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Homework 1 covers the theory and applications in Lessons I-1 to I-3. This document has four parts: Objectives of doing your homework. Assignment of homework questions, with suggestions about which other questions may help you understand the homework questions. Homework 1 Supplemented Questions listing 58 questions: 4 of them are your homework, others may help you understand the homework questions, and the rest maythere just in case you find them helpful. are help you understand fine points. Some Some supplemental questions refer to a section of a chapter textbook (for supplemental questions refer to a section of a chapter in the in the textbook (for example, Section 2.1 means Chapter 2your textbook). example, Section 2.1 means Chapter 2 Section 1 of Section 1 of your textbook). Homework 1 Supplemented Answers listing answers to all 58 Homework 1 Supplemented Answersquestions. questions excluding your 4 homework listing answers to all 58 questions including your 4 homework questions.

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Quantitative Analysis BA 452 Homework 1 Questions

Objectives

By working through the homework questions and the supplemental questions, you will: 1. Obtain an overview of the kinds of problems linear programming has been used to solve. Learn how to develop linear programming models for simple problems. Be able to identify the special features of a model that make it a linear programming model. Learn how to solve two variable linear programming models by the graphical solution procedure. Understand the importance of extreme points in obtaining the optimal solution.

2. 3.

4.

5.

6. Know the use and interpretation of slack and surplus variables. 7. Be able to interpret the computer solution of a linear programming problem. 8. Understand how alternative optimal solutions, infeasibility and unboundedness can occur in linear programming problems. Understand the following terms: problem formulation constraint function objective function solution optimal solution nonnegativity constraints mathematical model linear program linear functions feasible solution feasible region slack variable standard form redundant constraint extreme point surplus variable alternative optimal solutions infeasibility unbounded

9.

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Quantitative Analysis BA 452 Homework 1 Questions

Assignment

Questions 11, 13, 27, and 53 is your homework assignment. Questions 11, 13, and 27 should be answered without referring to notes or using computers (Hint: Define decision variables I = Internet fund investment in thousands, B = Blue Chip fund investment in thousands. Then, the objective is to maximize the projected annual return 0.12I + 0.09B.) Question 53 can be answered with notes and computers. To supplement those homework questions, you should consider (but not turn in) the following questions. Questions answered without notes or computers: 1-13, 17-19, 21-26, 30-31, 34-36, 38, 42-46. Questions answered with notes and computers: 14-15, 20, 27-29, 33, 37, 39-41, 49-54. Tip: Those homework questions and supplementary questions are grouped into sets of similar type. Once you have mastered the questions in a set, you can skip the rest of the questions in that set. Tip: Some of your Exam 1 questions will be variations of some of those homework questions.

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25π΅π΅ β₯ 30 1π΄π΄ + π΅π΅ β₯ 250 0. 3βπ΄π΄ + 2π΅π΅ β₯ 15 e. π΅π΅ β€ 0.Quantitative Analysis BA 452 Homework 1 Questions Homework 1 Supplemented Questions 1. Which of the following mathematical relationships could be found in the linear programming model. Find the solution that satisfy the following constraints: 4π΄π΄ + 2π΅π΅ β€ 16 4π΄π΄ + 2π΅π΅ β₯ 16 4π΄π΄ + 2π΅π΅ = 16 3.10(π΄π΄ + π΅π΅) c.5π΄π΄ + 0. 3π΄π΄ β 4π΅π΅ β₯ 60 b. Show the graph of each for objective function values equal to 420. 2π΄π΄ + 5π΅π΅ + 1π΄π΄π΅π΅ β€ 25 2.25(π΄π΄ + π΅π΅) b. π΄π΄ β€ 0. 12π΄π΄ + 8π΅π΅ β₯ 480 c. a. 5π΄π΄ + 10π΅π΅ = 200 4. and β4π΄π΄ + 7π΅π΅. b.5π΅π΅ β€ 50 π΄π΄. 7. 6π΄π΄ + 4π΅π΅. 3π΄π΄ + 2π΅π΅ β€ 8 b.50(π΄π΄ + π΅π΅) 6. Identify the feasible region for the following set of constraints: 0. 1π΄π΄ + 1π΅π΅ = 6 f. a. Show a separate graph of the constraint lines and the solutions that satisfy each of the following constraints: a. Three objective functions for linear programming problems are 7π΄π΄ + 10π΅π΅. β1π΄π΄ + 2π΅π΅ β€ 70 b. Show a separate graph of the constraint lines and the solutions that satisfy each of the following constraints: a. and which could not? For the relationships that are unacceptable for linear programs. c. π΄π΄ β₯ 0. state why.25π΄π΄ + 0. β6π΄π΄ + 5π΅π΅ β€ 60 c. Show a separate graph of the constraint lines and the solutions that satisfy each of the following constraints: a. 5π΄π΄ β 2π΅π΅ β€ 0 5. 1π΄π΄ β 2π΅π΅2 β€ 10 d. 2π΄π΄ β 2π΅π΅ = 50 c. π΅π΅ β₯ 0 4 .

π΅π΅ β₯ 0 a. π΅π΅ β₯ 0 find the optimal solution using the graphical solution procedure. How many extreme points are there? What are the values of A and B at each extreme point? 5 . If the objective function is changes to 2A + 6B. π΅π΅ β₯ 0 9.t. Find the optimal solution using the graphical solution procedure. For the linear program Max s. what will the optimal solution be? c. 2π΄π΄ + 3π΅π΅ 1π΄π΄ + 2π΅π΅ β€ 6 5π΄π΄ + 3π΅π΅ β€ 15 π΄π΄. π΅π΅ β₯ 0 10.t. Identify the feasible region for the following set of constraints: 3π΄π΄ β 2π΅π΅ β₯ 0 2π΄π΄ β 1π΅π΅ β€ 200 1π΄π΄ β€ 150 π΄π΄. Solve the following linear program using the graphical solution procedure: Max 5π΄π΄ + 5π΅π΅ s. b. Consider the following linear programming problem: Max 3π΄π΄ + 3π΅π΅ s. 1π΄π΄ β€ 100 1π΅π΅ β€ 80 2π΄π΄ + 4π΅π΅ β€ 400 π΄π΄. π΅π΅ β₯ 0 12.Quantitative Analysis BA 452 Homework 1 Questions 8. Identify the feasible region for the following set of constraints: 2π΄π΄ β 1π΅π΅ β€ 0 β1π΄π΄ + 1.5π΅π΅ β€ 200 π΄π΄. 2π΄π΄ + 4π΅π΅ β€ 12 6π΄π΄ + 4π΅π΅ β€ 24 π΄π΄. What is the value of the objective function at the optimal solution? 11.t.

problem described in Section 2. β€5 1π΅π΅ β€ 4 2π΄π΄ + 2π΅π΅ = 12 π΄π΄. New sewing equipment is available that whole increase the sewing operations capacity to 750 hours. (Assume the 10A +9B is the appropriate objective function. a. 1/5 ton of material 2 and 3/10 ton of material 3. (Assume that the profit contribution of the deluxe bag is the original $9 value). c. RMC.) If each of these situations is encountered separately. Each ton of fuel additive is a mixture of 2/5 ton of material 1 and 3/5 of material 3. A new low-cost material is available for the standard bag. RMC has available the following quantities of each new material: Raw Material Amount Available for Production Material 1 20 tons Material 2 5 tons Material 3 21 tons Assuming the RMC is interested in maximizing the total profit contribution. After deducting relevant costs.1 (Chapter 2 Section 1 of your text). RMCβs production is constrained by the limited availability of the three raw materials. b. A ton of solvent base is a mixture is a mixture of Β½ ton of material 1.. For the current production periods. Inc. What are the extreme points of the feasible region? c. In a particular production process. what is the optimal solution and the total profit contribution? 6 . b.. how much? Are any of the constraints redundant? Is do. Consider the following linear program: Max 1π΄π΄ + 2π΅π΅ s. 15. Inc. and the profit contribution per standard bag can be increased to $20 per bag. π΅π΅ β₯ 0 1π΄π΄ 14. How many tons of each product should be produced. which ones? a. d. Refer to the Par. three raw materials are blended (mixed together) to produce two products: a fuel additive and a solvent base. c. Show the feasible region. The accounting department revises its estimate of the profit contribution for the deluxe bag to $18 per bag.t. Suppose that Parβs management encounters the following situations: a. answer the following: What is the linear programming model for the problem? Find the optimal solution using the graphical solution procedure. the profit contribution is $40 for every ton of fuel additive and $30 for every ton of solvent base. is a small firm that produces a variety of chemical products. and what is the projected total profit contribution? Is there any unused material? If so. Find the optimal solution using the graphical procedure.Quantitative Analysis BA 452 Homework 1 Questions 13. b.

Quantitative Analysis BA 452 Homework 1 Questions 16. Refer to the feasible region for Par. π΅π΅ β₯ 0 18. What is the optimal solution for the objective function you selected in part (a)? What are the values of the slack variables associated with this solution? 17. c. Write the problem in standard form.t. Develop an objective function that will make extreme point 5 the optimal extreme point. Solve the problem using the graphical solution procedure. Write the problem in standard form. For the linear program Max 4π΄π΄ + 1π΅π΅ s. c. Solve the problem using the graphical solution procedure.13. What are the values of the three slack variables at the optimal solution? 19. β₯ 0 a.. What are the values of the three slack variables at the optimal solution? 7 . 10π΄π΄ + 2π΅π΅ β€ 30 3π΄π΄ + 2π΅π΅ β€ 12 2π΄π΄ + 2π΅π΅ β€ 10 π΄π΄. Write the following linear program in standard form: Max 5π΄π΄ + 2π΅π΅ s. Given the linear program Max 3A + 4B s. π΅π΅ β₯ 0 a. 1π΄π΄ β 2π΅π΅ β€ 420 2π΄π΄ + 1π΅π΅ β€ 610 6π΄π΄ β 1π΅π΅ β€ 125 π΄π΄.t. b.t. b. c. a. b. Inc. problem in Figure 2. -1A + 2B β€ 8 1A + 2B β€ 12 2A + 1B β€ 16 A. B.

2.t. Solve the problem using the graphical solution procedure. For the linear program Max 3A + 2B s. Shade in the feasible region on the graph. b. Write the problem in standard form. or 3) next to each constraint line to identify which constraint it represents.t. How much clack or surplus is associated with the nonbinding constraint? 8 . π΅π΅ β₯ 0 a. b. Graph the constraints. e. A+Bβ₯4 3A + 4B β€ 24 Aβ₯2 AβBβ€0 π΄π΄. c.Quantitative Analysis BA 452 Homework 1 Questions 20. and place a number (1. π΅π΅ β₯ 0 a. Which constraints are binding? Explain. Identify the optimal extreme point. 5A + 5B β€ 400 Constraint 1 -1A + 1B β€ 10 Constraint 2 1A + 3B β₯ 90 Constraint 3 π΄π΄. c. What are the values of the three slack variables at the optimal solution? 21. What is the optimal solution? d. Consider the following linear program: Max 2A + 3B s.

For the four-week planning period. Solve the problem graphically. and 200 hours of inspection and packaging time are available. c) Draw the profit line corresponding to a profit of $4000. 200 6A + 6C β€ 12. 420 hours of sewing time. A maximum of 1000 hours of assembly and testing time are available for the next production period. the Lady-Sport frame is more complex and the supplier can only provide up to 280 Lady-Sport frames for the next production period. Which constraints are binding? Cutting and dyeing Sewing Inspection 5A + 4C 9 .000 A. 12A + 6C β€ 20. d) Which constraints are binding? Explain. Use the graphical solutions procedure to determine the new optimal solution and the corresponding value of profit. b. Iowa plant. e) Suppose that the values of the objective function coefficients are $4 for each All-Pro model produced and $5 for each college model. Embassy produces the engines for both models at its Des Moines. Each EZRider requires 6 hours of manufacturing time and each Lady-Sport engine requires 3 hours of manufacturing time.t. 340 hours of cutting and dyeing time. then shade the feasible region for this problem. Compare your answer with the approach you used in part (b).Quantitative Analysis BA 452 Homework 1 Questions 22.5 hours for each Lady-Sport model. What is the optimal solution? c. Embassyβs motorcycle frame supplier can supply as many EZ-Rider frames as needed. sewing. Which extreme point generates the highest profit. Formulate a linear programming model that can be used to determine the number of units of each model that should be produced in order to maximize the total contribution to profit. The Des Moines plant has 2100 hours of engine manufacturing time available for the next production period. The liner programming model with production times expressed in minutes is as follows: Max s. Embassy motorcycles (EM)manufactures two lightweight motorcycles designed for easy handling and safety. Reiser Sports Products wants to determine the number of All-Pro (A) and College (C) footballs to produce in order to maximize profit over the next four-week planning horizon. b) Determine the coordinates of each extreme point and the corresponding profit. The EZ-Rider model has a new engine and a low profile that make it easy to balance. Move the profit line as far from the origin as you can in order to determine which extreme point will provide the optimal solution. The LadySport model is slightly larger. However. and inspection and packaging. 23. and is specifically designed to appeal to women riders. a. uses a more traditional engine. Constraints affecting the production quantities are the production capacities in three departments: cutting and dyeing.400 9A + 15C β€ 25. All-Pro footballs provide a profit of $5 per unit and College footballs provide a profit of $4 per unit. Final assembly and testing requires 2 hours for each EZ-Rider model and 2. C β₯ 0 a) Graph all constraints. The companyβs accounting department projects a profit contribution of $2400 for each EZ-Rider produced and $1800 for each Lady-Sport produced.

10 . How many hours of production time will be scheduled in each department? e. The trust fund has two investment opportunities: (1) a bond fund and (2) a stock fund. he want to select a mix that will enable him to obtain a total return of at least 7. What is the linear programming model for this problem? b. Formulate a linear programming model that can be used to determine how the restaurant should allocate its advertising budget in order to maximize the value of the total audience exposure. Find the optimal solution using the graphical solution procedure. The firm has 900 hours of production time available in its cutting and sewing department. What is the total profit contribution Kelson can earn with the given production quantities? d. The projected returns over the life of the investments are 6% for the bond fund and 10% for the stock fund. A marketing consultant developed an index that measure the audience exposure per dollar of advertising on a scale from 0 to 100. how should the restaurant allocate its advertising budget in order to maximize the value of total audience exposure? a. Management decided that at least 25% of the budget must be spent on each type of media. How many gloves of each model should Kelson manufacture? c. George Johnson recently inherited a large sum of money. Solve the problem using the graphical solution procedure. Inc. makes two different types of baseball gloves: A regular model and a catcherβs model. 300 hours available in its finishing department.. What is the slack time in each department? 25. Solve the problem using the graphical solution procedure 26. and that the amount of money spent on local newspaper advertising must be at least twice the amount of money spent on radio advertising.Quantitative Analysis BA 452 Homework 1 Questions 24. Formulate a linear programming model that can be used to determine the percentage that should be allocated to each of the possible investment alternatives. Whatever portion of the inheritance he finally decides to commit to the trust fund. b. If the value of the index for local newspaper advertising is 50 and the value of the index for spot radio adverting is 80. answer the following a. he wants to invest at least 30% of that amount in the bond fund. b. and 100 hours available in its packaging and shipping department. with higher values implying greater audience exposure. The Sea Warf Restaurant would like to determine the best way to allocate a monthly advertising budget of $1000 between newspaper advertising and radio advertising. he want to use a portion of this money to set up a trust fund for his two children. In addition.5% a. Kelson Sporting Equipment. The production time requirements and the profit contribution per glove are given in the following table: Model Regular model Catcherβs model Cutting and Sewing 1 3/2 Production Time (hours) Finishing Packaging and Shipping Β½ 1/8 1/3 ΒΌ Profit/Glove $5 $8 Assuming that the company is interesting in maximizing the total profit contribution.

Essentially.000 to invest.000 of the clientβs money should be invested in the Internet fund. c. (B&R. $0. Blair &Rosen.64 for each jar of Western Foods Salsa and $1. B&R services include a risk rating for each investment alternative. the price per pound for these ingredients is $0. and tomato paste. the two products have different blends of whole tomatoes... B&R developed s questionnaire to measure each clientβs risk tolerance. each client is classified as a conservative. Tomβs Inc.56 respectfully. Tomβs Inc. 130 pounds of tomato sauce. b.Quantitative Analysis BA 452 Homework 1 Questions 27. 30% tomato sauce. Develop a linear programming model that will enable Tomβs to determine the mix of salsa products that will maximize the total profit contribution. and 20% tomato paste. B&R recommends that the maximum portfolio risk rating for an aggressive investor is 320. What is the recommended investment portfolio for this aggressive investor? Discuss what happens to the portfolio under the aggressive investor strategy. Suppose that a third client with $50. which is the more risky of the two investment alternatives. Inc.96. Based on the responses. produces various Mexican food products and sells them to Western Foods.000 is invested in each of the two investment funds. Develop the recommended investment portfolio for the conservative investor. Tomβs contract with Western Foods resulting in sales revenue of $1. B&R recommends that a client who is a moderate investor limit his or her portfolio to a maximum risk rating of 240. and $0. Tomβs Inc. 10% tomato sauce.93 for each jar of Mexico City Salsa. buys empty glass jars for $0.64. The Internet fund has a projected annual return of 12%. The investment advisor requires that at most $35. moderate. a chain of grocery stores located in Teas and New Mexico. Discuss the interpretation of the slack variable for the total investment fund constraint. whereas the Blue Chip fund has a projected annual return of 9%. B&Rβs investment advisor decides to recommend a portfolio consisting of two investment funds: an Internet fund and a Blue Chip fund. What is the recommended investment portfolio for this client? What is the annual return for the portfolio? b.10 per jar. and 20% tomato paste.. has a risk rating of 6 per thousand dollars invested.03 for each jar of salsa produced. The Western Foods Salsa is a blend of 50% whole tomatoes. or aggressive investor. Suppose that a second client with $50. a. if $10.000 to invest has been classified as a conservative investor. 11 . The cost of the spices and other ingredients as approximately $0. B&R recommends that the maximum portfolio risk rating for a conservative investor is 160. A client who contacted B&R this past week has a maximum of $50. and labeling and filling cost are estimated to be $0. For example.000 to invest has been classified as an aggressive investor. B&Rβs risk rating for the portfolio would be 6(10)+4(10)=100. consist of 70% whole tomatoes. Find the optimal solution. The Mexico City Salsa. Finally. The Blue Chip fund has a risk of 4 per thousand dollars invested. mails two salsa products: Western Foods Salsa and Mexico City Salsa. Inc. can purchase up to 280 pounds of whole tomatoes. is brokerage firm that specializes investment portfolios designed to meet the specific risk tolerance of its clients. Tomβs. 28.02 each. For the current production period. The internet fund.. tomato sauce. Suppose that the questionnaire results classified current client as a moderate investor. which has a thicker and chunkier consistency. a. Each jar of salsa produced weighs 10 ounces. and 100 pounds of tomato paste.

