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Appendix E Self-Test Solutions and

Answers to Even-Numbered Problems

4. A quantitative approach should be considered because the


problem is large, complex, important, new, and repetitive.

12. a. TC 5 1000 1 30x


b. P 5 40x 2 (1000 1 30x) 5 10x 2 1000
c. Break even when P 5 0
Thus, 10x 2 1000 5 0
10x 5 1000
x 5 100

8. a. Max
s.t.

14. a.
b.
c.
d.

Chapter 1
2. Define the problem; identify the alternatives; determine the
criteria; evaluate the alternatives; choose an alternative.

6. Quicker to formulate, easier to solve, and/or more easily


understood.

b.

c.
d.
e.

10x 1 5y

5x 1 2y # 40
x $ 0, y $ 0
Controllable inputs: x and y
Uncontrollable inputs: profit (10, 5), labor-hours (5, 2),
and labor-hour availability (40)
See Figure 1.8c.
x 5 0, y 5 20; Profit 5 $100 (solution by trial and error)
Deterministic

Total units received 5 x 1 y


Total cost 5 0.20x 1 0.25y
x 1 y 5 5000
x # 4000 Kansas City
y # 3000 Minneapolis
e. Min 0.20x 1 0.25y
s.t.
x1
y 5 5000
x
# 4000
y # 3000
x, y $ 0

10. a.
b.
c.
d.

16. a. Max 6x 1 4y
b. 50x 1 30y # 80,000
50x
# 50,000
30y # 45,000

Chapter 2
1. Parts (a), (b), and (e) are acceptable linear programming
relationships.
Part (c) is not acceptable because of -2x 22 .
Part (d) is not acceptable because of 3x1.
Part (f) is not acceptable because of 1x1x2.
Parts (c), (d), and (f) could not be found in a linear programming model because they contain nonlinear terms.
2. a.

Labor-hours:

(0, 8)

4
(4, 0)

$10/unit for x
$5/unit for y

Profit:

5/unit for x
2/unit for y

40 labor-hour capacity

b.

Uncontrollable Inputs

Controllable
Input

B
8

FIGURE 1.8c SOLUTION

Production quantities
x and y

4706
Loss of $12,000
$23
$11,800 profit

Max 10x + 5y
s.t.
5x + 2y 40
x
0
y0
Mathematical
Model

B
8

Projected profit and


check on production
time constraint

Output

Appendix E

c.

Points on
line are only
feasible points

6.

Equation (1) times 5:


5A 1 10B 5 30 (3)
Equation (2) minus equation (3):
2 7B 5 215
B 5 15y7
From equation (1):
A 5 6 2 2(15y7)
5 6 2 30y7 5 12y7

B
8

12. a. A 5 3, B 5 1.5; value of optimal solution 5 13.5


b. A 5 0, B 5 3; value of optimal solution 5 18
c. Four: (0, 0), (4, 0), (3, 1.5), and (0.3)

13. a.

7A 1 10B 5 420
6A 1 4B 5 420
24A 1 7B 5 420

B
8

100
80
60
(c)

40

100 80 60 40 20

(a)
0

40

Feasible region
consists of this
line segment only

(b)

20

7.

821

Self-Test Solutions and Answers to Even-Numbered Problems

50

60

80

100

b. The extreme points are (5, 1) and (2, 4).


c. B

100

Optimal solution
A = 2, B = 4

50

4
0

50

100

150

200

250

A+

10. B

2B

=1

6
5

Value of Objective Function =


2(12/7) + 3(15/7) = 69/7

A+

1
0

2B

=6
5

5A

+3
B=
15

A 1 2B 5
5A 1 3B 5

14. a. Let F 5 number of tons of fuel additive


S 5 number of tons of solvent base
Max 40F 1 30S
s.t.
F 1 S # 20 Material 1
S # 5 Material 2
F 1 S # 21 Material 3
F, S $ 0
b. F 5 25, S 5 20
c. Material 2:4 tons are used; 1 ton is unused.
d. No redundant constraints

Optimal solution
A = 12/7, B = 15/7

6 (1)
15 (2)

16. a. 3S 1 9D
b. (0, 540)
c. 90, 150, 348, 0

822

Appendix E

Self-Test Solutions and Answers to Even-Numbered Problems

17. Max 5A 1 2B 1 0s1 1 0s2 1 0s3


s.t.
1A 2 2B 1 1s1
5 420
2A 1 3B 2
1 1s2
5 610
6A 2 1B 1
1 1s3 5 125
A, B, s1, s2, s3 $ 0

e.
Department

Cutting and sewing


Finishing
Packaging and shipping

18. b. A 5 18y7, B 5 15y7


c. 0, 0, 4y7

26. a. Max
s.t.

