TEST3
1. What is the objective function value if the profit of S is decreased to $3000? -1000(7)=-7000, plus the old objective function of 50500 which means the new objective function value is 43,500
Look at OC
Answer the following question using the Excel output above. Determine the new objective function value if the profit on the second variable, Robotic, increases by $1000?
1000*final value +objective value
15 units and the total price is 1500 what should you do?
15*shadow price =1125 Just say no because the improvement in your profit for these 15 units is only 1125
Answer the following question using the Excel output above. Keeping within the confines of the problem, you are required to hire a full time (40 hours) person who is qualified to work in any department. Select the constraint where you will gain the most profit from this worker and determine the additional profit to be gained.
6.3291*40=253.16
at most maximum number of hours available
<=
avaible for use at least
<=
at least x for x, than list it
<= >= >=
at most
>=
1. By how much would profits increase if square footage (space) were increased to 9000? 1000(0.4) = $400
Look at RH constraint
Answer the following question using the Excel output above. Determine the new objective function value if 100 units of Skilled Labor are added. A. $ 82,582.28 B. $ 556.96 C. $ 33,800.00 D. $ 81,468.36 E. $104,810.12
Solution: Objective function value= 82,025.32 100 units added * 5.5696 shadow price = 556.96 increase To introduce 100 more units of Skilled Labor increase the profit by 556.96. 82,025.32 + 556.96 = 82,582.28
1. If the profit on Regular increases by 2000 and simultaneously, the profit on Super decreases by 1000, what is the new objective function value? Objective function value remains the same because of the 100%Rule.R=2000/3000 = 67% S=1000/1500 = 67% Total 134%
Use allowable increase and decrease
Assume that the profit contribution of X increased from 200 to 220and that the profit contribution of Y decreased from 500 to 450.Will the optimal solution change? No. See 100% rule below.
What is the value of the objective function? 220(105) + 450(28.5) = 35,925 100% rule: If the sum of the percentages of change exceeds 100% then a different optimal solution may exist. 20/50 (Change over the max allowable increase) =.4050/100 (Change over the max allowable decrease) = .50 Total 90% so no
redundant constraint
a constraint that does not form a unique boundary of the feasible solution space
How to tell if it is constraint based on graph
if it has a # next to it
Answer the following question using the Excel output above. Keeping within the confines of the problem, the profit on Map A has increased by one dollar. Determine the new objective function value.
increase the # next to A in the equation and plug in final values
Binding constraints
look at Final value and RH side
1. What is the objective function value if the profit of R is increased by $1000?1000(4.5)=4500, plus the old objective function of 50500 = $55,000
look at final value and mulitply it by 1000
x units added
look at shadow price
cost
minimize
Range use objective coefficient
t
