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BUSI 410  Homework #2
Solutions
1.
Let
x
i
denote the tons of ore produced at mine
i
,
i
= 1, 2, 3, 4. Then, a suitable (linear) decision
model can be the following.
1234
12 34
1
2
min
37
46
50
42
0.7 +0.6
0.5
0.3
940
350
530
xxxx
xx
x
x
+
++
++≥
≤
≤
3
4
610
490
,
,
,
0
x
x
≤
≤
≥
b
i. From the solver’s optimal solution in spreadsheet “mines” we read that mine 4 has slack
capacity of 250 tons.
ii. From the spreadsheet “mines sensitivity report” we read that the capacity constraint of mine 1
has the most negative shadow price. Therefore, capacity of mine 1 would reduce the company’s
cost the most if it were to be increased.
2.
Let
x
and
y
denote the number of copies of the restaurant and entertainment and of the real estate
guide respectively.
Then, a suitable linear decision model can be the following.
max
0.5
0.75
0.17
0.25
4,000
18,000
8,000
8,000
xy
x
y
+
+≤
≥
≥
,
0
≥
b
i. From the solver’s optimal solution in spreadsheet “publisher” we read that $140 is not spent.
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 Fall '09
 MASSA

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