Unit ProfitResource 1Resource 2Activity 1$2NameSolution activity 1Solution activity 2NameResource Usage2Resource 1 usedResource 2 used11Formulate and solve a spreadsheet model for this problem. Then use Solver's sensitivity report to find the allowable range for the unitprofit of each activity.a. Determine the number of units of each activity to undertake.Note: If an allowable increase/decrease is 10,000 or larger, simply enter 10,000. Round "Allowable Increase - Solution Activity 1"answer to 1 decimal place. Round "Allowable Decrease - Solution Activity 1" answer to 2 decimal places.b. Determine the total profit.Activity 2$5FinalValueAvailable1012FinalValueReducedCostShadowPrice0011ObjectiveCoefficient25Constraint Right-Hand Side1012AllowableIncreaseAllowableIncreaseAllowableDecreaseAllowableDecrease

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Answered: Formulate and solve a spreadsheet model…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 49P: If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60...

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This problem is based on Motorolas online method for choosing suppliers. Suppose Motorola solicits bids from five suppliers for eight products. The list price for each product and the quantity of each product that Motorola needs to purchase during the next year are listed in the file P06_93.xlsx. Each supplier has submitted the percentage discount it will offer on each product. These percentages are also listed in the file. For example, supplier 1 offers a 7% discount on product 1 and a 30% discount on product 2. The following considerations also apply: There is an administrative cost of 5000 associated with setting up a suppliers account. For example, if Motorola uses three suppliers, it incurs an administrative cost of 15,000. To ensure reliability, no supplier can supply more than 80% of Motorolas demand for any product. A supplier must supply an integer amount of each product it supplies. Develop a linear integer model to help Motorola minimize the sum of its purchase and administrative costs.
If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60 per unit. a. How can the monopolist maximize her profit? b. If the monopolist must pay a sales tax of 5% of the selling price per unit, will she increase or decrease production (relative to the situation with no sales tax)? c. Continuing part b, use SolverTable to see how a change in the sales tax affects the optimal solution. Let the sales tax vary from 0% to 8% in increments of 0.5%.
Another way to derive a demand function is to break the market into segments and identify a low price, a medium price, and a high price. For each of these prices and market segments, we ask company experts to estimate product demand. Then we use Excels trend curve fitting capabilities to fit a quadratic function that represents that segments demand function. Finally, we add the segment demand curves to derive an aggregate demand curve. Try this procedure for pricing a candy bar. Assume the candy bar costs 0.55 to produce. The company plans to charge between 1.10 and 1.50 for this candy bar. Its marketing department estimates the demands shown in the file P07_47.xlsx (in thousands) in the three regions of the country where the candy bar will be sold. What is the profit-maximizing price, assuming that the same price will be charged in all three regions?
Chapter 6. Solve the following Linear Program using the Solver method and answer the questions given below (round to two decimal places): Maximize 12A + 15B s.t. 3A + 7B <= 250 5A + 2B <= 200 B <= 25 A, B >= 0 a. The optimal value of A is 31.03 and the optimal value of B is 22.41. b. The maximized function yields a solution of 708.62. Chapter 7. For the problem you solved in Q1, obtain the Sensitivity Report, and answer the following questions. Remember to round to two digits and you can enter “infinity” for unlimited regions: The range for Variable A is from ????? to ????? The range for Variable B is from ????? to ????? The range for Constraint 1 is from ????? to ????? The range for Constraint 2 is from ????? to ????? The range for Constraint 3 is from ????? to ?????
An Insurance Company is introducing two new product lines: special risk insuranceand mortgages. The expected profit is $5 per unit on special risk insurance and $2 per unit onmortgages. Management wishes to establish sales quotas for the new product lines tomaximize total expected profit. Please see figure for work requirements. The sensitivity report for this optimization problem is given in the following figure 1 - Can you determine the optimal value (maximum expected profit) based on the sensitivityreport? 2 - Identify the non-binding constraint(s).
