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    This paper presents a linear programming problem to maximize the profits of a machine shop that manufactures two products subject to constraints on labor hours and machinery. It is asked to formulate the mathematical model, solve it in Excel, and analyze how the optimal results would change if the parameters of the problem were modified, such as the benefits per product or the minimum quantity required.

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    This paper presents a linear programming problem to maximize the profits of a machine shop that manufactures two products subject to constraints on labor hours and machinery. It is asked to formulate the mathematical model, solve it in Excel, and analyze how the optimal results would change if the parameters of the problem were modified, such as the benefits per product or the minimum quantity required.

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    This paper presents a linear programming problem to maximize the profits of a machine shop that manufactures two products subject to constraints on labor hours and machinery. It is asked to formulate the mathematical model, solve it in Excel, and analyze how the optimal results would change if the parameters of the problem were modified, such as the benefits per product or the minimum quantity required.

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    Operations Research Practice

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    This paper presents a linear programming problem to maximize the profits of a machine shop that manufactures two products subject to constraints on labor hours and machinery. It is asked to formulate the mathematical model, solve it in Excel, and analyze how the optimal results would change if the parameters of the problem were modified, such as the benefits per product or the minimum quantity required.

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    Operations Research Practice

    Topics: Formulation, Linear, primal and dual programming, graphical method, Simplex
    Problem 1.- Mechanical workshop
    A mechanical workshop can manufacture two types of products, P1 and P2. The unit profit
    obtained with each product is 20 and 60, respectively. To manufacture these two products,
    you have two resources, man hours (HH) and machine hours (HM). Regarding HH, you
    have 2,700, and manufacturing a unit of P1 consumes 30 HH, and one of P2 20 HH. It has
    850 HM, and we know that manufacturing a unit of P1 consumes 5 HM, and one of P2
    consumes 10 HM. Furthermore, the contractual conditions require it to manufacture a
    minimum of 95 units, whether of P1 or P2. To maximize profit, the machine shop manager
    wants to develop a model to determine maximum quantities and maximum profit.

    a) Formulate the model (in table and linear


    programming)

    b)
    PRODUCT 1 PRODUCT 2 Resource Use Request
    HH 30 20 2100 <= 2700
    H.M. 5 10 850 <= 850
    RESTRICTION 1 1 95 >= 95
    Cost 20 60
    Amount 20 75
    Total cost 4900
    Solve it in Excel, report the results
    The exercise asks me to maximize the amount of products to obtain the best
    utility, so to achieve my OBJECTIVE FUNCTION I must produce 20 of P1 and
    75 of P2 and with such quantities I achieve 4900 of Utility.
    c) Using the graphic method

    d) Write the dual of the original model, indicating the direction of the dual variables in each
    case.
    e) Write the original model in standard form, with the slack and excess constraints
    variables. What variables form the basis of the optimum?
    PRODUCT 1 PRODUCT 2 Use Resource Request

    H H 30 20 2100 <= 2700


    H.M. 5 10 850 <= 850
    RESTRICTION 1 1 95 >= 95
    Cost 20 60
    Amount 20 75
    Total cost 4900

    PRODUCT 1 PRODUCT 2 Use Resource Request

    HH 30 20 2500 <= 2700


    H.M. 5 10 850 <= 850
    RESTRICTION 1 1 105 >= 105
    Cost 20 60
    Amount 40 65
    Total cost 4700

    —
    Microsoft Excel 15.0 Confidentiality Report —■
    Spreadsheet: [Librol (version l).xlsb]Sheet
    Report created: 04/28/2018 05:46:39 pm

    Variable cells
    Objective Allowable Allowable
    Final Reduced
    Coefficient Increase Reduce
    Cell Name Worth Cost
    SB$ Quantity PRODUCT 1 20 0 20 10 1E+30
    $c$7 Quantity PRODUCT 2 75 0 60 1E+30 20

    restrictions
    Final Shade Restriction Permissible Permissible
    Cell Name Worth Price Right side Increase Reduce
    $D$3 HH Resource Use 2100 0 2700 1E+30 600
    $D$4 HM Resource Use 850 8 850 100 300
    $D$5 Resource Use 95 -20 95 15 10
    RESTRICTION
    f) What additional benefit is obtained by hiring one more hour of work? Briefly justify your
    answer based on the results.

    No benefit is obtained since the amounts required for P1 or P2 are greater than 1 hour.
    g) If the profit obtained with P2 goes from 60 to 50, does the optimum change? And the
    value of the objective function? Briefly explain your answer.

    Change both, because we are directly affecting the profit of P2 Z=20P1+50P2


    h) The client is willing to negotiate the minimum quantity of product to be supplied. It's worth
    it? If so, would you propose increasing or decreasing the minimum amount? What price
    would you be willing to pay to increase (or decrease) this minimum amount? To what
    value would you be willing to increase (or decrease) this amount?
    Decreasing the minimum amount as shown in the CLEARANCE would have a profit
    difference of 200.

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