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There are three factories on the Moniss River: 1, 2, and 3. Each emits two types of pollutants, labeled A and B, into the river. If the waste from each factory is processed, the pollution in the river...

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There are three factories on the Moniss River: 1, 2, and 3. Each emits two types of pollutants, labeled A and B, into the river. If the waste from each factory is processed, the pollution in the river can be reduced.

  • It costs $15 to process a ton of factory 1 waste, and each tone processed reduces the amount of A by 0.10 tons and the amount of B by 0.45 ton.
  • It costs $14 to process a ton of factory 2 waste, and each ton processed will reduce the amount of A by 0.20 tons and the amount of B by 0.25 ton.
  • It costs $12 to process a ton of factory 3 waste, and each ton processed will reduce the amount of A by 0.40 tons and the amount of B by 0.30 ton.
  • The state wants to reduce the amount of A in the river by at least 25 tons and the amount of B by at least 30 tons. Furthermore, the total amount of A and B should be reduced by at least 65 tons. Also, the total amount of pollution to be processed cannot exceed 150 tons due to the technology limitation.

The state needs to decide how to minimize the cost of reducing pollution by the desired amounts wastes to be processed.

Questions:

  1. Formulate this problem as an LP and work on the spreadsheet template provided to setup the model and solve it. Describe the 3-step formulation and the optimal solution.
  2. Obtain the “Sensitivity” report from Solver. What is the shadow price of pollutant B reduction amount? How would you interpret this number?
Answered Same Day May 26, 2022

Solution

Bikash answered on May 27 2022
103 Votes
Answer Report 1
    Microsoft Excel 16.0 Answer Report
    Worksheet: [5exbasiclppollution-np3fcmk3.xlsx]Pollution
    Report Created: 5/27/2022 1:55:34 PM
    Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
    Solver Engine
        Engine: Simplex LP
        Solution Time: 0.015 Seconds.
        Iterations: 3 Subproblems: 0
    Solver Options
        Max Time 100 sec, Iterations 100, Precision 0.000001
        Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 5%, Solve Without Integer Constraints
    Objective Cell (Min)
        Cell    Name    Original Value    Final Value
        $B$26    Total Cost of Processing (Objective to Minimize the cost) Factory 1    1110    1110
    Variable Cells
        Cell    Name    Original Value    Final Value    Intege
        $B$18    Amount to be processed (Decision Variable) Factory 1    30    30    Contin
        $C$18    Amount to be processed (Decision Variable) Factory 2    0    0    Contin
        $D$18    Amount to be processed (Decision Variable) Factory 3    55    55    Contin
    Constraints
        Cell    Name    Cell Value    Formula    Status    Slack
        $E$22    Pollutant A Total Pollutant    25    $E$22>=$G$22    Binding    0
        $E$23    Pollutant B Total Pollutant    30    $E$23>=$G$23    Binding    0
        $B$18    Amount to be processed (Decision Variable) Factory 1    30    $B$18>=0    Not...
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