Group 9

Roll No. Name

22PGP132 Karthik G R
22PGP137 Abhishek Murarka
22PGP143 Anurag SVSS
22PGP308 Abhishek Tripathy
22PGP321 Neha Sardana
22PGP331 Ridhima Chhabra
Given Data Optimal Solution

Customer
Profit per Unit Units Shipped
1 2 3 4 5
A 6 7 8 6 9 A
Plant

Plant
B 10 8 9 5 3 B
C 2 9 5 10 6 C

Plant Capacity Plant

A 100 A
B 70 B
C 50 C

Customer 1 2 3 4 5 Customer
Demand 60 40 10 10 10 Supply

Constraint

Profit
2050

Formulation

Profits Units Shipped

Pa1 Pa2 Pa3 Pa4 Pa5 Xa1 Xa2 Xa3 Xa4
Pb1 Pb2 Pb3 Pb4 Pb5 Xb1 Xb2 Xb3 Xb4
Pc1 Pc2 Pc3 Pc4 Pc5 Xc1 Xc2 Xc3 Xc4

Maximize
Z = Pa1*Xa1 + Pa2*Xa2 + Pa3*Xa3 + Pa4*Xa4 + Pa5*Xa5
+ Pb1*Xb1 + Pb2*Xb2 + Pb3*Xb3 + Pb4*Xb4 + Pb5*Xb5
+ Pc1*Xc1 + Pc2*Xc2 + Pc3*Xc3 + Pc4*Xc4 + Pc5*Xc5

Constraints
Plant Constraints
Plant A Xa1 + Xa2 + Xa3 + Xa4 + Xa5 <= 100
Plant B Xb1 + Xb2 + Xb3 + Xb4 + Xb5 <= 70
Plant C Xc1 + Xc2 + Xc3 + Xc4 + Xc5 <= 50

Customer Constraints
Customer 1 Xa1 + Xb1 + Xc1 >= 60
Customer 2 Xa2 + Xb2 + Xc2 >= 40
Customer 3 Xa3 + Xb3 + Xc3 >= 10
Customer 4 Xa4 + Xb4 + Xc4 >= 10
Customer 5 Xa5 + Xb5 + Xc5 >= 10
timal Solution

Customer
1 2 3 4 5
0 0 10 0 90
70 0 0 0 0
0 40 0 10 0

Utilized Constraint
100 <= 100
70 <= 70
50 <= 50

1 2 3 4 5
70 40 10 10 90
>= >= >= >= >=
60 40 10 10 10

Xa5
Xb5
Xc5
Compartment Weight Capacity (Tons) Space Capacity (Cu. Ft.)
Front 12 7000
Centre 18 9000
Back 10 5000

Cargo Weight (Ton) Volume (Cu. Ft/ Ton) Profit/ Ton

1 20 500 320
2 16 700 400
3 25 600 360
4 13 400 290
Formulation
320 400 360 290
Cargo 1 Cargo 2 Cargo 3 Cargo 4
Profit (Z) 15.5 11.5 0 13 13330

Volume Constraint
500 700 600 400
Cargo 1 Cargo 2 Cargo 3 Cargo 4 Total Volume Constraint Weight Ratio Constraint
Front 7 5 0 0 7000 <= 7000 0.778
Centre 8.5 3.166667 0 6.333333 9000 <= 9000 1.80
Back 0 3.333333 0 6.666667 5000 <= 5000

Weight Constraint
Cargo 1 Cargo 2 Cargo 3 Cargo 4 Total Weight Constraint
Front 7 5 0 0 12 <= 12
Centre 8.5 3.166667 0 6.333333 18 <= 18
Back 0 3.333333 0 6.666667 10 <= 10
Total 15.5 11.5 0 13 40

Utilization Constraint
Max Actual
Cargo 1 20 >= 15.5
Cargo 2 16 >= 11.5
Cargo 3 25 >= 0
Cargo 4 13 >= 13
Weight Ratio Constraint
0.778
1.80
Question 1
Part A

Total Profit $ 11,000,000

Machine Hours Required

Model 101 Model 102 Total Available
Engine Assembly 1 2 4000
Metal Stamping 2 2 6000
Model 1 Assy 2 0 5000
Model 2 Assy 0 3 4500

Standard Costs
Model 101 Model 102
Selling Price $ 39,000 $ 38,000
Variable Costs
Direct Matrials $ 24,000 $ 20,000
Engine Assy $ 1,200 $ 2,400
Metal Stamping $ 800 $ 600
Final Assy $ 2,000 $ 1,500
Variable Overhead $ 8,000 $ 8,500
Contribution $ 3,000 $ 5,000

Production Quantities
Model 101 Model 102 Total Utilization
No. of Units 2,000 1,000
Engine Assembly 2,000 2,000 4,000
Metal Stamping 4,000 2,000 6,000
Model 1 Assy 4,000 0 4,000
Model 2 Assy 0 3,000 3,000
Part B

Variable Cells
Final Reduced Objective Allowable
Cell Name Value Cost Coefficient Increase
$C$30 No. of Units Model 101 2000 0 3000 2000
$D$30 No. of Units Model 102 1000 0 5000 1000

Constraints
Final Shadow Constraint Allowable
Cell Name Value Price R.H. Side Increase
$E$31 Engine Assembly Total Utilization 4000 2000 4000 500
$E$32 Metal Stamping Total Utilization 6000 500 6000 500
$E$33 Model 1 Assy Total Utilization 4000 0 5000 1E+030
$E$34 Model 2 Assy Total Utilization 3000 0 4500 1E+030

Due to the additional capacity in the binding constraint

The change in Product mix would be
Model 101 1999 Units
Model 102 1001 Units

The Extra Capacity is worth the same as Shadow Price i.e $2000

Part C
If the capacity were increased to by 100 units, the value of objective function would increase by 100 time as
much as in Part B

Part D
500 Units of Engine Assembly capapcity can be addded before there is a change in the value on an aditional
unit.
 Allowable
Decrease
500
2000

Allowable
Decrease
500
1000
1000
1500

ncrease by 100 time as

e value on an aditional
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [Book1]Q1
Report Created: 11-11-2022 10:35:10

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$30 No. of Units Model 101 2000 0 3000 2000 500
$D$30 No. of Units Model 102 1000 0 5000 1000 2000

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$E$31 Engine Assembly Total Utilization 4000 2000 4000 500 500
$E$32 Metal Stamping Total Utilization 6000 500 6000 500 1000
$E$33 Model 1 Assy Total Utilization 4000 0 5000 1E+030 1000
$E$34 Model 2 Assy Total Utilization 3000 0 4500 1E+030 1500
Microsoft Excel 16.0 Answer Report
Worksheet: [Book1]Q1
Report Created: 11-11-2022 10:35:09
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.063 Seconds.
Iterations: 3 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Max)

Cell Name Original Value Final Value
$C$5 Total Profit $ 11,000,000 $ 11,000,000

Variable Cells
Cell Name Original Value Final Value Integer
$C$30 No. of Units Model 101 2,000 2,000 Contin
$D$30 No. of Units Model 102 1,000 1,000 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$E$31 Engine Assembly Total Utilization 4,000 $E$31<=$E$10 Binding 0
$E$32 Metal Stamping Total Utilization 6,000 $E$32<=$E$11 Binding 0
$E$33 Model 1 Assy Total Utilization 4,000 $E$33<=$E$12 Not Binding 1000
$E$34 Model 2 Assy Total Utilization 3,000 $E$34<=$E$13 Not Binding 1500
Question 4

Total Profit $ 11,700,000

Machine Hours Required

Model 101 Model 102 101 Overtime 102 Overtime Total Available
Engine Assembly 1 2 1 2 4000
Metal Stamping 2 2 2 2 6000
Model 1 Assy 2 0 2 0 5000
Model 2 Assy 0 3 0 3 4500

Standard Costs
Model 101 Model 102 101 Overtime 102 Overtime
Selling Price $ 39,000 $ 38,000 $ 39,000 $ 38,000
Variable Costs
Direct Materials $ 24,000 $ 20,000 $ 24,000 $ 20,000
Engine Assy $ 1,200 $ 2,400 $ 1,800 $ 3,600 Engine Assy costs are 50% higher
Metal Stamping $ 800 $ 600 $ 800 $ 600
Final Assy $ 2,000 $ 1,500 $ 2,000 $ 1,500
Variable Overhead $ 8,000 $ 8,500 $ 8,000 $ 8,500
Contribution $ 3,000 $ 5,000 $ 2,400 $ 3,800

Production Quantities
Model 101 Model 102 101 Overtime 102 Overtime Total Utilization
No. of Units 1,500 1,250 0 250
Engine Assembly 1,500 2,500 0 500 4,000
Metal Stamping 3,000 2,500 0 500 6,000
Model 1 Assy 3,000 0 0 0 3,000
Model 2 Assy 0 3,750 0 750 4,500

The benefit is only $0.7 Mil. But the investment required is $0.75 Mil.
The investment is not worth it.
 Overtime
2000

e Assy costs are 50% higher in overtime

Overtime Utilization

500 Constraints are split only for engine assy time

Constraints are common
Constraints are common
Constraints are common
Question 5

Total Profit $ 10,500,000

Machine Hours Required

Model 101 Model 102 Total Available
Engine Assembly 1 2 4000
Metal Stamping 2 2 6000
Model 1 Assy 2 0 5000
Model 2 Assy 0 3 4500

Standard Costs
Model 101 Model 102
Selling Price $ 39,000 $ 38,000
Variable Costs
Direct Matrials $ 24,000 $ 20,000
Engine Assy $ 1,200 $ 2,400
Metal Stamping $ 800 $ 600
Final Assy $ 2,000 $ 1,500
Variable Overhead $ 8,000 $ 8,500
Contribution $ 3,000 $ 5,000

Production Quantities
Model 101 Model 102 Total Utilization Current Ratio
No. of Units 2,250 750 3
Engine Assembly 2,250 1,500 3,750
Metal Stamping 4,500 1,500 6,000
Model 1 Assy 4,500 0 4,500
Model 2 Assy 0 2,250 2,250
Minimum Ratio
3