20. b. A 5 3.43, B 5 3.43


c. 2.86, 0, 1.43, 0

1
2
3
4
5

Usage

900
300
100

725
300
100

Slack

175 hours
0 hours
0 hours

50N 1 80R

R 5 1000
$ 250
R $ 250
N 2 2R $
0
N, R $ 0
b. N 5 666.67, R 5 333.33; Audience exposure 5 60,000
N1
N

22. b.
Extreme Point

Capacity

Coordinates

Profit ($)

(0, 0)
(1700, 0)
(1400, 600)
(800, 1200)
(0, 1680)

0
8500
9400
8800
6720

28. a. Max
s.t.

Extreme point 3 generates the highest profit.


c. A 5 1400, C 5 600
d. Cutting and dyeing constraint and the packaging
constraint
e. A 5 800, C 5 1200; profit 5 $9200
24. a. Let R 5 number of units of regular model
C 5 number of units of catchers model
Max 5R 1 8C
1R 1 C # 900 Cutting and sewing
R 1 C # 300 Finishing
R 1 C # 100 Packaging and shipping
R, C $ 0
b.
C
900

1W 1 1.25M

5W 1
7M # 4480
3W 1
1M # 2080
2W 1
2M # 1600
W, M $ 0

b. W 5 560, M 5 240; Profit 5 860

30. a. Max
s.t.

15E 1 18C

40E 1 25C # 50,000


40E
$ 15,000
25C $ 10,000
25C # 25,000
E, C $ 0

c. (375, 400); (1000, 400); (625, 1000); (375, 1000)


d. E 5 625, C 5 1000
Total return 5 $27,375
31.

800
Catchers model

700
600

C&

500
400

P&

300
200

S
S

Optimal solution
R = 500, C = 150

100
0

100 200 300 400 500 600 700 800 900


Regular model

c. 5(500) 1 8(150) 5 $3700


d. C & S
1(500) 1 (150) 5 725
(500) 1 (150) 5 300
F
(500) 1 (150) 5 100
P&S

Feasible
region

4
2
2

Optimal solution
A = 3, B = 1

Objective function value 5 13

8
3A + 4B = 13

Appendix E

32.

42.

Extreme
Points

(250, 100)
(125, 225)
(125, 350)

34. a.

Objective
Function
Value
800
925
1300

Surplus
Demand
125

Surplus
Total
Production

125

Satisfies constraint #2

10

Slack
Processing
Time

125

8
Infeasibility

6
4

Satisfies constraint #1

Feasible
region

(21/4, 9/4)

43.

(4, 1)
0

823

Self-Test Solutions and Answers to Even-Numbered Problems

35. a. Min 6A 1 4B 1 0s1 1 0s2 1 0s3


s.t.
2A 1 1B 2 s1
5 12
1A 1 1B
2 s2
5 10
1B
1 s3 5 4
A, B, s1, s2, s3 $ 0
b. The optimal solution is A 5 6, B 5 4.
c. s1 5 4, s2 5 0, s3 5 0
36. a. Min 10,000T 1 8,000P
s.t.
T
$ 8
P $ 10
T1
P $ 25
3T 1
2P # 84
c. (15, 10); (21.33, 10); (8, 30); (8, 17)
d. T 5 8, P 5 17
Total cost 5 $216,000
38. a. Min 7.50S 1 9.00P
s.t.
0.10S 1 0.30P $ 6
0.06S 1 0.12P # 3
S1
P 5 30
S, P $ 0
c. Optional solution is S 5 15, P 5 15.
d. No
e. Yes

10

Unbounded
Feasible
region

b. The two extreme points are


(A 5 4, B 5 1) and (A 5 21/4, B 5 9/4)
c. The optimal solution (see part (a)) is A 5 4, B 5 1.

