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Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a

ID: 409492 • Letter: K

Question

Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a regular model and a catcher"s model. The firm has 900 hours of production time available in its cutting and sewing department, 300 hours available in its finishing department, and 100 hours available in its packaging and shipping department. The production time requirements and the profit contribution per glove are given in the following table:

Production Time (hours)


  Model

Cutting
and Sewing


Finishing

Packaging
and Shipping


Profit/Glove

  Regular model

1

1/2

1/8

$5

  Catcher`s model

3/2

1/3

1/4

$8

Letting

R = number of regular gloves

C = number of catcher's mitts

leads to the following formulation:

Max    5R+8C

s.t.      R+3/2C less than or equal to 900 cutting and sewing

           1/2R+1/3C less than or equal to 300 finishing

           1/8R+1/4C less than or equal to 100 packaging and shipping

The sensitivity report is shown in figure below.

FIGURE: THE SOLUTION FOR THE KELSON SPORTING EQUIPMENT PROBLEM

Optimal Objective Value =       3700.00000

Variable

Value

Reduced Cost

R

500.00000

0.00000

C

150.00000

0.00000

Constraint

Slack/Surplus

Dual Value

1

175.00000

0.00000

2

0.00000

3.00000

3

0.00000

28.00000

Variable

Objective
Coefficient

Allowable
Increase

Allowable
Decrease

R

5.00000

7.00000

1.00000

C

8.00000

2.00000

4.66667

Constraint

RHS
Value

Allowable
Increase

Allowable
Decrease

1

900.00000

Infinite

175.00000

2

300.00000

100.00000

166.66667

3

100.00000

35.00000

25.00000

What is the optimal solution, and what is the value of the total profit contribution?

Optimal Solution

Regular Glove

Catcher's Mitt

Total Profit

$  

Which constraints are binding?

Cutting and Sewing:

Finishing:

Packaging and shipping:

What are the shadow prices for the resources?

Cutting and Sewing:

Finishing:

Packaging and shipping:


Interpret each.

The shadow price is the value that............. the   will change by if you increase the constraint by one unit. (choose the option for missing part )

1. objective function

2. variables, R and C,

3. slack or surplus

4. constraints 1, 2, and 3



Cutting and sewing has a shadow price of .....................  which means that if we add one hour to the cutting and sewing department the value of the objective function would ................. .( choose the options from listed below)

first missing part                                        second missing part

a) 0                                                            a) not change

b) 3                                                            b) increase by $3

C) 28                                                          c) increase by $28

d) 175                                                        d) increase by $175

Finishing has a shadow price of...........................   which means that if we add one hour to the finishing department the value of the objective function would ............................. .(Choose the options for missing parts of the sentence)

first missing part                                        second missing part

a) 0                                                            a) not change

b) 3                                                            b) increase by $3

C) 28                                                          c) increase by $28

d) 175                                                        d) increase by $175



Packaging and shipping has a shadow price of   ...............which means that if we add one hour to the packaging and shipping department the value of the objective function would...................  . .(Choose the options for missing parts of the sentence)

first missing part                                        second missing part

a) 0                                                            a) not change

b) 3                                                            b) increase by $3

C) 28                                                          c) increase by $28

d) 175                                                        d) increase by $175


Constraints with a shadow price of 0 means that.....................  . .(Choose the options for missing parts of the sentence)

a) It is a binding constraint                                             

b) It is a non-binding constraint                                      

C) A mistake has been made                                                        

d) 0 hours of that constraint are used                                        

d) If overtime can be scheduled in one of the departments, where would you recommend doing so? .(Choose the options for missing parts of the sentence)

a) Cutting and sewing                             

b) Cutting and sewing                                         

C)   Packaging and shipping                                               

                 

Production Time (hours)


  Model

Cutting
and Sewing


Finishing

Packaging
and Shipping


Profit/Glove

  Regular model

1

1/2

1/8

$5

  Catcher`s model

3/2

1/3

1/4

$8

Explanation / Answer

Constraints with a shadow price of 0 means that..:

Answer: b) It is a non-binding constraint