Question: 2 ) A company uses three substances A , B , and C to produce three types of products P 1 , P 2 ,
A company uses three substances A B and C to produce three types of products P
P and P The inputs and unit profit for one ounce of each product are shown in
table below.
The current stock information of the three substances are as follows: at most
ounces of substance A can be used, at most ounces of substance B can be used,
and at most ounces of substance C can be used to produce the three products. In
order to maximize the profit, the following LP model is developed by the company:
Let x ounces of Product P produced; x ounces of Product P produced; and x
ounces of Product P produced.
The proposed model is solved optimally and a sensitivity analysis regarding to this LP
model is reported in the following part of the question.
a Calculate all unknowns given in the LINGO output given above ie ounces of
product product and product as well as optimal solution
b If profit of product increases to $ what will be new optimal solution? Will
the basis remain unchanged?
c What should profit of product be so that the model has multiple optimal
solutions?
d Which constraints are binding, and which constraints are nonbinding? Explain
why?
e Which variables are basic, and which variables are nonbasic? Explain why?
f What is the range of values for the profit of product P for which the current basis
remains optimal?
g What is the range of values for amount of substance A available for which the
current basis remains optimal?
h If the amount of substance B available is decreased to ounces, will the
optimal solution change? If yes, what will the new profit be If no what is the
highest RHS value of the corresponding constraint which changes current basis?
i If the amount of substance C available is decreased to ounces, what will the
new profit be If the amount of substance C available is increased to ounces,
will the current basis remain optimal? Do you think model must be reoptimized?
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