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1) Determine the optimal solution and optimal value and interpret their meanings

ID: 3122429 • Letter: 1

Question

1) Determine the optimal solution and optimal value and interpret their meanings.

2) Determine the slack (or surplus) value for each constraint and interpret its meaning.

PLEASE TYPE ALL ANSWERS - NO WRITTEN ANSWERS

Maximize     40X + 50Y + 20Z             Total Revenue

Subject to            X + Y + Z 400         Total quantity produced  

                        X + 3Y + 2Z 500         Resource 1

                        2X + Y + 2Z 400         Resource 2

                        3X + Y + 2Z 600         Resource 3

                         And X, Y, Z 0

Where X, Y, and Z represent the number of units of Product 1, Product 2, and Product 3 to be manufactured.

The QM for Windows output for this problem is given below.

Linear Programming Results:

Variable           Status   Value

X         Basic    140

Y         Basic    120

Z          NONBasic       0

slack 1 Basic    140

slack 2 NONBasic       0

slack 3 NONBasic       0

slack 4 Basic    60

Optimal Value             11600

Ranging Results:

Variable           Value   Reduced Cost   Original Val     Lower Bound   Upper Bound

X         140      0          40        16.67   100

Y         120      0          50        20        120

Z          0          32        20        -Infinity           52

Constraint        Dual Value       Slack/Surplus   Original Val     Lower Bound   Upper Bound

Constraint 1     0          140      400      260      Infinity

Constraint 2     12        0          500      200.00 1200

Constraint 3     14        0          400      166.67 437.5

Constraint 4     0          60        600      540      Infinity

Explanation / Answer

Solution

Linear Programming Results as given part of the question are reproduced below:

Variable          Status   Value

X                     Basic    140

Y                     Basic    120

Z             NONBasic       0

slack 1            Basic    140

slack 2    NONBasic       0

slack 3    NONBasic       0

slack 4 Basic 60

Optimal Value             11600

Now, to work out solution,

Q 1

From the final results reproduced above,

optimal solution is X = 140, Y = 120, Slack 1 = 140, Slack 4 = 60 and optimal value is 11600.

Interpretation of their meanings:

Since X and Y represent quantity of Product 1 and Product 2 respectively, the final solution stipulates that 140 units of Product 1 and 120 units of Product 2 must be produced. Also, the other variable in the optimal solution being Slack 1 and Slack 4, which respectively refer to the Constraint 1 pertaining to production capacity,and Constraint 4 pertaining to Resource 3,  production capacity is under-utilised to the extent of 140 units (Slack 1) and Resource 3 is under-utilised to the extent of 60 units (Slack 4). Further, Z is non-basic with value 0 => Product 3 will not be produced.

Optimal value is 11600 => by producing 140 units of Product 1 and 120 units of Product 2 (and no production of Product 3), would yield a total revenue of 11600.

Q2

Slack (or surplus) value for each constraint:

Since all constraints are of less-than-or-equal-to type, there are no surplus variables. All constraints have only slack variables. Of the four slack variables, only Slack 1 and Slack 4, which respectively refer to the Constraint 1 pertaining to production capacity and Constraint 4 pertaining to Resource 3, appear in the basis and their values are 140 and 60. Other two slack variables are zero.

Interpretation of their meanings:

Slack 1 with a value of 140 => production capacity is under-utilised to the extent of 140 units.

Slack 4 with a value of 60 => Resource 3 is under-utilised to the extent of 60 units.

Other slacks are zero => the other two constraints pertaining to Resources 2 and 3 are fully utilized.

DONE

[Additional inputs:

1. Substituting x = 140 and y = 120 in the objective function (Total Revenue) would give 11600 which is the optimal value.

2. Substituting x = 140 and y = 120 in Constraint 1 (Total quantity produced), LHS = 260, while RHS = 400 giving a difference of 140 which represents the value of Slack 1.

3. Substituting x = 140 and y = 120 in Constraint 2 and 3, LHS = RHS implying Resources 2 and 3 are fully utilized.]

4. Substituting x = 140 and y = 120 in Constraint 4. LHS = 540, while RHS = 600 giving a difference of 60 which represents the value of Slack 4.