Operations Research Practice

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Operations Research Practice

Topics: Formulation, Linear, primal and dual programming, graphical method, Simplex
Problem 1.- Mechanical workshop
A mechanical workshop can manufacture two types of products, P1 and P2. The unit profit
obtained with each product is 20 and 60, respectively. To manufacture these two products,
you have two resources, man hours (HH) and machine hours (HM). Regarding HH, you
have 2,700, and manufacturing a unit of P1 consumes 30 HH, and one of P2 20 HH. It has
850 HM, and we know that manufacturing a unit of P1 consumes 5 HM, and one of P2
consumes 10 HM. Furthermore, the contractual conditions require it to manufacture a
minimum of 95 units, whether of P1 or P2. To maximize profit, the machine shop manager
wants to develop a model to determine maximum quantities and maximum profit.

a) Formulate the model (in table and linear


programming)

b)
PRODUCT 1 PRODUCT 2 Resource Use Request
HH 30 20 2100 <= 2700
H.M. 5 10 850 <= 850
RESTRICTION 1 1 95 >= 95
Cost 20 60
Amount 20 75
Total cost 4900
Solve it in Excel, report the results
The exercise asks me to maximize the amount of products to obtain the best
utility, so to achieve my OBJECTIVE FUNCTION I must produce 20 of P1 and
75 of P2 and with such quantities I achieve 4900 of Utility.
c) Using the graphic method

d) Write the dual of the original model, indicating the direction of the dual variables in each
case.
e) Write the original model in standard form, with the slack and excess constraints
variables. What variables form the basis of the optimum?
PRODUCT 1 PRODUCT 2 Use Resource Request

H H 30 20 2100 <= 2700


H.M. 5 10 850 <= 850
RESTRICTION 1 1 95 >= 95
Cost 20 60
Amount 20 75
Total cost 4900

PRODUCT 1 PRODUCT 2 Use Resource Request

HH 30 20 2500 <= 2700


H.M. 5 10 850 <= 850
RESTRICTION 1 1 105 >= 105
Cost 20 60
Amount 40 65
Total cost 4700


Microsoft Excel 15.0 Confidentiality Report —■
Spreadsheet: [Librol (version l).xlsb]Sheet
Report created: 04/28/2018 05:46:39 pm

Variable cells
Objective Allowable Allowable
Final Reduced
Coefficient Increase Reduce
Cell Name Worth Cost
SB$ Quantity PRODUCT 1 20 0 20 10 1E+30
$c$7 Quantity PRODUCT 2 75 0 60 1E+30 20

restrictions
Final Shade Restriction Permissible Permissible
Cell Name Worth Price Right side Increase Reduce
$D$3 HH Resource Use 2100 0 2700 1E+30 600
$D$4 HM Resource Use 850 8 850 100 300
$D$5 Resource Use 95 -20 95 15 10
RESTRICTION
f) What additional benefit is obtained by hiring one more hour of work? Briefly justify your
answer based on the results.

No benefit is obtained since the amounts required for P1 or P2 are greater than 1 hour.
g) If the profit obtained with P2 goes from 60 to 50, does the optimum change? And the
value of the objective function? Briefly explain your answer.

Change both, because we are directly affecting the profit of P2 Z=20P1+50P2


h) The client is willing to negotiate the minimum quantity of product to be supplied. It's worth
it? If so, would you propose increasing or decreasing the minimum amount? What price
would you be willing to pay to increase (or decrease) this minimum amount? To what
value would you be willing to increase (or decrease) this amount?
Decreasing the minimum amount as shown in the CLEARANCE would have a profit
difference of 200.

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