. If the restriction level goes down to 12.33%, the cost w

Worksheet: [Evans 1e Ch14 Solutions_AP_rev_2.xlsx]14.5
Report Created: 5/28/2012 12:16:59 PM
Variable Cells
Cell
$C$4
$D$4
$E$4
$F$4
Final
Name
Value
Proportion to Mix A
0.2
Proportion to Mix B
0
Proportion to Mix C
0
Proportion to Mix D
0.8
Reduced
Cost
Final
Value
11980
1
12.20%
8.40%
Shadow
Price
0
0.19
0.38
0
Objective
Coefficient
2.49
3.04
2.99
2.61
Allowable
Increase
0.12
1E+30
1E+30
0.063333333
Constraint
R.H. Side
11900
1
12.20%
9.40%
Allowable
Increase
80
0.016666667
0.13%
1.00E+30
Constraints
Cell
$G$11
$G$4
$G$9
$G$10
Name
BTU/lb
Proportion to Mix
Ash%
Moisture %
0
4.05
-12
0
=
TOTAL COST
<=
<=
>=
100%
Required
12.20%
9.40%
11,900
el goes down to 12.33%, the cost will go down .0013*12 dollars
Allowable
Decrease
0.095
0.19
0.38
0.12
Allowable
Decrease
1E+30
0.004145078
0.20%
1.00%
Holcomb Candles
Large jar
How many to produce
Profit/unit $
Wax
Fragrance
Wick
Display feet
Display for Large Items
Display for Votive Packs
Small jar
0
0.25 $
0.5
0.24
0.43
0.48
0.48
Large pillar
Small pillar
0 258695.6522
0
0.20 $
0.24 $
0.21
0.25
0.12
0.22
0.24
0.5
0.24
0.58
0.23
0.23
0.25
0.12
0.33
0.23
More wax, fragrance, wick is not necessary. Every additional foot of display space will increase the profit by $1.04.
Every additional feet of display required for votive pacs reduces the profit by $0.43.
Cell
$H$8
$H$9
$H$10
$H$11
$H$12
$H$13
Name
Wax
Fragrance
Wick
Display feet
Display for Large Items
Disokay for Votive Packs
Final
Value
139,564.17
66,990.80
176,197.32
68,000.00
59,500.00
8,500.00
Shadow
Price
1.04
(0.43)
Constraint
R.H. Side
200000
100000
250000
68000
17000
8500
Allowable
Increase
1E+30
1E+30
1E+30
27800.48077
42500
42500
Votive pack
32692.30769
$
0.16 $ 67,317.73 TOTAL PROFIT
0.3125
0.15
0.8
0.26
0.26
rease the profit by $1.04.
Allowable
Decrease
60435.82776
33009.19732
73802.67559
42500
1E+30
8500
139,564.17
66,990.80
176,197.32
68,000.00
59,500.00
8,500.00
<=
<=
<=
<=
>=
>=
AVAILABLE
200,000.00
100,000.00
250,000.00
68,000.00
17,000.00
8,500.00
pounds
ounces
feet
(=8 * 8500 )
(=2 * 8500 )
(=1 * 8500 )
SHOWS
KM Hall
LE Theater
1
32
TOTAL
32
>=
Minimum
2
49
3
23
-
4
16
18
35
49
23
34
35
>=
32
>=
13
>=
23
>=
34
35
Cost Per Show $
968.00 $
1,568.00 $
755.00 $
1,148.00 $
1,180.00
Revenue Per Show $
2,217.00 $
2,330.00 $
1,993.00 $
3,364.00 $
2,868.00
The highest revenue within the given constraints is roughly $545K.
6
16
7
21
-
16
21
>=
TOTAL
60
150
<=
<=
60
150
>=
16
21
1,541.00 $
1,359.00 $ 258,700.00 MINIMIZE TOTAL COST
3,851.00 $
1,836.00 $ 545,881.00 <=
$ 550,000.00
Jacee's Department Stores

Electronics
Furniture
Men's Clothing Clothing
MIN
6,000.00
10,000.00
2,000.00
3,000.00
<=
<=
<=
<=
Sq Ft Allocated
30,000.00
30,000.00
5,000.00
12,702.38
<=
<=
<=
<=
MAX
30,000.00
30,000.00
5,000.00
40,000.00
Exp Profit / Sq Ft $
12.00 $
6.00 $
2.00 $
30.00
Investment $
Risk as a % of Investment
Risk $s $
100.00 $
24
24.00 $
50.00 $
12
6.00 $
30.00 $
5
1.50 $
600.00
10
60.00
Jewelry
Books
Appliances
1,000.00
1,000.00
12,000.00
<=
<=
<=
1,000.00
1,000.00
16,946.43
<=
<=
<=
10,000.00
5,000.00
40,000.00
$
20.00 $
1.00 $
13.00 $
900.00 $
14
126.00 $
50.00 $
2
1.00 $
400.00 $
3
12.00 $
TOTAL
96,648.81
<=
100,000.00
1,172,375 TOTAL PROFIT

20,000,000
<=
$20,000,000
2,000,000
<=
$ 2,000,000
Jacee's Department Stores

Electronics
Furniture
Men's Clothing Clothing
MIN
6,000.00
10,000.00
2,000.00
3,000.00
<=
<=
<=
<=
Sq Ft Allocated
30,000.00
30,000.00
5,000.00
14,369.05
<=
<=
<=
<=
MAX
30,000.00
30,000.00
5,000.00
40,000.00
Exp Profit / Sq Ft $
12.00 $
6.00 $
2.00 $
30.00
Investment $
Risk as a % of Investment
Risk $s $
100.00 $
24
24.00 $
50.00 $
12
6.00 $
30.00 $
5
1.50 $
600.00
10
60.00
Jewelry
Books
Appliances
1,000.00
1,000.00
12,000.00
<=
<=
<=
1,000.00
1,000.00
16,946.43
<=
<=
<=
10,000.00
5,000.00
40,000.00
$
20.00 $
1.00 $
13.00 $
900.00 $
14
126.00 $
50.00 $
2
1.00 $
400.00 $
3
12.00 $
TOTAL
98,315.48
<=
100,000.00
1,222,375 TOTAL PROFIT

