A

Analysis ement
GLOBAL EDITION ELEVENTH EDITION

Charles Harwood Professor of Management Science Graduate School of Business, Rollins College

Professor of Information and Management Sciences, Florida State University

Professor of Decision Sciences, University of HoustonClear Lake

Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

CONTENTS

PREFACE 1 5
CHAPTER 1 1.1 1.2 1.3 Introduction to Quantitative Analysis 21 Introduction 22 What Is Quantitative Analysis? 22 The Quantitative Analysis Approach 23 Defining the Problem 23 Developing a Model 23 Acquiring Input Data 24 Developing a Solution 25 Testing the Solution 25 Analyzing the Results and Sensitivity Analysis 25 Implementing the Results 25 The Quantitative Analysis Approach and Modeling in the Real World 27 How to Develop a Quantitative Analysis Model 27 , The Advantages of Mathematical Modeling 28 Mathematical Models Categorized by Risk 28 The Role of Computers and Spreadsheet Models in the Quantitative Analysis Approach 29 Possible Problems in the Quantitative Analysis Approach 32 Defining the Problem 32 Developing a Model 33 Acquiring Input Data 33 Developing a Solution 34 Testing the Solution 34 Analyzing the Results 34 ImplementationNot Just the Final Step 35 Lack of Commitment and Resistance to Change 35 Lack of Commitment by Quantitative Analysts 35
Summary 36 Glossary 36 Key Equations 36 Self-Test 37 Discussion Questions and Problems 37 Case Study: Food and Beverages at Southwestern University Football Games 39 Bibliography 39

2.4 2.5 2.6 2.7 2.8 2.9

1.4

2.10

1.5 1.6

2.11

2.12 2.13 2.14

1.7

Appendix 2.1 Appendix 2.2

Adding Mutually Exclusive Events 46 Law of Addition for Events That Are Not Mutually Exclusive 46 Statistically Independent Events 47 Statistically Dependent Events 48 Revising Probabilities with Bayes'Theorem 49 General Form of Bayes' Theorem 51 Further Probability Revisions 52 Random Variables 53 Probability Distributions 54 Probability Distribution of a Discrete Random Variable 54 Expected Value of a Discrete Probability Distribution 55 Variance of a Discrete Probability Distribution 56 Probability Distribution of a Continuous Random Variable 56 The Binomial Distribution 58 Solving Problems with the Binomial Formula 59 Solving Problems with Binomial Tables 60 The Normal Distribution 61 Area Under the Normal Curve 62 Using the Standard Normal Table 62 s Haynes Construction Company Example 64 The Empirical Rule 68 The F Distribution 68 The Exponential Distribution 70 Arnold's Muffler Example 71 The Poisson Distribution 72 Summary 74 Glossary 74 Key Equations 75 Solved Problems 76 Self-Test 79 Discussion Questions and Problems 80 Case Study: WTVX 85 Bibliography 86 Derivation of Bayes' Theoreni 86 Basic Statistics Using Excel 86

CHAPTER 2 2.1 2.2 2.3

Probability Concepts and Applications 41 Introduction 42 Fundamental Concepts 42 Types of Probability 43 Mutually Exclusive and Collectively Exhaustive Events 44

CIWTIIR3 3.1 3.2 3.3 3.4

Decision Analysis 89 Introduction 90 The Six Steps in Decision Making 90 Types of Decision-Making Environments 91 Decision Making Under Uncertainty 92
Optimistic 92 Pessimistic 93 Criterion of Realism (Hurwicz Criterion) 93

CONTENTS

Equally Likely (Laplace) 94 Minimax Regret 94

Appendix 4.2 Appendix 4.3

3.5

Decision Making Under Risk 96

Expected Monetary Value 96 Expected Value of Perfect Information 97 Expected Opportunity Loss 98 Sensitivity Analysis 99 Using Excel QM to Solve Decision Theory Problems 100 Decision Trees 101 Efficiency of Sample Information 106 Sensitivity Analysis 106 How Probability Values are Estimated by Bayesian Analysis 107 Calculating Revised Probabilities 107 Potential Problem in Using Survey Results 109 Utility Theory 110 Measuring Utility and Constructing a Utility Curve 111 Utility as a Decision-Making Criterion 113 Summary 115 Glossary 115 Key Equations 116 Solved Problems 117 Self-Test 122 Discussion Questions and Problems 123 Case Study: Starting Right Corporation 130 Case Study: Blake Electronics 131 Bibliography 133

