Question: e. If the available assembly time is increased by 1000 hours, will the dual value for the available assembly time change? Explain. ptimal Solution Objective


e. If the available assembly time is increased by 1000 hours, will the dual value for the available assembly time change? Explain. ptimal Solution Objective Function Value = 354000.000 Variable Value Reduced C0505 DRB 1140.000 0.000 DEW 950.000 0.000 Constraint Slack/Surplus Dual. Prices 1 4100.000 0.000 2 0.000 3.400 3 0.000 0.400 OBJECTIVE COEFFICIENT RANGES Variable Lower limit Current Value Upper Limit DEB ?l.429 100.000 566.56? DRW 3?.500 250.000 350.000 RIGHT HAND SIRE RANGES Constraint Lower limit Current Value Upper Limit 1 45500.000 50000.000 ND Upper Limit 2 30000.000 90000.000 100512.321 3 3BS?1.429 120000.000 165555.556 Q2. The Porsche Club of America sponsors driver education events that provide high performance driving instruction on actual race tracks. Because safety is a primary consideration at such events, many owners elect to install roll bars in their cars. Deegan Industries manufactures two types of roll bars for Porsches. Model DRB is bolted to the car using existing holes in the car's 'ame. Model DRW is a heavier roll bar that must be welded to the car's frame. Model DRB requires 15 pounds of a special high alloy steel, 20 minutes of manufacturing time, and 80 minutes of assembly time. Model DRW requires 30 pounds of the special high alloy steel, 70 minutes of manufacturing time, and 30 minutes of assembly time. Deegan's steel supplier indicated that at most 50,000 pounds of high-alloy steel will be available next quarter. In addition, Deegan estimates that 1500 hours of manufacturing time and 2000 hours of assembly time will be available next quarter. The prot contributions are $100 per unit for model DRB and $250 per unit for model DRW. The linear programming model of this problem is as follows: Max 100DRB + 250DRW s. t. 15DRB BODRW 50,000 Steel available 20DRB 7ODRW :1 90,000 Manufacturing minutes BODRB + BODRW 1: 120,000 Assembly minutes DRB, DRW 2 0 The computer solution is shown in figure below. a. What are the optimal solution and total prot? b. Deegan is considering using overtime for manufacturing time to meet a new order. The Worker Union proposed a rate of $2.50 over the normal rate per hour for additional 100 hours. What would you advise Deegan Management to do regarding this option? Explain. c. Deegan is considering to purchase additional 10000 pounds of steel from other suppliers to increase the steel available. What would you advise Deegan to do regarding this option? Explain. d. Deegan is considering increasing the price of model DEWr such that the new contribution to profit is $300 per unit. How would this change in mice affect the optimal solution? Explain and evaluate any changes
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