IE311: Operations Research I – Spring 2022

IE311: Operations Research I

Assignment 4: Sensitivity Analysis, and Duality Theory

Problem 1: (Duality)
Find the dual problem for the following primal Problems:
Problem (1): Problem (2):
Maximize Z = 7X1 + 4X2 + 9X3 Minimize Z = 4X1 - 2X2
Subject to Subject to
2X1 + X3 ≤ 20 X1 + 7X2 ≥ 15
-X1 + 4X2 + 3X3 ≤ 10 4X1 + 2X2 = 25
X1 ≥ 0, X2 ≥ 0, X3 is unconstrained -7X2 ≤ 49
X1 ≥ 0, X2 ≤ 0
Problem 2: (Graphical Sensitivity Analysis)
Vivian’s Gem Company produces two types of gems: Types 1 and 2. Each Type 1 gem contains
2 rubies and 4 diamonds. A Type 1 gem sells for $10 and costs $5 to produce. Each Type 2 gem
contains 1 ruby and 1 diamond. A Type 2 gem sells for $6 and costs $4 to produce. A total of 30
rubies and 50 diamonds are available. All gems that are produced can be sold, but marketing
considerations dictate that at least 11 Type 1 gems be produced. Let x1 = number of Type 1 gems
produced and x2 = number of Type 2 gems produced. Assume that Vivian wants to maximize
profit. Answer the following questions:
(a) What would Vivian’s profit be if 46 diamonds were available?
(b) If Type 2 gems sold for only $5.50, what would be the new optimal solution to the problem?
(c) What would Vivian’s profit be if at least 12 Type 1 gems had to be produced?

Problem 3: (Sensitivity Analysis)

The computer output given below is for a maximizing LP Problem with two decision variables
and two constraints. Use this output to answer the following questions:
(a) How many units of X and Y should be produced based on the computer output results?
(b) How much could the profit coefficient (cj) on X increase or decrease without changing the
values of X and Y in the optimal solution? Explain.
(c) How much the right-hand side of constraint 1 can decrease or increase without changing the
basic and non-basic solution sets? Explain.
(d) What are the shadow prices for each resource (constraint)?
(e) If the right-hand side of constraint 1 were increased by 1 unit, how much would the profit
increase? Explain.
(f) If the right-hand side of constraint 2 were decreased by 10 units, how much would the profit
decrease? Explain.
IE311: Operations Research I – Spring 2022