Qtim Assignment2

VISVESVARAYA NATIONAL INSTITUTE OF
TECHNOLOGY
ASSIGNMENT – 02
NAME – KASHISH WANJARI
ID NO. – 30096
ENROLLMENT NO. – MT23PIE002
SUBJECT – QTIM
PROFESSOR – DR. Y. M. PURI
TOPIC- SENSITIVITY
Q-1 An Ice-cream Co., supplies its ice cream parlors with three flavors of ice cream:
chocolate, vanilla, and banana. Because of extremely hot weather and a high demand for
its products, the company has run short of its supply of ingredients: milk, sugar, and
cream. Hence, they will not be able to fill all the orders received from their retail outlets,
the ice cream parlors. Owing to these circumstances, the company has decided to choose
the amount of each flavor to produce that will maximize total profit, given the constraints
on supply of the basic ingredients. The chocolate, vanilla, and banana flavors generate,
respectively, Rs 1.00, 0.90, and 0.95 of profit per ltr sold. The company has only 200 ltrs
of milk, 150 kg of sugar, and 60 ltrs of cream left in its inventory. The linear
programming formulation for this problem is shown below in algebraic form.
Let:
C = Ltrs of chocolate ice cream produced,
V = Ltrs of vanilla ice cream produced,
B = Ltrs of banana ice cream produced.
Maximize profit Z = 1.00 C + 0.90 V + 0.95 B,
subject to
Milk: 0.45 C + 0.50 V + 0.40 B ≤ 200 Ltrs
Sugar: 0.50 C + 0.40 V + 0.40 B ≤ 150 Kgs
Cream: 0.10 C + 0.15 V + 0.20 B ≤ 60 Ltrs
and
C,V,B≥0
Solved this problem using the Excel Solver, and cerate the sensitivity report to answer the
following questions as specifically and completely as is possible without solving the problem
again on the Excel Solver. Explain how you were able to deduce each answer.
Note: Each part is independent (i.e., any change made to the model in one part does not
apply to any other parts).
(a) What is the optimal solution and total profit?
(b) Suppose the profit per ltr of banana changes to Rs. 1.00. Will the optimal solution change,
and what can be said about the effect on total profit?
(c) Suppose the profit per ltr of banana changes to 92 paise. Will the optimal solution change,
and what can be said about the effect on total profit?
(d) Suppose the company discovers that 3 ltrs. of cream have gone sour and so must be
thrown out. Will the optimal solution change, and what can be said about the effect on total
profit?
(e) Suppose the company has the opportunity to buy an additional 15 kgs of sugar at a total
cost of Rs. 15. Should they? Explain.
Solution
A) The optimal solution is to produce no chocolate ice cream, 300 Ltrs of vanilla ice cream, and
75 Ltrs of banana ice cream. Total profit will be 341.25
B) The optimal solution will change since Rs.1.00 is outside the allowable range of Rs. (0.95-
0.05) to Rs. (0.95 + 0.021429). The profit will go up.
C) The optimal solution will not change since Rs 0.92 is within the allowable range. The total
profit will decrease by (75) Rs0.03 = Rs2.25 to Rs339.
D) The optimal solution will change. Since the change is within the allowable range (the
allowable decrease is 3.75), we can calculate the change in profit using the shadow price (1*3
= 3). The new profit will be Rs338.25
E) This increase is outside of the allowable increase of 10, so the problem will have be re-solved
to determine whether this is worthwhile.
Sensitivity report-
Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$4 Unit profit Chocolate 0 -0.0375 1 0.0375 1E+30
$D$4 Unit profit vanila 300 0 0.9 0.05 0.0125
$E$4 Unit profit banana 75 0 0.95 0.021428571 0.05
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$F$6 Milk Utilized 180 0 200 1E+30 20
$F$7 Sugar Utilized 150 1.875 150 10 30
$F$8 Cream Utilized 60 1 60 15 3.75
Solution:
Answer Report:
Objective Cell (Max)