21,000,000
<=
$21,000,000
2,100,000
<=
$ 2,100,000
Dara's Investments
Current Holdings
1 Large cap
2 Small cap
4 Growth &
5 Multi-cap
3 Green fund
blend
growth
income
growth
INVESTED $
$ 14,906.91 $ 19,875.88 $
$
<=
<=
<=
<=
<=
No more than 20% $
19,876 $
19,876 $
19,876 $
19,876 $
19,876
Expense Rates
0.93%
0.56%
0.70%
0.92%
0.92%
AVG RETURN
17.20%
20.40%
26.30%
15.60%
19.80%
SAVINGS
MONEY FUND REQ
INT FUND REQ
New Invesments Req
Current Holdings Req
0
0
0
0
1
0
0
0
0
1
0
0
0
0
1
0
0
0
0
1
0
0
0
1
0
Final
Reduced
Name
Value
Cost
INVESTED 1 Large$ cap blend$
(0.03)
INVESTED 2 Small$ cap
14,906.91
growth $
INVESTED 3 Green
$ fund
19,875.88 $
INVESTED 4 Growth
$ & income
$
(0.05)
INVESTED 5 Multi-cap
$
growth
$
(0.08)
INVESTED 6 Mid-cap
$ index $
(0.06)
$ 5,931.73
core
$
19,875.88
international
$
INVESTED 9 Emerging
$ 19,875.88
international
$
INVESTED 10 Money
$ 13,913.11
market fund$
INVESTED 11 Savings
$ account
5,000.00 $
-
Objective
Coefficient
0.172
0.204
0.263
0.156
0.198
0.221
0.279
0.35
0.361
0.0475
0.01
Allowable
Increase
0.03
0.06
37.10
0.05
0.08
0.06
0.07
37.10
37.10
0.23
0.27
Final
Shadow
Name
Value
Price
INVESTED 1 Large$ cap blend$
14,906.91
growth $
INVESTED 3 Green
$ fund
19,875.88 $
0.0586
INVESTED 4 Growth
$ & income
$
$
growth
$
INVESTED 6 Mid-cap
$ index $
$ 5,931.73
core
$
19,875.88
international
$
0.0721
Constraint
R.H. Side
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Allowable
Increase
1E+30
1E+30
14,903.80
1E+30
1E+30
1E+30
1E+30
5,934.59
Decision Variable Cells

Cell
$C$5
$D$5
$E$5
$F$5
$G$5
$H$5
$I$5
$J$5
$K$5
$L$5
$M$5
Constraints
Cell
$C$5
$D$5
$E$5
$F$5
$G$5
$H$5
$I$5
$J$5
$K$5
$N$14
$N$15
$N$16
$N$17
$N$18
$N$5
INVESTED 9 Emerging
$ 19,875.88
international
$
0.0815
SAVINGS Total Investment
$ 5,000.00 $
(0.2664)
MONEY FUND REQ
$ Total
13,913.11
Investment
$
(0.2289)
INT FUND REQ Total
$ 39,751.75
Investment $
New Invesments $Req64,596.60
Total Investment
$
Current Holdings$Req34,782.78
Total Investment
$
(0.0739)
INVESTED Total Investment
$ 99,379.38 $
0.2764
20,000.00
5,000.00
14,000.00
16,000.00
30,000.00
35,000.00
100,000.00
5,930.50
5,938.09
5,938.09
23,851.05
34,782.78
4,970.01
13,931.94
6 Mid-cap
7 Multi-cap
8 Small cap
9 Emerging
10 Money
11 Savings
Total
index
core
international international market fund
account
Investment
$
$ 5,931.73 $ 19,875.88 $ 19,875.88 $ 13,913.11 $ 5,000.00 $ 99,379.38
<=
<=
<=
<=
$
19,876 $
19,876 $
19,876 $
19,876
0.22%
0.98%
0.54%
1.17%
0.00%
0.00% $
22.10%
27.90%
35.00%
36.10%
4.75%
1.00% $ 24,765.94
0
0
0
1
0
0
0
0
1
0
0
0
1
1
0
0
0
1
1
0
0
1
0
1
0
Allowable
Decrease
1E+30
0.03
0.06
1E+30
1E+30
1E+30
0.06
0.07
0.08
64.07
1E+30
Allowable
Decrease
19,875.88
4,968.97
4,969.31 Investing more in this would be helpful
19,875.88
19,875.88
19,875.88
13,944.14
13,938.66 Investing more in this would be helpful
1
0
0
1
0
$
$
$
$
$
620.62
5,000.00
13,913.11
39,751.75
64,596.60
34,782.78
13,946.51
5,000.00
13,894.18
1E+30
1E+30
13,938.91
5,938.09
Investing more in this would be helpful

Less savings may mean more return
Less in money funds may mean more return
Less in current funds may mean more return

Each additional dollar invested can bring up to 28 cents return for the first $13000
Available for
TOTAL FUNDS
Investment
$ 99,379.38 $ 100,000.00
20%
TOTAL EXPENSES
TOTAL RETURN
>=
>=
>=
>=
=
$
$
$
$
$
5,000.00
13,913.11
15,900.70
29,813.81
34,782.78
14%
16%
30%
35%
Janette Douglas Bake Sale

Brownies
Peanut Butter
Cups
Cupcakes
MAX
Number of batches
MIN
Profit Per Batch $
Ingredient
Butter (cups)
Flour (cups)
Sugar (cups)
Vanilla (tsp)
Eggs
Walnuts (cups)
Milk (cups)
Chocolate (oz)
Baking soda (tsp)
Frosting (cups)
Peanut butter (cups)
Units per batch
210.14
>=
100.00
6.00 $
Brownies
0.67
1.50
1.75
2.00
3.00
2.00
0.50
8.00
0.50
10
147.32
>=
30.00
30.00
>=
30.00
10.00 $
Cupcakes
0.33
1.50
1.00
0.50
2.00
1.00
2.50
1.00
1.50
8
12.00 $
Peanut Butter
Cups
1.00
1.25
2.00
1.00
2.00
9.00
2.50
8
Shortbread
cookies
40.00
>=
40.00
>=
30.00
7.50
Shortbread
cookies
0.75
2.00
0.25
1.00
12
UNITS USED
249.41
653.70
585.07
493.94
955.07
420.28
312.39
2,319.43
147.32
366.06
75.00
4,000
$
$
$
$
$
$
$
$
$
$
$
>=
Cost/unit
1.44
0.09
0.16
0.06
0.12
0.31
0.05
0.10
0.07
2.74
2.04
4,000
3,394.09 TOTAL PROFIT
TOTAL COST
<=
2,200.00
2,200.00
Kelly Foods
Chicago
Ackron
Evansville
TOTAL
Cincinnati
1400
600
2000
>=
Weekly Demand (cases)
Indianapolis
0
1200
1200
>=
2000
0
2500
2500
>=
1200
2500
Pittsburgh
1400
0
1400
>=
1400
Per Case Cost of Shipping

