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THE TAIWAN ELECTRONIC COMMUNICATIONS (TEC) PROBLEM 127

Figure 3.16 Excel Solution for the Investment Advisors Problem
Original
Name Value Final Value
Maximize Total
Profit United Oil 0 8400
Original
Name Value Final Value
Optimum values 0 800
United Oil
Optimum values 0 1200
Huber Steel

Name Cell Value Status Slack
Funds available LHS 80000 Binding 0
Risk maximum LHS 700 Binding 0
United Oil maximum 800 200
LHS

Adjustable Cells
Final Reduced Objective Allowable Allowable
Name Value Cost Coefficient Increase Decrease
Optimum values 800 0 3 7 0.5
United Oil
Optimum values Huber 1200 0 5 1 3.5
Steel

Constraints
Final Shadow Constraint Allowable Allowable
Name Value Price R.H. Side Increase Decrease
Funds available LHS 80000 0.093333333 80000 60000 15000
Risk maximum LHS 700 1.333333333 700 75 300
United Oil maximum 800 0 1000 1E+30 200
LHS

12 Recall the Miguel’s problem in Chapter 2, Problem 15. Letting:
W ¼ jars of Western Foods Salsa
M ¼ jars of Mexico City Salsa
leads to the formulation:
Max 1W þ 1:25M
s:t
104W þ 196M 280000 Whole tomatoes
84W þ 28M 130000 Tomato sauce
56W þ 56M 100000 Tomato paste
W; M 0

The solution is shown in Figure 3.17.
a. What is the optimal solution, and what are the optimal production quantities?
b. Specify the range of optimality for the objective function coefficients.
c. What are the dual prices for each constraint? Interpret each.
d. Identify the range of feasibility for each of the right-hand-side values.

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