Cell Name Original Value Final Value
$G$13 value Objective 180 171.4285714
Variable Cells
Cell Name Original Value Final Value Integer
$D$13 value x 20 21.42857143 Contin
$E$13 value y 0 0 Contin
$F$13 value z 20 17.85714286 Contin
Constraints
Cell Name Cell Value Formula Status Slack
$G$15 Constraint of Machining center A LHS 150 $G$15<=$I$15 Binding 0
$G$16 Constraint of Machining center B LHS 100 $G$16<=$I$16 Binding 0
$G$17 Constraint of Machining center C LHS 82.14285714 $G$17<=$I$17 Not Binding 37.85714286
Sensitivity Report:
Variable Cells
$D$13 value x 21.42857143 0 3 6 1
$E$13 value y 0 -2 4 2 1E+30
$F$13 value z 17.85714286 0 6 3 4
Constraints
$G$15 Constraint of Machining center A LHS 150 0.857142857 150 150 83.33333333
$G$16 Constraint of Machining center B LHS 100 0.428571429 100 33.125 50
$G$17 Constraint of Machining center C LHS 82.14285714 0 120 1E+30 37.85714286
Option (d)
Decision Variables
x= No. of products of model 1
y=No. of products of model 2
z=No. of products of model 3
Decision Variables x y z Objective

value 20 0 20 180
LHS RHS
Constraint of Machining center A 2 4 6 160 <= 160
Constraint of Machining center B 3 6 2 100 <= 100
Constraint of Machining center C 3 2 1 80 <= 120
Contribution 3 4 6
Original
Cell Name Value Final Value
$G$13 value Objective 180 171.4285714
Variable Cells
Original
Cell Name Value Final Value Integer
$D$13 value x 20 21.42857143 Contin
$E$13 value y 0 0 Contin
$F$13 value z 20 17.85714286 Contin
Constraints
Constraint of Machining center A
$G$15 LHS 150 $G$15<=$I$15 Binding 0
Constraint of Machining center B
$G$16 LHS 100 $G$16<=$I$16 Binding 0
Constraint of Machining center C Not
$G$17 LHS 82.14285714 $G$17<=$I$17 Binding 37.85714286
Q3) The Continuing Education Division at the Ozark Community College offers a total of 30
courses each semester. The courses offered are usually of two types: practical, such as
woodworking, word processing, and car maintenance; and humanistic, such as history,
music, and fine arts. To satisfy the demands of the community, at least 10 courses of each
type must be offered each semester. The division estimates that the revenues of offering
practical and humanistic courses are approximately $1500 and $1000 per course,
respectively.
(a) Devise an optimal course offering for the college.
(b) Show that the dual price of an additional course is $1500, which is the same as the
revenue
per practical course. What does this result mean in terms of offering additional courses?
(c) How many more courses can be offered while guaranteeing that each will contribute
$1500to the total revenue?
(d) Determine the change in revenue resulting from increasing the minimum requirement of
humanistic by one course.
Solution:
x= No. of Practical Courses x>=10
y= No. of Humanistic Courses y>=10
Decision Variables x y Objective Function

value 20 10 40000
Coefficient 1500 1000
LHS RHS
Constraint of Total No. of courses 1 1 30 Equal 30
Constraint of No. of practical courses 1 0 20 >= 10
Constraint of No. of Humanistic Courses 0 1 10 >= 10
Answer Report:

