PROBLEM 15

CHAPTER 3
 15. Refer to the computer solution

to Problem 14 in Figure 3.18.

a. Interpret the ranges of optimality for the objective function

coefficients.

b. Suppose that the manufacturing cost increases to $11.20 per

case for model A. What is the new optimal solution?

c. Suppose that the manufacturing cost increases to $11.20 per

case for model A and the manufacturing cost for model B

decreases to $5 per unit. Would the optimal solution change?

22/08/22 · Week 6 Term 3

a. Interpret the ranges of optimality for the objective function

coefficients.
Where, AM= Number of cases of model A manufactured
BM= Number of model B manufactured
AP= Number of cases of model A purchased
BP= Number of cases of model B purchased

• The range of optimality for the decision variable AM is

no lower limit to 11.75. (10 + 1.75=11.75)

• The range of optimality for the decision variable BM is

3.667 to 9. (6-2.33333=3.66667 to 6+3=9)

• The range of optimality for the decision variable AP is

12.25 to no upper limit. (14-1.75=12.25)

• The range of optimality for the decision variable BP is

6 to 11.333. (9-3=6 to 9+2.33333=11.33333)

 b. Suppose that the manufacturing cost increases to $11.20 per

case for model A. What is the new optimal solution?

In the instance, the manufacturing cost increases to

$11.20 per case for model A. The optimal solution AM=

100; BM= 60; AP= 0; and BP= 90 will not change. But, the

cost per unit will increase the total cost.

S11.20 - $10.00= $1.20 per unit cost

$1.20 × 100= $2,290
c. Suppose that the manufacturing cost increases to $11.20 per

case for model A and the manufacturing cost for model B

decreases to $5 per unit. Would the optimal solution change?

In the instance, the manufacturing cost increases

to $11.20 per case for model A and the
manufacturing cost for model B decreases to $5
per unit. The optimal solution will change as two
simultaneous changes is best-handled by resolving
the problem.