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4. Sample1_Solution

# 4. Sample1_Solution - Problem#1 X1= 4 X2 = 2(intersection...

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Problem #1 X1= 4, X2 = 2 (intersection of constraint 2 with constraint 3) Z = 18 Problem #2: a) If it costs \$70 to produce 1000 tools at plant 1 and ship them to customer 1, what would be the new solution to the problem and the profit? ( 1 point) This corresponds to a decrease in the objective function coefficient of X11 from \$140 (= 200 – 60) to \$130 (=200 – 70). A decrease of \$10 is within the allowable decrease of 20 thus the optimal solution will not change however the profit will decrease. The optimal decision calls for the production of 10,000 tools at plant 1 and shipped to customer 1 (X11 = 10) and the production of 11,670 tools at plant 2 and shipped to customer 2 (X22 = 11.67). The profit will decrease by \$100 and will be \$2,233.33 (= 130(10) + 80(11.67)) b) If the price of an additional hour of labor were reduced to \$4, would the company purchase any additional labor? (1 point) This corresponds to a change in the objective function coefficient of the decision variable L. The objective function coefficient originally at -20 is now at -4. That represents an INCREASE of 16. An increase of 16 units is within the allowable increase of 19.25, thus

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