Sohaib Arif

21110231
Duality Theory - Assignment

a) Primal Problem

The decision variables are:

𝑥1 = # 𝑜𝑓 𝑛𝑒𝑐𝑘𝑙𝑎𝑐𝑒𝑠

𝑥2 = # 𝑜𝑓 𝑏𝑟𝑎𝑐𝑒𝑙𝑒𝑡𝑠

We want to maximize our profit by producing an optimum number of necklaces and bracelets.

𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 Profit 𝑍 = 300𝑥1 + 400𝑥2

The constraints to our primal problem are as under:

3𝑥1 + 2𝑥2 ≤ 18

2𝑥1 + 4𝑥2 ≤ 20

𝑥2 ≤ 4

𝑥𝑖 ≥ 0 ∀ 𝑖

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 Sohaib Arif
21110231

Solution for Primal Problem

Interpretation:

Our optimal solution involves producing 4 necklaces and 3 bracelets which will give us a profit
of $2400.

b) Dual Problem

𝑦1 = 𝑚𝑎𝑟𝑔𝑖𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡 𝑎𝑐ℎ𝑒𝑖𝑣𝑒𝑑 𝑏𝑦 𝑢𝑡𝑖𝑙𝑖𝑧𝑖𝑛𝑔 𝑜𝑛𝑒 𝑢𝑛𝑖𝑡 𝑜𝑓 𝑔𝑜𝑙𝑑 𝑖𝑛 𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑦 1

𝑦2 = 𝑚𝑎𝑟𝑔𝑖𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡 𝑎𝑐ℎ𝑒𝑖𝑣𝑒𝑑 𝑏𝑦 𝑢𝑡𝑖𝑙𝑖𝑧𝑖𝑛𝑔 𝑜𝑛𝑒 𝑢𝑛𝑖𝑡 𝑜𝑓 𝑝𝑙𝑎𝑡𝑖𝑛𝑢𝑚 𝑖𝑛 𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑦 2

𝑦3 = 𝑚𝑎𝑟𝑔𝑖𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡 𝑎𝑐ℎ𝑒𝑖𝑣𝑒𝑑 𝑏𝑦 𝑙𝑖𝑚𝑖𝑡𝑖𝑛𝑔 𝑡ℎ𝑒 𝑢𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑝𝑙𝑎𝑡𝑖𝑛𝑢𝑚 𝑖𝑛 𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑦 3

We want to minimize our use of the available resources

𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑍̅ = 18𝑦1 + 20𝑦2 + 4𝑦3

Given the constraints

3𝑦1 + 2𝑦2 ≥ 300

2𝑦1 + 4𝑦2 + 𝑦3 ≥ 400

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 Sohaib Arif
21110231
𝑦𝑖 ≥ 0 ∀ 𝑖

Excel Solver – Solution for Dual Problem:

Dual Problem
Coefficients 18 20 4
Decision variables y1 y2 y3 Minimize
Quantities 50 75 0 2400

Constraints
1 3 2 0 300 >= 300
2 2 4 1 400 >= 400

Interpretation:

The optimal values obtained for 𝑦1, 𝑦2, 𝑎𝑛𝑑 𝑦3 are 50, 75 and 0 respectively, giving us a profit of
$2400.

Sensitivity Analysis

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 Sohaib Arif
21110231
Sensitivity report for primal and dual are given below:

a) Primal Problem

b) Dual Problem

Interpretation:

1. In sensitivity analysis of dual problem, solver suggests not to produce 𝑦3 as its reduced
cost is 1. This shows the amount with which the resource utilization will be increased if

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21110231
we include one unit in the solution. Since this is a minimization problem, it is not
favorable.
2. Within the Final Value column of Primal Problem, 4 and 3 are the optimal numbers of
production for necklaces and bracelets respectively. Moreover, the shadow prices of the
resources as 50, 75 and 0.
3. On looking at the Final Values column of the Dual Problem sensitivity report, observe
that the shadow prices that were present in previous sensitivity report are the final values
in this one. The shadow prices obtained through sensitivity analysis in our primal
problem are actually the optimal solution value of our dual problem i.e. 50, 75 and 0.
4. Moreover, the opposite is also true i.e. the shadow prices obtained in dual problem i.e. 4
and 3 are the final decision variable values in primal problem optimal solution.
5. The allowable changes follow the same pattern discussed above. Allowable increase and
decrease in shadow prices of gold in primal problem is similar to the allowable increase
and decrease in objective co-efficient of 𝑦1in dual problem – 12 and 4 respectively.
6. The final value in both the objective functions of dual and primal problems is the same
i.e. $2400. This is because, in the first case, profit is being maximized, whereas in dual
problem resource utilization is being minimized.
7. Hence the dual problem helps to solve the problem from the constraint side, improving
the overall system while reaching the same optimal solution of $2400.