COMPUTER SOLUTIONS OF LP PROBLEMS

1. Supersport Footballs Ltd. has the problem of determining the best number of Pro (x1), College (x2) and
High School (X3) models of footballs to produce in order to maximize profits. The profit on each of the
three models is $ 3, $5 and $4 per unit. Constraints include production capacity limitations in each of
three departments (cutting and dyeing – 20000 hours, sewing- 18000 hours and inspection- 9000
hours) as well as a constraint that requires production of at least 1000 Pro footballs. Each Pro football
requires 12 hours of cutting and dyeing time, 15 hours sewing time and 3 hours inspection time. Each
College model football requires 10, 15 and 4 hours in the three departments and each High School
model football requires 8, 4 and 2 hours respectively in the three departments. Formulate the above
as a linear programming problem.
The computer printout of the LINDO solution to the problem is as below:

Objective Function Value

1) 6000
VARIABLE VALUE REDUCED COST
X1 1000.0000 0
X2 0 10.0000
X3 749.9999 0
ROW
2) 2000.0006 0
3) 0 1.0000
4) 4500.0000 0
5) 0 12.0000

Range in which the basis is unchanged

OBJ COEFFICIENT RANGES
VARIABLE CURRENT ALLOWABLE ALLOWABLE
INCREASE DECREASE
X1 12.0000 Infinity
X2 10.0000 Infinity
X3 Infinity 2.6667
RIGHT HAND SIDE RANGES
ROW CURRENT RHS ALLOWABLE ALLOWABLE
INCREASE DECREASE
2 Infinity 2000.0006
3 1000.0003 2999.9998
4 Infinity 4500.0000
5 200.0000 1000.0000

Using the computer supplied information, answer the following:

a) Fill in the blanks.
b) What is the production mix of footballs which will maximize profits?
c) What is the profit associated with this decision?
d) Which production department is causing the restriction of the optimal solution?
e) How much slack time is available in each of the three production departments?
f) Overtime rates in the sewing department are an added cost of $12 per hour. Would you recommend
using overtime in the sewing department. Explain.
g) What is the maximum amount of overtime would you consider adding in the sewing department?
h) What observations and recommendations would you make about the requirement of producing at
least 1000 Pro footballs?
 i) If the profit associated with the College model were reduced to $ 4.50, would you anticipate a change
in the production mix?

2. The following is the solution and sensitivity report of an LP problem obtained by using LINDO:

Objective Function Value

1) 50500
VARIABLE VALUE REDUCED COST
X1 4.5 0
X2 7 0
ROW
2) 0 150
3) 0 175
4) 16.5 0
5) 70 0
6) 6.5 0

Range in which the basis is unchanged

OBJ COEFFICIENT RANGES
VARIABLE CURRENT ALLOWABLE ALLOWABLE
INCREASE DECREASE
X1 5000 3000 2333.3
X2 4000 3500 1500
RIGHT HAND SIDE RANGES
ROW CURRENT RHS ALLOWABLE ALLOWABLE
INCREASE DECREASE
2 150 90 47.1
3 160 73.3 40
4 0 0 16.5
5 135 70 0
6 5 6.5 0

a) Write down the statement of the problem.

b) What is the optimal solution and profit contribution?
c) Suppose 5 more hours of labour are available in Dept. A. What will be the change in the value of the
objective function?
d) Suppose 20 fewer hours are available in dept. B. What will be the change in the value of the objective
function?
e) The shadow price of an inactive constraint always has what value? Which are the inactive constraints?
f) What can you say about the shadow price of an active constraint? Which are the active constraints?
g) Suppose the RHS of the total units constraint is changed to 6. What is the effect on the value of the
objective function?
h) By how much can the total units requirement constraint be tightened before the shadow price will
change?