PLEASE FOLLOW THE INSTRUCTIONS AND DO THIS TYPEWRITTEN ONLY. I WILL UPVOTE FOR YOUR GREATEST EFFORT. KINDLY SKIP THIS IF YOU HAVE ALREADY ANSWERED. THANK YOU SO MUCH GENERATE THE DECISION VARIABLE SOLUTION ANDGENERATE A SENSITIVITY REPORT1. Southern Sporting Goods Company makes basketballs and footballs. Each product is produced fromtwo resources-rubber and leather. The resource requirements for each product and the totalresources available are as follows:Resource requirements per unitRubber (lb)Leather (ft2)ProductBasketball34Football25800 ft2Total Resources available500 lbEach basketball produced results in a profit of $12, and each football earns $16 in profit.Required:a. Solve the model formulated for Southern Sporting Goods Company using the computer.b. What would be the effect on the optimal solution if the profit for a basketball changed from$12 to $13? What would be the effect if the profit for a football changed from $16 to $15?c. What would be the effect on the optimal solution if 500 additional pounds of rubber couldbe obtained? What would be the effect if 500 additional square feet of leather could beobtained?

Objective Functions and Constraints: Based on the given details, the objective…

1. Southern Sporting Goods Company makes basketballs and footballs. Each product is produced from two resources-rubber and leather. The resource requirements for each product and the total resources available are as follows: Resource requirements per unit Rubber (lb) Leather (ft2) Product Basketball 3 4 Football 2 5 Total Resources available 500 lb 800 ft2 Each basketball produced results in a profit of $12, and each football earns $16 in profit. Required: a. Solve the model formulated for Southern Sporting Goods Company using the computer. b. What would be the effect on the optimal solution if the profit for a basketball changed from $12 to $13? What would be the effect if the profit for a football changed from $16 to $15? What would be the effect on the optimal solution if 500 additional pounds of rubber could be obtained? What would be the effect if 500 additional square feet of leather could be obtained? c.

1. Southern Sporting Goods Company makes basketballs and footballs. Each product is produced from two resources-rubber and leather. The resource requirements for each product and the total resources available are as follows: Resource requirements per unit Rubber (lb) Leather (ft2) Product Basketball 3 4 Football 2 5 Total Resources available 500 lb 800 ft2 Each basketball produced results in a profit of $12, and each football earns $16 in profit. Required: a. Solve the model formulated for Southern Sporting Goods Company using the computer. b. What would be the effect on the optimal solution if the profit for a basketball changed from $12 to $13? What would be the effect if the profit for a football changed from $16 to $15? What would be the effect on the optimal solution if 500 additional pounds of rubber could be obtained? What would be the effect if 500 additional square feet of leather could be obtained? c.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section9.2: Elements Of Decision Analysis