Chicago
Cincinnati
Indianapolis
Pittsburgh
Ackron $
1.70 $
2.30 $
2.50 $
2.15
Evansville $
1.95 $
2.35 $
1.65 $
2.95
TOTAL COST $ 13,505.00
Objective Cell (Min)
Cell
$C$15
Name
Final Value
TOTAL COST Chicago
13505

Cell
$C$4
$D$4
$E$4
$F$4
$C$5
$D$5
$E$5
$F$5
Final
Name
Value
Ackron Chicago
1400
Ackron Cincinnati
0
Ackron Indianapolis
0
Ackron Pittsburgh
1400
Evansville Chicago
600
Evansville Cincinnati
1200
Evansville Indianapolis
2500
Evansville Pittsburgh
0
Reduced
Cost
Final
Name
Value
TOTAL Chicago
2000
TOTAL Cincinnati
1200
TOTAL Indianapolis
2500
TOTAL Pittsburgh
1400
Ackron TOTAL
2800
Evansville TOTAL
4300
Shadow
Price
1.95
2.35
1.65
2.4
-0.25
0
0
0.2
1.1
0
0
0
0
0.55
Constraints
Cell
$C$6
$D$6
$E$6
$F$6
$G$4
$G$5
TOTAL
2800
4300
<=
<=
Weekly Capacity (cases)

2800
4500
The sensitivity report can focus on shadow prices and reduce costs.
Objective
Coefficient
1.7
2.3
2.5
2.15
1.95
2.35
1.65
2.95
Allowable
Increase
0.2000001
1E+30
1E+30
0.5500001
0.5500001
0.2000001
1.1000001
1E+30
Allowable
Decrease
0.5500001
0.2
1.1
2.4000001
0.2000001
2.3500001
1.6500001
0.55
Constraint
R.H. Side
2000
1200
2500
1400
2800
4500
Allowable
Increase
200
200
200
200
600
1E+30
Allowable
Decrease
600
1200
2500
600
200
200
Liquid Gold, Inc.

Plant S1
P1
P2
P3
P4
P5
P6
P7
TOTAL
Capacity
Plant
P1
P2
P3
P4
P5
P6
P7
S2
TOTAL
20,876.00
20876
50,870.00
50870
38,652.00
38652
28,951.00
28951
87,423.00
87423
76,190.00
76190
58,237.00
58237
0
192564
109107
38652
<=
<=
<=
<=
285,922.00 308,578.00 111,955.00 208,555.00
S1
$
$
$
$
$
$
$
105.00
86.00
93.00
116.00
88.00
111.00
169.00
TOTAL COST $
15,250,175
S2
$
$
$
$
$
$
$
S3
Cost to Site
S3
86.00 $
58.00 $
46.00 $
27.00 $
56.00 $
36.00 $
65.00 $
S4
999.00
41.00
65.00
94.00
82.00
72.00
48.00
S4
$
$
$
$
$
$
$
23.00
999.00
38.00
999.00
89.00
999.00
999.00
The sensitivity report can focus on shadow prices and reduce costs.
=
=
=
=
=
=
=
Material
20,876.00
50,870.00
38,652.00
28,951.00
87,423.00
76,190.00
58,237.00

Variable Cells
Cell
$C$4
$D$4
$E$4
$F$4
$C$5
$D$5
$E$5
$F$5
$C$6
$D$6
$E$6
$F$6
$C$7
$D$7
$E$7
$F$7
$C$8
$D$8
$E$8
$F$8
$C$9
$D$9
$E$9
$F$9
$C$10
$D$10
$E$10
$F$10
Name
P1 S1
P1 S2
P1 S3
P1 S4
P2 S1
P2 S2
P2 S3
P2 S4
P3 S1
P3 S2
P3 S3
P3 S4
P4 S1
P4 S2
P4 S3
P4 S4
P5 S1
P5 S2
P5 S3
P5 S4
P6 S1
P6 S2
P6 S3
P6 S4
P7 S1
P7 S2
P7 S3
P7 S4
Final
Value
0
0
0
20876
0
0
50870
0
0
0
0
38652
0
28951
0
0
0
87423
0
0
0
76190
0
0
0
0
58237
0
Reduced Objective Allowable Allowable

Cost Coefficient Increase Decrease
82
105
1E+30
82
63
86
1E+30
63
976
999
1E+30
976
0
23
63
1E+30
45
86
1E+30
45
17
58
1E+30
17
0
41
17
1E+30
958
999
1E+30
958
55
93
1E+30
55
8
46
1E+30
8
27
65
1E+30
27
0
38
8
1E+30
89
116
1E+30
89
0
27
67
1E+30
67
94
1E+30
67
972
999
1E+30
972
32
88
1E+30
32
0
56
26
1E+30
26
82
1E+30
26
33
89
1E+30
33
75
111
1E+30
75
0
36
36
1E+30
36
72
1E+30
36
963
999
1E+30
963
121
169
1E+30
121
17
65
1E+30
17
0
48
17
1E+30
951
999
1E+30
951
Constraints
Cell
$C$11
$D$11
$E$11
$F$11
$G$4
$G$5
Name
TOTAL S1
TOTAL S2
TOTAL S3
TOTAL S4
P1 TOTAL
P2 TOTAL
Final
Value
0
192564
109107
38652
20876
50870
Shadow Constraint Allowable Allowable

Price
R.H. Side Increase Decrease
0 285922
1E+30 285922
0 308578
1E+30 116014
0 111955
1E+30
2848
0 208555
1E+30 169903
23
20876
1E+30
20876
41
50870
2848
50870
$G$6
$G$7
$G$8
$G$9
$G$10
P3 TOTAL
P4 TOTAL
P5 TOTAL
P6 TOTAL
P7 TOTAL
38652
28951
87423
76190
58237
38
27
56
36
48
38652
28951
87423
76190
58237
169903
116014
116014
116014
2848
38652
28951
87423
76190
58237
Shafer Office Supplies

Seattle
San FranciscoLas Vegas Tuscon

Denver
Atlanta
3,700.00
Lexington
4,500.00
Milwaukee 5,000.00
4,200.00
Salt Lake City
16,000.00
TOTAL
5000
16000
4200
3700
4500
>=
>=
>=
>=
>=
Demand
5000
16000
4200
3700
4500
Atlanta
Lexington
Milwaukee
Salt Lake City
TOTAL COST $
Seattle
$
2.15
$
1.95
$
1.70
$
0.60
56,335.00
San FranciscoLas Vegas

$
2.10 $
1.75
$
2.00 $
1.70
$
1.85 $
1.50
$
0.55 $
0.35
Tuscon
$
1.50
$
1.53
$
1.41
$
0.60
Denver
$
1.20
$
1.10
$
0.95
$
0.40
Charlotte
4,700.00
2,800.00
7500
>=
7500
Charlotte
$
0.65
$
0.55
$
0.40
$
0.95
Answer to a.
b.
Milwaukee and SLC plants
c.
Based on the shadow prices of the sensitivity report, SLC plant should get the extra supply.
d.
The optimal solution does not change, since the change is within the range of optimality.

