Consider the following problem.
Maximize Z = 5x1 + c2x2 + c3x3,
Subject to

and
x1 ‰¥ 0, x2 ‰¥ 0, x3 ‰¥ 0.
The estimates and ranges of uncertainty for the uncertain parameters are shown in the next table.

(a) Solve this model when using the estimates of the parameters.
(b) Now use robust optimization to formulate a conservative version of this model. Solve this model. Show the values of Z obtained in parts (a) and (b) and then calculate the percentage decrease in Z by replacing the original model by the robust optimization model.

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allX1_ 3x2 + 2x3 bi an1I tI a11 2x _ 4x2 + a335 20 Parameter Estim Rage of Uncertainty 3.6- 4.4 -1.4 to-0.6 2.5 3.5 27 33 19-22 9 to 7 3-5 ain a33 30 20 Co C3 4