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Joy Leather, a manufacturer of leather products, makes three types of belts A, B, and C processed on machines M1, M2, and M3. The daily production for maximum profit:

A) Formulate the problem as Linear Programming (LP).
B) Solve the LP problem using the simplex algorithm.
C) Interpret the shadow prices.

1 Answer

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Final answer:

a) Maximize: 10x + 15y + 8z

Subject to the following constraints:

  • Constraints for production on Machine M1: 3x + 2y + z <= 120
  • Constraints for production on Machine M2: 2x + 4y + 2z <= 100
  • Constraints for production on Machine M3: 4x + y + 3z <= 180
  • Non-negativity constraints: x, y, z >= 0

b) then solve using the simplex algorithm, we would first convert the problem into canonical form and then apply the simplex algorithm to find the optimal solution.

c) The shadow prices represent the marginal value of each resource.

Step-by-step explanation:

a) In order to formulate the problem as Linear Programming (LP) for Joy Leather, we need to define the decision variables, objective function, and constraints. Let's assume the daily production of belts A, B, and C is x, y, z respectively. The objective is to maximize profit, so the objective function would be:

Maximize: 10x + 15y + 8z

Subject to the following constraints:

  • Constraints for production on Machine M1: 3x + 2y + z <= 120
  • Constraints for production on Machine M2: 2x + 4y + 2z <= 100
  • Constraints for production on Machine M3: 4x + y + 3z <= 180
  • Non-negativity constraints: x, y, z >= 0

b) To solve the LP problem using the simplex algorithm, we would first convert the problem into canonical form and then apply the simplex algorithm to find the optimal solution.

c) Interpreting the shadow prices would involve identifying the marginal value or worth of an additional unit of a resource. In this case, the shadow prices would represent the change in the objective function value for a small increase in the availability of each resource, while keeping all other resources fixed.

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