in this case the Buffalo plant would be able to produce 0. Auto Ignite produces electronic ignition systems for automobiles at a plant in Cleveland. Because of the higher risk associated with ComSwitch. Formulate a linear programming model that can be used to develop a daily production schedule for the Buffalo and Dayton plants that will maximize daily production of ignition systems at Cleveland. Assume that a client indicates a willingness to invest a maximum of $50. a. Ohio.Quantitative Analysis BA 452 Homework 1 Questions 29. Determine the coordinates of each extreme point. 1400 units of component 2. the financial advisor has identified ComSwitch as the higher risk alternative. the financial advisor has recommended that at most $25. Eastern cable is currently trading for $40 per share. and Dayton. 12 . b. Formulate a linear programming model that can be used to determine the number of shares of Eastern Cable and the number of shares of ComSwitch that will meet the investment constraints and maximize the total return for the investment.5).4(1000)=400 units of component 2 each day.6 (2000)=1200 units of component 1 every day and 0.Bβ₯0 Identify the feasible region and find the optimal solution using the graphical solution procedure. a. c. For instance. The Dayton plant can produced 600 units of component 1.000 should be invested in ComSwitch. At this point in time. New York. At the end of each day. 1A+3Bβ₯6 1A+1Bβ₯4 A. Consider the following linear program: Min 3A+4B s.000 in the two companies.t.000 in Eastern Cable and at least $10. Each ignition system is assembled from two components produced at AutoIgniteβs plants in Buffalo. Find the optimal solution. 31. Eastern Cable is a leading manufacturer of flexible cable systems used in the construction industry. and ComSwitch is a new firm specializing in digital switching systems. 60% of Buffaloβs production time could be used to produce component 1 and 40% of Buffaloβs production time could be used to produce component 2. Identify the value of the objective function and the values of the slack and surplus variables at each extreme point. Find the optimal solution. The Buffalo plant can produce 2000 units of component 1. and ComSwitch is currently trading for $25 per share. b. or any combination of the two components each day. The client wasnβt to invest at least $15. Graph the feasible region. If the takeovers occur. 1000 units of component 2. d. the component production at Buffalo and Dayton is sent to Cleveland for assembly of the ignition systems on the following workday. A financial advisor at Diehl Investments identified two companies that are likely candidates for a takeover in the near future.000 in ComSwitch. Ohio. Identify the three extreme-point solutions for the M&D Chemicals problem (see section 2. 30. or any combination of the two components each day. What is the value of the objective function? 32. the financial advisor estimates that the price of Eastern Cable will go to $55 per share and ComSwitch will go to $43 per share.

What are the extreme points of the feasible region? c. 2A+1Bβ₯12 1A+1Bβ₯10 1Bβ€4 A. Find the optimal solution using the graphical solution procedure and the value of the objective function. 35. 34. c. b. Find the optimal solution and the value of the objective function. b. Find the optimal solution using the graphical solution procedure. Consider the following linear programming problem: Min A+2B s. Determine the amount of slack or surplus for each constraint.5Bβ€21 -2A+ 6Bβ₯0 A.t. What are the values of the slack and surplus variables? 13 . Show the feasible region.t. 1A+3Bβ€12 3A+1Bβ₯13 1A-1B=3 A. Suppose the objective function is changed to max 5A+2B. b. For the linear program Min 6A+4B s.t. c. Consider the following linear program: Min 2A+2B s.Bβ₯0 a. Solve the problem using the graphical solution procedure.Bβ₯0 a. A+ 4Bβ€21 2A+ Bβ₯7 3A+1. Write the problem in standard form.Bβ₯0 a.Quantitative Analysis BA 452 Homework 1 Questions 33.

The Regular blend contains 80% mild cheddar and 20% extra sharp. This year. d.Quantitative Analysis BA 452 Homework 1 Questions 36. which are then sold to distributors through the Northeast. Solve the minimum cost solution. 37. The Cheese spreads are packaged in 12-ounce containers. the consultant has 84 days of training time available.20. c. During this next quarter. excluding the cost of the cheese.20 per container. a.20 per pound and up to 3000 pounds of extra sharp cheddar cheese for $1. The cost to blend and package the cheese spreads. senior-level management has been specified that at least 25 training programs must be offered during this period. Formulate a linear programming model that can be used to determine the number of training programs on teaming and the number of training programs on problem solving that should be offered in order to minimize total cost. and the Zesty blend contains 60% mild cheddar and 40% extra sharp. is $0.95 and each container of Zesty is sold for $2. a local dairy cooperative offered to provide up to 8100 pounds of mild cheddar cheese for $1. Each training program on teaming cost $10. As a part of quality improvement initiative. Graph the feasible region. If each container of Regular is sold for $1.40 per pound. b. The New England Cheese Company produces two cheese spreads by blending mild cheddar cheese with extra sharp cheddar cheese. how many containers of Regular and Zesty should New England produce? 14 .000 and each training programs and problem solving cost $8000. The manager of quality improvement has request that at least 8 training programs on teaming and at least 10 training programs on problem solving be offered during the next six months. In addition. Consolidated Electronics employees complete a three-day training program on teaming and a two-day training program on problem solving. Consolidated Electronics uses a consultant to teach the training programs. Determine the coordinates of each extreme point.

00 per yard. and Kevlar as shown in the following table: Standard Grade 84% 10% 6% Professional Grade 58% 30% 12% Fiberglass Carbon Fiber Kevlar a.2 million in two investment funds: a stock fund and a money market fund.50 per yard and the cost of the professional grade material is$9. Formulate a linear program to determine the number of yards of each grade of fiberglass material that ATI should use in each frame in order to minimize total cost. carbon fiber.000 be invested in the money market fund. Innisβs client also specified that at least $300. The cost of the standard grade material is $7. Applied technology. Will the optimal solution change? What effect would an even lower price for the professional grade material have on the optimal solution? Explain. e. How should the funds be invested? 15 . Determine how many units of each fund Innis should purchase for the client to minimize the total risk index for the portfolio. each unit of the money market fund cost $100 and provides an annual rate of return of 4%. The standard and professional grade materials contain different amounts of fiberglass.40 per yard. To reduce inventory. Define the decision variables and indicate the purpose of each constraint.Quantitative Analysis BA 452 Homework 1 Questions 38. the higher risk index associated with the stock fund simply indicates that it is the riskier investment. The client wants to minimize risk subject to the requirement that the annual income from the investment be at least $60. For a new client. Innis Investments manages funds for a number of companies and wealthy client. produces bicycle frames using two fiberglass materials that improve the strength to weight ratio for the frames. c. To meet the required weight specification. a total of 30 yards of material must be used for each frame. b. b. ATIATI signed a contract with a bicycle manufacturer to produce a new frame with a carbon fiber content of at least 20% and a Kevlar content of not greater than 10%. What is the optimal solution? The distributor of the fiberglass material is currently overstocked with the professional grade material. Each unit of the stock fund costs $50 and provides an annual rate of return of 10%. (ATI). How much annual income will this investment strategy generate? c. Use the graphical solution procedure to determine the feasible region. each unit invested in the stock fund has a risk index of 8. According to Innisβs risk measurement system. 39.000. and each unit invested in the money market fund has a risk index of 3. d. Suppose the client desires to maximize annual return. Innis has been authorized to invest up to $1. the distributor offered ATI the opportunity to purchase the professional grade for $8 per yard. Will the optimal solution change? Suppose that the distributor further lowers the price of the professional grade material to $7. What are the coordinates of the extreme points? Compute the total cost at each extreme point. a. The investment strategy is tailored to each clientβs needs. Inc.

Does the following linear program involve infeasibility. The refinery used to produce the gasoline has a production capacity of 50. Photo Chemicalsβ management specified that at least 30 gallons of product 1 and at least 20 gallons of product 2 must b produced during the next two weeks. 2π΄π΄ + 2π΅π΅ β€ 10 β1π΄π΄ + 1π΅π΅ β₯ 8 π΄π΄. What are the binding constraints? 42.000 gallons.000 gallons of grade A crude oil available. The current inventory of the perishable raw material is 80 pounds. π‘π‘. What is the optimal solution? c. π΅π΅ β₯ 0 16 . ππππππ π π . π‘π‘.50 per gallon for premium gasoline. Furthermore. Based on an analysis of current inventory levels and outstanding orders for the next month. a. π΅π΅ β₯ 0 1π΄π΄ + 1π΅π΅ 4π΄π΄ + 8π΅π΅ 43. ππππππ π π . Southern Oil Company produces two grades of gasoline: regular and premium. and/or alternative optimal solutions? Explain. Management also stated that an existing inventory of highly perishable raw material required in the production of both fluids must be used within the next two weeks. unbounded. any of the current inventory that is not used within the next two weeks will spoil β hence. Each gallon of regular gasoline contains 0. Southern has 18.7 gallons of grade A crude oil. it is known that product 1 requires 1 pound of this perishable raw material per gallon and product 2 requires 2 pounds of the raw material per gallon. For the next production period. What is the minimum cost solution? 41. 8π΄π΄ + 6π΅π΅ β₯ 24 2π΅π΅ β₯ 4 π΄π΄. Does the following linear program involve infeasibility.Quantitative Analysis BA 452 Homework 1 Questions 40. b. The profit contributions are $0.000 gallons for the next production period. What are the values and interpretations of the slack variables? d. Photo Chemicals produces two types of photographic developing fluids. the management requirement that at least 80 pounds be used in the next two weeks. the firmβs management is looking for a minimum cost production plan that uses all the 80 pounds of perishable raw material and provides at least 30 gallons of product 1 and at least 20 gallons of product 2. Formulate a linear programming model that can be used to determine the number of gallons of regular gasoline and the number of gallons of premium gasoline that should be produced in order to maximize total profit contribution.30 per gallon for regular gasoline and $0. unbounded. and/or alternative optimal solutions? Explain. Both products cost Photo Chemicals $1 per gallon to produce.3 gallons of grade A crude oil and each gallon of premium gasoline contains 0. Although more of this raw material can be ordered if necessary. Because Photo Chemicalsβ objective is to keep its production costs at the minimum possible level. Southern Oilβs distributors have indicated that demand for the premium gasoline for the next production period will be at most 20.

Does an unbounded feasible region imply that he optimal solution to the linear program will be unbounded? 46. Discuss what happens to the M&D Chemicals problem (see Section 2.5) if the cost per gallon for product A is increased to $3. allocate at least 10% of the space to the generic brands. Both brands are equally profitable. 48. The national brands are more profitable than the generic brands. discuss the effect of managementβs requiring total production of 500 gallons for the two products. Consider the following linear program: ππππππ π π . π‘π‘. Consider the following linear program: ππππππ π π . Graph the feasible region for the problem.Quantitative Analysis BA 452 Homework 1 Questions 44. b. c. What would you recommend? Explain. β4π΄π΄ + 3π΅π΅ β€ 3 1π΄π΄ β 1π΅π΅ β€ 3 π΄π΄. 45.00 per gallon. Find the optimal solution. Find the new optimal solution. Suppose that the objective function is changed to 1π΄π΄ + 1π΅π΅. regardless of the profitability. For the M&D chemicals problem in Section 2. 17 . π‘π‘ 1π΄π΄ + 1π΅π΅ a. c.5. π΅π΅ β₯ 0 a. 47. The store carries national and generic brands and currently has 200 square feet of shelf space available. What is the optimal solution for this problem? b. The manager of a small independent grocery store is trying to determine the best use of her shelf space for soft drinks. d. The generic brand is more profitable than the national brand. b. How many square feet of space should the manager allocate to the national brands and the generic brands under the following circumstances? a. The manager wants to allocate at least 60% of the space to the national brands and. Is the feasible region unbounded? Explain. π΅π΅ β₯ 0 1π΄π΄ β 2π΅π΅ 5π΄π΄ + 3π΅π΅ β€ 15 3π΄π΄ + 5π΅π΅ β€ 15 π΄π΄. List two or three actions M&D should consider to correct the situation you encounter.

**Quantitative Analysis BA 452 Homework 1 Questions
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49. PharmaPlus operates a chain of 30 pharmacies. The pharmacies are staffed by licensed pharmacists and pharmacy technicians. The company currently employs 85 full-time equivalent pharmacists (combination of full time and part time) and 175 full-time equivalent technicians. Each spring management reviews current staffing levels and makes hiring plans for the year. A recent forecast of the prescription load for the nest year shows that at least 250 full-time equivalent employees (pharmacists and technicians) will be required to staff the pharmacies. The personnel department expects 10 pharmacists and 30 technicians to leave over the next year. To accommodate the expected attrition and prepare for future growth, management stated that at least 15 new pharmacists must be hired. In addition, PharmaPlusβs new service quality guidelines specify no more than two technicians per licensed pharmacist. The average salary for licensed pharmacists is $40 per hour and the average salary for technicians is $10 per hour. a. Determine a minimum-cost staffing plan for PharmaPlus. How many pharmacists and technicians are needed? b. Given current staffing levels and expected attrition, how many new hires (if any) must be made to reach the level recommended in part (a)? What will be the impact on the payroll? 50. Expedition Outfitters manufactures a variety of specialty clothing for hiking, skiing, and mountain climbing. Its management decided to begin production on two new parkas designed for use in extremely cold weather: the Mount Everest Parka and the Rocky Mountain Parka. The manufacturing plant has 120 hours of cutting time and 120 hours of sewing time available for producing these two parkas. Each Mount Everest Parka requires 20 minutes of cutting time and 15 minutes of sewing time. The labor and material cost is $150 for each Mount Everest Parka and $50 for each rocky Mountain Parka, and the retail price through the firmβs mail order catalog are $250 for the Mount Everest Parka and $200 for the Rocky Mountain Parka. Because management believes that the Mount Everest Parka is a unique coat that will enhance the image of the firm, they specified that at least 20% of the total production must consist of this model. Assuming that Expedition Outfitters can sell as many coats of each type as it can produce, how many units of each model should it manufacture to maximize the total profit contribution? 51. English Motors, Ltd. (EML), developed a new all-wheel-drive sports utility vehicle. As part of the marketing campaign, EML produced a video tape sales presentation to send to both owners of current EML four-wheel-drive vehicles as well as to owners of four-wheel-drive sports utility vehicles offered by competitors; EML refers to these two target markets as the current customer market and the new customer market. Individuals who receive the new promotion video will also receive a coupon for a test drive of the new EML model for one weekend. A key factor in the success of the new promotion is the response rate, the percentage of individuals who receive the new promotion and test drive the new model. EML estimates that the response rate for the current customer market is 25% and the response rate for the new customer market is 20%. For the customers who test drive the new model, the sales rate is the percentage of individuals that make a purchase. Marketing research studies indicate that the sales rate is 12% for the current customer market and 20% for the new customer market. The cost for each promotion, excluding the test drive costs, is $4 for each promotion sent to the current customer market and $6 for each promotion sent to the new customer market. Management also specified that a minimum of 30,000 current customers should test drive the new model and a minimum of 10,000 new customers should text drive the new model. In addition, the number of current customers who test drive the new vehicle must be at least twice the number of new customers who test drive the new vehicle. If the marketing budget, excluding test drive costs, is $1.2 million, how many promotions should be sent to each group of customers in order to maximize total sales? 18

