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POKHARNA, ANURAG
OPERATION RESEARCH
PROJECT
SCOTSVILLE TEXTILE MILL
Monthly Demand, Selling Price, Variable cost, and purchase price data for Scotsville
Textile Mill Fabrics
Fabric
Demand
(yards)
Selling Price
($/yard)
16,500
0.99
Variable Cost
($/yard)
0.66
2
3
4
5
22,000
62,000
7,500
62,000
0.86
1.10
1.24
0.70
0.55
0.49
0.51
0.50
Dobbie
4.63
4.63
5.23
5.23
4.17
0.80
0.70
0.60
0.70
0.70
Purchase Price
($/yard)
Regular
5.23
5.23
4.17
Managerial Report
Develop a model that can be used to schedule production for the Scottsville Textile Mill, and
at the same time, determine how many yards of each fabric must be purchased from another
mill. Include a discussion and analysis of the following items in your report:
1. The final production schedule and loom assignments for each fabric.
2. The projected total contribution to profit.
3. A discussion of the value of additional loom time. (The mill is considering purchasing a
ninth dobbie loom. What is your estimate of the monthly profit contribution of this additional
loom?)
4. A discussion of the objective coefficients ranges.
5. A discussion of how the objective of minimizing total costs would provide a different model
than the objective of maximizing total profit contribution. (How would the interpretation of
the objective coefficients ranges differ for these two models?)
Fabric
1
2
3
4
5
Dobbie
1 / 4.63 =
1 / 4.63 =
1 / 5.23 =
1 / 5.23 =
1 / 4.17 =
0.215983
0.215983
0.191205
0.191205
0.239808
Regular
1 / 5.23 = 0.191205
1 / 5.23 = 0.191205
1 / 4.17 = 0.239808
Total no. of loom hours availableDobbie Loom = 8 looms * 24 hrs per day * 30 days = 5760 hrs.
Regular Loom = 30 looms * 24 hrs per day * 30 days = 21,600 hrs.
1.10-0.60=0.50
1.24-0.70=0.54
0.70-.70=0
Max. Z = 0.33x1 + 0.31x2 + 0.61x3 + 0.73x4 + 0.20x5 + 0.61x6 + 0.73x7 + 0.20x8 + 0.19x9 + 0.16x10
+ 0.50x11 + 0.54x12 + 0.00x13
Subject to,
Constraint1: X1+X9=16500 (demand for fabric 1)
Constraint2: X2+X10=22000 (demand for fabric 2)
Constraint3: X3+X6+X11=62000 (demand for fabric 3)
Constraint4: X4+X7+X12=7500 (demand for fabric 4)
Constraint5: X5+X8+X13=62000 (demand for fabric 5)
Constraint6: Available Dobbie Loom Hrs.: 0.216X1+0.216X2+0.191X3+0.19X4+0.24X5 5760
Constraint7: Available Regular Loom Hrs.: 0.19X6+0.19X7+0.24X8 21600
Where,
X1, X2, X3, X4, X5, X6, X7, X8, X9, X10, X11, X12, X13 0
LINGO OUTPUT
Global optimal solution found.
Objective value:
Infeasibilities:
Total solver iterations:
Elapsed runtime seconds:
62548.86
0.000000
6
0.03
Model Class:
LP
Total variables:
Nonlinear variables:
Integer variables:
13
0
0
Total constraints:
Nonlinear constraints:
8
0
Total nonzeros:
Nonlinear nonzeros:
33
0
Variable
X1
X2
X3
X4
X5
X6
X7
X8
X9
X10
X11
X12
X13
Row
1
2
3
4
5
6
7
8
Value
4666.667
22000.00
0.000000
0.000000
0.000000
27868.42
7500.000
62000.00
11833.33
0.000000
34131.58
0.000000
0.000000
Slack or Surplus
62548.86
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
Reduced Cost
0.000000
0.000000
0.1379630E-01
0.1314815E-01
0.1660819E-01
0.000000
0.000000
0.000000
0.000000
0.1000000E-01
0.000000
0.8000000E-01
0.6105263E-01
Dual Price
1.000000
0.1900000
0.1700000
0.5000000
0.6200000
0.6105263E-01
0.6481481
0.5789474
Ans. 1
X1=4666.667, X2=22000, X3=0000, X4=0000, X5=0000, X6=27868, X7=7500, X8=62000,
X9=11833, X10=0000, X11=34131, X12=0000, X13=0000
Ans. 2
Optimal solution = 62,548.86
Ans. 3
If a new loom is added the total no. of working hours will be increased by 1 * 24 hrs. * 30 days
= 720 hrs. the new total no. of hours is = 5760+720 = 6,480 hrs. The range is (4756, 8316).
Since the new number of hours is within the range the optimal solution is same. So the new
objective function is 62548.86+.648*(6480-5760)=63015.42
Ans.4
Ranges in which the basis is unchanged:
Objective Coefficient Ranges:
Variable
X1
X2
X3
X4
X5
X6
X7
X8
X9
X10
X11
X12
X13
Current
Allowable
Allowable
Coefficient
Increase
Decrease
0.3300000
0.1000000E-01 0.1494737E-01
0.3100000
INFINITY
0.1000000E-01
0.6100000
0.1379630E-01
INFINITY
0.7300000
0.1314815E-01
INFINITY
0.2000000
0.1660819E-01
INFINITY
0.6100000
0.1314815E-01 0.1100000
0.7300000
INFINITY
0.1314815E-01
0.2000000
INFINITY
0.1660819E-01
0.1900000
0.1494737E-01 0.1000000E-01
0.1600000
0.1000000E-01
INFINITY
0.5000000
0.1100000
0.1314815E-01
0.5400000
0.8000000E-01
INFINITY
0.000000
0.6105263E-01
INFINITY
Row
2
3
4
5
6
7
8
Current
RHS
16500.00
22000.00
62000.00
7500.000
62000.00
5760.000
21600.00
Allowable
Increase
INFINITY
4666.667
INFINITY
27868.42
22062.50
2556.000
6485.000
Allowable
Decrease
11833.33
11833.33
34131.58
7500.000
27020.83
1008.000
5295.000
Ans.5
The optimal solution will be same as the profit is with in the range. For max profit coefficient
means profit contribution.
For min cost, we assume that the cost per unit is fixed.when the cost is in the range the
optimal solution will be same.Coefficient means cost per unit
For both max profit and min cost their mean production schedule is the difference between
them,which is the meaning of coefficient.