Graphical

The Elves of Rivendell forges two types of weapons for to protect the forest with, namely: Elven
Bows and Elven Arrows. An Elven Bow sells for 21 gold pieces and uses 10 gold pieces worth of raw
materials. Each Elven Bow that is forged increases the Elves of Rivendell’ variable labour and
overhead costs by 6 gold pieces. An Elven Arrow sells for 15 gold pieces and uses 3 gold pieces
worth of raw materials. Each Elven Arrow forged increases the Elves of Rivendell’ variable labour
and overhead costs by 5 gold pieces.
The forging of Elven Bows and Elven Arrows requires two types of skilled labour: metallurgy and
polishing. An Elven Bow requires 1 hour of metallurgy labour and 2 hours of polishing labour. An
Elven Arrow requires 1 hour of metallurgy and 3 hours of polishing labour. Each year, the Elves of
Rivendell can obtain all the needed raw material, but only 8 metallurgy hours and 19 polishing hours
are available. The Elves of Rivendell have a maximum demand of 6 Elven Bows.

The formulated Linear Programming Model and Graphical solution is given in the attached
addendum.

Graphical Sensitivity Analysis

Question 1

Using the formulated Linear Programming Model and the Graphical solution given in the attached
addendum, answer the following questions.
a. Identify the binding constraints of the Linear Programming Model. Prove your answers.
b. For what profit range of Elven Bows does the current basis remain optimal? Prove your
answer.
c. If the revenue for Elven Arrows decreases to 12 gold pieces, would the current basis remain
optimal? Prove your answer.

d. For what resource range of metallurgy labour does the current basis remain optimal? Prove
your answer.

e. If the available polishing labour increased to 20 hours, would the current basis remain
optimal? Prove your answer.

Dual theorem and complementary slackness

Question 2

Using the formulated Linear Programming Model and the Graphical solution given in the attached
addendum, with the optimal values of x 1=5 ,∧x 2=3 for the Primary of the Linear Programming
Model, answer the following questions:
a. Apply Duality to the Primary of the Linear Programming Model.
b. Determine the values for y 1 , y 2 ∧ y 3 in the Dual of the Linear Programming Model, using
Complementary Slackness with the Dual Theorem.
c. What are the costs for Elven bows?
d. Does strong or weak Duality apply to this Linear Programming Model?
e. What are the shadow prices for the Primary Linear Programming Model.
 Linear Programming Model Formulation & Dual Simplex Algorithm
The blacksmiths in Rohan manufactures three different types of weapons, namely: Swords, Axes and
Warhorses.
Each type of weapon requires Time to make the weapon and time to refine the weapon. A Sword
requires 1 hour to make the weapon and 10 hours to refine the weapon.
an Axe requires 1 hour to make the weapon and 4 hours to refine the weapon. The blacksmiths only
have 7 hours to make the weapons and 40 hours to refine the weapons available.
A Warhorse requires 1 hour to make the weapon and 6 hours to refine the weapon.
Rohan can make 100 gold pieces profit from a Sword, 30 gold pieces profit from an Axe and 150
gold pieces profit from a Warhorse.
There is a minimum demand for Axes of a total of 3 weapons.

The formulated Linear Programming Model solution is given in the attached addendum.

Dual Simplex algorithm and Two-phase simplex algorithm

Question 3

Using the formulated LP solution given in the Addendum for the above scenario,

a. Solve using Dual simplex algorithm and give the Xbv for mathematical preliminaries.
b. Solve using Two-phase simplex algorithm

Mathematical Sensitivity Analysis

Question 4

Using Mathematical Preliminaries with the optimal tableau you found in Question 3 a. (the dual
simplex algorithm optimal table), answer the following questions.

a. Rohan wants to run specials on the price of Axes. Using Mathematical Preliminaries with the
optimal tableau in the attached addendum, for what profit range of Axes does the current
basis remain optimal and what influence does a change in profit for Axes have on the
current basis?

b. Rohan wants to double the price of Swords to make a profit of 200 gold pieces, in order to
see if this will boost the sales.

i. Using Mathematical Preliminaries with the optimal tableau in the attached

addendum, what will be the new optimal solution for Rohan?