**Quantitative Analysis BA 452 Homework 1 Questions
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52. Creative Sports Design (CSD) manufactures a standard-size racket and an oversize racket. The firmβs rackets are extremely light due to the use of a magnesium-graphite alloy that was invented by the firmβs founder. Each standard-size racket uses 0.125 kilograms of the alloy and each oversize racket uses0.4 kilograms; over the next two-week production period only 80 kilograms of the alloy are available. Each standard-size racket uses 10 minutes of manufacturing time an each oversize racket uses 12 minutes. The profit contribution are $10 for each standard-size racket and $15 for each oversize racket, and 40 hours of manufacturing time are available each week. Management specified that at least 20% of the total production must be the standard-size racket. How many rackets of each type should CSD manufacture over the next two weeks to maximize the total profit contribution? Assume that because of the unique nature of their products, CSD can sell as many rackets as they can produce. 53. Management of High Tech Services (HTS) would like to develop a model that will help allocate their techniciansβ time between service calls to regular contract customers and new customers. A maximum of 80 hours of technician time is available over the two-week planning period. To satisfy cash flow requirements, at least $800 in revenue (per technician) must be generated during the two-week period. Technician time for regular customers generates $25 per hour. However, technician time for new customers only generates an average of $8 per hour because in many cases a new customer contact does not provide billable service. To ensure that new customer contacts are being maintained, the technician time spend on new customer contacts must be at least 60% of the time spent on regular customer contacts. Given these revenue and policy requirements., HTS would like to determine how to allocate technician time between regular customer and new customers so that the total number of customers contacted during the two-week period will be maximized. Technicians require an average of 50 minutes for each regular customer contact and 1 hour for each new customer contact. a. Develop a linear programming model that will enable HTS to allocate technician time between regular customers and new customers. b. Find the optimal solution. 54. Jackson Hole Manufacturing is a small manufacturer of plastic products used in the automotive and computer industries. One of its major contracts is with a large computer company and involves the production of plastic printer cases for the computer companyβs portable printers. The printer cases are produced on two injection molding machines. The M-100 machine has a production capacity of 25 printer cases per hour, and the M-200 machine has a production capacity of 40 cases per hour. Both machines use the same chemical material to produce the printer cases; the M-100 uses 40 pounds of the raw material per hour and the M-200 uses 50 pounds per hour. The computer company asked Jackson Hole to produce as many of the cases during the upcoming week as possible; it will pay $18 for each case Jackson Hole can deliver. However, next week is a regularly scheduled vacation period for most of Jackson Holesβ production employees; during this time, annual maintenance is performed for all equipment in the plant. Because of the downtime for maintenance, the M-100 will be available for no more than 15 hours, and the M-200 will be available for no more than 10 hours. However, because of the high setup cost involved with both machines, management requires that, each machine must be operated for at least 5 hours. The supplier of the chemical material used in the production process informed Jackson Hole that a maximum of 1000 pounds of the chemical material will be available for next weekβs productionβ the cost of this raw material is $6 per pound. In addition to the raw material cost, Jackson Hole estimates that the hourly cost of operation the M-100 and the M-200 are $50 and $75 respectively.

19

**Quantitative Analysis BA 452 Homework 1 Questions
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55. The Kartick Company is trying to determine how much of each of two products to produce over the coming planning period. There are three departments, A,B and C, with limited labor hours available in each department. Each product must be processed by each department and the per-unit requirements for each product, labor hours available , and per-unit profits are as shown below. Labor required in each department Product (hrs./unit) Product 1 Product 2 1.00 0.30 0.30 0.12 0.15 0.56 $33.00 $24.00

Department A B C Profit Contribution

Labor Hours Available 100 36 50

A linear program for this situation is as follows: Let xβ = the amount of product 1 to produce xβ = the amount of product 2 to produce Maximize 33ππβ + 24ππβ π π . π‘π‘. 1.0ππββ + .30ππβ β€ 100 . 30ππβ + .12ππβ β€ 36 . 15ππβ + .56ππβ β€ 50 ππβ, ππβ β₯ 0

Mr. Kartick (the owner) used trial and error with a spreadsheet model to arrive at a solution. His proposed solution is xβ=75 and xβ=60. He said he felt his proposed solution is optimal. Is his solution optimal? Without solving the problem, explain why you believe this solution is optimal or not optimal.

56. Assume you are given a minimization linear program that has an optimal solution. The problem is then modified by changing an equality constraint in the problem to a less-than-or-equal-to constraint. Is it possible that the modified problem is infeasible? Answer yes or no and justify. 57. Assume you are given a minimization linear program that has an optimal solution. The problem is then modified by changing a greater-than-or-equal-to constraint. Is it possible that the modified problem is infeasible? Answer yes or no and justify. 58. A consultant was hired to build an optimization model for a large marketing research company. The model is based on a consumer survey that was taken in which each person was asked to rank 30 new products in descending order based on their likelihood of purchasing the product. The consultant was assigned the task of building a model that selects the minimum number of products (which would then be introduced into the marketplace) such that the first, second, and third choice of every subject in the survey is included in the list of selected products. While building a model to figure out which products to introduce, the consultantβs boss walked up to her and said: βLook, if the model tells us we need to introduce more than 15 products, then add a constraint which limits the number of new products to 15 or less. Itsβ too expensive to introduce more than 15 new products.β Evaluate this statement in terms of what you have learned so far about constrained optimization models. 20

a. B 8 Points on line are only feasible points 4 0 4 8 A 21 . B 8 4 0 4 8 A b.Quantitative Analysis BA 452 Homework 1 Questions Homework 1 Supplemented Answers 1. c is not acceptable because of β2B 2 d is not acceptable because of 3 A f is not acceptable because of 1AB c. and e. d. B 8 4 A 0 4 8 c. and f could not be found in a linear programming model because they have the above nonlinear terms. b. 2. a. are acceptable linear programming relationships.

20) A (40. B (0.60) (6.Quantitative Analysis BA 452 Homework 1 Questions 3.0) A 0 (40.0) 0 22 . B Points on line are only feasible solutions (0.0) c. a.9) A 0 b. B (0.

B (0. B (20.0) A c.0) A (0.-15) b.Quantitative Analysis BA 452 Homework 1 Questions 4.25) Note: Point shown was used to locate position of the constraint line 0 A 23 . a.12) (-10. B (10.

7A + 10B = 420 is labeled (a) 6A + 4B = 420 is labeled (b) -4A + 7B = 420 is labeled (c) B 100 80 60 (b) (c) 40 20 (a) A -100 -80 -60 -40 -20 0 20 40 60 80 100 24 .Quantitative Analysis BA 452 Homework 1 Questions 5. B 300 a c 200 100 b A 0 100 200 300 6.

B 100 50 0 50 100 150 200 A 250 8.200) A -200 -100 0 100 200 25 .Quantitative Analysis BA 452 Homework 1 Questions 7. B 200 133 1/3 (100.

100) 0 100 200 300 A -100 -200 26 .225) 200 100 (150. B (150.Quantitative Analysis BA 452 Homework 1 Questions 9.

(3) 2B = 3B = 6 15 (1) (2) (3) 5A + 10B = 30 7B = -15 B = 15/7 From (1). B = 15/7 Value of Objective Function = 2(12/7) + 3(15/7) = 69/7 3 2 1 0 1 2 3 4 5 6 A A + 5A + (1) Γ 5 (2) . B 5 4 Optimal Solution A = 12/7. A = 6 .Quantitative Analysis BA 452 Homework 1 Questions 10.30/7 = 12/7 27 .2(15/7) = 6 .

B = 50 go here. 0 100 200 A 28 . you may want Value of Objective Function = 750 to study the answers to some of the similar 100 B = 80 questions. To find your answer. B My answer to this100 A = homework question will Optimal Solution A = 100.Quantitative Analysis BA 452 Homework 1 Questions 11.

Quantitative Analysis BA 452 Homework 1 Questions 12. There are four extreme points: (0.3). B = 3 Value of Objective Function = 18 2 1 (0. B = 1.0) 5 6 A b. a. (3.5 (3.5).5) 2 1 (0. and (0. B 3 Optimal Solution A = 0. (4.0) 1 2 3 4 (4.1.5 Value of Objective Function = 13.0).0) 1 2 3 4 5 6 7 8 9 10 A c.0). B 6 5 4 3 Optimal Solution A = 3.1. 29 .

To find your answer. you may want 6 to study the answers to some of the similar Feasible Region questions. B 8 6 Optimal Solution A = 2. c. 1) and (2. My answer to this homework question will B 8 go here. B = 4 4 2 0 2 4 6 8 A 30 . a. 4 consists of this line segment only 2 0 2 4 6 8 A b. The extreme points are (5.Quantitative Analysis BA 452 Homework 1 Questions 13. 4).

Let F = number of tons of fuel additive S = number of tons of solvent base Max s. S β₯ 0 b. No redundant constraints. 2/5F + 1/2S 1/5S 3/5F F. + 3/10S β€ β€ β€ 20 5 21 Material 1 Material 2 Material 3 40F + 30S F c. 1 ton is unused. Include isovalue lines to determine Material 1 and 3 constraints bind at the optimum.Quantitative Analysis BA 452 Homework 1 Questions 14. a. d. Material 2: 4 tons are used. 31 .t.