Regression Models Using QMfor Windows 168 Regression Analysis in Excel QM or Excel 2007 170

CHAPTER 5 5.1 5.2

3.6

3.7

5.3 5.4 5.5

3.8

Appendix 3.1 Appendix 3.2

Decision Models with QM for Windows 133 Decision Trees with QMfor Windows 134
5.6 Regression Models 135 Introduction 136 Scatter Diagrams 136 Simple Linear Regression 137 Measuring the Fit of the Regression Model 139 Coefficient of Determination 140 Correlation Coefficient 141 Using Computer Software for Regression 142 Assumptions of the Regression Model 143 Estimating the Variance 145 Testing the Model for Significance 145 Triple A Construction Example 147 The Analysis of Variance (ANOVA) Table 147 Triple A Construction ANOVA Example 148 Multiple Regression Analysis 148 Evaluating the Multiple Regression Model 149 Jenny Wilson Realty Example 150 Binary or Dummy Variables 151 Model Building 152 Nonlinear Regression 153 Cautions and Pitfalls in Regression Analysis 156 Summary 156 Glossary 157 Key Equations 157 Solved Problems 158 Self-Test 160 Discussion Questions and Problems 160 Case Study: North-South Airline 165 Bibliography 166 Formulas for Regression Calculations 166

4.1 4.2 4.3 4.4

Forecasting 173 Introduction 174 Types of Forecasts 174 Time-Series Models 174 Causal Models 174 Qualitative Models 175 Scatter Diagrams and Time Series 176 Measures of Forecast Accuracy 178 Time-Series Forecasting Models 180 Components of a Time Series 180 Moving Averages 181 Exponential Smoothing 184 Using Excel QM for Trend-Adjusted Exponential Smoothing 189 Trend Projections' 189 Seasonal Variations 191 Seasonal Variations with Trend 193 The Decomposition Method of Forecasting with Trend and Seasonal Components 195 Using Regression with Trend and Seasonal Components 197 Monitoring and Controlling Forecasts 199 Adaptive Smoothing 201 Summary 201 Glossary 202 Key Equations 202 Solved Problems 203 Self-Test 204 Discussion Questions and Problems 205 Case Study: Forecasting Attendance at SWU Football Games 209 Case Study: Forecasting Monthly Sales 210 Bibliography 211

4.5 4.6 4.7

Appendix 5.1

Forecasting with QMfor Windows 211

CHAPITER 6 6.1 6.2

Inventory Control Models 215 Introduction 216 Importance of Inventory Control 216
Decoupling Function 217 Storing Resources 217 Irregular Supply and Demand 217 Quantity Discounts 217 Avoiding Stockouts and Shortages 217

4.8

4.9 4.10 4.11 4.12

6.3 6.4

Inventory Decisions 217 Economic Order Quantity: Determining How Much to Order 219
Inventory Costs in the EOQ Situation 220 Finding the EOQ 222 Sumco Pump Company Example 222 Purchase Cost of Inventory Items 223 Sensitivity Analysis with the EOQ Model 224 Reorder Point: Determining When to Order 225

Appendix 4.1

6.5

CONTENTS

6.6

6.7 6.8 6.9

6.10 6.11

6.12 6.13

EOQ Without the Instantaneous Receipt Assumption 226 Annual Carrying Cost for Production Run Model 227 Annual Setup Cost or Annual Ordering Cost 228 Determining the Optimal Production Quantity 228 Brown Manufacturing Example 228 Quantity Discount Models 230 Brass Department Store Example 232 Use of Safety Stock 233 Single-Period Inventory Models 240 Marginal Analysis with Discrete Distributions 241 Cafe du Donut Example 242 Marginal Analysis with the Normal Distribution 242 Newspaper Example 243 ABC Analysis 245 Dependent Demand: The Case for Material Requirements Planning 246 Material Structure Tree 246 Gross and Net Material Requirements Plan 247 Two or More End Products 249 Just-in-Time Inventory Control 250 Enterprise Resource Planning 252 Summary 252 Glossary 252 Key Equations 253 Solved Problems 254 Self-Test 257 Discussion Questions and Problems -258 Case Study: Martin-Pullin Bicycle Corporation 265 Bibliography 266 Inventory Control with QMfor Windows 266