Problem 2P

See similar textbooks

Similar questions

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%.
Make sure to identify and define the decision variables, and formulate the objective function and constraints for each problem. You may use Excel to solve the mathematical problems. 1. Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their locations and capacities are shown in Table 1 along with the cost of producing 1 ton of ink at each facility. The major markets for the inks are North America, Europe, Japan, South America, and the rest of Asia. Demand at each market is shown in Table 1. Transportation costs from each plant to each market in U.S. dollars are shown in Table 1. Management must come up with a production plan for the next year. a. If no plant can run below 50 percent capacity, how much should each plant produce and which markets should each plant supply? b. If there are no limits on the minimum amount produced in a plant, how much should each plant produce?
In the problem on excel : 1.What are the decision variables 2.What is the objective functions 3. What are the constraints and explain A used t company, owned by Musa in Ottawa sells 7 different brands covering 3 different products. These are 4 Brands of Cars: Toyota, Honda, Chevrolet and BMW; 2 brands of Motorcycles: Suzuki and Yamaha, and 1 brand of Sailboats: Amel. Musa knows that his sales floor which he will display his products is 70,000 square feet, and that a Car takes 60 square feet of space, a motorcycle takes 20 square feet of space, and a sailboat takes 800 square feet of space. The profit that can be made for selling each of 7 different items is listed below: ITem Profit per unit Car - Toyota $2800 Car - Honda $3900 Car - Chevrolet $2,100 Car - BMW $5000 Motorcycle - Suzuki $1,000 Motorcycle - Yamaha $2,250 Sailboat - Amel $9,500 The transportation company is trying to determine how many of each item to order to maximize profit, given the following restrictions: 1.…
We have $1,000 to invest. All the money must be placedin one of three investments: gold, stock, or money marketcertificates. If $1,000 is placed in an investment, the valueof the investment one year from now depends on the stateof the economy (see Table 16). Assume that each state of the economy is equally likely. For each of the followingdecision criteria, determine the optimal decision:a maximinb maximaxc minimax regretd expected value Value of $1,000 State 1 State 2 State 3Money marketcertificate $1,100 $1,100 $1,100Stock $1,000 $1,100 $1,200Gold $1,600 $300 $1,400
In the problem on excel : 1.What are the decision variables 2.What is the objective functions 3. What are the constraints and explain
An investor is considering investing in stocks, real estate, or bonds economic conditions. Suppose that the probabilities for good, stable and poor conditions are 0.2, 0.4 and … (figure it out), respectively. Table 1 shows the payoff returns for the investor’s decision situation. Table 1: Investment returns Economic Conditions Investment Good Stable Poor Stocks R5 000 R7 000 R3 000 Real estate -R2 000 R10 000 R6 000 Bonds R4 000 R4 000 R4 000 Assuming the probabilities of the occurrence of the state of nature are unknown, what will be the best investment alternative; a) If the decision maker is pessimistic about the future state, (3) b) If the decision maker strikes a compromise between the maximin and maximax, assuming the coefficient of pessimism is 0.2. (4) c) If the decision is based on opportunistic loss. (6) d) If we use the equally likelihood criterion
In the problem on excel : 1.What are the decision variables 2.What is the objective functions 3. What are the 12 constraints and explain You won $750,000 from a lottery and, you have decided to come up with a list of possible investments that you will invest, all of the $750,000 that you have won. The expected return of each of the 6 possible investments that you are considering investing in,and their Expected Rate of Return over the next year are in the table below. Investment Expected Rate of return Amazon Inc (USA Shares) 13.5% Royal Bank of Canada (Canadian Shares) 7.4% Nike Inc (USA Shares) 10.0% Telus Corporation (Canadian Shares) 6.1% Snap Inc (USA Shares) 3.0% Nestle SA (Switzerland Shares) 4.8% it is important to have a diversified portfolio, and therefore have come up with the following guidelines on how to invest your money: 1.The total invested in USA Shares should be at least 10% but no more then 45% of the total…
Suppose that a decision is faced with three decision alternatives and four states of nature.The following profit payoff table is constructed: ALTERNATIVES STATE OF NATURE S1 S2 S3 S4 A1 18 12 15 8 A2 15 14 10 11 A3 13 16 19 15 Assuming that the decision maker has no knowledge about the probabilities of occurrenceof the four states of nature, find the decisions to be recommended under each of thefollowing criteria:i. Maximin criterionii. Maximax criterioniii. Minimax Reject criterioniv. Hurwicz criterion with α = 0.6
3. Using the following table, perform ALL FIVE of the techniques for Decision Making under Uncertainty: Maximax, Maximin, Hurwicz Realism (α = 0.4), LaPlace and Minimax Regret. Show the work on excel file. SIZE OF FIRST STATION GOOD MARKET FAIR MARKET POOR MARKET ($) ($) ($) Small 50,000 20,000 -10,000 Medium 80,000 30,000 -20,000 Large 100,000 30,000 -40,000 Very large 300,000 25,000 -160,000
1. Problem 13-14 (Algorithmic)The following profit payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature:State of NatureDecision Alternative S1 S2 S3d1 200 150 75d2 250 150 50The probabilities for the states of nature are P(s1) = 0.5, P(s2) = 0.3 and P(s3) = 0.2.a. What is the optimal decision strategy if perfect information was available? S1 : d2 S2 : d1 or d2 S3 : d1 b. c. What is the expected value for the decision strategy developed in part (a)? If required, round your answer to one decimal place. d. Using the expected value approach, what is the recommended decision without perfect information? d2 What is its expected value? If required, round your answer to one decimal place. e. What is the expected value of perfect information? If required, round your answer to one decimal place.
1. (i) A consumer has income of £3,000. Apple juice is priced at £3 a bottle and cheese is priced at £6 a kilo. Drawthe budget constraint for a consumer with standard preferences. What is the slope of this budget constraint? (ii) Show a consumer’s budget constraint and indifference curves for apple juice and cheese. Show the optimalconsumption choice. If the price of juice is £3 a bottle and the price of cheese is £6 a kilo, what is the marginalrate of substitution at this optimum? (iii) The price of cheese rises from £6 to £10 a kilo, while the price of juice remains at £3 a bottle. For aconsumer with a constant income of £3,000, show what happens to consumption of juice and cheese.Decompose the change into income and substitution effects.
PROBLEM SOLVING (DECISION THEORY) Example: A farmer wants to decide which of the three crops he should plant on his 100 Acre farm. The profit from each is dependent on the rainfall during the growing seasons. The farmer has categorized the amount of rainfall as high, medium, low. His estimated profit for each is show in the table: Rainfall Crop A Crop B Crop C High 8000 3500 5000 Medium 4500 4500 5000 Low 2000 5000 4000 Determine the various criterion from which the final decision has to be made. If the farmer wishes to plant only one crop, decide which will be his choice using the following criterion•Maximax criterion •Maximin criterion •Hurwicz criterion •Laplace criterion