40. P1 5 30, P2 5 25; Cost 5 $55

2
1
0

44. a. A 5 , B 5 ; Value of optimal solution 5


b. A 5 0, B 5 3; Value of optimal solution 5 6
46. a. 180, 20
b. Alternative optimal solutions
c. 120, 80
48. No feasible solution

50. M 5 65.45, R 5 261.82; Profit 5 $45,818


52. S 5 384, O 5 80
54. a. Max
s.t.

160M1 1 345M2
# 15
M2 # 10
M1
$
5
M2 $
5
40M1 1 50M2 # 1000
M1, M2 $ 0
M1

b. M1 5 12.5, M2 5 10

56. No, this could not make the problem infeasible. Changing
an equality constraint to an inequality constraint can only
make the feasible region larger, not smaller. No solutions
have been eliminated and anything that was feasible before is still feasible.

58. The statement by the boss shows a fundamental misunderstanding of optimization models. If there were an optimal
solution with 15 or less products, the model would find it,

824

Appendix E

Self-Test Solutions and Answers to Even-Numbered Problems

because it is trying to minimize. If there is no solution with


15 or less, adding this constraint will make the model
infeasible.

Chapter 3
1. a.

10

A = 4, B = 6

6. a. 4 to 12
3.33 to 10
b. As long as the profit contribution for the regular glove
is between $4.00 and $12.00, the current solution is optimal; as long as the profit contribution for the catchers
mitt stays between $3.33 and $10.00, the current solution is optimal; the optimal solution is not sensitive to
small changes in the profit contributions for the gloves.
c. The dual values for the resources are applicable over
the following ranges:

)+

7
3(

3
2(
)=

27

Optimal Solution
A = 7, B = 3

4
2

10

b. The same extreme point, A 5 7 and B 5 3, remains optimal; value of the objective function becomes 5(7) 1
2(3) 5 41.
c. A new extreme point, A 5 4 and B 5 6, becomes optimal; value of the objective function becomes 3(4) 1
4(6) 5 36.
d. The objective coefficient range for variable A is 2 to 6; the
optimal solution, A 5 7 and B 5 3, does not change.
The objective coefficient range for variable B is 1 to 3;
re-solve the problem to find the new optimal solution.

2. a. The feasible region becomes larger with the new


optimal solution of A 5 6.5 and B 5 4.5.
b. Value of the optimal solution to the revised problem is
3(6.5) 1 2(4.5) 5 28.5; the one-unit increase in the
right-hand side of constraint 1 improves the value of
the optimal solution by 28.5 2 27 5 1.5; therefore, the
dual value for constraint 1 is 1.5.
c. The right-hand-side range for constraint 1 is 8 to 11.2;
as long as the right-hand side stays within this range,
the dual value of 1.5 is applicable.
d. The improvement in the value of the optimal solution
will be 0.5 for every unit increase in the right-hand side
of constraint 2 as long as the right-hand side is between
18 and 30.
4. a.
b.
c.
d.

X 5 2.5, Y 5 2.5
22
5 to 11
23 between 9 and 18

c. Cutting and sewing 5 0


Finishing 5 3
Packaging and shipping 5 28
Additional finishing time is worth $3 per unit, and additional packaging and shipping time is worth $28 per
unit.
d. In the packaging and shipping department, each additional hour is worth $28.

5. a. Regular glove 5 500; Catchers mitt 5 150;


Value 5 3700
b. The finishing, packaging, and shipping constraints are
binding; there is no slack.

Right-HandSide Range

Constraint

Cutting and sewing


Finishing
Packaging and shipping

725 to No upper limit


133.33 to 400
75 to 135

d. Amount of increase 5 (28)(20) 5 $560

8. a. More than $7.00


b. More than $3.50
c. None

10. a. S 5 4000, M 5 10,000; Total risk 5 62,000


b.
Variable
S
M
c.
d.
e.
f.

Objective Coefficient Range


3.75 to No upper limit
No lower limit to 6.4

5(4000) 1 4(10,000) 5 $60,000


60,000/1,200,000 5 0.05 or 5%
0.057 risk units
0.057(100) 5 5.7%

12. a. E 5 80, S 5 120, D 5 0


Profit 5 $16,440
b. Fan motors and cooling coils
c. Labor hours; 320 hours available
d. Objective function coefficient range of optimality
No lower limit to 159
Because $150 is in this range, the optimal solution
would not change.
13. a. Range of optimality
E 47.5 to 75
S 87 to 126
D No lower limit to 159

Appendix E

b.
Model Profit
E
S
D

Change

Allowable
Increase/Decrease

$ 63 Increase $6(100)
$75 2 $63 5 $12
$ 95 Decrease $2
$95 2 $87 5 $8
$135 Increase $4
$159 2 $135 5 $24

(100) 5 50
(100) 5 25
(100) 5 17

92

Because changes are 92% of allowable changes, the


optimal solution of E 5 80, S 5 120, D 5 0 will not
change.
The change in total profit will be
E 80 units @ 1$6 5 $480
S 120 units @ 2$2 5 2240
$240

[ Profit 5 $16,440 1 $240 5 $16,680

c. Range of feasibility
Constraint 1 160 to 280
Constraint 2 200 to 400
Constraint 3 2080 to No upper limit
d. Yes, Fan motors 5 200 1 100 5 300 is outside the
range of feasibility; the dual value will change.

14. a. Manufacture 100 cases of A and 60 cases of B, and purchase 90 cases of B; Total cost 5 $2170
b. Demand for A, demand for B, assembly time
c. 212.25, 29.0, 0, 0.375
d. Assembly time constraint

16. a. 100 suits, 150 sport coats


Profit 5 $40,900
40 hours of cutting overtime
b. Optimal solution will not change.
c. Consider ordering additional material $34.50 is the
maximum price.
d. Profit will improve by $875.
18. a. The linear programming model is as follows:
Min 30AN 1 50AO 1 25BN 1 40BO
s.t.
AN 1 AO
$ 50,000
BN 1 BO $ 70,000
AN
1 BN
# 80,000
AO
1 BO # 60,000
AN, AO, BN, BO $ 0
b. Optimal solution
Model A
Model B

825

Self-Test Solutions and Answers to Even-Numbered Problems

New Line
50,000
30,000

Total cost: $3,850,000

c. The first three constraints are binding.

Old Line
0
40,000

d. Because the dual value is negative, increasing the righthand side of constraint 3 will decrease (improve) the
solution; thus, an increase in capacity for the new production line is desirable.
e. Because constraint 4 is not a binding constraint, any
increase in the production line capacity of the old production line will have no effect on the optimal solution;
thus, increasing the capacity of the old production line
results in no benefit.
f. The reduced cost for model A made on the old production line is 5; thus, the cost would have to decrease by
at least $5 before any units of model A would be produced on the old production line.
g. The right-hand-side range for constraint 2 shows a
lower limit of 30,000; thus, if the minimum production
requirement is reduced 10,000 units to 60,000, the dual
value of 40 is applicable; thus, total cost would decrease by 10,000(40) 5 $400,000.

20. a. Max
s.t.

0.07H 1 0.12P 1 0.09A

H1
P1
A 5 1,000,000
0.6H 2 0.4P 2 0.4A $ 0
P 2 0.6A # 0
H, P, A $ 0

b. H 5 $400,000, P 5 $225,000, A 5 $375,000


Total annual return 5 $88,750
Annual percentage return 5 8.875%
c. No change
d. Increase of $890
e. Increase of $312.50, or 0.031%

22. a. Min
s.t.

30L 1

25D 1

18S

L1
D1
S 5 100
0.6L 2 0.4D
$ 0
20.15L 2 0.15D 1 0.85S $ 0
20.25L 2 0.25D 1
S# 0
L
# 50
L, D, S $ 0
b. L 5 48, D 5 72, S 5 30
Total cost 5 $3780
c. No change
d. No change

24. a. 333.3, 0, 833.3; Risk 5 14,666.7; Return 5 18,000


or 9%
b. 1000, 0, 0, 2500; Risk 5 18,000; Return 5 22,000
or 11%
c. $4000

26. a. Let M1 5 units of component 1 manufactured


M2 5 units of component 2 manufactured
M3 5 units of component 3 manufactured
P1 5 units of component 1 purchased
P2 5 units of component 2 purchased
P3 5 units of component 3 purchased

826

Appendix E

Self-Test Solutions and Answers to Even-Numbered Problems

b. The optimal solution is as follows:

Min 4.50M1 1 5.00M2 1 2.75M3 1 6.50P1 1 8.80P2 1 7.00P3


s.t.
# 21,600 Production
2M1 1 3M2 1 4M3
# 15,000 Assembly
1M1 1 1.5M2 1 3M3
# 18,000 Testing & Packaging
1.5M1 1 2M2 1 5M3
1 1P1
5 6,000 Component 1
1M1
1 1P2
5 4,000 Component 2
1M2
1 1P3 5 3,500 Component 3
1M3
M1, M2, M3, P1, P2, P3 $ 0

