Formulation

X1 X2 Objective Function
Qty 77.89473684 63.157895 Maximisation Max
Unit Cost 30 15 3284.2105 Objective Function Constraints:
S.T. (Such That) lhs <=> rhs Slack Surplus 1
C1 1 0.35 100 <= 100 0 2
C2 0.3 0.2 36 <= 36 0 3
C3 0.2 0.5 47.157895 <= 50 2.8421053

a. Optimal Solution / Profit = 3,284.211 ; Objective Function = 30X1 + 15X2

X1 = 77.89
X2 = 63.15

As highlighted in the Sensitivity Report Q2 sheet, the shadow price for C1 is $15.79, for C2 is $47.37 and for C3 is $0
b. and C2 and will be willing to pay up to $15.79 and $47.37 per hour to the current labor respectively.

c. Optimal Solution / Profit = 3,341.337 ; Objective Function = 30X1 + 15X2 - 18XA - 22.5XB - 12XC
X1 = 87.209
X2 = 65.116

Overtime: Dept A = 10
Dept B = 3.186
Dept C = 0

Increase in profits from overtime = 3,341.337 - 3,284.211 = 57.13

 Formulation
Objective Function
30X1 + 15X2
Constraints:
X1 + 0.35X2 <= 100
0.3X1 + 0.2X2 <= 36
0.2X1 + 0.5X2 <= 50

C2 is $47.37 and for C3 is $0. Therefore we would attempt to schedule overtime in C1

respectively.

B - 12XC
 X1 X2 XA XB XC
Qty 87.209302 65.116279 10 3.1860465 0 Maximisation
Unit Cost 30 15 -18 -22.5 -12 3341.3372 Objective Function
S.T. (Such That) lhs <=> rhs
C1 1 0.35 -1 100 <= 100
C2 0.3 0.2 -1 36 <= 36
C3 0.2 0.5 -1 50 <= 50
C4 1 10 <= 10
C5 1 3.1860465 <= 6
C6 1 0 <= 8
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [New Microsoft Excel Worksheet.xlsx]Chap 4 Q2
Report Created: 13-02-2024 08:05:51 PM

Variable Cells Range of Optimality

Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease Lower Limit
$B$3 Qty X1 77.89473684 0 30 12.85714286 7.5 22.5
$C$3 Qty X2 63.15789474 0 15 5 4.5 10.5

Constraints Range of Feasibility

Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease Lower Limit
$D$6 C1 lhs 100 15.78947368 100 20 2.454545455 97.5454545454546
$D$7 C2 lhs 36 47.36842105 36 0.627906977 6 30
$D$8 C3 lhs 47.15789474 0 50 1E+030 2.842105263 47.1578947368421
Upper Limit
42.85714286
20

Upper Limit
120
36.62790698
1E+030
 X1 X2 X3
Qty 500 300 200 Minimise
Unit Cost 0.5 0.7 0.45 550 Objective Function
S.T. (Such That) lhs <=> rhs Slack Surplus
Aroma 10 -15 0 >= 0 0
Taste 6 8 -5 4400 >= 0 -4400
Bean 1 1 500 <= 500 0
Bean 2 1 300 <= 600 300
Bean 3 1 200 <= 400 200
1000 Pound 1 1 1 1000 = 1000 0

a. Optimal Solution / Profit = 550 ; Objective Function = 0.5X1 + 0.7X2 + 0.45X3

X1 = 500
X2 = 300
X3 = 200

b. Cost per pound for the coffee blend : (550/1000) = 0.55

c. As highlighted in the Sensitivity Report Q4 sheet, there is zero surplus for aroma for the coffee blend therefore, r
As highlighted in the Sensitivity Report Q4 sheet, there is 4400 surplus for taste for the coffee blend therefore, ra

d. As highlighted in the Sensitivity Report Q4 sheet, if additional coffee were to be produced, the expected cost per
 Formulation
Objective Function
Max 0.5X1 + 0.7X2 + 0.45X3
Constraints:
1 10X2 - 15X3 >= 0
2 6X1 + 8X2 - 5X3 >= 0
3 X1 <= 500
4 X2 <= 600
5 X3 <= 400
6 X1 + X2 + X3 <= 1000

he coffee blend therefore, rating = 75

e coffee blend therefore, rating = 80 + (4400/1000) = 80 + 4.4 = 84.4

uced, the expected cost per pound would be $0.6

Microsoft Excel 16.0 Sensitivity Report
Worksheet: [New Microsoft Excel Worksheet.xlsx]Chap 4 Q4
Report Created: 13-02-2024 09:30:31 PM

Variable Cells Range of Optimality

Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease Lower Limit Upper Limit
$B$3 Qty X1 500 0 0.5 0.1 1E+030 -1E+030 0.6
$C$3 Qty X2 300 0 0.7 1E+030 0.166666667 0.53333333 1E+030
$D$3 Qty X3 200 0 0.45 0.25 0.25 0.2 0.7

Constraints Range of Feasibility

Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease Lower Limit Upper Limit
$E$11 1000 Pound lhs 1000 0.6 1000 500 500 500 1500
$E$6 Aroma lhs 0 0.01 0 5000 5000 -5000 5000
$E$7 Taste lhs 4400 0 0 4400 1E+030 -1E+030 4400
$E$8 Bean 1 lhs 500 -0.1 500 500 500 0 1000
$E$9 Bean 2 lhs 300 0 600 1E+030 300 300 1E+030
$E$10 Bean 3 lhs 200 0 400 1E+030 200 200 1E+030