For example. S2. one possibility is 3S + 9D. b. 16. Department Cutting and Dyeing Sewing Finishing Inspection and Packaging 17. Available 630 600 708 135 Slack 90 150 348 0 Optimal Solution is S = 0 and D = 540. a. 0) with a profit of z = 20(708) + 9(0) = 14. S1. a. B. S3 β₯ 0 = = 1S3 = 420 610 125 5A + 2B + 0S1 + 0S2 + 0S3 Hours Used 1(540) = 540 5 /6(540) = 450 2 /3(540) = 360 1 /4(540) = 135 Max. b. Similar to part (a): the same feasible region with a different objective function.Quantitative Analysis BA 452 Homework 1 Questions 15.t. The optimal solution occurs at (708.160. The sewing constraint is redundant. A variety of objective functions with a slope greater than -4/10 (slope of I & P line) will make extreme point (0. 2A + 3B 6A 1B 32 . c. 540) the optimal solution. 1A 2B + 1S1 + 1S2 + A. Max s. c. Such a change would not change the optimal solution to the original problem.

10A + 3A + 2A + 2B + 1S1 2B 2B A. B = 15/7. S3 = 4/7 33 . S1 = 0. S3 β₯ 0 b. S2. a.Quantitative Analysis BA 452 Homework 1 Questions 18. Value = 87/7 4 2 0 2 4 6 8 10 A c. Max s. B 14 4A + 1B + 0S1 + 0S2 + 0S3 = 30 + 1S2 + 1S3 = 12 = 10 12 10 8 6 Optimal Solution A = 18/7.t. B. S2 = 0. S1.

A β 2B = 12 .B = 16 . S3 β₯ 0 = 3A + 4B + 0S 1 + 0S2 + 0S3 b. a.16/3 = 28/3 S2 = 12 .8/3 = 0 34 . S1. B = 8/3 Value = 30 2/3 4 2 (2) 0 2 4 6 8 10 12 A c.40/3 . S2.t. Max s. . B.+ 2B + 1S 1A 1 1A + 2B 8 (1) + 1S2 = 12 (2) 2A + 1B + 1S3 = 16 (3) A. B 14 (3) 12 10 (1) 8 6 Optimal Solution A = 20/3. S1 = 8 + A β 2B = 8 + 20/3 .Quantitative Analysis BA 452 Homework 1 Questions 19.20/3 .16/3 = 0 S3 = 16 β 2A .

2B B 4B .43 . S2.2 = 1. S1 = (3. S4 β₯ 0 b.S3 .S4 = = = = 4 24 2 0 c. Max s.(3.43) + 4(3. a. 3A + A + 3A + A A B A. B.43 .S1 + S2 .43 S4 = 0 .[3(3.43)] = 0 S3 = 3.t. S3.4 = 2. S1.Quantitative Analysis BA 452 Homework 1 Questions 20.3.86 S2 = 24 .43) .43) = 0 35 .43 + 3.

B = 10 + A Substituting for B in constraint 1 we obtain 5A + 5(10 + = A) 400 5A + 50 + 5A = 400 10A = 350 A = 35 B = 10 + A = 10 + 35 = 45 Optimal solution is A = 35. and b.Quantitative Analysis BA 452 Homework 1 Questions 21. B 90 80 70 Constraint 2 60 50 Optimal Solution 40 Constraint 3 Constraint 1 30 20 Feasible Region 10 2A + 3B = 60 A 10 20 30 40 50 60 70 80 90 100 0 c. a. For constraint 2. Optimal solution occurs at the intersection of constraints 1 and 2. B = 45 36 .

Constraint 3 is the nonbinding constraint. At the optimal solution 1A + 3B = 1(35) + 3(45) = 170. Because the optimal solution occurs at the intersection of constraints 1 and 2.Quantitative Analysis BA 452 Homework 1 Questions d. these are binding constraints. 37 . e. there is a surplus of 80 associated with this constraint. Because 170 exceeds the right-hand side value of 90 by 80 units.

Optimal solution is A = 1400. 0) (1400. 600) (800. c. e. a. 1680) Profit 5(0) + 4(0) = 0 5(1700) + 4(0) = 8500 5(1400) + 4(600) = 9400 5(800) + 4(1200) = 8800 5(0) + 4(1680) = 6720 Extreme point 3 generates the highest profit. 1200) (0. C 3500 3000 2500 Inspection and Packaging Cutting and Dyeing 4 Feasible Region Sewing 3 5A + 4C = 4000 2 1 500 1000 1500 2000 2500 Number of All-Pro Footballs 3000 2000 5 1500 1000 500 0 A b. The optimal solution occurs at the intersection of the cutting and dyeing constraint and the inspection and packaging constraint.Quantitative Analysis BA 452 Homework 1 Questions 22. New optimal solution is A = 800. C = 1200 Profit = 4(800) + 5(1200) = 9200 38 . C = 600 d. Therefore these two constraints are the binding constraints. Extreme Point 1 2 3 4 5 Coordinates (0. 0) (1700.

24. 2E + E. c. a.t.5L β€ 210 Engine time 0 280 Lady-Sport maximum 100 Assembly and testing 0 Max s. Let E L = number of units of the EZ-Rider produced = number of units of the Lady-Sport produced 2400E + 1800L 6E + 3L β€ L β€ 2.Quantitative Analysis BA 452 Homework 1 Questions 23. The binding constraints are the manufacturing time and the assembly and testing time. a. Max s. Let R = number of units of regular model. C = number of units of catcherβs model. L β₯ 0 b. 5R 1R 1/ R 2 + + + 8C 3/ C 2 1/ C 3 β€ β€ 39 900 300 Cutting and sewing Finishing .t.

C β₯ 0 + 1/ C 4 β€ 100 Packing and Shipping b.150) P& S 200 R 0 200 400 600 800 1000 Regular Model c. C 1000 800 Catcher's Model F 600 C& S 400 Optimal Solution (500.700 C&S F P&S 1/ 1/ 1(500) + 3/2(150) = 725 2(500) 8(500) + 1/3(150) = 300 + 1/4(150) = 100 e. d. 5(500) + 8(150) = $3. Department C&S F P&S Capacity 900 300 100 Usage 725 300 100 Slack 175 hours 0 hours 0 hours 40 .Quantitative Analysis BA 452 Homework 1 Questions 1/ R 8 R.

075 Minimum return Optimal solution: B = 0.7 Value of optimal solution is 0.33 Value = 60. a.67. 0 News β₯ 2 Radio b. R 1000 Radio Min Budget Optimal Solution N = 666.06 B + B + b. R β₯ 0 R = 1000 Budget β₯ R β₯ -2R β₯ 250 Newspaper min. 0.10 S β₯ S = 0. Let B = percentage of funds invested in the bond fund S = percentage of funds invested in the stock fund Max s. 50N + 80R N + N N N.088 or 8.000 N = 2R 500 Newspaper Min Feasible region is this line segment N 0 5 00 1000 41 .3 1 Bond fund minimum Percentage requirement 0. Let N = amount spent on newspaper advertising R = amount spent on radio advertising Max s. 0. S = 0. a. 250 Radio min.8% 26.Quantitative Analysis BA 452 Homework 1 Questions 25.t. a.06 B + B 0.t. R = 333.3.10 S β₯ 0.

000 could be invested in low-risk bonds or certificates of deposit.000 Annual return $5. 42 .t.moderate investor want you may + 4B β€ 240 Maximum risk for a I. a.000 Blue Chip fund $30.000 Annual return $ 3. $40. The third constraint for the aggressive investor becomes 6I + 4B β€ 320 This constraint is redundant.000 in the Blue Chip fund is still too risky for the conservative investor. The remaining $10.000 Blue Chip fund $15. 6ITo find your answer. The optimal solution is Internet fund $0 Blue Chip fund $40.000. The third constraint for the conservative investor becomes 6I + 4B β€ 160 This constraint becomes a binding constraint. This indicates that investing all $50.550 The aggressive investor places as much funds as possible in the high return but high risk Internet fund. c. The optimal solution is: Internet fund $35. the available funds and the maximum Internet fund investment constraints define the feasible region.000 Annual return $5. Internet fund $20. B β₯ to study the0 answers to some of the similar questions.000 can be invested in the Blue Chip fund. Let I = Internet fund investment in thousands. and B = Blue Chip fund investment in thousands Max 0.600 The slack for constraint 1 is $10. 1I + 1B β€ 50 Available investment funds 1I 35 Maximum investment in the internet fund β€ My answer to this homework question will go here.09B s.100 b.Quantitative Analysis BA 452 Homework 1 Questions 27.12I + 0.

Quantitative Analysis BA 452 Homework 1 Questions 28. a.t. Let W = number of jars of Western Foods Salsa produced M = number of jars of Mexico City Salsa produced Max s. M = 240 Value of optimal solution is 860 43 .25M 7M 1M 2M β€ β€ β€ 4480 2080 1600 Whole tomatoes Tomato sauce Tomato paste W. M β₯ 0 Note: units for constraints are ounces b. 1W 5W 3W 2W + + + 1. Optimal solution: W = 560.

