Question: Recall the Par, Inc., problem introduced in Chapter 2 . The linear program for this problem is Max 1 0 x 1 1 9 x

Recall the Par, Inc., problem introduced in Chapter 2. The linear program for this problem is
Max 10x119x2
s.t.
7/10x111x2 # 630 Cutting and dyeing time
1/2x115/6x2 # 600 Sewing time
1x112/3x2 # 708 Finishing time
1/10x111/4x2 # 135 Inspection and packaging time
x1, x2 $ 0
where
x 15
x25
number of standard bags produced
number of deluxe bags produced
The final simplex tableau is
x1 x2 s1 s2 s3 s4
Basis c B 1090000
x290130/160221/160252
s2000215/1615/320120
x11010220/16030/160540
s4000211/3209/64118
z j 10970/160111/1607668
c j 2 zj 00270/1602111/160
a. Calculate the range of optimality for the profit contribution of the standard bag.
b. Calculate the range of optimality for the profit contribution of the deluxe bag.
c. If the profit contribution per deluxe bag drops to $7 per unit, how will the optimal solu-
tion be affected?
d. What unit profit contribution would be necessary for the deluxe bag before Par, Inc.,
would consider changing its current production plan?
e. If the profit contribution of the deluxe bags can be increased to $15 per unit, what is
the optimal production plan? State what you think will happen before you compute the
new optimal solution

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