DISCUSSION QUESTIONS (HW-2)
Chapter 4:
4.1) Discuss the role of sensitivity analysis in LP. Under what circumstances is it needed, and
under what condition do you think it is not necessary
In most real world situations that are modeled using LP, condition

Problem 1
An electronics firm is currently manufacturing an
item that has a variable cost of $0.60 per unit
and selling price of $1.10 per unit. Fixed cost are
$15,500. Current volume is 32,000 units. The
firm can substantially improve the product
quality

Jia Huang
6-1, 3, 4, 7, 9
8-1,2,3,4,5
10-1, 3, 4, 5, 7, 12, 13
6-1 Compare the similarities and differences of LP and GP.
LP and GP both assume that a problems objective function and constraints are linear. That
means that they cannot contain nonlinear te

Decision variables
C= number of Canvas
P=number of Plastic
N= number of Nylon
L=number of Leather
Objective Function
Maximize 35.5C+39.5P+42.5N+69.5L
Number of Units
Selling Price
Total Labor Cost
Time Cost
Labor Cost
Total Material Cost
Material Cost
Mat

Jia Huang
6-1, 3, 4, 7, 9
8-1,2,3,4,5
10-1, 3, 4, 5, 7, 12, 13
6-1 Compare the similarities and differences of LP and GP.
LP and GP both assume that a problems objective function and constraints are linear. That
means that they cannot contain nonlinear te

Time scheduled
Profit
Constraints:
House Time
Total Time
House
1
720
Lawyer
Office
0
19
Doctor's
Ofiice
72
25
2520
48
48
0
7
0
1
48
120
>=
<=
48
120
A
B
C
D
F
E
A,B,D,E
A,B,C,F
B,C,E,F
A,D,F
B,C,D,F
A,C,E
Locate?(1=YES,0=NO)
Objective Function Coeff
Const

Problem 1
Goal Seek A
GS A
Known parameters:
Selling price per unit
Fixed cost
Variable cost per unit
Results
Total revenue
Fixed cost
Total variable cost
Total cost
Profit
GS B
Known parameters:
$12.00
$70,000.00
$5.00
Input Data
Number of units, X
Goal

Clark County
X1 = number of officers who start their 8-hour shift at 8:00 AM
X2 = number of officers who start their 8-hour shift at Noon
X3 = number of officers who start their 8-hour shift at 4:00 PM
X4 = number of officers who start their 8-hour shift

Hackensack Whisky Company
Decision Variables
Objective Function
Define S
Define J
60% Prime S
15% Prime J
60% Prem J
20% Prem S
Prime Avail
Choice Avail
Premium Avail
Solution Values
S
J
PRIMES
PRIMEJ
PREMS
PREMJ
CS
CJ
LHS
RHS

Fifth Avenue Industries (Make-Buy)
S
P
B1
B2
So
Po
B1o
B2o
All silk All poly Blend-1 Blend-2 All silk All poly Blend-1 Blend-2
to make to make to make to make to buy to buy
to buy
to buy
Number of units
Selling price
Labor cost
Material cost
Outsourcing c

Fifth Avenue Industries
Number of units
Selling price
Labor cost
Material cost
Profit
Constraints:
Yards of silk
Yards of polyester
Yards of cotton
Maximum all silk
Maximum all poly
Maximum blend-1
Maximum blend-2
Minimum all silk
Minimum all poly
Minimum

Website
Variables
Times the website be accessed daily
375000
Known parameters
Fixed Cost/per day
Access revenue/per time
Variable cost of responding/per hit
15000
0.06
0.02
Result
total revenue
fixed cost
total variable cost
total cost
profit
22500
15000

Chapter 1
1-1. Decision modeling is a scientific approach to decision making. This type of analysis is a logical and
rational approach to making decisions. Many academic and professional organizations support the use
of scientific approach such as the Ins

Chapter 4
1.
Sensitivity analysis, also known as postoptimality analysis, is a procedure that allows us to answer
questions, using the current optimal solution itself, without having to resolve the LP model each time.
For each input data value, we attempt

Chapter 6
Integer, Goal, And nonlinear programming Models
6.1 Compare the similarities and differences of LP and GP.
Similarities:
Linear programming and Goal programming models come under mathematical programming and are
used in resource allocation situa

Problem 1
An electronics firm is currently
manufacturing an item that has a variable
cost of $0.60 per unit and selling price of
$1.10 per unit. Fixed cost are $15,500.
Current volume is 32,000 units. The firm
can substantially improve the product quality

Bill Pritchett
Known Parameters
Selling pric $10.00
Fixed cost
#
Variable cos $5.00
Variables
Number of units, X
Results
Total reven
Fixed cost
Total variab
Total cost
Profit
$0.00
#
$0.00
#
#
Bill Pritchett's Shop
Known Parameters
Selling price per unit

Millers' Tax Computati
Known Parameters
Retirement S
5.0%
Maximum sav
$6,000
Personal exe
$3,700
Standard ded
$11,600
Tax rates
10.0%
15.0%
25.0%
Variables
Sue's estimated income
Rob's estimated income
Tax Computation
Total income
Retirement s
Personal ex

Assignment 1 Discussion Questions
Bingqin Liu
Chapter 1
1. Decision modeling is a scientific approach to decision making in practical situations faced
by managers. Organizations such as American Airlines, United Airlines, IBM, Google, UPS,
FedEx, and AT&T

1-19
Know Parameters
Fized Cost
Revenue/access
Cost per access
Variables
Times of access each day
Results
Total revenue
Fixed Cost
Total variable cost
Total cost
Profit
(b)break-even point:
$15,000.00
$0.06
$0.02
375,000.00
$22,500.00
$15,000.00
$7,500.00

6-13
House
Lawyer's Office Doctor's Office
Numbers of units per day
8
0
7
Profit per hour
15
19
25
Labor hour per day
6
7
10
Minimum number of units per
1
2470
118 <=
8 >=
120
8
6-15
Starting Day
Number of employees
Needed Monday
Needed Tuesday
Needed Wed

Discussion Questions 3
Chapter 6
1. LP, IP, and GP all assume that a problems objective function and constraints are linear. Their
differences are that in LP/IP models, we try to find the best possible value for a single objective. That is,
the aim is to

3-1
Canvas
Number of nit
Profit per unit
Material cost per square yard
Worker cost per hour
Work hours
Maximum work hours
Material required
Material available
Price per unit
Worker cost
Worker cost
Worker cost
Material cost
Material cost
Material cost
Mat

1-19
Know Parameters
Fized Cost
Revenue/access
Cost per access
Variables
Times of access each day
Results
Total revenue
Fixed Cost
Total variable cost
Total cost
Profit
(b)break-even point:
$15,000.00
$0.06
$0.02
375,000.00
$22,500.00
$15,000.00
$7,500.00

Discussion Questions 2
Answered by Bingqin Liu
Chapter 4
1. Sensitivity analysis, also known as post-optimality analysis, is needed if changes in input
data values are hypothetical, or when we have many input data values in a model and we are
considering

Aviston Electronics Company
LP Model
Decision Variables
Objective Function
Cutting hrs
Shaping hrs
Fabrication hrs
Total shafts
Total bases
Total cages
Number of Components
SI
BI
CI
SO
BO
CO
LHS
RHS

Anderson Home Electronics
M
S
T
B
MP3
Player
Satellite
Radio
Tuner
LCD
TV
Blu-Ray
DVD
Player
Solution value
Selling price
Cost price
Profit
Constraints
Electronic components
Non-electronic components
Assembly time
LHS
Sign RHS