Example: Product Planning

It is necessary to formulate the results of the linear programming model in words not only in mathematical terms. It is important to make the model and it’s results understandable for the final used i.e. for manager – decision-maker. Assuming that the computer software is available for the model developed, the model builder is concerned with problem definition, model development, model validation and interpretation.

Before interpretation of the optimal solution we have to get back to the formulation of the model - Example: Product planning .Note especially the definitions of variables. Here are only structural variables:

… number of units of product A to be produced
… number of units of product B to be produced

The definition of slack variables has been made latter - introducing slack and surplus variables :

… unused capacity of machine 1 (hours)
… unused capacity of machine 2 (hours)

So, we can read the optimal solution as:

The optimal production will be 6 pieces of A and 4 pieces of B. The whole disposable working time of both machines will be used. The maximum profit that can be reached in given conditions is 64 $.

This is the simples way, how to make conclusion for such an elementary example. The conclusion will be much more informative if they include the sensitivity analysis.