Manufacture
Purchase

Component Component Component


1
2
3
2000
4000

Total cost 5 $73,550

4000

1400
2100

c. Production: $54.36 per hour


Testing & Packaging: $7.50 per hour
d. Dual values 5 $7.969; so it will cost Benson $7.969 to
add a unit of component 2.
28. b. G 5 120,000; S 5 30,000; M 5 150,000
c. 0.15 to 0.60; No lower limit to 0.122; 0.02 to 0.20
d. 4668
e. G 5 48,000; S 5 192,000; M 5 60,000
f. The clients risk index and the amount of funds available
30. a. L 5 3, N 5 7, W 5 5, S 5 5
b. Each additional minute of broadcast time increases
cost by $100.
c. If local coverage is increased by 1 minute, total cost
will increase by $100.
d. If the time devoted to local and national news is increased by 1 minute, total cost will increase by $100.
e. Increasing the sports by 1 minute will have no effect
because the dual value is 0.
32. a. Let P1 5 number of PT-100 battery packs produced at
the Philippines plant
P2 5 number of PT-200 battery packs produced at
the Philippines plant
P3 5 number of PT-300 battery packs produced at
the Philippines plant
M1 5 number of PT-100 battery packs produced at
the Mexico plant
M2 5 number of PT-200 battery packs produced at
the Mexico plant
M3 5 number of PT-300 battery packs produced at
the Mexico plant
Min 1.13P1 1 1.16P2 1 1.52P3 1 1.08M1 1 1.16M2 1 1.25M3
s.t.
M1
5 200,000
P1 1
M2
5 100,000
P2 1
M3 5 150,000
P3 1
P2
# 175,000
P1 1
M2
# 160,000
M1 1
# 75,000
P3
M3 # 100,000
P1, P2, P3, M1, M2, M3 $ 0

40,000
100,000
50,000

Mexico

160,000
0
100,000

Total production and transportation cost is $535,000.


c. The range of optimality for the objective function coefficient for P1 shows a lower limit of $1.08; thus, the
production and/or shipping cost would have to decrease by at least 5 cents per unit.
d. The range of optimality for the objective function coefficient for M1 shows a lower limit of $1.11; thus, the
production and/or shipping cost would have to decrease by at least 5 cents per unit.

b.

Source

Philippines

PT-100
PT-200
PT-300

Chapter 4
1. a. Let T 5 number of television advertisements
R 5 number of radio advertisements
N 5 number of newspaper advertisements

Max
s.t.

100,000T 1 18,000R 1 40,000N


2000T 1
T

300R 1
R

20.5T 1
0.5R 2
0.9T 2
0.1R 2
T, R, N $ 0

Solution:

T54
R 5 14
N 5 10

600N # 18,200
#
10
#
20
N#
10
0.5N #
0
0.1N $
0

Budget
Max TV
Max radio
Max news
Max 50% radio
Min 10% TV

Budget $
$ 8000
4200
6000

$18,200
Audience 5 1,052,000
b. The dual value for the budget constraint is 51.30, meaning a $100 increase in the budget should provide an
increase in audience coverage of approximately 5130;
the right-hand-side range for the budget constraint will
show that this interpretation is correct.

2. a. x1 5 77.89, x2 5 63.16, $3284.21


b. Department A $15.79; Department B $47.37
c. x1 5 87.21, x2 5 65.12, $3341.34
Department A 10 hours; Department B 3.2 hours
4. a.
b.
c.
d.

x1 5 500, x2 5 300, x3 5 200, $550


$0.55
Aroma, 75; Taste 84.4
2$0.60

6. 50 units of product 1; 0 units of product 2; 300 hours department A; 600 hours department B

Appendix E

Self-Test Solutions and Answers to Even-Numbered Problems

8. Schedule 19 officers as follows:


3 begin at 8:00 A.M.; 3 begin at noon; 7 begin at 4:00 P.M.;
4 begin at midnight, 2 begin at 4:00 A.M.

9. a. Decision variables A, P, M, H, and G represent the


fraction or proportion of the total investment in each
alternative.
Max
s.t.

