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Graphical solution of linear programming problem.

2. Problem 8
A company produces, A and B, which have profits of $9 and $7, respectively. Each unit of product must be processed on two assembly lines, where the required production times are as follows.

hr/Unit
Product Line 1 Line 2
A 12 4
B 4 8
Total hours 60 40

A. Formulate a linear programming model to determine the optimal product mix that will maximize profit.
B. Transform this model into standard form.

3. Problem 9 -
a) Solve problem 8 graphically. List all extreme points (x1, x2, z) and indicate the optimum solution. Identify the amount of unused resources (slack) for each of the extreme points.
b) What would be the effect on the optimal solution if the production time on line 1 was reduced to 40 hours?
c) What would be the effect on the optimal solution if the profit for product B was increased from $7 to $15? How about from $7 to $20?

4. Problem 10 -
For the linear programming model formulated in problem 8 and solved in problem 9:
a) Determine the sensitivity ranges for the objective function coefficients either manually using the graphical solution or using QM for Windows. i.e.: I want you to return the minimum and maximum coefficients (profit margins) for products A and B for which the original optimum solution still applies.
b) Using manual methods, QM for Windows, determine the shadow prices for additional hours of product time on line 1 and line 2.

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Graphical solution of linear programming problem.

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