ii. Will it become cost feasible to start selling Swords?

iii. What weapons does Rohan no longer produce as a result of this price increase?

c. Rohan also wants to run specials on the price of Swords. Using Mathematical Preliminaries
with the optimal tableau in the attached addendum, for what profit range of Swords does
the current basis remain optimal and what influence does a change in profit for Swords have
on the current basis?
 d. Currently there is a lot of fluctuations in the making of Swords. Using Mathematical
Preliminaries with the optimal tableau in the attached addendum, for what range of the
hours to make Swords would the current basis remain optimal and what influence does a
change in the hours to make Swords have on the current basis?

e. Due to poorly managed supplier relations, only 30 hours of refining the weapons is currently
available.

i. Using Mathematical Preliminaries with the optimal tableau in the attached

addendum, what will be the new optimal solution for Rohan?

ii. Interpret and discuss your answer for Question 2.f.i.

f. Due to a change in the forging process of Swords, it now only requires 6 hours of refining the
weapon.

i. Using Mathematical Preliminaries with the optimal tableau in the attached

addendum, what will be the new optimal solution for Rohan?

ii. Did this change in process cause Swords to become cost feasible to forge?

iii. What weapon does Rohan no longer produce as a result of this change in forging
process?

g. Rohan is exploring new weapons that they can produce. They want to produce Shields for 50
gold pieces profit. A Shield requires 2 hours to make the weapon and 6 hours to refine the
weapon. Using Mathematical Preliminaries with the optimal tableau in the attached
addendum, determine the influence that Shields will have on the optimal solution.
h. Calculate the shadow prices using Mathematical Preliminaries.

DEA
Question 5

The Salem Board of Education want to evaluate the efficiency of the town’s four elementary schools.
In the table you will see the inputs and outputs:

School Inputs Outputs

Average Number Teacher Average Average Average
educational of to reading mathematics self-esteem
level of parent student score score score
mothers visits to ratio
school
1 13 4 0,05 9 7 6
2 14 5 0,05 10 8 7
3 11 6 0,06 11 7 8
4 15 8 0,08 9 9 9

a. Formulate a Linear Programming Model to help the Salem Board find all inefficient units,
using Data Envelopment Analysis.
 b. Determine the efficiency for the Salem Board amusement parks.

c. Provide one or more realistic and detailed recommendation that will improve the efficiency
of School 4.

Goal Programming simplex

Question 6

Apricot Computer Company is ready to make its annual purchase of computer chips. Apricot can
purchase chips (in lots of 100) from three suppliers. Each chip is rated as being of excellent, good, or
mediocre quality. During the coming year, Apricot will need 5 000 excellent chips, 3 000 good chips,
and 1 000 mediocre chips. The characteristics of the chips purchased from each supplier are shown
in the table. Each year, Apricot has budgeted $28 000 to spend on chips.

If Apricot does not obtain enough chips of a given quality, then the company may special-order
additional chips at $10 per excellent chip. $6 per good chip, and $4 per mediocre chip.

Apricot assesses a penalty of $1 for each dollar by which the amount paid to suppliers 1 – 3 exceeds
the annual budget.

a. Create a Goal Programming LP based on the following order of importance:

 Goal 1: Budget
 Goal 2: Excellent chips requirement
 Goal 3: Good chips requirement
 Goal 4: Mediocre chips requirement
b. Solve the formulated LP you created in Question 6 a. using the Goal Programming Simplex
Algorithm.

Formulae for calculating the Optimal Tableau from the Initial Linear
Programming Model
x j column in optimal tableau’s constraints −1
B aj
Right-hand side of optimal tableau’s constraints −1
B b
Coefficient of decision variable x i in optimal row 0 −1
c BV B a j−c j
Coefficient of slack variable si in optimal row 0 −1
ith element of c BV B
Coefficient of excess variable e i in optimal row 0 −1
-(ith element of c BV B )
Coefficient of artificial variable a i in optimal row 0 −1
(ith element of c BV B ) + M (max problem)
Right-hand side of optimal row 0 −1
c BV B b