0.073A 1 0.103P 1 0.064M 1 0.075H 1 0.045G


A1
0.5A 1
20.5A 2

P1
M1
H1
0.5P 2 0.5M 2 0.5H
0.5P 1 0.5M 1 0.5H
2 0.25M 2 0.25H 1
20.6A 1 0.4P
A, P, M, H, G $ 0

G51
#0
#0
G$0
#0

Objective function 5 0.079; A 5 0.178; P 5 0.267;


M 5 0.000; H 5 0.444; G 5 0.111
b. Multiplying A, P, M, H, and G by the $100,000 invested provides the following:
Atlantic Oil
Pacific Oil
Huber Steel
Government bonds

$ 17,800
26,700
44,400
11,100

$100,000

c. 0.079($100,000) 5 $7900
d. The marginal rate of return is 0.079.
10. a. 40.9%, 14.5%, 14.5%, 30.0%
Annual return 5 5.4%
b. 0.0%, 36.0%, 36.0%, 28.0%
Annual return 5 2.52%
c. 75.0%, 0.0%, 15.0%, 10.0%
Annual return 5 8.2%
d. Yes

Buy
80,000
0
0
25,000

Sell

0
0
100,000
0

Production
4000
3000
2000
1900

Min 0.10x11 1 0.10x12 1 0.15x21 1 0.15x22


s.t.

Each gallon of regular must have at least 40% A.

x11 1 x21 5 amount of regular produced


0.4(x11 1 x21) 5 amount of A required for regular
0.2x11 1 0.50x21 5 amount of A in (x11 1 x21) gallons of regular gas
0.2x11 1 0.50x21 $ 0.4x11 1 0.40x21
20.2x11 1 0.10x21 $ 0

Each gallon of high octane can have at most 50% B.

x12 1 x22 5 amount high octane


0.5(x12 1 x22) 5 amount of B required for high octane
0.60x12 1 0.30x22 5 amount of B in (x12 1 x22) gallons of high octane
0.60x12 1 0.30x22 # 0.5x12 1 0.5x22
0.1x12 2 0.2x22 # 0
x11 1 x21 $ 800,000
x12 1 x22 $ 500,000
x11, x12, x21, x22 $ 0

Optimal solution: x11 5 266,667, x12 5 333,333, x21 5 533,333,


x22 5 166,667
Cost 5 $165,000

16. xi 5 number of 10-inch rolls processed by cutting


alternative i
a. x1 5 0, x2 5 125, x3 5 500, x4 5 1500, x5 5 0, x6 5 0,
x7 5 0; 2125 rolls with waste of 750 inches
b. 2500 rolls with no waste; however, 1-inch size is
overproduced by 3000 units

19. a. Let x11 5 amount of mens model in month 1

Store
100,000
100,000
0
25,000

14. b.

Quarter
1
2
3
4

15. Let x11 5 gallons of crude 1 used to produce regular


x12 5 gallons of crude 1 used to produce high octane
x21 5 gallons of crude 2 used to produce regular
x22 5 gallons of crude 2 used to produce high octane

18. a. 5 Super, 2 Regular, and 3 Econo-Tankers


Total cost $583,000; monthly operating cost $4650

12.

Week
1
2
3
4

827

Ending
Inventory
2100
1100
100
500

x21 5 amount of womens model in month 1


x12 5 amount of mens model in month 2
x22 5 amount of womens model in month 2
s11 5 inventory of mens model at end of month 1
s21 5 inventory of womens model at end of month 1
s12 5 inventory of mens model at end of month 2
s22 5 inventory of womens model at end of month 2

Min 120x11 1 90x21 1 120x12 1 90x22 1 2.4s11 1 1.8s21 1 2.4s12 1 1.8s22


s.t.
5 130
x11 2 s11
5 95
x 21 2 s21
Satisfy demand
s11 1 x12 2 s12 5 200
s21 1 x22 2 s22 5 150
s12 $ 25
V Ending inventory requirement
s22 $ 25
Labor-hours: Mens 2.0 1 1.5 5 3.5
Womens 1.6 1 1.0 5 2.6
$ 900
3.5x11 1 2.6x21
# 1100
3.5x11 1 2.6x21
Labor smoothing
3.5x11 1 2.6x21 2 3.5x12 2 2.6x22 # 100
23.5x11 2 2.6x21 1 3.5x12 1 2.6x22 # 100
x11, x12, x21, x22, s11, s12, s21, s22 $ 0

828

Appendix E

Self-Test Solutions and Answers to Even-Numbered Problems

Solution: x11 5 193; x21 5 95; x12 5 162; x22 5 175


Total cost 5 $67,156
Inventory levels: s11 5 63; s12 5 25; s21 5 0; s22 5 25
Labor levels: Previous
1000 hours
Month 1
922.25 hours
Month 2 1022.25 hours
b. To accommodate the new policy, the right-hand sides
of the four labor-smoothing constraints must be
changed to 950, 1050, 50, and 50, respectively; the new
total cost is $67,175.