7.8

Appendix 7.1

Sensitivity Analysis 296 High Note Sound Company 298 Changes in the Objective Function Coefficient 298 QM for Windows and Changes in Objective Function Coefficients 299 Excel Solver and Changes in Objective Function Coefficients 300 Changes in the Technological Coefficients 300 Changes in the Resources or Right-Hand-Side Values 302 QM for Windows and Changes in Right-HandSide Values 303 Excel Solver and Changes in Right-Hand-Side Values 305 Summary 305 Glossary 305 Solved Problems 306 Self-Test 311 Discussion Questions and Problems 312 Case Study: Mexicana Wire Works 320 Bibliography 322 Excel QM 322

CHAPTERS 8.1 8.2

8.3

Appendix 6.1

8.4 8.5

CHAPTER 7
7.1 7.2 7.3 7.4

Linear Programming Models: Graphical and Computer Methods 269 Introduction 270 Requirements of a Linear Programming
iiuuieiii

8.6

Prnhlem ?7fl

z./u

Formulating LP Problems 271 Flair Furniture Company 272 Graphical Solution to an LP Problem 273 Graphical Representation of Constraints 273 Isoprofit Line Solution Method 277 Corner Point Solution Method 280 Slack and Surplus 282 Solving Flair Furniture's LP Problem Using QMFor Windows and Excel 283 Using QM for Windows 283 Using Excel's Solver Command to Solve
1 P Prrhlpmc 784
Lr rlOUlCIlla ^1O4

8.7

Linear Programming Applications 327 Introduction 328 Marketing Applications 328 Media Selection 328 Marketing Research 329 Manufacturing Applications 332 Production Mix 332 Production Scheduling 333 Employee Scheduling Applications 337 Labor Planning 337 Financial Applications 339 Portfolio Selection 339 Truck Loading Problem 342 Ingredient Blending Applications 344 Diet Problems 344 Ingredient Mix and Blending Problems 345 Transportation Applications 347 Shipping Problem 347 Summary 350 Self-Test 350 Problems 351 Case Study: Chase Manhattan Bank 359 Bibliography 359

7.5

CHAPTER 9
9.1 9.2

7.6 7.7

Solving Minimization Problems 290 Holiday Meal Turkey Ranch 290 Four Special Cases in LP 294 No Feasible Solution 294 Unboundedness 295 Redundancy 295 Alternate Optimal Solutions 296

9.3 9.4

Transportation and Assignment Models 361 Introduction 362 The Transportation Problem 362 Linear Program for the Transportation Example 362 A General LP Model for Transportation Problems 363 The Assignment Problem 364 Linear Program for Assignment Example 365 The Transshipment Problem 366 Linear Program for Transshipment Example 367

10

CONTENTS

9.5

The Transportation Algorithm 368

Developing an Initial Solution: Northwest Corner Rule 370 Stepping-Stone Method: Finding a Least-Cost Solution 372

9.6

Special Situations with the Transportation Algorithm 378

Unbalanced Transportation Problems 378 Degeneracy in Transportation Problems 379 More Than One Optimal Solution 382 Maximization Transportation Problems 382 Unacceptable or Prohibited Routes 382 Other Transportation Methods 382 Facility Location Analysis 383 Locating a New Factory for Hardgrave Machine Company 383 The Assignment Algorithm 385 The Hungarian Method (Flood's Technique) 386 Making the Final Assignment 389 Special Situations with the Assignment Algorithm 391 Unbalanced Assignment Problems 391 Maximization Assignment Problems 391 Summary 393 Glossary 393 Solved Problems 394 Self-Test 400 Discussion Questions and Problems 401 Case Study: Andrew-Carter, Inc. 411 Case Study: Old Oregon Wood Store 412 Bibliography 413 Using QM for Windows 413

Linear Objective Function with Nonlinear Constraints 434 Summary 435 Glossary 435 Solved Problems 436 Self-Test 439 Discussion Questions and Problems 439 Case Study: Schank Marketing Research 445 Case Study: Oakton River Bridge 445 Bibliography 446

11.1 11.2 11.3

9.7

11.4

9.8

9.9

Network Models 449 Introduction 450 Minimal-Spanning Tree Problem 450 Maximal-Flow Problem 453 Maximal-Flow Technique 453 Linear Program for Maximal Flow 458 Shortest-Route Problem 459 Shortest-Route Technique 459 Linear Program for Shortest-Route Problem 461 Summary 464 Glossary 464 Solved Problems 465 Self-Test 467 Discussion Questions and Problems 468 Case Study: Binder's Beverage 475 Case Study: Southwestern University Traffic Problems 476 Bibliography 477

