Problem 3-12 (Algorithmic)

Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe model. The profits per unit are $59, $89, and $137, respectively. The production requirements per unit are as follows:

	Number of Fans	Number of Cooling Coils	Manufacturing Time (hours)
Economy	1	1	8
Standard	1	2	12
Deluxe	1	4	14

For the coming production period, the company has 250 fan motors, 380 cooling coils, and 2600 hours of manufacturing time available. How many economy models (E), standard models (S), and deluxe models (D) should the company produce in order to maximize profit? The linear programming model for the problem is as follows:

Max	59E	+	89S	+	137D
s.t.
	1E	+	1S	+	1D		250	Fan motors
	1E	+	2S	+	4D		380	Cooling coils
	8E	+	12S	+	14D		2600	Manufacturing time
E, S, D 0

The computer solution is shown in the figure below.

Optimal Objective Value = 18650.00000
		Variable		Value		Reduced Cost
		E		120.00000		0.00000
		S		130.00000		0.00000
		D		0.00000		12.00000
		Constraint		Slack/Surplus		Dual Value
		1		0.00000		29.00000
		2		0.00000		30.00000
		3		80.00000		0.00000

		Variable		Objective Coefficient		Allowable Increase		Allowable Decrease
		E		59.00000		6.00000		14.50000
		S		89.00000		29.00000		4.00000
		D		137.00000		12.00000		Infinite
		Constraint		RHS Value		Allowable Increase		Allowable Decrease
		1		250.00000		20.00000		60.00000
		2		380.00000		20.00000		130.00000
		3		2600.00000		Infinite		80.00000

a. What is the optimal solution, and what is the value of the objective function? If required, round your answers to the nearest whole number. If your answer is zero, enter "0".

	Optimal Solution
Economy models (E)
Standard models (S)
Deluxe Models (D)
Value of the objective function

b. Which constraints are binding?

Fan motors:	Binding or Non binding
Cooling coils:	Binding or Non binding
Manufacturing time:	Binding or Non binding

c. Which constraint shows extra capacity? How much? If constraint shows no extra capacity, enter 0 as number of units. If required, round your answers to the nearest whole number.

Constraints	Extra capacity	Number of units
Fan motors	Yes/No
Cooling coils	Yes/No
Manufacturing time	Yes/No

d. If the profit for the deluxe model were increased to $152 per unit, would the optimal solution change? The optimal solution ___ because the profit of the deluxe model can vary from ___ to ___.$152 is ___ this range without the optimal solution changing.