Group Assignment (Linear Programming)

SMQ3043

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Group Assignment (Linear Programming)

SMQ3043

Assignment SMQ3043 (30 marks)

1. What is Sensitivity Analysis? Discuss the importance of Sensitivity Analysis in Linear
Programming.
2. TechnoCo produces four products, requiring time on two machines and two types (skilled
and unskilled) of labor. The amount of machine time and labor (in hours) used by each
product and the sales prices are given in Table 1. Each month, 700 hours are available on
machine 1 and 500 hours on machine 2. Each month, TechnoCo can purchase up to 600
hours of skilled labor at RM 8 per hour and up to 650 hours of unskilled labor at RM 6
per hour. Formulate an LP that will enable TechnoCo to maximize its monthly profit.
Solve this LP and use the output to answer the following questions:
a)

By how much does the price of product 3 have to increase before it becomes optimal
to produce it?

b)

If product 1 sold for RM 290, then what would be the new optimal solution to the
problem?

c)

What is the most TechnoCo would be willing to pay for an extra hour of time on each
machine?

d)

What is the most TechnoCo would be willing to pay for an extra hour of each type of
labor?

e)

If up to 700 hours of skilled labor could be purchased each month, then what would
be TechnoCos monthly profits?

f)

Write the dual of this problem.

Table 1
Product
1
2
3
4
Answer

Machine 1
11
7
6
5

Machine 2
4
6
5
4

Skilled
8
5
4
6

Unskilled
7
8
7
4

Sales (RM)
300
260
220
180

1. What is Sensitivity Analysis? Discuss the importance of Sensitivity Analysis in Linear

Programming.

Group Assignment (Linear Programming)

SMQ3043

The linear programming approach to optimization problems includes the assumption that
input data is known and is not subject to changes. In some applications of linear
programming there may be a need, not only to optimize a given function under specified
conditions, but also to evaluate the effects changes in the conditions of the problem have
on the optimal solution. The analysis of the effects changes in the conditions on a given
optimal solution of the model is called sensitivity analysis or post optimality analysis.
The perturbed parameter of the model is either a coefficient of the objective
function, or a right-hand side coefficient including the non negativities, or an entry of the
technology matrix. For example of the problem, it could be some coefficients a ij of the
coefficients matrix A are just approximations and it would be desirable to know how their
variance effects the optimal solution. It also could be the result of purchasing raw
materials from other sources, yielding altered cost coefficients c j, or of expanding ones
storage capacities, yielding altered constants bi , are to be measured. A sensitivity analysis
is also technique used to determine how different values of an independent variable will
impact a particular dependent variable under a given set of assumptions.
Linear programming has played an important role as a problem solving and
analysis tool. It have many importance through the leaning in linear programming.
Linear programming has been widely accepted and used to solve the problem for some
particular reason . Among the causes is the taught in various situations in the education of
students who study in engineering , business and mathematics study the subject at some
level, in some cases at the high school level. It also , high quality software is available to
assist researchers conducting LP-based investigations in building models, solving
problems, and analysing output.( Julia L. Higle,2003).

As it turns out Linear

Programming solutions can be extremely sensitive to such changes and this has very
important practical consequences for the use of Linear programming technology in
applications.
In sensitivity analysis output, researchers used the sensitivity analysis to explore
how changes in the problem data might change the solution to a linear program. For
example, how a change in production costs or demand projections might affect a
production schedule. People who are uncertain about data elements are often advised to

Group Assignment (Linear Programming)

SMQ3043

use Sensitivity Analysis to resolve the impact of uncertainty. Among that importance is
to able to find the new optimal solution of the problem as other estimates of some of data
become available without the expensive task of resolving the problem from scratch. Also
at the early stage of problem formulation some factors may be overlooked . It is also
important to update the current solution in a way that takes care of the factors. A
constraint may reflect the availability of some resource. It is desirable to examine the
effect of relaxing some of the constraint on the value of the optimal objective without
having to resolve the problem.
The sensitivity analysis in linear programming which will have a very important
major impact on company. This is because it can determining how much to increase the
overall production capacity in company, and about to present the results to the board
directors. Linear programming also often include time periods, the typically times at
which decisions take effect to the sensitivity analysis. For example, the production level
in a particular month. Linear programming models generally do not reflect the times at
the which decisions are made. Typically, Linear programming models do not offer such a
reflection. As a consequence, the results of sensitivity analysis can be misleading.