The board of directors of General Wheels Company is considering seven large capital investments. Each investment can be made only once. These investments differ in the estimated long-run profit (net present value) that they will generate as well as in the amount of capital required, as shown by the following table. Investment Opportunity 1 2 3 4 5 6 7 Estimated Profit ($million) 17 10 15 19 7 13 9 Capital Required for Investment Opportunity ($million) Capital Available ($million) 1 2 3 4 5 6 7 Capital 43 28 34 48 17 32 23 100 The total amount of capital available for these investments is $100 million. Investment opportunities 1 and 2 are mutually exclusive, and so are 3 and 4. Furthermore, neither 3 nor 4 can be undertaken unless one of the first two opportunities is undertaken. There are no such restrictions on investment opportunities 5, 6, and 7. The objective is to select the combination of capital investments that will maximize the total estimated long-run…
Given the linear program Max 3x+4y S.T. -x+2y</=8 x+2y</=12 2x+y</= 16 x,y>/=0 A. Write the problem in standard form. Identify slack/surplus variables. B. Find all the extreme points. List the value for x and y at each extreme point. C. What is the optimal solution? D. What are the values of the slack/surplus variables at the optimal solution?
A goldsmith makes two types of jewelry. A model A ring is made with 1 g of gold and 1.5 g of silver and sells for 25 UM.Another model B ring sells for 30 UM and is made of 1.5 g of gold and 1 g of silver. If you only have 750 gof each metal, how many rings should be made of each type to obtain maximum profit?Requested:- Make Initial Table of the problem.- Obtain the Case Variables- Obtain the Objective Function- Get Restrictions- Create the Simplex Table- Obtain the Optimal Solution and the Slack Variables.Solve this operational research exercise.
Consider the following linear programming model with 4 regular constraints:Maximize 3X + 5Y (a) Draw your graph in the space below:subject to: 4X + 4Y ≤ 48 (constraint #1) 4X + 3Y ≤ 50 (constraint #2) 2X + 1Y ≤ 20 (constraint #3) X ≥ 2 (constraint #4) X, Y ≥ 0 (non-negativity constraints)(a) Which of the constraints is redundant? Constraint #______.Justify by drawing a graph similar to Figure 7.14 on p.263.(b) Is point (9,3) a feasible solution? _____. Explain your answer (by analyzing each of the constraints).Constraint #1: _______________________________________________________________Constraint #2: _______________________________________________________________Constraint #3: _______________________________________________________________Constraint #4: ______________________________________________________________
Company Z is contemplating a product development program encompassing 6 major projects. The company is constrained from embarking on all of the projects at once by the number of available (budgeted) developers (60) and the budget allocated for project expenses (£200,000). The following table shows the resource requirements and the estimated profit for each project. Use EXCEL’s Solver to answer question 1. 1. Suppose that CEO of company Z decides that project 2 and project 5 are mutually exclusive when all other projects remain independent. What is the revised project portfolio and the revised maximum profit?
I NEED HELP WITH QUESTION D AND E. Adirondack Savings Bank (ASB) has $1,000,000 in new funds that must be allocated to home loans, personal loans, and automobile loans. The annual rates of return for the three types of loans are 7% for home loans, 12% for personal loans, and 9% for automobile loans. The bank's planning committee has decided that at least 40% of the new funds must be allocated to home loans. In addition, the planning committee has specified that the amount allocated to personal loans cannot exceed 60% of the amount allocated to automobile loans. a. Formulate a linear programming model that can be used to determine the amount of funds ASB should allocate to each type of loan in order to maximize the total annual return for the new funds. b. How much should be allocated to each type of loan? What is the total annual return? What is the annual percentage return? c. If the interest rate on home loans increased to 9%, would the amount allocated to each type of loan…
Solve this problem in three ways; 1. Graphical 2. Excel solver 3. Sensitivity analysis/ report. a) What will happen to the optimal solution if the unit profit on x increase by 300? b) what will happen happen to the optimal solution if the unit profit on y decreases by 230? c) What will happen to the optimal solution if the unit profit on both x and y change to 700? d) Complete the sensitivity report with upper and lower limit. 1. The JAV Company manufactures two types of lamps; Special lamp and regular lamp. Each special lamp requires 4 pounds of brass and each regular lamp requires 8 pounds of brass. During each production period, the company's brass supply limited to 640 pounds. Each special lamp requires 6 hours of milling time in the machines and each regular lamp requires 2 hours of milling time in the machine, The company's machine are available only for 360 hours in each production period. Each special lamp requires 5 light bulbs that must be imported from…

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