PART 2 BORIE Production Company uses labor and raw material to produce three products. The resource...

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PART 2 BORIE Production Company uses labor and raw material to produce three products. The resource requirements and sales price for the three products are as shown in the following table. Product 1 3 Labor (hours) Raw Materials (unit) Sales Price ($) 3 5 7 3 5 4 8 11 Currently, 70 units of raw material are available. Up to 100 hours of labor can be purchased at $1.5 per hour. To maximize BORIE profits, solve the following LP: Мах 4x1 + 8х2 + 11хз — 1.5L Z = Subject to 3x1 + 5x2 + 7x3 –L<0 2х1 + 3x2+5хз <70 L< 100 X1, X2, X3, L > 0 Here, x1 = units of product i produced, and L= number of labor hours purchased. Use the LINDO output in the following figure to answer the following questions: 図 A Reports Window A <untitled> LP OPTIMUM FOUND AT STEP 1 MAX 4X1+8X2+11X3-1.5L SUBJECT TO 3X1+5X2+7X3-L< =0 2X1+3X2+5X3< =70 L< =100 END OBJECTIVE FUNCTION VALUE 1) 10.00000 VARIABLE X1 X2 X3 L VALUE 0.000000 20.000000 0.000000 100.000000 REDUCED COST 0.800000 0.000000 0.200000 0.000000 ROW 2) 3) 4) SLACK OR SURPLUS 0.000000 10.000000 0.000000 DUAL PRICES 1.600000 0.000000 0.100000 NO. ITERATIONS= 1 RANGES IN WHICH THE BASIS IS UNCHANGED: CURRENT COEF 4.000000 8.000000 11.000000 -1.500000 OBJ COEFFICIENT RANGES ALLOWABLE INCREASE 0.800000 INFINITY 0.200000 INFINITY VARIABLE ALLOWABLE DECREASE INFINITY 0.142857 INFINITY 0.100000 X1 X2 X3 RIGHTHAND SIDE RANGES ALLOWABLE INCREASE 16.666666 INFINITY 16.666666 ALLOWABLE DECREASE 100.000000 10.000000 100.000000 ROW CURRENT RHS 0.000000 70.000000 100.000000 N34 0.000000 70.000000 100.000000 16.666666 INFINITY 16.666666 100.000000 10.000000 100.000000 3 What is the BORIE’s profit? [3 points] (b) What is the most the company should pay for another unit of raw material? [3 points] (c) What is the most the company should pay for another hour of labor? [3 points] (d) What would product 1 have to sell for to make it desirable for the company to produce it? [3 points] (e) If 110 hours of labor could be purchased, what would the company's profit be? [3 points] (f) Find the new optimal solution if product 2 sold for $10.[3 points] (g) Find the new optimal solution if product 3 sold for $10.[3 points] PART 2 BORIE Production Company uses labor and raw material to produce three products. The resource requirements and sales price for the three products are as shown in the following table. Product 1 3 Labor (hours) Raw Materials (unit) Sales Price ($) 3 5 7 3 5 4 8 11 Currently, 70 units of raw material are available. Up to 100 hours of labor can be purchased at $1.5 per hour. To maximize BORIE profits, solve the following LP: Мах 4x1 + 8х2 + 11хз — 1.5L Z = Subject to 3x1 + 5x2 + 7x3 –L<0 2х1 + 3x2+5хз <70 L< 100 X1, X2, X3, L > 0 Here, x1 = units of product i produced, and L= number of labor hours purchased. Use the LINDO output in the following figure to answer the following questions: 図 A Reports Window A <untitled> LP OPTIMUM FOUND AT STEP 1 MAX 4X1+8X2+11X3-1.5L SUBJECT TO 3X1+5X2+7X3-L< =0 2X1+3X2+5X3< =70 L< =100 END OBJECTIVE FUNCTION VALUE 1) 10.00000 VARIABLE X1 X2 X3 L VALUE 0.000000 20.000000 0.000000 100.000000 REDUCED COST 0.800000 0.000000 0.200000 0.000000 ROW 2) 3) 4) SLACK OR SURPLUS 0.000000 10.000000 0.000000 DUAL PRICES 1.600000 0.000000 0.100000 NO. ITERATIONS= 1 RANGES IN WHICH THE BASIS IS UNCHANGED: CURRENT COEF 4.000000 8.000000 11.000000 -1.500000 OBJ COEFFICIENT RANGES ALLOWABLE INCREASE 0.800000 INFINITY 0.200000 INFINITY VARIABLE ALLOWABLE DECREASE INFINITY 0.142857 INFINITY 0.100000 X1 X2 X3 RIGHTHAND SIDE RANGES ALLOWABLE INCREASE 16.666666 INFINITY 16.666666 ALLOWABLE DECREASE 100.000000 10.000000 100.000000 ROW CURRENT RHS 0.000000 70.000000 100.000000 N34 0.000000 70.000000 100.000000 16.666666 INFINITY 16.666666 100.000000 10.000000 100.000000 3 What is the BORIE’s profit? [3 points] (b) What is the most the company should pay for another unit of raw material? [3 points] (c) What is the most the company should pay for another hour of labor? [3 points] (d) What would product 1 have to sell for to make it desirable for the company to produce it? [3 points] (e) If 110 hours of labor could be purchased, what would the company's profit be? [3 points] (f) Find the new optimal solution if product 2 sold for $10.[3 points] (g) Find the new optimal solution if product 3 sold for $10.[3 points]

Answer rating: 100% (QA)

a Bories profit value of objective function 10 Sales 20X8 160 and labor cost 15X100 150 Hence profit ... View the full answer