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THE TAIWAN ELECTRONIC COMMUNICATIONS (TEC) PROBLEM 117

Max 90A þ 84B þ 70C þ 60D
s:t
10A þ 8B þ 9C þ 15D 5000 Advertising budget
2A þ 3B þ 3C 1800 Salesforce availability
A þ B þ C þ D ¼ 600 Production level
C 150 Retail stores requirement
A; B; C; D 0

Computer Solution and Interpretation
EXCEL file
A portion of the output obtained using Excel to solve the TEC problem is shown in
TEC
Figure 3.14. The Objective Function Value section shows that the optimal solution to

Figure 3.14 A Portion of the Excel Computer Output for the TEC Problem

Target Cell (Max)
Original
Name Value Final Value
Obj
Function 0 48450
Adjustable Cells
Original
Name Value Final Value
A 0 25
B 0 425
C 0 150
D 0 0
Constraints

Name Cell Value Status Slack
Advertising 5000 Binding 0
Salesforce 1775 Not Binding 25
Production 600 Binding 0
Retail 150 Binding 0

Adjustable Cells
Final Reduced Objective Allowable Allowable
Name Value Cost Coefficient Increase Decrease
A 25 0 90 1E+30 6
B 425 0 84 6 34
C 150 0 70 17 1E+30
D 0 45 60 45 1E+30

Constraints
Final Shadow Constraint Allowable Allowable
Name Value Price R.H. Side Increase Decrease
Advertising 5000 3 5000 850 50
Salesforce 1775 0 1800 1E+30 25
Production 600 60 600 3.571428571 85
Retail 150 –17 150 50 150

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