20. Produce 10,250 units in March, 10,250 units in April, and


12,000 units in May.
22. b. 5, 515, 887 sq. in. of waste
Machine 3: 492 minutes

24. Investment strategy: 45.8% of A and 100% of B


Objective function 5 $4340.40
Savings/Loan schedule

Period
1
2
3
4
Savings
242.11

341.04
Funds from loan

200.00 127.58

Chapter 5
2. b. E 5 0.924
wa 5 0.074
wc 5 0.436
we 5 0.489
c. D is relatively inefficient.
Composite requires 92.4 of Ds resources.
d. 34.37 patient days (65 or older)
41.99 patient days (under 65)
e. Hospitals A, C, and E
4. b. E 5 0.960
wb 5 0.074
wc 5 0.000
wj 5 0.436
wn 5 0.489
ws 5 0.000
c. Yes; E 5 0.960
d. More: $220 profit per week
Less: Hours of Operation 4.4 hours
FTE Staff 2.6
Supply Expense $185.61
d. Bardstown, Jeffersonville, and New Albany
6. a. 19, 18, 12, 18

b. PCQ
PCY
NCQ
NCY
CMQ
COQ
c. PCQ
PCY
NCQ
NCY
CMQ
COQ

58
54
56
54
5 37
5 11
58
54
56
54
53
57

PMQ
PMY
NMQ
NMY
CMY
COY
PMQ
PMY
NMQ
NMY
CMY
COY

5
5
5
5
5
5
5
5
5
5
5
5

0
1
23
2
2
3
1
1
3
2
2
3

POQ
POY
NOQ
NOY

5 27
52
52
51

POQ
POY
NOQ
NOY

53
52
52
51

8. b. 65.7% small-cap growth fund


34.3% of the portfolio in a small-cap value
Expected return 5 18.5%
c. 10% foreign stock
50.8% small-cap growth fund
39.2% of the portfolio in a small-cap value
Expected return 5 17.178%
10.
Player B

Player A

a1
a2

Maximum

b1

b2

b3

Minimum

10

j
5

j
5

Maximum

Minimum
The game has a pure strategy: Player A strategy a1; Player B
strategy b2; and value of game 5 5.

12. 2.5, 2.5, 1.5


Strategy a1 or a2
Expected payoff 5 2.5

14. Pure strategies a4 and b3


Value 5 10

15. a. The maximum of the row minimums is not equal to the


minimum of the column maximums, so a mixed strategy exists.
Linear program for Player A:
Max
GAINA
s.t.
Player B strategy
5PA2 1 2PA3 GAINA $ 0
(red chip)
2PA1 1 4PA2 1 3PA3 GAINA $ 0 (white chip)
2PA1 3PA2 4PA3 GAINA $ 0 (blue chip)
PA1 1 PA2 1 PA3
51
PA1, PA2, PA3 $ 0
Player A: P(red) 5 0.7, P(white) 5 0.3, P(blue) 5 0.0
From dual values:
Player B: P(red) 5 0.0, P(white) 5 0.5, P(blue) 5 0.5
b. The value of the game is a 50-cent expected gain for
Player A.
c. Player A

Appendix E

16. Company A: 0.0, 0.0, 0.8, 0.2


Company B: 0.4, 0.6, 0.0, 0.0
Expected gain for A 5 2.8

6. The network model, the linear programming formulation,


and the optimal solution are shown. Note that the third
constraint corresponds to the dummy origin; the variables
x31, x32, x33, and x34 are the amounts shipped out of the
dummy origin and do not appear in the objective function
because they are given a coefficient of zero.

Chapter 6
1.

5000

2
6
6

829

Self-Test Solutions and Answers to Even-Numbered Problems

1400

3200

2000

5000

CS

2000

D2

5000

D3

3000

D4

2000

32
34

D1

x11 5 amount shipped from Jefferson City to Des


Moines
x12 5 amount shipped from Jefferson City to
Kansas City

x23 5 amount shipped from Omaha to St. Louis

Min 14x11 1 9x12 1 7x13 1 8x21 1 10x22 1 5x23


s.t.
x11 1 x12 1 x13
# 30
x21 1 x22 1 x23 # 20
x11
1 x21
5 25
x12
1 x22
5 15
x13
1 x23 5 10
x11, x12, x13, x21, x22, x23 $ 0

b.
Optimal Solution

Jefferson CityDes Moines


Jefferson CityKansas City
Jefferson CitySt. Louis
OmahaDes Moines

4. b. SeattleDenver

c.

