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

Integer programming, An integer programming problem is identical to a linea...

An integer programming problem is identical to a linear programming problem except that one or more decision variables are constrained to take integer values. Such problems cannot

Disadvantages of mean deviation - measure of dispersion, Disadvantages of ...

Disadvantages of Mean Deviation a.Mean deviation ignores  the algebraic  signs of the deviations and  such it is  not capable  of further algebraic  treatment. b.It is  no

Research analysis and project, Scenario: You work as a junior employee i...

Scenario: You work as a junior employee in the marketing department of a medium-sized Hong Kong organisation. One of your major tasks is your involvement in your organization's

CHARACTERISTIC, O.R REPLACES MANAGEMENT BY PERSONALITY

O.R REPLACES MANAGEMENT BY PERSONALITY

Assignment, Q2.Six Operators are to be assigned to five jobs with the cost ...

Q2.Six Operators are to be assigned to five jobs with the cost of assignment in Rs. given in the matrix below. Determine the optimal assignment. Which operator will have no assignm

Ge, Ask question #Minimum 100 words what can engineer planner do in métallu...

Ask question #Minimum 100 words what can engineer planner do in métallurgie accepted#

Optimal assignment, Six Operators are to be assigned to five jobs with the ...

Six Operators are to be assigned to five jobs with the cost of assignment in Rs. given in the matrix below. Determine the optimal assignment. Which operator will have no assignment

One sample runs test - hypothesis testing, ONE SAMPLE  RUNS  TEST A ...

ONE SAMPLE  RUNS  TEST A number of  methods have been  developed fro  judging the randomness of samples on the basis of  the order in which  teh observations  are taken. It is

Data management, Data Management As your  research project progresses ...

Data Management As your  research project progresses you will  quickly  gather more  and more  data. These need  to be managed in such  a way that they  can be  accesses and

Periodicals and serials - classification of documents, Periodicals and Seri...

Periodicals and Serials: Periodical publications form an important part of today's information world. It is one of the oft chosen forms of research communication. There are ov

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