QM ASSIGNMENT-1

Ques 1

Plant

Labor
Needed
(hours)

Raw
Material
(units)

Production
Cost (USD
per unit)

Labor Cost
(USD per
unit)

Total Cost
(USD per
unit)

1
2
3

10
8
7

2
3
3

25
40
50

150
120
105

175
160
155

Let the Number of units produced in Plant 1 = x 1

Let the Number of units produced in Plant 2 = x 2
Let the Number of units produced in Plant 3 = x 3

Objective Function
Minimize -

175 x1 + 160 x2 + 155 x3

Constraints
10 x1 + 8 x2 + 7 x3 =< 1000
2 x1 + 3 x2 + 3 x3 =< 4600
x1 + x2 + x3 >= 700
x1 , x2 , x3 =< 375
x1 , x2 , x3 >= 0

Using Solver

Plant
1
2
3

Objective
Units(Z)
Produced
Labor
0 Raw
325 Material
375 Plant
Capacity1
Plant
Capacity2
Plant
Capacity3
Requiremen
t

110,125
5,225
2,100
0
325
375
700

Variable Cells

Cell
$C$
4
$C$
5
$C$
6

Name

Final

Reduc
ed

Value

Cost

Objectiv
e
Coefficie
nt

Allowa
ble
Increas
e

Allowa
ble
Decrea
se

Units Produced

15

175

1E+30

15

Units Produced

325

160

15

Units Produced

375

155

1E+30

Allowa
ble
Decrea
se

Constraints

Cell
$F$
11
$F$
12
$F$
13
$F$
14
$F$
15
$F$
16

Name
Labor Production Cost
(USD per unit)
Raw Material Production
Cost (USD per unit)
Plant Capacity1
Production Cost (USD per
unit)
Plant Capacity2
Production Cost (USD per
unit)
Plant Capacity3
Production Cost (USD per
unit)
Requirement Production
Cost (USD per unit)

Final

Shado
w

Constrai
nt

Value

Price

R.H. Side

Allowa
ble
Increas
e

5,225

10,000

1E+30

4,775

2,100

4,600

1E+30

2,500

375

1E+30

375

325

375

1E+30

50

375

-5

375

325

50

700

160

700

50

325

1. There would be no change in the optimal solution as $8 is within Allowable

Range and it is a non-basic variable.
2. If the capacity of Plant 3 is increased to 426 the objective would increase
by 255 [(426-375)*5]
3. The company should not buy as it already has excess capacity of raw
material.
4. The total cost of production would not change as P1 is a non-basic variable
and $14 is within allowable limit.
5. The total cost of production would not change as P1 is a non-basic variable
and $15 ((10-9)*15) is within allowable limit.
For last question we have to use solver again as 300 value for plant 2 lies outside
permissible limit.
P1
25

P2
300

P3
375

6. The optimal cost would increase to 11500 as 300 is below allowable lower
limit of 325.

Ques 2

Beer
California Hop (lb/unit)
Florida Hop (lb/unit)
Selling Price
(USD/gallons)
Cost Price
(USD/gallons)
Profit (USD/gallons)

Ale
2
4

1
1

10

5
5

4
2

Let the Gallons of Beer produced = x1

Let the Gallons of Ale Produced = x2

Objective Function
Maximize -

5 x 1 + 2 x2

Constraints
2 x1 + x2 =< 30
4 x1 + x2 =< 50
x1 >= 11
x1 , x2 >= 0

Using Solver

Beer
Number of Gallons
Produced

Ale
11

Objective
(Z)
California
Hop
Florida Hop
Beer
Produced

67
28
50
11

Variable Cells

Cell
$D$
8
$E$
8

Name
Number of Gallons
Produced Beer
Number of Gallons
Produced Ale

Final

Reduc
ed

Value

Cost

Objecti
ve
Coeffici
ent

Allowa
ble
Increas
e

Allowa
ble
Decrea
se

11

1E+30

1E+30

0.75

Final

Shado
w

Value

Price

Constra
int
R.H.
Side

Allowa
ble
Increas
e

Allowa
ble
Decrea
se

Constraints

Cell
$E$
14
$E$
15
$E$
16

Name
California Hop Ale

28

30

1E+30

Florida Hop Ale

50

50

Beer Produced Ale

11

-3

11

1.5

1. Florida Hop ale final value is 50 and if 46lbs of Florida hops are available
then the decrease is within the allowable decrease limit.
Hence, the Final Objective function value = 67-(4 *2) = 59
2. If Florida Ale was sold at 5.5 dollars Objective function value = 64 (670.5*3)
3. If Minimum 12 gallons of beer had to be produced then final objective
function value will not increase as it is within allowable increase limit.
Objective Function Value = 67
4. There would be no change in profit as already the ratio of beer : ale =
11:6
5. The per unit price is $1 and profit would increase by $2 per lb of Florida
hops, so the company should buy it.