12.1 12.2

Appendix 9.1

CHAPTER 10 10.1 10.2

10.3

10.4

10.5

Integer Programming, Goal Programming, and Nonlinear Programming 415 Introduction 416 Integer Programming 416 Harrison Electric Company Example of Integer Programming 416 Using Software to Solve the Harrison Integer Programming Problem 418 Mixed-Integer Programming Problem Example 420 Modeling with 0-1 (Binary) Variables 422 Capital Budgeting Example 422 Limiting the Number of Alternatives Selected 424 Dependent Selections 424 Fixed-Charge Problem Example 424 Financial Investment Example 425 Goal Programming 426 Example of Goal Programming: Harrison Electric Company Revisited 428 Extension to Equally Important Multiple Goals 429 Ranking Goals with Priority Levels 429 Goal Programming with Weighted Goals 430 Nonlinear Programming 431 Nonlinear Objective Function and Linear Constraints 432 Both Nonlinear Objective Function and Nonlinear Constraints 433

12.3

12.4

12.5

Project Management 479 Introduction 480 PERT/CPM 480 General Foundry Example of PERT/CPM 481 Drawing the PERT/CPM Network 482 Activity Times 483 How to Find the Critical Path 484 Probability of Project Completion 489 What PERT Was Able to Provide 491 Using Excel QM for the General Foundry Example 491 Sensitivity Analysis and Project Management 491 PERT/Cost 493 Planning and Scheduling Project Costs: Budgeting Process 493 Monitoring and Controlling Project Costs 497 Project Crashing 499 General Foundary Example 500 Project Crashing with Linear Programming 500 Other Topics in Project Management 504 Subprojects 504 Milestones 504 Resource Leveling 504 Software 504 Summary 504 Glossary 505 Key Equations 505 Solved Problems 506 Self-Test 507 Discussion Questions and Problems 508 Case Study: Project Management: Cost, Quality and Time Trade-Off in a Thai Construction Company 514 Case Study: Family Planning Research Center of Nigeria 515 Bibliography 516 Project Management with QMfor Windows 517

Appendix 12.1

CONTENTS

11

CHAPTER 13 13.1 13.2 13.3

13.4

13.5

13.6

13.7

13.8 13.9

Waiting Lines and Queuing Theory Models 519 Introduction 520 Waiting Line Costs 520 Three Rivers Shipping Company Example 521 Characteristics of a Queuing System 521 Arrival Characteristics 521 Waiting Line Characteristics 522 Service Facility Characteristics 523 Identifying Models Using Kendall Notation 523 Single-Channel Queuing Model with Poisson Arrivals and Exponential Service Times (M/M/l) 526 Assumptions of the Model 526 Queuing Equations 526 Arnold's Muffler Shop Case 527 Enhancing the Queuing Environment 531 Multichannel Queuing Model with Poisson Arrivals and Exponential Service Times (M/M/m) 531 Equations for the Multichannel Queuing Model 532 Arnold's Muffler Shop Revisited 532 Constant Service Time Model (M/D/l) 534 Equations for the Constant Service Time Model 535 Garcia-Golding Recycling, Inc. 535 Finite Population Model (M/M/l with Finite Source) 536 Equations for the Finite Population Model 537 Department of Commerce Example 537 Some General Operating Characteristic Relationships 539 More Complex Queuing Models and the Use of Simulation 539 Summary 540 Glossary 540 Key Equations 541 Solved Problems 542 Self-Test 544 Discussion Questions and Problems 545 Case Study: New England Foundry 550 Case Study: Winter Park Hotel 551 Bibliography 552 Using QMfor Windows 552

14.6

14.7

Using Excel to Simulate the Port of New Orleans Queuing Problem 571 Simulation Model for a Maintenance Policy 573 Three Hills Power Company 573 Cost Analysis of the Simulation 577 Other Simulation Issues 577 Two Other Types of Simulation Models 577 Verification and Validation 579 Role of Computers in Simulation 580 Summary 580 Glossary 580 Solved Problems 581 Self-Test 584 Discussion Questions and Problems 585 Case Study: Alabama Airlines 590 Case Study: Statewide Development Corporation 591 Bibliography 592