1400D 3000B + 2000D = 2400 Note: Because every ignition system uses 1 unit of component 1 and 1 unit of component 2. B β€ 1 and D β€ 1.B) + 600(1 . D β₯ 0 The graphical solution is shown below.Quantitative Analysis BA 452 Homework 1 Questions 29. 2000B 3000B B + 600D + 2000D = 2400 β€1 D β€1 B.D) For assembly of the ignition systems. 44 . we can maximize the number of electronic ignition systems produced by maximizing the number of units of subassembly 1 produced.B) + 1400(1 . Max 2000B + 600D In addition. Therefore.D) 2000B + 600D = 1000 .t. 2000B + 600D = 1000(1 . Let B = proportion of Buffalo's time used to produce component 1 D = proportion of Dayton's time used to produce component 1 Maximum Daily Production Component 1 Component 2 2000 1000 600 1400 Buffalo Dayton Number of units of component 1 produced: 2000B + 600D Number of units of component 2 produced: 1000(1 . The linear programming model is: Max s. a. the number of units of component 1 produced must equal the number of units of component 2 produced.1000B + 1400 .

D = 0 Optimal Production Plan Buffalo .Quantitative Analysis BA 452 Homework 1 Questions Optimal Solution: B = .8(2000) = 1600 .8.Component 2 Dayton .Component 1 Buffalo .Component 2 .Component 1 Dayton . 45 .2(1000) = 200 0(600) = 0 1(1400) = 1400 Total units of electronic ignition system = 1600 per day.

000 Maximum Investment Eastern Cable Minimum ComSwitch Minimum ComSwitch Maximum b. c.375 46 .1000) Optimal solution is E = 625. = number of shares of Eastern Cable = number of shares of ComSwitch 15E 40E 40E + 18C + 25C 25C 25C E.Quantitative Analysis BA 452 Homework 1 Questions 30. C β₯ 0 β€ β₯ β₯ β€ 50.400). C = 1000 Total return = $27. (1000.000 25. Let E C Max s. d.1000).000 15.(625. a.t.000 10. There are four extreme points: (375.400). (375.

Quantitative Analysis BA 452 Homework 1 Questions 31. B = 1 4 6 3A + 4B = 13 Objective Function Value = 13 47 . B 6 4 Feasible Region 2 A 0 2 Optimal Solution A = 3.

B = 225) (A = 125. B = 100) (A = 125. B = 350) Objective Function Value 800 925 1300 Surplus Demand 125 β β Surplus Total Production β β 125 Slack Processing Time β 125 β 48 . B A A A B Extreme Points (A = 250.Quantitative Analysis BA 452 Homework 1 Questions 32.

B = 1.Quantitative Analysis BA 452 Homework 1 Questions 33.7 = 14 Surplus = 7 .5 -2(3) +6(1) = 0 Slack = 21 .5 Surplus = 0 . (1) (2) (3) (4) c. x2 B 6 4 2 x1 A 0 2 4 6 Optimal Solution: A = 3.0 = 0 A Optimal Solution: A = 6.5 = 10.7 = 0 Slack = 21 . B 3 + 4(1) = 7 2(3) + 1 = 7 3(3) + 1. value = 34 49 .5 = 10.10. a. value = 5 b. B = 2.

B = 1 Min s. B = 9/4) The optimal solution is A = 4. S2 = 0. S3 β₯ 0 b. 9/4) 1 (4.1) x1 A 0 1 2 3 4 5 6 b. 50 . S1 = 4. There are two extreme points: (A = 4. The optimal solution is A = 6.Quantitative Analysis BA 452 Homework 1 Questions 34. c. 6A + 4B + 0S 1 S1 + 0S2 + 0S 3 = 12 10 4 2A 1A + + 1B 1B 1B - - S2 + S3 = = A.t. x2 B 4 3 Feasible Region 2 (21/4. B = 1) and (A = 21/4. 35. a. S3 = 0. a. c. S2. B = 4. S1. B.

c.Quantitative Analysis BA 452 Homework 1 Questions 36. P β₯ 0 b.000T + 8.t. P = 17 Total cost = $216. T β₯ 8 P β₯ 10 P β₯ 25 2 P β€ 84 Minimum Teaming Minimum Problem Solving Minimum Total Days Available = number of training programs on teaming = number of training programs on problem solving 10.000 51 . The minimum cost solution is T = 8. There are four extreme points: (15. Let T P Max s.000P T + 3T + T.17) d.33. (8.10). (21. a.10). (8.30).

0.20 Z Profit Contribution = Revenue .75 pounds of cheese Pounds of mild cheese used = = 0.95 R + 2.54 Z + 0.16 Z) = 0.75) R + 0.60 R + 0.45 Z Pounds of extra sharp cheese used = 0.04 Z Max s.60 R + 0.(1.95 R + 2.15 R + 0.80 (0.20 (0.16 Z 1.75) Z 0.15 R + 0.60 R + 0.21 R + 0.20 Z) .15 R + R.13 R + 1.75) Z = 0.93 R + 0.82 R + 1.93 R + 0.13 R + 1.20 Z) 1.72 R + 0.60 (0.96 Z = 0.280 1.04 Z 0.42 Z 0.04(5200) = $13.96 Z) + (0.t.20 R + 0.75) R + 0. Regular Mild Extra Sharp 80% 20% Zesty 60% 40% 8100 3000 Let R = number of containers of Regular Z = number of containers of Zesty Each container holds 12/16 or 0. Z = 5200.82(9600) + 1. Z β₯ 0 Optimal Solution: R = 9600.40 (0. profit = 0.45 Z) + 1.20 R + 0.45 Z β€ 0.Total Cost = (1.30 Z) 0.30 Z Cost of Cheese = = = Packaging Cost Total Cost = = Revenue = = Cost of mild + Cost of extra sharp 1.40 (0.82 R + 0.20 (0.30 Z β€ 8100 3000 Mild Extra Sharp 52 .20 Z (0.Quantitative Analysis BA 452 Homework 1 Questions 37.

A lower price for the professional grade will not change the S = 10. Extreme Point (15. At $7.00(15) = 247.50(10) + 7.00P c. 0. The value of the optimal solution is reduced to 7. P = 15 d. P = 20 solution because of the requirement for the maximum percentage of kevlar (10%). the optimal solution is S = 10.06S + S + S.50(10) + 9.50. P β₯ 0 b.t.00 The optimal solution is S = 15. a. P = 20.50(15) + 8(15) = $232. Let S = yards of the standard grade material per frame P = yards of the professional grade material per frame Min s.00(20) = 255.12P β€ P = 6 carbon fiber (at least 20% of 30 yards) 3 kevlar (no more than 10% of 30 yards) 30 total (30 yards) 7.40 per yard. the value of the optimal solution is reduced to 7. Optimal solution does not change: S = 15 and P = 15.Quantitative Analysis BA 452 Homework 1 Questions 38.10S + 0.00. e. 15) (10. 0.50 7.30P β₯ 0.50S + 9. However. 53 .40(20) = $223. 20) Cost 7.50(15) + 9.

Let S = number of units purchased in the stock fund M = number of units purchased in the money market fund Min s.Quantitative Analysis BA 452 Homework 1 Questions 39. a. M = 10000. c. 54 .000 Minimum units in money market M Units of Money Market Fund 20000 8S 8x1 + 3x2 = 62.000+ 3M = 62. M.000 Invest everything in the stock fund.000 Annual income β₯ β₯ 3. β₯ 0 x2 β€ 1.200.000 Funds available 60. Annual income = 5(4000) + 4(10000) = 60. 8S 50S 5S + + + 3M 100M 4M M S.000 15000 Optimal Solution . 10000 5000 x1 0 5000 10000 15000 20000 Units of Stock Fund S Optimal Solution: S = 4000.t. value = 62000 b.

P2 = 25 Cost = $55 55 . Let P1 = gallons of product 1 P2 = gallons of product 2 Min s. 1P1 1P1 1P1 P1.t. P2 β₯ 0 + + 1P2 + 2P2 1P2 β₯ β₯ β₯ 30 20 80 Product 1 minimum Product 2 minimum Raw material Optimal Solution: P1 = 30.Quantitative Analysis BA 452 Homework 1 Questions 40.

60P β€ 1P β€ 1P β€ 18. a. 0.000 Grade A crude oil available Production capacity Demand for premium 0. Constraint 1 2 3 Value of Slack Variable 0 0 10.000 20.000 gallons of regular gasoline. 0.000 gallons of premium gasoline Total profit contribution = $17.50P Optimal Solution: 40. P β₯ 0 b.t.000 gallons less than the maximum demand 56 . Let R = number of gallons of regular gasoline produced P = number of gallons of premium gasoline produced Max s. and 10.000 50.30R + 1R + R.000 c.30R + 0.Quantitative Analysis BA 452 Homework 1 Questions 41.000 Interpretation All available grade A crude oil is used Total production capacity is used Premium gasoline production is 10.