Cell
$C$4
$D$4
$E$4
$F$4
$G$4
$H$4
$I$4
$J$4
$K$4
$L$4
$M$4
$N$4
$C$5
$D$5
$E$5
$F$5
$G$5
Final
Name
Value
Atlanta Seattle
Atlanta San FranciscoAtlanta Las Vegas
Atlanta Tuscon 3,700.00
Atlanta Denver
Atlanta Charlotte
Atlanta Minneapolis Atlanta Fayetteville
9,000.00
Atlanta Birmingham
3,300.00
Atlanta Orlando
12,000.00
Atlanta Cleveland
Atlanta Philadelphia Lexington Seattle
Lexington San Francisco
Lexington Las Vegas Lexington Tuscon
Lexington Denver
4,500.00
Reduced Objective Allowable Allowable

Cost
Coefficient Increase Decrease
0.30
2.15
1E+30
0.3
0.25
2.1
1E+30
0.25
0.10
1.75
1E+30
0.1
1.5
0.03
1.5
0.10
1.2
1E+30
0.1
0.10
0.65
1E+30
0.1
0.35
0.9
1E+30
0.35
0.8
0.25
0.8
0.35
0.25
0.35
0.15
0.35
0.15
0.35
0.6
1E+30
0.35
0.20
0.5
1E+30
0.2
0.10
1.95
1E+30
0.1
0.15
2
1E+30
0.15
0.05
1.7
1E+30
0.05
0.03
1.53
1E+30
0.03
1.1
1E-07
1.1
$H$5
$I$5
$J$5
$K$5
$L$5
$M$5
$N$5
$C$6
$D$6
$E$6
$F$6
$G$6
$H$6
$I$6
$J$6
$K$6
$L$6
$M$6
$N$6
$C$7
$D$7
$E$7
$F$7
$G$7
$H$7
$I$7
$J$7
$K$7
$L$7
$M$7
$N$7
Lexington Charlotte
4,700.00
Lexington Minneapolis
Lexington FayettevilleLexington BirminghamLexington Orlando Lexington Cleveland
9,500.00
Lexington Philadelphia
16,000.00
Milwaukee Seattle
5,000.00
Milwaukee San Francisco
Milwaukee Las Vegas
4,200.00
Milwaukee Tuscon Milwaukee Denver Milwaukee Charlotte
2,800.00
Milwaukee Minneapolis
3,000.00
Milwaukee Fayetteville
Milwaukee Birmingham
Milwaukee Orlando Milwaukee ClevelandMilwaukee Philadelphia
Salt Lake City Seattle Salt Lake City San
16,000.00
Francisco
Salt Lake City Las Vegas
Salt Lake City Tuscon Salt Lake City Denver Salt Lake City Charlotte
Salt Lake City Minneapolis
Salt Lake City Fayetteville
Salt Lake City Birmingham
Salt Lake City OrlandoSalt Lake City Cleveland
Salt Lake City Philadelphia
-
0.05
0.25
0.25
0.35
0.15
0.06
(0.00)
0.30
0.50
0.70
0.25
0.25
0.05
0.40
0.60
1.70
1.75
1.60
2.30
2.75
2.65
2.70
0.55
0.6
1.05
0.6
0.5
0.25
0.3
1.7
1.85
1.5
1.41
0.95
0.4
0.4
0.95
0.7
0.7
0.35
0.4
0.6
0.55
0.35
0.6
0.4
0.95
1
1.1
1.35
1.6
1.6
1.7
0.05
1E+30
1E+30
1E+30
1E+30
0.25
0.2
0.05
1E+30
0.05
1E+30
1E+30
1E-07
0.05
1E+30
1E+30
1E+30
1E+30
1E+30
1E+30
0.15
0.05
1E+30
1E+30
1E+30
1E+30
1E+30
1E+30
1E+30
1E+30
1E+30
1E-07
0.05
0.25
0.25
0.35
0.25
0.3
1.85
0.15
0.05
0.06
0
0.05
0.55
0.3
0.5
0.7
0.25
0.25
0.05
1.85
0.15
0.4
0.6
1.7
1.75
1.6
2.3
2.75
2.65
2.7
Cell
$C$8
$D$8
$E$8
$F$8
$G$8
$H$8
$I$8
$J$8
$K$8
$L$8
$M$8
Final
Shadow Constraint Allowable Allowable
Name
Value
Price
R.H. Side Increase Decrease
TOTAL Seattle
5000
1.85
5000
300
4700
TOTAL San Francisco
16000
1.85
16000
0
4200
TOTAL Las Vegas 4200
1.65
4200
300
4200
TOTAL Tuscon
3700
1.5
3700
12000
3700
TOTAL Denver
4500
1.1
4500
300
4500
TOTAL Charlotte
7500
0.55
7500
300
4700
TOTAL Minneapolis 3000
0.55
3000
300
3000
TOTAL Fayetteville 9000
0.8
9000
12000
9000
TOTAL Birmingham 3300
0.35
3300
12000
3300
TOTAL Orlando
12000
0.15
12000
12000
12000
TOTAL Cleveland 9500
0.25
9500
300
9500
Constraints
$N$8
$O$4
$O$5
$O$6
$O$7
TOTAL Philadelphia16000
Atlanta TOTAL
28000
Lexington TOTAL 34700
Milwaukee TOTAL 15000
Salt Lake City TOTAL16000
0.3
0
0
-0.15
-1.3
16000
40000
35000
15000
16000
300
1E+30
1E+30
4700
4200
16000
12000
300
300
0
MinneapolisFayetteville BirminghamOrlando
Cleveland Philadelphia TOTAL
9,000.00 3,300.00 12,000.00
28000
9,500.00 16,000.00
34700
3,000.00
15000
16000
3000
9000
3300
12000
9500
16000
>=
>=
>=
>=
>=
>=
3000
9000
3300
12000
9500
16000
MinneapolisFayetteville BirminghamOrlando
$
0.90 $
0.80 $
0.35 $
0.15
$
0.60 $
1.05 $
0.60 $
0.50
$
0.40 $
0.95 $
0.70 $
0.70
$
1.00 $
1.10 $
1.35 $
1.60
extra supply.
Cleveland
$
0.60
$
0.25
$
0.35
$
1.60
Philadelphia
$
0.50
$
0.30
$
0.40
$
1.70
<=
<=
<=
<=
Supply
40000
35000
15000
16000
Roberto's Honey Farm