B 15.1 15.2

15.3

15.4 15.5 15.6 15.7

Markov Analysis 593 Introduction 594 States and State Probabilities 594 The Vector of State Probabilities for Three Grocery Stores Example 595 Matrix of Transition Probabilities 596 Transition Probabilities for the Three Grocery Stores 597 Predicting Future Market Shares 597 Markov Analysis of Machine Operations 598 Equilibrium Conditions 599 Absorbing States and the Fundamental Matrix: Accounts Receivable Application 602 Summary 606 Glossary 607 Key Equations 607 Solved Problems 607 Self-Test 611 ' Discussion Questions and Problems 611 Case Study: Rentall Trucks 615 Bibliography 617

Appendix 15.1 Appendix 15.2

Markov Analysis with QMfor Windows 6\ Markov Analysis With Excel 619

Appendix 13.1

CHAPTER 1 6 16.1 16.2 16.3 16.4

Statistical Quality Control 621 Introduction 622 Defining Quality and TQM 622 Statiscal Process Control 623
Variability in the Process 623 Control Charts for Variables 625 The Central Limit Theorem 625 Setting x-Chart Limits 626 Setting Range Chart Limits 629

CHAPTER 1 4
14.1 14.2 14.3

Simulation Modeling 553

Introduction 554 Advantages and Disadvantages of Simulation 555 Monte Carlo Simulation 556 Harry's Auto Tire Example 556 Using QM for Windows for Simulation 561 Simulation with Excel Spreadsheets 561

16.5

Control Charts for Attributes 630

p-Charts 630 c-Charts 633 Summary 634 Glossary 634 Key Equations 634 Solved Problems 635 Self-Test 636 Discussion Questions and Problems 637 Bibliography 639

14.4

Simulation and Inventory Analysis 565

Simkin's Hardware Store 565 Analyzing Simkin's Inventory Costs 568 Simulation of a Queuing Problem 570 Port of New Orleans 570

14.5

Appendix 16.1

Using QMfor Windows for SPC 639

12

CONTENTS

APPENDICES 6 4 1
APPENDIX A APPENDIX B APPENDIX C APPENDIX D APPENDIX E APPENDIX f APPENDIX G APPENDIX H Areas Under the Standard Normal Curve 642 Binomial Probabilities 644 Values of e~A for use in the Poisson Distribution 649 ^Distribution Values 650 Using POM-QM for Windows 652 Using Excel QM and Excel Add-Ins 655 Solutions to Selected Problems 656 Solutions to Self-Tests 659

MODULE 3 M3.1 M3.2

M3.3 ~

INDEX 661
ONLINE MODULES MODULE 1 Ml.l Ml.2 Ml.3 Analytic Hierarchy Process Ml-1 Introduction Ml-2 Multifactor Evaluation Process Ml-2 Analytic Hierarchy Process Ml-4 Judy Grim's Computer Decision Ml-4 Using Pairwise Comparisons Ml-5 Evaluations for Hardware Ml-7 Determining the Consistency Ratio Ml-7 Evaluations for the Other Factors Ml-9 Determining Factor Weights Ml-10 Overall Ranking Ml-10 Using the Computer to Solve Analytic Hierarchy Process Problems M1 -10 Comparison of Multif actor Evaluation and Analytic Hierarchy Processes Ml -11 Summary Ml-12 Glossary Ml-12 Key Equations Ml-12 Solved Problems Ml-12 SelfTest Ml-14 Discussion Questions and Problems Ml-14 Bibliography Ml-16 Using Excel for the Analytic Hierarchy Process Ml-16 Dynamic Programming M2-1 Introduction M2-2 Shortest-Route Problem Solved using Dynamic Programming M2-2 Dynamic Programming Terminology M2-6 Dynamic Programming Notation M2-8 Knapsack Problem M2-9 Types of Knapsack Problems M2-9 Roller's Air Transport Service Problem M2-9 Summary M2-16 Glossary M2-16 Key Equations M2-16 Solved Problems M2-17 Self-Test M2-19 Discussion Questions and Problems M2-20 Case Study: United Trucking M2-22 Internet Case Study M2-22 Bibliography M2-23