Cell Name Original Value Final Value
$E$10 value Objective Function 25000 40000
Variable Cells
Cell Name Original Value Final Value Integer
$C$10 value x 10 20 Contin
$D$10 value y 10 10 Contin
Constraints
$E$14 Constraint of Total No. of courses LHS 30 $E$14=$G$14 Binding 0
$E$15 Constraint of No. of practical courses LHS 20 $E$15>=$G$15 Not Binding 10
$E$16 Constraint of No. of Humanistic Courses LHS 10 $E$16>=$G$16 Binding 0
Sensitivity Report:
Variable Cells
$C$10 value x 20 0 1500 1E+30 500
$D$10 value y 10 0 1000 500 1E+30
Constraints
$E$14 Constraint of Total No. of courses LHS 30 1500 30 1E+30 10
$E$15 Constraint of No. of practical courses LHS 20 0 10 10 1E+30
$E$16 Constraint of No. of Humanistic Courses LHS 10 -500 10 10 10
Q4)
Investment Advisors, Inc., is a brokerage firm that manages stock portfolios for a number of clients. A
particular portfolio consists of U shares of U.S. Oil and H shares of Huber Steel. The annual return for
U.S. Oil is $3 per share and the annual return for Huber Steel is ₹5 per share. U.S. Oil sells for ₹25
per share and Huber Steel sells for ₹50 per share. The portfolio has ₹80,000 to be invested. The
portfolio risk index (0.50 per share of U.S. Oil and 0.25 per share for Huber Steel) has a maximum of
700. In addition, the portfolio is limited to a maximum of 1000 shares of U.S. Oil. The linear
programming formulation that will maximize the total annual return of the portfolio is as followes:
Max Z= 3U + 5H Maximize total annual return
25U + 50H ≤ 80,000 Funds available
0.50U + 0.25H ≤ 700 Risk maximum
1U_≤ 1000 U.S. Oil maximum
U, H ≤ 0
The sensitivity report for this problem is shown in below. a. What is the optimal solution, and what is
the value of the total annual return? b. Which constraints are binding? What is your interpretation of
these constraints in terms of the problem? c. What are the shadow prices for the constraints? Interpret
each. d. Would it be beneficial to increase the maximum amount invested in U.S. Oil? Why or why
not? e. How much would the return for U.S. Oil have to increase before it would be beneficial to
increase the investment in this stock? f. How much would the return for Huber Steel have to decrease
before it would be beneficial to reduce the investment in this stock? h. How much would the total
annual return be reduced if the U.S. Oil maximum were reduced to 900 shares?
SOLUTION-
Microsoft Excel 16.0 Sensitivity Report

Worksheet: [SA 4.xlsx]PROBLEM 4
Report Created: 08-10-2023 09:45:21 PM
Variable Cells
$C$5 Decision Variables to be produced C 800 0 3 7 0.5
$D$5 Decision Variables to be produced V 1200 0 5 1 3.5
Constraints
$E$10 U.S. Oil Maximum Resources Utilized 800 0 1000 1E+30 200
$E$8 Funds Available Resources Utilized 80000 0.093333333 80000 60000 15000
$E$9 Risk Maximum Resources Utilized 700 1.333333333 700 75 300
Q5)
An organization conducts marketing research to learn about consumer

characteristics,attitudes, and preferences. Marketing research firms that specialize
in providing suchinformation often do the actual research for client organizations.
Typical services offered by amarketing research firm include designing the study,
conducting market surveys, analyzingthe data collected, and providing summary
reports and recommendations for the client. In theresearch design phase, targets
or quotas may be established for the number and types ofrespondents to be
surveyed. The marketing research firm’s objective is to conduct the survey so as to
meet the client’s needs at a minimum cost.
Market Survey, Inc. (MSI) specializes in evaluating consumer reaction to new
products, services, and advertising campaigns. A client firm requested MSI’s
assistance in ascertaining consumer reaction to a recently marketed household
product. During meetings with the client, MSI agreed to conduct door-to-door
personal interviews to obtain responses from households with children and
households without children. In addition, MSI agreed to conduct both dayand
evening interviews. Specifically, the client’s contract called for MSI to conduct
1000interviews under the following quota guidelines:
1. Interview at least 400 households with children.
2. Interview at least 400 households without children.
3. The total number of households interviewed during the evening must be
at least asgreat as the number of households interviewed during the day.
4. At least 40% of the interviews for households with children must be
conducted duringthe evening.
5. At least 60% of the interviews for households without children must be
conductedduring the evening.
Because the interviews for households with children take additional interviewer time
and because evening interviewers are paid more than daytime interviewers, the
cost varies with the type of interview. Based on previous research studies,
estimates of the interview costs are as follows:
What is the household, time-of-day interview plan that will satisfy the contract
requirementsat a minimum total interviewing cost? Also prepair sensitivity report
using excel solver.
SOLUTION-
Decision Variables :-
P= No. of Interviews with Children in the Day
Q= No. of Interviews with Children in the