2. TechnoCo
a)

Group Assignment (Linear Programming)

SMQ3043

b)
Max z = 300x1 + 260x2 + 220x3 + 180x4 8x5 6x6
Max z = 290x1 + 260x2 + 220x3 + 180x4 8x5 6x6

BV

d1

d2

d3

d4

d5

d6

10

11

12

RHS

Group Assignment (Linear Programming)

SMQ3043

44
27

284
27

56
9

368
27

206
27

15433.3

1
27

4
27

2
9

1
27

1
27

50
3

11
54

5
27

13
18

19
27

19
27

100
3

650

17
18

2
9

1
6

4
9

4
9

50

11
54

32
27

31
18

46
27

46
27

50
3

11
54

32
27

31
18

46
27

46
27

1750
3

d1

d4

X
4

d6

X
6

d2

X
2

S
11

d5

X
5

X3 = [

44
1
11
17
11
( 1 )+ d 1 d 4 +0+ d 2+0 d 5
27
27
54
18
54

d 3

S7 = [

284
4
5
2
32
( 1 ) + d 1+ d 4 +0 d 2+ 0+ d 5
27
27
27
9
27

S8 = [

56
2
13
1
31
( 1 ) d 1 d 4+0 d 2+0+ d 5
9
9
18
6
18

S9 = [

8 ( 1 )+ 0 d 1+0 d 4 +0 d 2+01d 5

S10 = [

368
1
19
4
46
( 1 )+ d 1 d 4 +0+ d 2+0 d 5
27
27
27
9
27

S12 = [

206
1
19
4
46
( 1 ) + d 1 d 4 +1 d 6+ d 2+0 d 5
27
27
27
9
27

d 1=290300 d 2=d 3=d 4=d 5=d 6=0

Group Assignment (Linear Programming)

SMQ3043

10

X3 = [

44
1
11
17
11
( 1 )+ (10) (0)+0+ (0)+ 0 (0)
27
27
54
18
54

S7 = [

284
4
5
2
32
( 1 ) + (10) (0)+0 ( 0)+ 0+ (0)
27
27
27
9
27

S8 = [

56
2
13
1
31
( 1 ) (10) (0)+0 ( 0)+ 0 (0)
9
9
18
6
18

S9 = [

8 ( 1 )+ 0(10)+ 0(0)+0(0)+01(0)

0=

34
>0( satisfied )
27

0=

244
>0( satisfied )
27

0=

0=8> 0(satisfied)

S10 = [

368
1
19
4
46
( 1 )+ (10) (0)+0+ (0)+0 (0)
27
27
27
9
27

S12 = [

206
1
19
4
46
( 1 ) + (10) (0)+1(0)+ (0)+0 (0)
27
27
27
9
27

Z =290

6 ( 650 )
( 503 )+260 ( 50) +220 ( 0) +180( 1003 )8( 1750
3 )

RM 15 266.67

76
> 0( satisfied)
9

0=

358
> 0( satisfied)
27

196
0=
> 0( satisfied)
]
27

Group Assignment (Linear Programming)

c)
z=15433.3+

284
56
368
206
D 1+ D 2+8 D3+
D 4+
D6
27
9
27
27

X1

50 4
2
1
1
+ D 1 D 2+ D 4 + D 6
3 27
9
27
27

X4

100 5
13
19
19
+ D 1+ D2 D 4 D 6
3 27
18
27
27

X6

650+ D 6

X2

2
1
4
4
50 D 1 D2+ D 4 + D6
9
6
9
9

S11

X5

50 32
31
46
46
D1 D2+ D 3+ D 4+ D 5+ D 6
3 27
18
27
27

1750 32
31
46
46
+ D 1+ D2D3 D 4 D 6
3
27
18
27
27

SMQ3043

Group Assignment (Linear Programming)

Machine 1
Right Hand Sight Change :

D1=701700=1

D 2=D 3=D 4=D 5= D6=0

X1

50 4
2
1
1
+ (1) (0)+ (0)+ (0)
3 27
9
27
27

X4

100 5
13
19
19
+ (1)+ (0) (0) (0)
3 27
18
27
27

X6

650+0

(feasible)