New optimal solution is A = 0. 57 . x2 B Objective Function 4 Optimal Solution (30/16. value = 6. Grade A crude oil and production capacity are the binding constraints. B = 3. a. x2 B 4 3 2 1 x1 Unbounded 0 1 2 3 A 44. 30/16) Value = 60/16 2 0 2 4 x1 A b. 42. x2 B 14 12 10 8 6 4 Satisfies Constraint #1 2 x1 A Infeasibility Satisfies Constraint #2 R 0 2 4 6 8 10 12 43.Quantitative Analysis BA 452 Homework 1 Questions d.

c. This will only be the case when it is unbounded in the direction of improvement for the objective function. B = 0. Feasible region is unbounded. d. B A A B b. 58 . Optimal Solution: A = 3. a. An unbounded feasible region does not imply the problem is unbounded. z = 3.Quantitative Analysis BA 452 Homework 1 Questions 45.

for the generic brand. b. for the national brand and 20 sq. for the generic brand. 180 sq. ft. 120 sq. Let N = number of sq. Any point on the line segment joining extreme point 2 and extreme point 3 is optimal. for the national brand and 80 sq. for national brands G = number of sq. ft. c. ft. for generic brands Problem Constraints: N N G + G β€ β₯ β₯ 200 Space available 120 National brands 20 Generic Extreme Point 1 2 3 N 120 180 120 G 20 20 80 a. ft. ft. 59 . Optimal solution is extreme point 3. Optimal solution is extreme point 2. Alternative optimal solutions. ft.Quantitative Analysis BA 452 Homework 1 Questions 46.

Cost = 3(125) + 3(225) = 1050 or Cost = 3(250) + 3(100) = 1050 The solution (A = 250. However. x2 600 B s ce s P ro e Tim ing Alternate optima (125. B = 225) uses only 2(125) + 1(225) = 475 hours. B = 225) provides 600 . (A = 125. the solution (A = 125.475 = 125 hours of slack processing time which may be used for other products.225) (250. B = 100) uses all available processing time. Thus. B = 225) and (A = 250. B = 100).100) x1 0 100 200 300 400 500 400 300 200 100 A Alternative optimal solutions exist at extreme points (A = 125. 60 .Quantitative Analysis BA 452 Homework 1 Questions 47.

B = 375 which would require 2(125) + 1(375) = 625 hours of processing time. Reduce minimum A production to 100. Make solution A = 125.Quantitative Analysis BA 452 Homework 1 Questions 48. Reduce total production to A = 125. iii. This would involve 25 hours of overtime or extra processing time. B = 400 the desired solution. ii. making A = 100. 61 . B = 350 on 475 gallons. Possible Actions: i.

Current Levels 85 175 Attrition 10 30 Optimal Values 90 160 New Hires Required 15 15 Pharmacist s Technician s The payroll cost using the current levels of 85 pharmacists and 175 technicians is 40(85) + 10(175) = $5150 per hour.T. Thus.00000 0.00000 20.00000 Variable P T Value 90. Let P = number of full-time equivalent pharmacists T = number of full-time equivalent physicians The model and the optimal solution are shown below: MIN 40P+10T S.00000 Dual Value 10.00000 30.Quantitative Analysis BA 452 Homework 1 Questions 49.00000 Reduced Cost 0. a.00000 Constraint 1 2 3 Slack/Surplus 0. 1) 2) 3) P+T >=250 2P-T>=0 P>=90 Optimal Objective Value 5200. The total cost is $5200 per hour. the payroll cost will go up by $50 62 .00000 The optimal solution requires 90 full-time equivalent pharmacists and 160 full-time equivalent technicians. b.00000 160. The payroll cost using the optimal solution in part (a) is $5200 per hour.00000 0.00000 0.

2R 0.t. 100M 30M 45M 0.650. this yields the solution M = 65 and R = 261 with a corresponding profit of $45.2 (M + R) M β₯ 0.2R β₯ 0 The optimal solution is M = 65.82) = $45. If this is not the case. 63 . we can approximate the optimal solution by rounding down.2M + 0. If we think of this situation as an on-going continuous production process. the fractional values simply represent partially completed products. Let M = number of Mount Everest Parkas R = number of Rocky Mountain Parkas Max s.45 and R = 261.8M .82.818.0.2 (total production) M β₯ 0.8M + + + 150R 20R 15R 0.2R β€ β€ β₯ 7200 7200 0 Cutting time Sewing time % requirement Tip: Here are steps to formulating the % requirement constraint: M must be at least 20% of total production M β₯ 0.45) + 150(261.Quantitative Analysis BA 452 Homework 1 Questions 50. the value of this solution is z = 100(65.

= .20 N Number sold = Max s.20 (.000 Current Min 10.04 N .25 C Number of new customers that test drive = .200.25 C 4C C.000 New Min 0 Current vs.00 Budget 0 64 . N. β₯ 0 + .20 N ) . New β€ 1.25 C ) + .40 N 6N + .Quantitative Analysis BA 452 Homework 1 Questions 51.03 C + .25 C .t.04N β₯ β₯ β₯ 30. Let C = number sent to current customers N = number sent to new customers Note: Number of current customers that test drive = .03C .12 ( .20 N .

125S S. Let S = number of standard size rackets O = number of oversize size rackets Max s.4O β₯ 0 % standard Time Alloy β€ 4800 β€ 80 65 . O.Quantitative Analysis BA 452 Homework 1 Questions 52. β₯ 0 + + + 15O 0.2O 12O 0.t. 10S 0.8S 10S 0.

N.00000 30. Constraint 1 2 3 Slack/Surplus 0.6R + 0 N β₯ questions. R.00000 Let R = time allocated to regular customer service N = time allocated to new customer service b.00000 Reduced Cost 0. a.2R + N go here.00000 Dual Value 1.12500 0. find your answer.00000 -0.12500 Optimal solution: R = 50. you may want + R N β€ 80 25R + 8N to study the answers to some of the similar β₯ 800 -0. value = 90 HTS should allocate 50 hours to service for regular customers and 30 hours to calling on new customers.00000 0.00000 690.00000 Variable R N Value 50. N = 30. Tos. β₯ 0 Optimal Objective Value 90.Quantitative Analysis BA 452 Homework 1 Questions 53.t. My answer to this homework question will Max 1. 66 .00000 0.

Optimal Objective Value 5450.5 hours on the M-100 and 10 hours on the M-200.50000 10. 160 M1 + M1 M1 40 M1 + M1. Let M1 M2 = number of hours spent on the M-100 machine = number of hours spent on the M-200 machine Total Cost 6(40)M1 + 6(50)M2 + 50M1 + 75M2 = 290M1 + 375M2 Total Revenue 25(18)M1 + 40(18)M2 = 450M1 + 720M2 Profit Contribution (450 .00000 7.50000 0.50000 5.00000 345M2 β€ M2 β€ β₯ M2 β₯ 50 M2 β€ 15 10 5 5 1000 M-100 maximum M-200 maximum M-100 minimum M-200 minimum Raw material available Constraint 1 2 3 4 5 Slack/Surplus 2.00000 Dual Value 0.00000 145.t.00000 0. 67 . M2 β₯ 0 b.00000 0.00000 0.290)M1 + (720 .00000 Reduced Cost 0.Quantitative Analysis BA 452 Homework 1 Questions 54.00000 Variable M1 M2 Value 12.00000 4.00000 The optimal decision is to schedule 12.375)M2 = 160M1 + 345M2 Max s.00000 145. a.

clearly some more product can be made. With unused hours in every department. since the new constraint is satisfied at equality (as well as inequality). Note that the original problem was feasible (it had an optimal solution). No. 56. Krtickβs solution cannot be optimal. Every solution that was feasible is still feasible when we change the constraint to less-than-or-equal-to. we have relaxed the constraint so that the previous solutions are feasible (and possibly more satisfying the constraint as strict inequality). so there are no binding constraints.Quantitative Analysis BA 452 Homework 1 Questions 55. it is not possible that the problem is now infeasible. Every department has unused hours. 68 . Mr. In summary.

To see this. Yes. 3. Constraints 2. and 4 form the feasible region and constraint 1 is redundant. Change constraint 1 to less-than-or-equal-to and the modified problem is infeasible. it is possible that the modified problem is infeasible. consider a redundant greater-than-or-equal to constraint as shown below. Original Problem: Modified Problem: 69 .Quantitative Analysis BA 452 Homework 1 Questions 57.

The objective of the problem is to minimize the number of products needed so that everyoneβs top three choices are included. Second. Then the new constraint makes the problem infeasible. 70 . There are only two possible outcomes relative to the bossβ new constraint. suppose the minimum number of products is <= 15. suppose the minimum number is > 15. It makes no sense to add this constraint. First. then there was no need for the new constraint.Quantitative Analysis BA 452 Homework 1 Questions 58.

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