Evening
R= No. of Interviews without Children in the
Day
S= No. of Interviews without Children in the
Evening
Products P Q R S Minimize Z
Decision Variables to be Interview
produced 240 160 240 360 Cost 20320
Resources Constraints Available

Utilized Per week
Constraint for Total
Interviews 1 1 1 1 1000 1000
Constraint for With Children
Household 1 1 0 0 400 400
Constraint for Without
Household 0 0 1 1 600 400
Constraint 4 -1 1 -1 1 40 0
Constraint 5 -0.4 0.6 0 0 0 0
Constraint 6 0 0 -0.6 0.4 0 0
Contribution 20 25 18 20
Answer Report-
Microsoft Excel 16.0 Answer Report
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.016 Seconds.
Iterations: 10 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative
Objective Cell (Min)

Original
$H$9 Interview Cost Mimimize Z 20320 20320
Variable Cells
Original
$C$9 Decision Variables to be produced P 240 240 Contin
$D$9 Decision Variables to be produced Q 160 160 Contin
$E$9 Decision Variables to be produced R 240 240 Contin
$F$9 Decision Variables to be produced S 360 360 Contin
Constraints
$G$12 Constraint for Total Interviews Resources Utilized 1000 $G$12>=$H$12 Binding 0
$G$13 Constraint for With Children Household Resources Utilized 400 $G$13>=$H$13 Binding 0
Not
$G$14 Constraint for Without Household Resources Utilized 600 $G$14>=$H$14 Binding 200
$G$15 Constraint 4 Resources Utilized 40 $G$15>=$H$15 Not 40
Sensitivity Report-
Microsoft Excel 16.0 Sensitivity Report
Variable Cells
$C$9 Decision Variables to be produced P 240 0 20 5 4.666666667
$D$9 Decision Variables to be produced Q 160 0 25 1E+30 5
$E$9 Decision Variables to be produced R 240 0 18 2 48
$F$9 Decision Variables to be produced S 360 0 20 4.666666667 2
Constraints
$G$12 Constraint for Total Interviews Resources Utilized 1000 19.2 1000 1E+30 200
$G$13 Constraint for With Children Household Resources Utilized 400 2.8 400 100 400
$G$14 Constraint for Without Household Resources Utilized 600 0 400 200 1E+30
$G$15 Constraint 4 Resources Utilized 40 0 0 40 1E+30
$G$16 Constraint 5 Resources Utilized 0 5 0 240 20
$G$17 Constraint 6 Resources Utilized 0 2 0 240 20
TOPIC – INTEGER PROGRAMMING
Q1). Rajpal Singh is the owner and manager of a machine shop that does custom order work. This
Wednesday afternoon, he has received calls from two customers who would like to place rush orders.
One is a trailer hitch company which would like some custom-made heavy-duty tow bars. The other is
a mini-car-carrier company which needs some customized stabilizer bars. Both customers would like
as many as possible by the end of the week (two working days). Since both products would require the
use of the same two machines, Rajpal needs to decide and inform the customers this afternoon about
how many of each product he will agree to make over the next two days. Each tow bar requires 3.2
hours on machine 1 and 2 hours on machine 2. Each stabilizer bar requires 2.4 hours on machine 1 and
3 hours on machine 2. Machine 1 will be available for 16 hours over the next two days and machine 2
will be available for 15 hours. The profit for each tow bar produced would be ₹130 and the profit for
each stabilizer bar produced would be ₹150. Rajpal now wants to determine the mix of these production
quantities that will maximize the total profit. (a) Formulate an IP model for this problem. (b) Use the
excel solver to solve the model.
SOLUTION-
a) Formulation of LPP-
b) Solution after solver-
Decision Variables
x= no. of Tow bars
y=no. of stabilizer bars
Decision Variables x y Objective

value 0 5 750
Coefficient Of Max. Equation 130 150
LHS RHS
Constraint of Machine 1 3.2 2.4 12 <= 16
Constraint of Machine 2 2 3 15 <= 15
Q2).
SOLUTION-
p= Renu Purchasing a= Rahul Purchasing
q= Renu Cooking b= Rahul Cooking
r= Renu Dishwahing c= Rahul Dishwahing
s= Renu Laundry d= Rahul Laundry
Decision Variables p q r s a b c d Objective