4000
ColumbusMobile
4000
New YorkMobile
1000
New YorkWashington 3000
Cost 5 $150,000
SeattleDenver
4000
ColumbusMobile
5000
New YorkLos Angeles 1000
Cost actually decreases by $9000

Amount
5
15
10
20

Total

Cost
70
135
70
160

435

SeattleLos Angeles
5000
New YorkPittsburgh
3000
New YorkLos Angeles 1000
SeattleLos Angeles
5000
New YorkPittsburgh 4000
New YorkWashington 3000

2. a. Let

3000

1400

34
30
28
38

40

32

3000 NO

2
5
7

4000

Dummy
origin

Max 32x11 1 34x12 1 32x13 1 40x14 1 34x21 1 30x22 1 28x23 1 38x24


s.t.
# 5000
x11 1 x12 1 x13 1 x14
# 3000
x21 1 x22 1 x23 1 x24
# 4000
x31 1 x32 1 x33 1 x34
1 x21
1 x31
5 2000
x11
1 x22
1 x32
5 5000
x12
1 x23
1 x33
5 3000
x13
1 x24
1 x34 5 2000
x14
for all i, j
xij $ 0

Optimal Solution

Clifton Springs-D2
Clifton Springs-D4
Danville-D1
Danville-D4

Units
4,000
1,000
2,000
1,000

Cost

Total

$136,000
40,000
68,000
38,000

$282,000

Customer 2 demand has a shortfall of 1000; customer 3


demand of 3000 is not satisfied.
8. 1A 300; 1C 1200; 2A 1200; 3A 500; 3B 500

830

10
16

Self-Test Solutions and Answers to Even-Numbered Problems

C2

b. Optimal solution:

Supplier 1Division 2
Supplier 2Division 5
Supplier 3Division 3
Supplier 5Division 1
Supplier 6Division 4

32

C1

14

22

40

24

34

C3

450

$3169

600

Solution x12 5 1, x21 5 1, x33 5 1; total completion


time 5 64
Green:
Brown:
Red:
Blue:
White:

Job 1
Job 2
Job 3
Job 4
Job 5

Total Cost

$ 26
34
38
39
25

$162

12. a. Plano: Kansas City and Dallas


Flagstaff: Los Angeles
Springfield: Chicago, Columbus, and Atlanta
Boulder: Newark and Denver
Cost 5 $216,000
b. Nashville
c. Columbus is switched from Springfield to Nashville.
Cost 5 $227,000
14. A to MS, B to Ph.D., C to MBA, D to undergrad
Maximum total rating 5 13.3

P1

P2

380

6
4
8

W1

W2

P3

C1

300

C2

300

C3

300

C4

400

b.

Min 10x12 1 16x12 1 32x13 1 14x21 1 22x22 1 40x23 1 22x31 1 24x32 1 34x33
s.t.
#1
x11 1 x12 1 x13
#1
x21 1 x22 1 x23
x31 1 x32 1 x33 # 1
1 x21
1 x31
51
x11
1 x22
1 x32
51
x12
1 x23
1 x33 5 1
x13
xij $ 0 for all i, j

10. b.

Total

$ 603
648
775
590
553

17. a.

22

9. a.

Appendix E

6
7
7

b.
Min 4x1417x1518x2415x2515x3416x3516x4614x4718x4814x4913x5616x5717x5817x59
s.t.
# 450
x141 x15
# 600
x241 x25
# 380
x341 x35
2 x24
2 x34
1 x461 x471 x481 x49
5 0
2x14
2 x25
2 x35
1 x561 x571 x581 x595 0
2 x15
1 x56
5 300
x46
1 x57
5 300
x47
1 x58
5 300
x48
1 x59 5 400
x49

c.
Warehouse
Plant

1
2
3

450

250

600

Total cost 5 $11,850


Customer

16. a.
Supplier
Division
1
2
3
4
5

1
614
603
865
532
720

2
660
639
830
553
648

3
534
702
775
511
684

4
680
693
850
581
693

Warehouse
5
590
693
900
595
657

6
630
630
930
553
747

1
2

300

300

300

400

18. c. x14 5 320, x25 5 600, x47 5 300, x49 5 20, x56 5 300,
x58 5 300, x39 5 380
Cost 5 $11,220

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