PRODUCTION SCHEDULE
cream
filtered
pasteurized
mlange
strained
TOTAL PACKAGES
.75 kg plastic
550.00
250.00
360.00
530.00
480.00
2170
1 kg plastic
350.00
240.00
230.00
300.00
350.00
1470
.5 kg glass
350.00
300.00
350.00
250.00
250.00
1500
1 kg glass
200.00
180.00
300.00
350.00
380.00
1410
Selling prices (Chilean pesos)

cream
filtered
pasteurized
mlange
strained
.75 kg plastic
$
744.00
$
635.00
$
696.00
$
669.00
$
683.00
1 kg plastic
$
880.00
$
744.00
$
821.00
$
787.00
$
804.00
.5 kg glass
$
760.00
$
678.00
$
711.00
$
683.00
$
697.00
1 kg glass
$
990.00
$
840.00
$
930.00
$
890.00
$
910.00
Minimum demand
cream
filtered
pasteurized
mlange
strained
.75 kg plastic 1 kg plastic

.5 kg glass
300
250
250
240
230
230
350
300
360
350
1 kg glass
350
300
350
250
250
200
180
300
350
380
Maximum demand
cream
filtered
pasteurized
mlange
strained

.5 kg glass
550
350
400
380
360
390
530
410
480
420
1 kg glass
470
440
490
390
380
310
300
400
430
500
Package costs (Chilean pesos)

.5 kg glass
1 kg glass
$
91.00 $
112.00 $
276.00 $
351.00
Harvesting and production costs for each product per kilogram in pesos are
cream $
322.00
filtered $
255.00
pasteurized $
305.00
mlange $
272.00
strained $
287.00
TOTAL
PRODUCTION
(in kg)
Bulk in kg
4,742.50
5,880.00
REVENUE
757.50
PACKAGING COSTS
0.00
975.00
Harvesting & Production Costs
1,172.50
PROFIT
1,215.00
10,000.00 TOTAL HONE Y NEEDED
<=
10,000.00 TOTAL HONEY AVAILABLE
bulk/kg
$
616.00
$
521.00
$
575.00
$
551.00
$
563.00
$
$
$
$
7,963,940.00
1,271,020.00
3,051,522.50
5,421,900.00
Sanford Tile Company

Grade I
Grade II
Grade III
Sq Ft Produced
1,500.00
4,375.00
3,750.00
Profit/square foot $
2.50 $
Clay
Silica
Sand
Feldspar
Grade 1 req
Grade 3 req
50%
5%
20%
25%
One sq ft weighs
c.
d.
e.
f.
4.00 $
30%
15%
15%
40%
5.00 $ 40,000.00 TOTAL PROFIT
25%
10%
15%
50%
Material Used
6,000.00
2,212.50
3,037.50
8,000.00
1,500.00
3,750.00
<=
<=
<=
<=
>=
<=
2.00 pounds
The solution changes.

500 more pounds of Feldspar will increase the profit by $2500 (500 * 5)
The company can get rid of 875 pounds of Clay with no problem, for the rest, they need to purchase
See below.
$B$4
$C$4
$D$4
Final
Name
Value
Sq Ft Produced Grade1,500.00
I
II
III
Reduced
Cost
-
Objective
Coefficient
2.5
4
5
Cell
$E$11
$E$12
$E$13
$E$14
$E$15
$E$16
Final
Name
Value
Clay Material Used 6,000.00
Silica Material Used 2,212.50
Sand Material Used 3,037.50
Feldspar Material Used
8,000.00
Grade 1 req Material Used
1,500.00
Grade 3 req Material Used
3,750.00
Shadow
Price
5.00
-
Constraint
R.H. Side
6000
3000
5000
8000
1500
8000
Cell
Constraints
MAX
2.5 G1 + 4 G2 + 5 G3
Subject To
2 * ( 50% G1 + 30% G2 + 25% G3) <= 6000
2 * ( 5% G1 + 15% G2 + 10% G3) <= 3000
2 * ( 20% G1 + 15% G2 + 15% G3) <= 5000
2 * ( 25% G1 + 40% G2 + 50% G3) <= 8000
G1 >= 1500
G3 <= 8000
Mat'l
Available
6,000.00
3,000.00
5,000.00
8,000.00
1,500.00
8,000.00
pounds
pounds
pounds
pounds
the rest, they need to purchase 125 pounds of replacement clay if they would like to keep the same solution.
Allowable
Increase
0.0000001
2.00000004
0.000000025
Allowable
Decrease
1E+30
0.00000002
1.6666667
Allowable
Increase
937.5
1E+30
1E+30
1416.666667
1166.666667
1E+30
Allowable
Decrease
875
787.5
1962.5
1250
1500
4250
Hansel Corporation
Grade 1
Grade 2
Production Qty (lbs)
44,206.01
Profit/lb $
2.00 $
Additive A
Additive B
Additive C
Additive D
Grade 1 & 2 limit
Grade 4 limit
0.40
0.30
0.20
0.10
0.35
(0.25)
Grade 3
Grade 4
94,420.60
55,793.99
1.70 $
1.50 $
2.80 $ 386,266.09
0.37
0.33
0.25
0.05
0.35
(0.25)
0.34
0.33
0.33
(0.65)
(0.25)
0.90
0.10
(0.65)
0.75
100,000.00
44,420.60
40,000.00
10,000.00
(82,167.38)
7,188.84
b. If we have 20000 units less of Additive C, the optimal solution would not change. Allowable increase i
c. If grade 2 price goes up to $2, the optimal solution will not change.

Variable Cells
Cell
$B$4
$C$4
$D$4
$E$4
Final
Reduced
Name
Value
Cost
Production Qty (lbs) Grade
44206.00858
1
0
Production Qty (lbs) Grade 2
0 -0.019227468
94420.60086
3
0
55793.99142
4
0
Objective
Coefficient
2
1.7
1.5
2.8
Constraints
Cell
$F$12
$F$13
$F$8
$F$9
$F$10
$F$11
Name
Grade 1 & 2 limit
Grade 4 limit
Additive A
Additive B
Additive C
Additive D
Final
Value
-82167.38197
7188.841202
100000
44420.60086
40000
10000
Shadow
Price
0
0
2.420600858
0
2.051502146
6.214592275
Constraint
R.H. Side
0
0
100000
90000
40000
10000
TOTAL PROFIT
<=
<=
<=
<=
<=
>=
Availability
100,000.00
90,000.00
40,000.00
10,000.00
-
ange. Allowable increase is over 30,000.
Allowable
Increase
1.709090909
0.019227468
0.804444444
1.405882353
Allowable
Decrease
0.04021544
1E+30
0.041100917
0.878431373
Allowable
Increase
1E+30
7188.841202
31212.12121
1E+30
3602.150538
2168.28479
Allowable
Decrease
82167.38197
1E+30
5982.142857
45579.39914
30294.11765
3468.013468
MAX
2 G1 + 1.7 G2 + 1.5 G3 + 2.8 G4
SUBJECT TO
.4 G1 + .37 G2 + .34 G3 + .90 G4 <= 100000
.3 G1 + .33 G2 + .33 G3 <= 90000
.2 G1 + .25 G2 + .33 G3 <= 40000
.1 G1 + .05 G2 + .1 G4 <= 10000
G1 + G2 <= 65% ( G1 + G2 + G3 + G4 )
G4 >= 25% ( G1 + G2 + G3 + G4 )
Mirza Manufacturing
UNITS SHIPPED TO
Product
A
B
C
D
Production Cost/unit
NA
$
0.25
$
0.35
$
0.15
$
0.10
850.00
700.00
3,300.00
1,500.00
Min Demand
Product
A
B
C
D
NA
Product
A
B
C
D
NA
Product
A
B
C
D
NA
$
$
$
$
0.20
0.18
0.18
0.17
Product
A
B
C
D
NA
$
$
$
$
4.00
3.70
2.70
6.80
850
700
1100
1500
Max Demand
2550
2100
3300
4500
Packaging and Shipping Cost/Unit
Unit Sales Revenue
Raw Mat'l Used Product

A
B
C
D
USED
Magnets
4
3
2
8
108,085.71
<=
120,000.00
AVAILABLE
COST
0.59
UNITS SHIPPED TO
EU
Asia
2,700.00
457.14
2,400.00
3,500.00
EU
300.00
1,500.00
600.00
4,014.29
Asia
900
200
800
3500
EU
100
500
600
2000
Asia
2700
600
2400
10500
EU
$
$
$
$
EU
$
$
$
$
300
1500
1800
6000
0.25
0.22
0.22
0.20
Asia
$
$
$
$
0.35
0.30
0.30
0.25 $
4.50
3.90
2.90
6.50
Asia
$
$
$
$
4.55
3.95
2.40
6.90 $
Wire
4,887.14 PACKING & SHIPPING COST
105,171.43 TOTAL REVENUE
Casing
2
1
2
3
50,000.00
<=
2
3
1
2
40,000.00
<=
50,000.00
$
TOTAL PRODUCTION
3,850.00
2,657.14
6,300.00
9,014.29
$
3,738.93 PRODUCTION COST
0.29 $
40,000.00
0.31 $
90,670.57 MATERIAL COST
HIPPING COST
PROFIT
10,761.93
Raturi and Rao, Inc.
Product Month 1
1
1,000.00
2
1,000.00
3
600.00
4
TIME USED
230.00
<=
TIME AVAILABLE
480.00
PRODUCTION
Month 2
Month 3
1,800.00
1,400.00
1,100.00
700.00
475.00
<=
<=
480.00
480.00
Product
1
2
3
4
VARIABLE COSTS / lb
Month 1
Month 2
Month 3
$
9.00 $
9.00 $
$
6.75 $
6.75 $
$
5.25 $
5.25 $
$
7.50 $
7.50 $
Product
1
2
3
4
INVENTORY (end of month)

Month 0
Month 1
Month 2
Month 3
100
100.00
1,100.00
100.00
100
100.00
600.00
100.00
100
100.00
600.00
100.00
100
100.00
600.00
100.00
Processing
hours/lb
0.06
0.05
0.20
0.11
No of Shifts
2
Expected Increase
6%
9.54
7.16
5.57
7.95
Demand
Product Month 1
Month 2
Month 3
1
1000
800
1000
2
1000
900
500
3
600
600
500
4
0
200
500
Inventory Cost %
>=
PRODUCTION COST $ 55,575.00

INVENTORY COST $ 3,296.52
TOTAL COST $ 58,871.52
No of Hours
No of Days
8
30 per month
ected Increase
Inventory Cost %
12%
100 per product per month
Money invested 3-month CD

TOTAL INVESTED
Total Investable Amount
Cash Flow
Out
Cash Flow
In
Tuition Payments
Living Expenses
Scholarship
Return from 3-month CD
August
$ 3,338.20
$ 3,341.75
$
156.54
$ 6,836.49
<=
$ 16,500.00
September
October
November
$ 1,308.57 $ 1,308.57 $
$ 1,273.19 $ 1,273.19 $
$
$
$
$ 1,500.00 $
$ 18,000.00
$
$
$
$
$
$
Balance after investments $
9,663.51 $
2,581.75 $
<=
6,663.51 $
2,581.75 $
<=
2,581.75 $
<=
1,863.24
1,500.00
1,500.00 $
1,500.00 $
1,500.00
$
$
$
$
$
$
3,363.24
-
4,081.75 $
1,863.24
December
$
$
-
January
$
$
<=
181.62 $
$
$
February
$
$
-
March
$
<=
1,905.24 $
<=
202.62 $
1,500.00
1,500.00 $
1,500.00 $
$
1,500.00 $
1,500.00
1,500.00 $
$
$
$
1,318.38 $
$
$
1,318.38 $
$
$
$
3,405.24 $
$
$
1,297.38 $
$
181.62 $
1,905.24 $
202.62 $
<=
April
$
May
June
$ 5,000.00
<=
5,000.00 $
<=
8,000.00 $
$
500.00
1,500.00 $ 1,500.00 $
$ 10,000.00
$
$
1,297.38 $
$
$
$
-
3,000.00 $
1,500.00
1,500.00
1,500.00
July
Return Rate
0.75%
1.90%
4.20%
1,500.00
$
$
$
$
$
$
5,037.50
163.11
$ 5,200.61
FINAL BALANCE
Starting Balance in Savings $ 16,000.00

January
$
$
$ 1,115.64
$ 1,115.64
<=
Total Investable Amount $ 16,040.00

TOTAL INVESTED
Cash Flow Out
Cash Flow In
Expenses
Income
Return from Savings Balance
$
$
$
$
$
$
3,360.00
3,400.00
-
Savings Return Rate

February
$
$
$ 10,229.96
$ 10,229.96
<=
$ 15,429.96
$
$
$
$
$
$
Saving Balance after investments $ 14,924.36 $

