Purchase Solution

Linear Programming Constraints and Binding

Not what you're looking for?

Ask Custom Question

A fertilizer manufacturer has to fill supply contracts to its two main customers (650 tons to customer A and 800 tons to customer B). It can meet this demand by shipping existing inventory from any of its three warehouses. Warehouse 1 (W1) has 400 tons of inventory on hand, Warehouse 2(W2) and Warehouse 3 (W3) has 600 tons. The company would like to arrange the shipping for the lowest cost possible, where the per-ton transit costs are as follows:

W 1 W 2 W 3
Customer A $7.50 $6.25 $6.50
Customer B $6.75 $7.00 $8.00

Write the objective function and the constraint in equations. Let Xij = tons shipped from warehouse i to customer j, and so on. For example, X1A= tons shipped from warehouse 1 to customer A.

The objective function, the LP model =

Minimize Z = $7.50______ + $6.50_______ + (shipping cost to customer A)
$6.75______ +$7.00 ________ (shipping cost to customer B)

Subject to: ____________ Tons shipped to customer A
____________ Tons shipped to customer B
__________ Tons shipped from warehouse 1
___________ Tons shipped from warehouse 2
___________ Tons shipped from warehouse 3
∀Xij ≥0 Non negativity condition

Using software the linear programming problem was solved and the following sensitivity report was obtained:

Adjustable Cells

Variable Find Value Reduced Cost Objective Coefficient Allowable Increase Allowable Decrease
X 1A 0 1.50 $7.50 1E+30 1.50
X 2A 100 0.00 $6.25 0.25 0.75
X 3A 550 0.00 $6.50 0.75 0.25
X 1B 400 0.00 $6.75 0.50 1E+30
X 2B 400 0.00 $7.00 0.75 0.50
X 3B 0 0.75 $8.00 1E+30 0.75

Constraints

Name Final Value Shadow price Constraint RH Side Allowable Increase Allowable Decrease
C1 650 6.50 650 50 550
C2 800 7.25 800 50 400
C3 400 -0.50 400 400 50
C4 500 -0.25 500 550 50
C5 550 0.00 600 1E+30 50

Based on the information given in the sensitivity reports,
The number of constraints that are binding = ______

For the non binding constraint, the amount of slack/surplus variable value=______
For variable X 3A, the range of optimality is from 6.25 to ______ (round your response to two decimal places).

If to customer A, 10 less tons are supplied, the impact of this on the objective value =______ (round your response to two decimal places).

If to customer B, 10 less tons are supplied, the impact of this on the objective value =________ (round your response to two decimal places).

Purchase this Solution

Solution Summary

The expert examines linear programming constraints and bindings for slack/surplus variables.

Solution Preview

See the attached file. Thanks

A fertilizer manufacturer has to fill supply contracts to its two main customers (650 tons to customer A and 800 tons to customer B). It can meet this demand by shipping existing inventory from any of its three warehouses. Warehouse 1 (W1) has 400 tons of inventory on hand, Warehouse 2(W2) and Warehouse 3 (W3) has 600 tons. The company would like to arrange the shipping for the lowest cost possible, where the per-ton transit costs are as follows:

W 1 W 2 W 3
Customer A $7.50 $6.25 $6.50
Customer B $6.75 $7.00 $8.00

Write the objective function and the constraint in equations. Let Xij = tons shipped from warehouse i to customer j, and so on. For example, X1A= tons shipped from warehouse 1 to customer A.

The objective function, the LP model =

Minimize Z = $7.50*X1A + $6.25*X2A + $6.50*X3A+ ...

Purchase this Solution


Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking