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Midterm 2
Name ____________________________________________________
1. (20 points) Given the following primal linear programming problem, formulate
the associated Dual problem. Setup dual only. DO NOT SOLVE.
Subject to:
-x1 – x2 ≥ -8
6x1 + 4x2 ≥ 12
5x1 + 8x2 = 20
x1 ≥ 0, x2 ≥ 0
y1 ≤ 0; y2 ≤ 0; y3 URS
Subject to:
x1 + x2 + x3 ≤ 50
x1,x2,x3 ≥ 0
After adding slack variables s1 and s2, the optimal tableau is shown below.
Table 1
Amount of sugar Amt. of chocolate Profits (cents)
(oz) (oz)
Candy 1 1 2 3
candy 2 1 3 7
candy 3 1 1 5
Final tableau
Z x1 x2 x3 s1 s2 rhs
1 3 0 0 4 1 300
0 ½ 0 1 3/2 -1/2 25
0 1/2 1 0 -1/2 1/2 25
A. What is the optimal product mix? (i.e. how many of each candy bar should they
make?)
X1 = 0 ; x2 = 25; x3 = 25
3+3 = 6
C. For what range of profit on bar 2 is the current solution still optimal?
5≤c2≤15
Sugar 4; chocolate 1
50 more ounces
F. A type 4 candy bar is under consideration. It yields a profit of 10 cents and uses 2 oz
of sugar and 1 oz of chocolate. Should the firm introduce this new product? (Do not
recalculate the new optimum.
2y1+y2≥(?)10
2(4) + (1) is not greater than 10. Thus, we should introduce the new product.
G. The marketing department has determined that the total demand for bar 2 and bar 3 is
no more than 40. Does this change the solution? If so, how? (Recalculate the new
optimum if it is different).
new constraint: X2 + x3 ≤ 40
Max Z = 2x1 – x2 + x3
s.t.
3x1 + x2 + x3 ≤ 60
x1 - x2 + 2x3 ≤ 10
x1 + x2 - x3 ≤ 20
x1,x2,x3 ≥ 0.
The primal solution when x1, s1, and s3 are basic is (10, 0, 0, 30, 0 ,10). The
complementary dual solution is (0, 2, 0, 0, -1, 3).
Is (10, 0, 0, 30, 0 ,10) the optimal solution to the primal? How can you tell?
It is not optimal. You can tell because the associated dual solution is infeasible,
i.e. it has a negative number in it.
B. Ford motors is calculating the optimal mix of models to manufacture. The constraints
it faces are on parts, average fuel efficiency standards, and capacity in their factories.
Give interpretations for each of the shadow prices (i.e. what can Ford do with this piece
of information?).
b. Interpret the shadow price on the required average fuel efficiency standard. For
example, say the current standard is 25 mpg, and the shadow price is 25 million
dollars.
We cannot buy a different fuel efficiency standard, but the firm may want
to direct lobbying money at having the standard changed. This gives them
an idea of what it is worth.
c. Say that the shadow price on capacity for factory A, where they make Escorts,
is $2500 and for factory B, where they make Explorers is $0. What might you
suggest?