>=
$ 2,000.00 $
March
$
$
$
<=
2,000.00
$
$
$
$
$
$
6,600.00
3,400.00
1.95
5,200.00 $
>=
2,000.00 $
2,000.00
>=
2,000.00
2,900.00
3,400.00
5.60
0.0375%
April
May
$
740.49 $
$ 2,948.82 $
$
June
July
400.17 $ 1,460.52 $
0.00 $
0.00 $
August
$
666.79
400.17 $
<=
5,660.69 $
1,460.52 $
<=
3,460.52 $
666.79 $
<=
4,144.93 $
<=
3,680.72 $
<=
2,000.00 $
3,590.69
<=
5,590.69
$
$
$
$
$
$
2,750.00
9,500.00
0.75
2,800.00
3,400.00
1.90
6,800.00
5,000.00
1.97
3,200.00
4,600.00
744.93
0.75
3,600.00
3,400.00
402.57
1.30
6,550.00
3,400.00
1,469.28
1.38
$
$
$
$
$
$
2,800.00
3,400.00
2,990.69
0.75
5,060.69 $
>=
2,000.00 $
2,000.00 $
>=
2,000.00 $
2,000.00
>=
2,000.00
$
$
$
$
$
$
5,260.52 $
>=
2,000.00 $
$
$
$
$
$
$
2,000.00 $
>=
2,000.00 $
$
$
$
$
$
$
3,478.14 $
>=
2,000.00 $
$
$
$
$
$
$
3,680.72 $
>=
2,000.00 $
October
$ 3,590.69
3,689.31 $
<=
8,750.00 $
$
$
$
$
$
$
September
$
-
November
December
<=
2,500.00 $
<=
2,000.00
$
$
$
$
$
$
2,900.00
3,400.00
0.00
0.75
6,650.00
5,000.00
0.00
1,150.00
0.94
2,500.00 $
>=
2,000.00 $
Return Rate
0.60%
1.42%
3.08%
$
$
$
$
$
$
$ 3,612.24
$
676.25
$ 10,545.04
$
0.75
2,000.00 $ 16,833.53
>=
FINAL BALANCE
2,000.00
Radio
TV
How many ads to purchase
Magazine
8.8
Cost/Ad $
Exposure Value/Ad
10
500.00 $
2,000.00
MIN
2,000.00 $
10
<=
MAX
6
<=
8.8
<=
2,700.00
10
<=
Auxiliary Variables
200.00
4,000.00
0
<=
12
12
<=
15
99
12
0
0
0
Objective
Coefficient
500
2000
200
0
0
-475
0
1000
0
0.25
Constraint
R.H. Side
15
99
12
0
10
6
90000

Name
How many ads to purchase Radio
How many ads to purchase TV
How many ads to purchase Magazine
Final
Value
Reduced
Cost
8.8
10
12
Constraints
Name
Auxiliary Variables <=
Exposure Value/Ad
Final
Value
8.8
10
12
8.8
10
12
90,000.00
Shadow
Price
$ 26,800.00 TOTAL COST

90,000.00 >=
90,000.00
Allowable
Increase
500.0000001
1E+30
475.0000001
Allowable
Decrease
351.8518519
1000
1E+30
Allowable
Increase
1E+30
1E+30
6.52
8.80
4.40
6.00
12,400.00
Allowable
Decrease
6.20
89.00
4.59 If we are allowed to use more Magazine ads the cost would go down.
1E+30
3.10
1E+30
17,600.00
Small
Medium
Large
Number of Units Produced
16,157.14
6,200.00
2,600.00
Unit Profit
Bending/Forming
Welding
Painting
MIN
Auxiliary Variables
MAX
Sensitivity with Auxiliary Variables
Cell
$C$3
$D$3
$E$3
20.50 $
34.00 $
42.00 $ 651,221.43
0.40
0.60
1.40
0.70
1.00
2.60
0.80
1.20
3.10
14,000.00
<=
16,157.14
<=
21,000.00
6,200.00
<=
6,200.00
<=
12,500.00
2,600.00
<=
2,600.00
<=
4,200.00
12,882.86
19,014.29
46,800.00
If we could make less medium's and large's, the profit will go up.
Final
Reduced
Name
Value
Cost
16,157.14
Small
6,200.00
Medium
2,600.00
Large
-
Objective
Coefficient
20.5
34
42
Final
Name
Value
Auxiliary Variables <=16,157.14
Bending/Forming 12,882.86
Welding
19,014.29
Painting
46,800.00
Constraint
R.H. Side
21000
12500
46800
14000
6200
2600
23400
23400
46800
Constraints
Cell
$C$13
$D$13
$E$13
$C$13
$D$13
$E$13
$F$7
$F$8
$F$9
Shadow
Price
(4.07)
(3.39)
14.64
Total Profit
<=
<=
<=
23,400.00
23,400.00
46,800.00
fit will go up.

Allowable
Increase
1E+30
4.071428671
3.392857243
Allowable
Decrease
1.53225811
1E+30
1E+30
Shadow prices for the binding constraints are equal to the reduced costs.
Sensitivity without Auxiliary Variables
Objective Cell (Max)
Cell
Name
Final Value
$F$5
Unit Profit
651221.4286
Cell
Allowable
Increase
1E+30
1E+30
1E+30
2157.142857
1161.538462
974.1935484
1E+30
1E+30
6780
Allowable
Decrease
4842.857143
6300
44200
1E+30
2607.692308
2187.096774
10517.14286
4385.714286
3020
$C$3
$D$3
$E$3
Final
Name
Value
16,157.14
Small
6,200.00
Medium
2,600.00
Large
Constraints
Cell
$F$7
$F$8
$F$9
Name
Bending/Forming
Welding
Painting
Final
Value
12,882.86
19,014.29
46,800.00
to the reduced costs.
Reduced
Cost
(4.07)
(3.39)
Objective
Coefficient
20.5
34
42
Allowable Allowable
Increase
Decrease
1E+30 1.532258
4.071428571
1E+30
3.392857143
1E+30
Shadow
Price
14.64
Constraint
R.H. Side
23400
23400
46800
Allowable
Increase
1E+30
1E+30
6780
Allowable
Decrease
10517.14
4385.714
3020
Apple
MIN
10.00
<=
10.00
<=
20.00
Number of 1000 gallons produced

MAX
Unit Profit $
Blend
Strain
Bottle
Cherry
800.00 $
23.00
22.00
10.00
Pomegranate Orange
15.00
20.00
40.00
<=
<=
<=
15.00
33.00
40.00
<=
<=
<=
30.00
50.00
50.00
320.00 $
22.00
40.00
10.00
1,120.00 $
18.00
20.00
10.00
1,440.00
19.00
31.00
10.00

Cell
$C$5
$D$5
$E$5
$F$5
$G$5
Final
Reduced
Name
Value
Cost
10.00
<= (432.00)
15.00
<=(1,920.00)
33.00
<=
40.00
<= (296.00)
10.00
<= (768.00)
Objective
Coefficient
800
320
1120
1440
800
Constraints
Cell
$H$11
$H$12
$H$13
Name
Blend
Strain
Bottle
Final
Value
2,104.00
3,000.00
1,080.00
Shadow
Price
56.00
-
Constraint
R.H. Side
5000
3000
5000
Pineapple
10.00
<=
10.00
<=
20.00
$
800.00 $ 115,360.00 TOTAL PROFIT

19.00
28.00
10.00
2,104.00
3,000.00
1,080.00
<=
<=
<=
5,000.00
3,000.00
5,000.00
Allowable
Increase
432
1920
1E+30
296
768
Allowable
Decrease
1E+30
1E+30
190.967742
1E+30
1E+30
Allowable
Increase
1E+30
340
1E+30
Allowable
Decrease
2896
260 Each more hour of straining dept (up to 340 hours) will increase the profit by $56.
3920
profit by $56.
Control Valve
Units produced
20.00
Unit Profit $
372.00 $
Metering
Pump
50.00
174.00 $
Hydraulic
Cyclinder
38.00
288.00
Assembly
Testing
45.00
20.00
20.00
15.00
30.00
25.00
MIN
5.00
<=
20.00
<=
20.00
12.00
<=
50.00
<=
50.00
22.00
<=
38.00
<=
45.00
Units produced
MAX

Cell
$C$3
$D$3
$E$3
Final
Reduced
Name
Value
Cost
Units produced Control Valve20
0
Units produced Metering Pump
50
0
Units produced Hydraulic Cyclinder
38
0
Constraints
Cell
$C$12
$D$12
$E$12
$C$12
$D$12
$E$12
$F$7
$F$8
Final
Name
Value
Units produced <=
20
Units produced <=
50
Units produced <=
38
Units produced <=
20
Units produced <=
50
Units produced <=
38
Assembly
3040
Testing
2100
Shadow
Price
141.6
1.2
0
0
0
0
0
11.52
c. If profit of hydraulic cylinder goes down by $10, the optima

$ 27,084.00 TOTAL PROFIT
3,040.00
2,100.00
<=
<=
d. If assembly time goes down to 3000 minutes, the optimal s

3,150.00
2,100.00
e. If testing goes down by 24*60 = 1440 minutes, this would

f. these results used the auxiliary variable technique
Objective
Coefficient
372
174
288
Allowable
Increase
1E+30
1E+30
2
Allowable
Decrease
141.6
1.2
288
Constraint
R.H. Side
20
50
45
5
12
22
3150
2100
Allowable
Increase
5.238095238
26.66666667
1E+30
15
38
16
1E+30
91.66666667
Allowable
Decrease
8.75
11.66666667
7
1E+30
1E+30
1E+30
110
400
If we could make more control valves, we would make more

If we could make more metering pumps, we would make m
down by $10, the optimal solution does not change.
00 minutes, the optimal solution will change and the problem needs to be re-optimized.
440 minutes, this would decrease the optimal profit drastically.
riable technique
es, we would make more profit.

umps, we would make more profit.
Beverly Ann Cosmetics
DECISIONS
SP
OB
13,651.52
5,850.65
Adv for SP
Adv for OB
831.44
8
15
OBJECTIVE
Revenue $
Cost $
Profit $
42.00 $
5.25 $
36.75 $
30.00
4.70 $
25.30 $
CONSTRAINTS
Summer Passion Production
Ocean Breeze Production
Summer Passion Limits
Budget $
13,651.52 <=
5,850.65 <=
1.00
(1.00)
Base Demand Boost

7000
6,651.52
12000
-
13,651.52 is at least
is at most
5.25 $
1.00 $
(1.00) $
5,850.65 which is
13,651.52
4.70 $
1.00 $
1.00
BOOST (per $ of advertising)
$ 648,883.52 TOTAL PROFIT
Total
13,651.52
12,000.00
30% of total
70%
$ 100,000.00
<=
19,502.17
$ 100,000.00

Ch14 Evans BA1e

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a.

Limitation (or Bound depending on the text)

Requirement (or Bound depending on the text)

$ 180,000.00 (in thousands)

make $3.6 million more profit.

15% (in thousands)

Microsoft Excel 14.0 Sensitivity Report

MAX 0.50 P + 0.30 D + 0.20 B

aves (based on shadow prices)

Microsoft Excel 14.2 Sensitivity Report

el goes down to 12.33%, the cost will go down .0013*12 dollars

rease the profit by $1.04.

Cost Per Show $

Revenue Per Show $

The highest revenue within the given constraints is roughly $545K.

1,359.00 $ 258,700.00 MINIMIZE TOTAL COST

1,836.00 $ 545,881.00 <=

Jacee's Department Stores

1,172,375 TOTAL PROFIT

Jacee's Department Stores

1,222,375 TOTAL PROFIT

Decision Variable Cells

Investing more in this would be helpful

Less in current funds may mean more return

Janette Douglas Bake Sale

3,394.09 TOTAL PROFIT

Per Case Cost of Shipping

Decision Variable Cells

Weekly Capacity (cases)

Liquid Gold, Inc.

Microsoft Excel 14.0 Sensitivity Report

Reduced Objective Allowable Allowable

Shadow Constraint Allowable Allowable

Shafer Office Supplies

San FranciscoLas Vegas Tuscon

San FranciscoLas Vegas

Milwaukee and SLC plants

Decision Variable Cells

Reduced Objective Allowable Allowable

Roberto's Honey Farm

Selling prices (Chilean pesos)

.75 kg plastic 1 kg plastic

.75 kg plastic 1 kg plastic

Package costs (Chilean pesos)

Sanford Tile Company

5.00 $ 40,000.00 TOTAL PROFIT

The solution changes.

Decision Variable Cells

Microsoft Excel 14.0 Sensitivity Report

ange. Allowable increase is over 30,000.

Packaging and Shipping Cost/Unit

Unit Sales Revenue

Raw Mat'l Used Product

4,887.14 PACKING & SHIPPING COST

105,171.43 TOTAL REVENUE

90,670.57 MATERIAL COST

Raturi and Rao, Inc.

INVENTORY (end of month)

PRODUCTION COST $ 55,575.00

100 per product per month

Money invested 3-month CD

Balance after investments $

Starting Balance in Savings $ 16,000.00

Money invested 3-month CD