X2

2
1
4
4
50 (1) ( 0)+ (0)+ (0)
9
6
9
9

(feasible)

S11

X5

50 32
31
46
46
(1) (0)+(0)+ (0)+( 0)+ (0)
3 27
18
27
27

1750 32
31
46
46
+ (1)+ (0)(0) (0) (0)
3
27
18
27
27

(feasible)

(feasible)

(feasible)

(feasible)

This show the proposed changes will keep the current solution

z=15433.3+

z=15443.8

284
56
368
206
(1)+ (0)+8( 0)+
(0)+
(0)
27
9
27
27

SMQ3043

Group Assignment (Linear Programming)

SMQ3043

The most TechnoCo would be willing to pay for an extra hour of time on machine 1 is

( 15443.815433.3 ) =RM 10.50

Machine 2
Right Hand Sight Change :

D 2=501500=1

D1=D 3=D 4=D 5=D 6=0

X1

50 4
2
1
1
+ (0) (1)+ (0)+ (0)
3 27
9
27
27

X4

100 5
13
19
19
+ (0)+ (1) (0) (0)
3 27
18
27
27

X6

650+0

(feasible)

X2

2
1
4
4
50 (0) (1)+ (0)+ (0)
9
6
9
9

(feasible)

S11

X5

50 32
31
46
46
(0) (1)+(0)+ (0)+( 0)+ (0)
3 27
18
27
27

1750 32
31
46
46
+ (0)+ (1)(0) (0) (0)
3
27
18
27
27

(feasible)

(feasible)

(feasible)

(feasible)

Group Assignment (Linear Programming)

SMQ3043

This show the proposed changes will keep the current solution

z=15433.3+

284
56
368
206
(0)+ (1)+8( 0)+
(0)+
(0)
27
9
27
27

z=15439.5
The most TechnoCo would be willing to pay for an extra hour of time on machine 1 is

( 15439.515433.3 ) =RM 6.20

Group Assignment (Linear Programming)

d)

SMQ3043

Group Assignment (Linear Programming)

SMQ3043

e) By using LP solver, for skilled labor TechnoCo willing to pay RM0 for an extra hour while
for unskilled labor TechnoCo willing to pay RM7.63 for an extra hour.

Group Assignment (Linear Programming)

f)
Dual
min w = 700y1 + 500y2 + 600y5 + 650y6
s.t

11y1 + 4y2 + 8y3 + 7y4 300

7y1 + 6y2 + 5y3 + 8y4 260
6y1 + 5y2 + 4y3 + 7y4 220
5y1 + 4y2 + 6y3 + 4y4 180
y3

y 8
5

y4

y 6
6
yi 0 (i = 1,2,3,4,5,6)

SMQ3043

Group Assignment (Linear Programming)

SMQ3043

Group Discussion / Meeting Report

No
1

Date
18th April

Activities
Group meeting attended by:

Task Assign
All group member:

2016

Nasir, Alif, Anis and Amirah

Formulate LP

Monday

1) Discussed about Chapter 4

model.
Try to find the

19th April

Group meeting attended by:

answer manually.
Nasir:

2016

Everyone

Enter the data in LP

Tuesday

1) We discuss about how to use Microsoft

Excel Solver with application Kinderwood
problem

model into
Microsoft Excel
Solve.
Compare the answer
between manually
and Microsoft Excel

3rd May

Group meeting attended by:

Solver.
All member:

2016

Everyone

Formulate LP model

Tuesday

1) We discuss about question 2 assignment

group (TechnoCo problem)

from the problem

given.
Trying to settle
manually but must

4 May

Group meeting attended by:

use solver.
Nasir and Alif:

2016

Everyone

Trying to enter the

th

Wednesday

1) Enter the data of LP model in Microsoft

Excel Solver, Lips and LINDO

9th May

Group meeting attended by:

2016

Everyone

Monday

data into different

solver to ensure the
answer same.

Group Assignment (Linear Programming)

SMQ3043

1) Discuss with lecturer about the answer

6

12th May

Group meeting attended by:

Enter the new LP

2016

Everyone

formulation in two

Thursday
7

1) Change the LP formulation

different solver

17 May

Group meeting attended by:

LiPS and LINDO

Answer all given

2016

Everyone

question by using

th

Tuesday

1) Solve all questions in the assignment

group

References

the answer in solver

and do it manually.