Decision Theory and the Normal Distribution M3-1 Introduction M3-2 Break-Even Analysis and the Normal Distribution M3-2 Barclay Brothers Company's New Product Decision M3-2 Probability Distribution of Demand M3-3 Using Expected Monetary Value to Make a Decision M3-5 Expected Value of Perfect Information and the Normal Distribution M3-6 Opportunity Loss Function M3-6 Expected Opportunity Loss M3-6 Summary M3-8 Glossary M3-8 Key Equations M3-8 Solved Problems M3-9 Self-Test M3-10 Discussion Questions and Problems M3-10 Bibliography M3-12 Derivation of the Break-Even Point M3-12 Unit Normal Loss Integral M3-13 Game Theory M4-1 , Introduction M4-2 Language of Games M4-2 The Minimax Criterion M4-3 Pure Strategy Games M4-4 Mixed Strategy Games M4-5 Dominance M4-7 Summary M4-7 Glossary M4-8 Solved Problems M4-8 Self-Test M4-10 Discussion Questions and Problems M4-10 Bibliography M4-12 Game Theory with QM for Windows M4-12 Mathematical Tools: Determinants and Matrices M5-1 Introduction M5-2 Matrices and Matrix Operations M5-2 Matrix Addition and Subtraction M5-2 Matrix Multiplication M5-3 Matrix Notation for Systems of Equations M5-6 Matrix Transpose M5-6 Determinants, Cofactors, andAdjoints M5-7 Determinants M5-7 Matrix of Cofactors and Adjoint M5-9 Finding the Inverse of a Matrix M5-10

Appendix M3.1 Appendix M3.2 MODULI 4 M4.1 M4.2 M4.3 M4.4 M4.5 M4.6

Ml.4

Appendix M4.1

Appendix Ml. 1

MODULE 5
M5.1 M5.2

MODULE 2 M2.1 M2.2 M2.3 M2.4 M2.5

M5.3

M5.4

/
CONTENTS

13

AppendixM5.1 MODULE 6 M6.1 M6.2 M6.3 M6.4 M6.5 M6.6

Summary M5-12 Glossary M5-12 Key Equations M5-12 Self-Test M5-13 Discussion Questions and Problems M5-13 Bibliography M5-14 Using Excel for Matrix Calculations M5-15 Calculus-Based Optimization M6-1 Introduction M6-2 Slope of a Straight Line M6-2 Slope of a Nonlinear Function M6-3 Some Common Derivatives M6-5 Second Derivatives M6-6 Maximum and Minimum M6-6 Applications M6-8 Economic Order Quantity M6-8 Total Revenue M6-9 Summary M6-10 Glossary M6-10 Key Equations M6-10 Solved Problem M6-11 Self-Test M6-11 Discussion Questions and Problems M6-12 Bibliography M6-12 Linear Programming: The Simplex Method M7-1 . Introduction M7-2 How to Set Up the Initial Simplex Solution M7-2 Converting the Constraints to Equations M7-3 Finding an Initial Solution Algebraically M7-3 The First Simplex Tableau M7-4 Simplex Solution Procedures M7-8 The Second Simplex Tableau M7-9 Interpreting the Second Tableau M7-12 Developing the Third Tableau M7-13 Review of Procedures for Solving LP Maximization Problems M7-16 Surplus and Artificial Variables M7-16 Surplus Variables M7-17 Artificial Variables M7-17 Surplus and Artificial Variables in the Objective Function M7-18

M7.8

M7.9 M7.10

MODULE 7 M7.1 M7.2

M7.11

M7.12

M7.3 M7.4 M7.5 M7.6 M7.7

M7.13

Solving Minimization Problems M7-18 The Muddy River Chemical Company Example M7-18 Graphical Analysis M7-19 Converting the Constraints and Objective Function M7-20 Rules of the Simplex Method for Minimization Problems M7-21 First Simplex Tableau for the Muddy River Chemical Corporation Problem M7-21 Developing a Second Tableau M7-23 Developing a Third Tableau M7-24 Fourth Tableau for the Muddy River Chemical Corporation Problem M7-26 Review of Procedures for Solving LP Minimization Problems M7-27 Special Cases M7-28 Infeasibility M7-28 Unbounded Solutions M7-28 Degeneracy M7-29 More Than One Optimal Solution M7-30 Sensitivity Analysis with the Simplex Tableau M7-30 High Note Sound Company Revisited M7-30 Changes in the Objective Function Coefficients M7-31 Changes in Resources or RHS Values M7-33 The Dual M7-35 Dual Formulation Procedures M7-37 Solving the Dual of the High Note Sound Company Problem M7-37 Karmarkar's Algorithm M7-39 Summary M7-39 Glossary M7-39 Key Equation M7-40 Solved Problems M7-40 Self-Test M7-42 Discussion Questions and Problems M7-45 Bibliography M7-54