ASSIGNMENT MANAGEMENT SCIENCE

SHAD3103 / SHD2713
CREATIVE COFFEE PRODUCT MIX PROBLEM
Creative coffee sells two (2) types of coffee to retail stores: regular
and decaffeinated. For the current month, the company has 200 tons of
coffee beans in inventory and has scheduled up to 300 hours of processing
time for roasting. Each ton of regular coffee requires 1 ton of beans and
1 hour of processing, and yields a net profit of RM 3,000. Each ton of
decaffeinated also requires 1 ton of beans but needs 2 hours of roasting.
It yields a net profit of RM 5,000.
A.
With X1 as the number of tons of regular coffee and X2 as the
number of tons of decaffeinated coffee, formulate the problem with the
objective of maximizing the net profit (in thousands of dollars) for the
month.
MAX 3X1 + 5X2
SUBJECT TO
X1 + 2X2 <= 300
X1 + X2 <= 200
LP OPTIMUM FOUND AT STEP

OBJECTIVE FUNCTION VALUE

1)

800.0000

VARIABLE
X1
X2
ROW
2)
3)

VALUE
100.000000
100.000000
SLACK OR SURPLUS
0.000000
0.000000

NO. ITERATIONS=

REDUCED COST
0.000000
0.000000
DUAL PRICES
2.000000
1.000000

RANGES IN WHICH THE BASIS IS UNCHANGED:

VARIABLE
X1
X2
ROW
2
3

CURRENT
COEF
3.000000
5.000000

OBJ COEFFICIENT RANGES

ALLOWABLE
ALLOWABLE
INCREASE
DECREASE
2.000000
0.500000
1.000000
2.000000

CURRENT
RHS
300.000000
200.000000

RIGHTHAND SIDE RANGES

ALLOWABLE
ALLOWABLE
INCREASE
DECREASE
100.000000
100.000000
100.000000
50.00000

RIGHTHANDSIDE PARAMETRICS REPORT FOR ROW: 2 0

VAR
OUT

VAR
IN
X2
X1

SLK
ART

PIVOT
ROW
3

2
3

RHS
VAL

DUAL PRICE
BEFORE PIVOT

300.000
200.000
0.000000E+00

2.00000
2.00000
3.00000

OBJ
VAL
800.000
600.000
0.000000E+00

RIGHTHANDSIDE PARAMETRICS REPORT FOR ROW: 2 10,000,000

VAR
OUT

VAR
IN
X1

SLK

PIVOT
ROW
2

RHS
VAL

DUAL PRICE
BEFORE PIVOT

300.000
400.000
0.100000E+08

2.00000
2.00000
0.000000E+00

OBJ
VAL
800.000
1000.00
1000.00

RIGHTHANDSIDE PARAMETRICS REPORT FOR ROW: 3 0

VAR
OUT

VAR
IN
X1
X2

SLK
ART

PIVOT
ROW
2

3
2

RHS
VAL

DUAL PRICE
BEFORE PIVOT

200.000
150.000
0.000000E+00

1.00000
1.00000
5.00000

OBJ
VAL
800.000
750.000
0.000000E+00

RIGHTHANDSIDE PARAMETRICS REPORT FOR ROW: 3 10,000,000

VAR
OUT

VAR
IN
X2

SLK

PIVOT
ROW
3

RHS
VAL
200.000
300.000
0.100000E+08

DUAL PRICE
BEFORE PIVOT
1.00000
1.00000
0.000000E+00

OBJ
VAL
800.000
900.000
900.000

B.

Answer the following questions: