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EXTREME POINTS AND THE OPTIMAL SOLUTION  53




                          to be re-solved later, changes in some of the data  constraints in the linear programming model even
                          might make a previously redundant constraint a  though at some point in time one or more of the
                          binding constraint. Thus, we recommend keeping all  constraints may be redundant.




                                2.3     Extreme Points and the Optimal Solution


                                      Suppose that the profit contribution for the company’s standard golf bag is reduced
                                      from $10 to $5 per bag, while the profit contribution for the deluxe golf bag and all
                                      the constraints remain unchanged. The complete linear programming model of this
                                      new problem is identical to the mathematical model in Section 2.1, except for the
                                      revised objective function:
                                                                     Max  5S þ 9D

                                      How does this change in the objective function affect the optimal solution to the
                                      problem? Figure 2.12 shows the graphical solution of this new problem with the
                                      revised objective function. Note that without any change in the constraints, the
                                      feasible region does not change. However, the profit lines have been altered to
                                      reflect the new objective function.
                                         By moving the profit line in a parallel manner toward higher profit values, we find
                                      the optimal solution as shown in Figure 2.12. The values of the decision variables at
                                      this point are S ¼ 300 and D ¼ 420. The reduced profit contribution for the stand-
                                      ard bag caused a change in the optimal solution. In fact, as you may have suspected,
                                      we are cutting back the production of the lower-profit standard bags and increasing
                                      the production of the higher-profit deluxe bags.


                                      Figure 2.12 Optimal Solution for the GulfGolf Problem with an Objective Function
                                      of 5S+ 9D

                                                   D

                                                600
                                                                Optimal Solution
                                                                (S = 300, D = 420)
                                              Number of Deluxe Bags  400  (0, 300)  Maximum Profit Line: 5S + 9D = 5280







                                                200

                                                              5S + 9D = 2700
                                                                                 (540, 0)

                                                                                                      S
                                                   0         200         400        600         800
                                                                   Number of Standard Bags






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