Value 1 0 1 0 0 1 0 1 18.4
Coefficient 4.5 7.8 3.6 2.9 4.9 7.2 4.3 3.1
LHS RHS
Renu 1 1 1 1 0 0 0 0 2 >= 2
Rahul 0 0 0 0 1 1 1 1 2 >= 2
Purchase 1 0 0 0 1 0 0 0 1 equal 1
Cooking 0 1 0 0 0 1 0 0 1 equal 1
Dishwashing 0 0 1 0 0 0 1 0 1 equal 1
Laundry 0 0 0 1 0 0 0 1 1 equal 1
Answer sheet-

Worksheet: [Assignment_Answers(1).xlsx]Sheet2
Report Created: 29-10-2023 16:38:16
Solver Engine
Engine: Simplex LP
Solver Options
Objective Cell (Min)

Original
Value
$M$11 Objective 18.4 18.4
Variable Cells
Original
$D$11 Value p 1 1 Binary
$E$11 Value q 0 0 Binary
$F$11 Value r 1 1 Binary
$G$11 Value s 0 0 Binary
$H$11 Value a 0 0 Binary
$I$11 Value b 1 1 Binary
$J$11 Value c 0 0 Binary
$K$11 Value d 1 1 Binary
Constraints
$L$15 Renu LHS 2 $L$15>=$N$15 Binding 0
$L$16 Rahul LHS 2 $L$16>=$N$16 Binding 0
$L$17 Purchase LHS 1 $L$17=$N$17 Binding 0
$L$18 Cooking LHS 1 $L$18=$N$18 Binding 0
Dishwashing
$L$19 LHS 1 $L$19=$N$19 Binding 0
$L$20 Laundry LHS 1 $L$20=$N$20 Binding 0
$D$11:$K$11=Binary
Q3).
Consider the following IP problem. Maximize Z=3x1 + 5x2,
subject to
5x1 + 7x2 ≤ 3
And
xj ≤ 3
xj ≥ 0
xj is integer,for j = 1, 2.
Use the IP branch-and-bound algorithm, solve this problem by hand. For each subproblem, solve its
LP relaxation using excel solver.
SOLUTION-
Q4).
Mr Jhunjhunwala has ₹100,00,000 to invest in 10 mutual fund alternatives with the following
restrictions. For diversification, no more than ₹25,000,00 can be invested in any one fund. If a fund is
chosen for investment, then at least ₹10,000,00 will be invested in it. No more than two of the funds
can be pure growth funds, and at least one pure bond fund must be selected. The total amount invested
in pure bond funds must be at least as much as the amount invested in pure growth funds. Using the
following expected returns, formulate and solve a model that will determine the investment strategy
that will maximize expected annual return. What assumptions have you made in your model?
SOLUTION -
Q5).
An automobile manufacturer has five outdated plants: one each in Michigan, Ohio, and California and
two in New York. Management is considering modernizing these plants to manufacture engine blocks
and transmissions for a new model car. The cost to modernize each plant and the manufacturing capacity
after modernization is as follows:
The projected needs are for total capacities of 900,000 engine blocks and 900,000 transmissions.
Management wants to determine which plants to modernize to meet projected manufacturing needs and,
at the same time, minimize the total cost of modernization.
a. Develop a table that lists every possible option available to management. As part of your table,
indicate the total engine block capacity and transmission capacity for each possible option, whether the
option is feasible based on the projected needs, and the total modernization cost for each option.
b. Based on your analysis in part (a), what recommendation would you provide management?
c. Formulate a 0-1 integer programming model that could be used to determine the optimal solution to
the modernization question facing management.
d. Solve the model formulated in part (c) to provide a recommendation for management.
SOLUTION -
Decision Variables
Michigan Plant = x1
New York Plant 1 = x2
New York Plant 2 =x3
Ohio Plant = x4
California Plant = x5
Decision Variables x1 x2 x3 x4 x5 Min. Z

Value 1 0 1 0 0 60
Cofficients 25 35 35 40 20
LHS RHS
Engine Block Constaint 500 800 400 900 200 900 >= 900
Transmission Constraint 300 400 800 600 300 1100 >= 900
Q6).
HMT Manufacturing makes three products. Each product requires manufacturing operations in three
departments: A, B, and C. The labor-hour requirements, by department, are as follows:
During the next production period, the labor-hours available are 450 in department A, 350 in
department B, and 50 in department C. The profit contributions per unit are ₹25 for product 1, ₹28 for
product 2, and ₹30 for product 3.
a. Formulate a linear programming model for maximizing total profit contribution.
b. Solve the linear program formulated in part (a). How much of each product should be produced, and
what is the projected total profit contribution?
c. After evaluating the solution obtained in part (b), one of the production supervisors noted that
production setup costs had not been taken into account. She noted that setup costs are ₹400 for product
1, ₹550 for product 2, and ₹600 for product 3. If the solution developed in part (b) is to be used, what
is the total profit contribution after taking into account the setup costs?
d. Management realized that the optimal product mix, taking setup costs into account, might be
different from the one recommended in part (b). Formulate a mixed-integer linear program that takes
setup costs into account. Management also stated that we should not consider making more than 175
units of product 1, 150 units of product 2, or 140 units of product 3.
e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be
produced, and what is the projected total profit contribution? Compare this profit contribution to that
obtained in part (c).
SOLUTION -
Decision Variables:-
x1= No. of Product 1
Products X1 X2 X3 Maximize Z
Decision Variables to be produced 60 80 60 Profit 5540
Resources Utilized Constraints Available Per week

Department A 1.5 3 2 450 450
Department B 2 1 2.5 350 350
Department C 0.25 0.25 0.25 50 50
Contribution 25 28 30

Worksheet: [IP_6(1).xlsx]PROBLEM 6
Report Created: 29-10-2023 17:21:31
Solver Engine
Engine: Simplex LP
Solver Options

Original
$G$8 Profit Maximize Z 5540 5540
Variable Cells
Original
$C$8 Decision Variables to be produced X1 60 60 Integer
$D$8 Decision Variables to be produced X2 80 80 Integer
$E$8 Decision Variables to be produced X3 60 60 Integer
Constraints
$F$11 Department A Resources Utilized 450 $F$11<=$G$11 Binding 0
$F$12 Department B Resources Utilized 350 $F$12<=$G$12 Binding 0
$F$13 Department C Resources Utilized 50 $F$13<=$G$13 Binding 0
$C$8=Integer
$D$8=Integer
$E$8=Integer
Decision Variables:-
y1= Setup Cost of Product 1
Products X1 X2 X3 Y1 Y2 Y3 Maximize Z
Decision Variables to be produced 100 100 0 1 1 0 Profit 4350
Resources Utilized Constraints Available Per week

Department A 1.5 3 2 0 0 0 450 450
Department B 2 1 2.5 0 0 0 300 350
Department C 0.25 0.25 0.25 0 0 0 50 50
No. of Product 1 1 0 0 -175 0 0 -75 0
No. of Product 2 0 1 0 0 -150 0 -50 0
No. of Product 3 0 0 1 0 0 -140 0 0
Contribution 25 28 30 -400 -550 -600

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VISVESVARAYA NATIONAL INSTITUTE OF

Objective Cell (Max)

Decision Variables x y z Objective

Decision Variables x y Objective Function

Objective Cell (Max)

Microsoft Excel 16.0 Sensitivity Report

Report Created: 08-10-2023 09:45:21 PM

An organization conducts marketing research to learn about consumer

Q= No. of Interviews with Children in the

Resources Constraints Available

Objective Cell (Min)

Decision Variables x y Objective

Decision Variables p q r s a b c d Objective

Microsoft Excel 16.0 Answer Report

Objective Cell (Min)

Decision Variables x1 x2 x3 x4 x5 Min. Z

Resources Utilized Constraints Available Per week

Microsoft Excel 16.0 Answer Report

Objective Cell (Max)

Resources Utilized Constraints Available Per week

Contribution 25 28 30 -400 -550 -600

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