Esguerra, Nathaniel B.

9-6-2020
SEM-3 LP Exercise 2
Given: Objective Function Max Z = 10A + 8B ($ cost)
s.t. 7/10A + B < 630 (Cutting Time)
1/2A + 5/6B ≤ 600 (Sewing Time)
A + 2/3B ≤ 708 (Polishing Time)
1/10A + 1/4B ≤ 135 (Inspection and Packing Time)
A + B ≥ 150 (Minimum Production)
A, B ≥ 0
Let: A = # of Three piece Ball
B = # of Balata Ball
a. What is the optimal solution including the optimal value of the objective function?

b. How much the unit profit of Balata Ball can go up or down from $8 without changing the
current optimal production quantities?
A- Allowable increase is 1.94 or 2(rounded off) and decrease of 4.4from objective
coefficient of 10.
B- Allowable increase is 6.2857 and decrease of 1.3333from objective coefficient of 8.
From $8 it could go up to $14.2857.
c. What if per unit profit for Three Piece model is 12.25?

d. What if 10 more hours of production time is available in cutting area? Inspection area?
Are there any changes in the shadow Price?
Cutting time-Increase of 10 more hours is acceptable as it is still around allowable
increase. In every increase, shadow price of $2.5 will add up per unit. Inspection time-
Increase of 10 more hours will not be profitable to the company and shadow price is$0.00
as it’s a non-binding constraint.

e. Compute for the shadow prices.

f. What is the Sensitivity Ranges of the RHS of the binding constraints?