Independence Day

Weekend
OPTIMIZATION TECHNIQUES
Operations
The management of GLUM corporation is currently faced with the problem of determining its
product mix for the coming period. Since, the corporation is one of the few suppliers of
transformers for laser cover units, only liberal sales ceilings are anticipated. The corporation
should not plan on selling transformers of more than 200 units of A type, 100 units of B type and
180 units of C type. Contracts call for production of at least 20 units of A type and 70 units of C
type. Within these bounds, management is free to establish the units production schedules.
These are subject to the capacity of the plant to produce without overtime. The production
times prevail.
Marketing
An advertising company wishes to plan advertising campaign in 3 different media, television,
radio and magazine. The purpose of advertising is to reach as many potential consumers as
possible. Results of a marketing study are given below:

The company doesn’t want to spend more than ` 8,00,000 on advertising. It further requires
that:
a. At least 2 million exposures take place among women.
b. Advertising on television be limited to ` 5,00,000.
c. At least 3 advertising units can be bought on prime day and 2 units prime time.
d. The number of advertising units on radio and magazine should each be between 5 and 10.
Formulate the Linear Programming model in order to maximize the total number of potential
customers reached.
Scheduling
CSL is a chain of computer service stores. The number of hours of skilled repair time that CSL
requires during the next five months is as follows: Month 1 (January): 6,000 hours Month 2
(February): 7,000 hours Month 3 (March): 8,000 hours Month 4 (April): 9,500 hours Month 5
(May): 11,000 hours
At the beginning of January, 50 skilled technicians work for CSL. Each skilled technician can work
up to 160 hours per month. To meet future demands, new technicians must be trained. It takes
one month to train a new technician. During the month of training, a trainee must be supervised
for 50 hours by an experienced technician. Each experienced technician is paid $2,000 a month
(even if he or she does not work the full 160 hours). During the month of training, a trainee is
paid $1,000 a month. At the end of each month, 5% of CSL’s experienced technicians quit to join
Plum Computers. Formulate an LP whose solution will enable CSL to minimize the labor cost
incurred in meeting the service requirements for the next five months
Single Period Production Model
In preparation for the winter season, a clothing company is manufacturing parka and goose
overcoats, insulated pants, and gloves. All products are manufactured in four different
departments: cutting, insulating, sewing, and packaging. The company has received firm orders for
its products. The contract stipulates a penalty for undelivered items. Devise an optimal production
plan for the company based on the following data:
Time per units(hr)
Parka Goose Pants Gloves Capacity(hr)
Cutting 0.3 0.3 0.25 0.15 1000
Insulating 0.25 0.35 0.3 0.1 1000
Sewing 0.45 0.5 0.4 0.22 1000
Packaging 0.15 0.15 0.1 0.05 1000
Demand 800 750 600 500
Unit Profit $ 30 40 20 10
Unit Penalty $ 15 20 10 8
Sensitivity Analysis
In LP, the parameters (input data) of the model can change within certain limits without causing
changes in the optimum. This is referred to as sensitivity analysis and will be the subject matter
of this section. Post-optimal analysis deals with determining the new optimum solution when
targeted input data are changed.
Two Types of Analysis
Sensitivity of the optimum solution to changes in the availability of the resources (right-hand side
of the constraints).

Sensitivity of the optimum solution to changes in unit profit or unit cost (coefficients of the
objective function).
Type 1: Change in Resources
JOBCO manufactures two products on two machines. A unit of product 1 requires 2 hours on machine
1 and 1 hour on machine 2. For product 2, one unit requires 1 hour on machine 1 and 3 hours on
machine 2. The revenues per unit of products 1 and 2 are $30 and $20, respectively. The total daily
processing time available for each machine is 8 hours.
Letting x1 and x2 represent the daily number of units of products 1 and 2, respectively, the LP model is
given as
Maximize z = 30x1 + 20x2
Constraints:
Machine 1: 2x1 + x2 ≤ 8
Machine 2: x1 + 3x2 ≤ 8
x1 and x2 >0
Excel
Sensitivity Report
Type 2: Change to coefficient of objective
function
Changes in revenue units will change the slope of z which is the objective function
How can we determine ranges for the coefficients of the objective function that will keep the
optimum solution unchanged at B?
Write the objective function in the general format: z = c1x1 + c2x2
Graphically: Optimal Solution
Imagine now that the line is pivoted at B and that it can rotate clockwise and counterclockwise.
The optimum solution will remain at point B so long as it lies between the two constraints lines

8 M1: 2x1 + x2 ≤ 8

Optimal Point B
x1 =3.2
z X2 =1.6
z = 128
A
8/
3 B M2: x1 + 3x2 ≤ 8
D C
4 8
Optimal Solution
The slope of the objective function c2/c1 should lie between the slope of the constraint lines
which is ½ and 3/1
1 𝑐2 3
≤ ≤
2 𝑐1 1
Suppose that the unit revenue of product 2 is fixed at its current value 20. What is the associated
optimality range for the unit revenue for product 1,c1, that will keep the optimum unchanged?

1 20 3
≤ ≤ => 6.67 ≤ c1 ≤ 40
2 𝑐1 1
Optimal Solution
Suppose that the unit revenue of product 1 is fixed at its current value 30. What is the associated
optimality range for the unit revenue for product 1,c2, that will keep the optimum unchanged?

1 𝑐2 3
≤ ≤
2 30 1
15 ≤ c2 ≤ 90
Checking for Optimality
Suppose that the unit revenues for products 1 and 2 are changed to $35 and $25, respectively.
Will the current optimum remain the same?

New Objective Function: Maximize z = 35x1 + 25x2