Interpret the solver answer report and identify the binding


Question: Implement the linear optimization model that you developed for Valencia Products in Problem in Excel and use Solver to find an optimal solution. Interpret the Solver Answer report and identify the binding constraints and verify the values of the slack variables by substituting the optimal solution into the model constraints.

Problem: Valencia Products makes automobile radar detectors and assembles two models: LaserStop and SpeedBuster. The firm can sell all it produces. Both models use the same electronic components. Two of these can be obtained only from a single supplier. For the next month, the supply of these is limited to 4,000 of component A and 3,500 of component B. The number of each component required for each product and the profit per unit are given in the table.

                                       Components

                                      Required/Unit

                                          A                 B                  Profit/Unit

LaserStop                           18                6                        $12

SpeedBuster                       12               10                       $40

a. Identify the decision variables, objective function, and constraints in simple verbal statements.

b. Mathematically formulate a linear optimization model.

 

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Finance Basics: Interpret the solver answer report and identify the binding
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