Post-optimal analysis, Operation Research

Assignment Help:

It can be seen from the optimal solution for the foundry problem that two resources, raw material-1 and labor, are exhausted whereas the other two resources, raw material-2 and foundry capacity, remain available. This implies that the availability of raw material-1 and labor are both exerting a restrictive effect on foundry operation and its profitability. Let us suppose, the foundry can buy the raw material-1 in the open market at a cost of Rs.15 per kg, then is it worth buying and increasing its production to make more profit? Similarly, if the foundry can hire extra labor for Rs.15 per day, then is it worth hiring the extra labor?

The above questions can be answered from the (Zj - Cj) values in the final tableau. The (Zj - Cj) value corresponding to variables S1, that is, column 6 is 20. This indicates that the profit can be increased by Rs.20 for a unit increase in the availability of raw material-1. Thus, if one kilogram of raw material-1 costs Rs.15, then by purchasing it and changing the product mix, the foundry can increase its profit by Rs.20 - Rs.15 = Rs.5. Similarly, the (Zj - Cj) value corresponding to the variable SL is 10 and this indicates that for a unit increase in the availability of labor, profit can be increased by Rs.10. Hence, it is worth hiring labor if its cost is less than Rs.10. Similarly, it is worth buying raw material-1 from open market, if its cost is less than Rs.20 per kg.

The information in the final tableau is also useful in studying the effects of the variations in the profit contributions on the product mix.


Related Discussions:- Post-optimal analysis

TRANSPORATION PROBLEM, sOLVE THE FOLLOWING D1 D2 D3 SUPPLY s1 2...

sOLVE THE FOLLOWING D1 D2 D3 SUPPLY s1 2 2 3 10 s2 4 1 2 15 s3 1 3 1 40 Demand 20 15 30

lp-model and markov decision problem, The supply of a certain good is insp...

The supply of a certain good is inspected periodically. If an order is placed of size x >0 (integer), the ordering costs are 8+2. x. The delivery time is zero. The demand is stoc

Report writing - report writing presentation, REPORT WRITING The final...

REPORT WRITING The final step in research is to report the study  findings to those  who authorized the investigation. The American marketing association is  of the opinion  t

SIMPLEX METHOD, Solve the following Linear Programming Problem using simple...

Solve the following Linear Programming Problem using simple method Maximize Z= 3x1 + 2x2 Subject to the constraints: X1 + X2 = 4

test statistic - hypothesis testing , Test Statistic The next  step ...

Test Statistic The next  step is compute an appropriate  test statistic which  is based on an appropriate probability distribution. It  is used to test whether the null  hypo

Some guidelines for bibliography entries , Some Guidelines  for Bibliograp...

Some Guidelines  for Bibliography Entries 1. Reference of a Back  by One Authors : Mention authors  name book title ( in italics hence  to be  underlined) city  publication

Research an issue related to computer networks, Assignments should be submi...

Assignments should be submitted via FLO by the above deadline. Penalties for late submission are as set out in the topic SAM on FLO. Extensions can be granted in line with standard

Linear regression, regression line drawn as y=c + 1075x, when x was 2, and ...

regression line drawn as y=c + 1075x, when x was 2, and y was 239, given that y intercept was 11. calculate the residual

Modeling process, What are the basic 5 elements of modeling process

What are the basic 5 elements of modeling process

endalk

7/4/2013 1:07:39 PM

what is post-optimality

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd