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An extract of the output from a computer package for this problem is given below: Output solution

      

An extract of the output from a computer package for this problem is given below:
Output solution
extract1412019945.png
Required:
i) Interpret the output clearly, including optimum product mix, monthly profit, unused resources and
dual values
ii) Explain the purpose of upper limits and lower limits for the variables X1,X2,X3 and constraints 1 to
5.
iii) Calculate the increase in profit if the company is able to produce a further 10 CPU 80386 chips.

  

Answers


Mutiso
i) The optimum product mix is that the numbers of units to produce
are Desktop 386-120
Desktop 286-200
Laptop 486-200
Maximum profit is
Z=5000x120+3400x200+3000x200=Sh1,880,000
Unused resources include the following
JK computers can still produce 180 more desktop models (500-120-200) and 50 laptop models
(250-200)
For used up resources the prices to pay for any additional unit are as follows
Sh150 for 80386 chip
Sh90 for 80286 chip
Sh20 for any hour
ii) The range for the variables x1, x2 and x3 are to indicate where the number of units can change
without affecting the basic solution
The range for the constraints indicate the extent the resources can be changed without altering the
basic solution of the linear programming problem
iii) The dual value of 80386 chip is Sh 150. That is the addition increase in profit due to increase of
one chip. So if the company increases the number of chips by 10, the additional profit will be
10x150=Sh1,500.
Mutiso answered the question on January 14, 2019 at 18:47


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