Based on the following sensitivity analysis, which of the following products would be considered most sensitive to changes or errors in the objective function coefficient? Variable Cells Cell Name Final Value Reduced Cost Objective Coefficient Allowable Increase Allowable Decrease $B$2 Product_1 0 −2 25 10 5 $B$3 Product_2 175 0 25 10 14 $B$4 Product_3 0 −1.5 25 8 6 Constraints Cell Name Final Value Shadow Price Constraint R.H.Side Allowable Increase Allowable Decrease $H$9 Resource_A 0 0 100 1E+30 100 $H$10 Resource_B 525 0 800 1E+30 275 $H$11 Resource_C 700 1.75 700 366.6666667 700 Choose the product Product 1 Product 2 Product 3
Q: Following the same case, optimal solution is (A=14, B-18), total profit 136, and sensitivity report…
A: Linear programming is a technique used to maximize or minimize the set of given variables. These…
Q: Simplex Method Solve the following LP problem using the simplex method. Maximize: P = 9x + 7y…
A: Given- LP problem - Maximize: P = 9x + 7ySubject to:2x + y ≤ 40x + 3y ≤ 30x, y ≥ 0
Q: 1. Explain your observations about the optimal solution returned by the Solver. 2. If the company…
A: Objective function: Now, each of the decision variables represents the shipping volume, and we are…
Q: Based on the following sensitivity report, what would be the impact of changing the objective…
A: The 100% rule can be applied to decide if a modification in various objective function coefficients…
Q: 0s: FINO INITAL FEASIBLE SOLUTION COST FOR GIVEN PROBLEM by using Ar north-west cormer rule least…
A: In the northwest corner method, we make the assignment in the cells at the northwest corner.…
Q: nformation on a business is given below. Variable Expenses: Raw material expense: 250 TL / piece…
A: Answer: a. Sum total of variable expense or variable cost: 250+150+100+75+125 = 700 TL and sum total…
Q: Based on the following sensitivity report, what would be the impact of changing the objective…
A: For product 1, 10- (1E+30) to 10+ 5 10- (1E+30) to 15 10- (1E+30) shows a great decrease-essentially…
Q: you are given the following data for a linear programming problem where theobjective is to minimize…
A: Since you have submitted multiple subparts, as per guidelines we have answered the first three…
Q: Consider a monopolistically competitive market with NN firms. Each firm's business opportunities are…
A: given,
Q: Max 1W + 1.25M s.t. 5W + 7M 3W + 1M 2W + 2M W, M 20 S 4,400 S 2,240 S 1,600 oz of whole tomatoes oz…
A: Objective of the problem is to maximize profit. Each jar is of 10 ounces. Western Food Salsa (W)…
Q: Fuel Production. Bay Oil produces two types of fuel (regular and super) by mixing three ingredients.…
A: Consider the given subtleties to tackle the issue. Let, Ri be the quantity of barrels to create…
Q: Creative Sports Design (CSD) manufactures a standard-size racket and an oversize racket. The firm’s…
A: Given Information: Management has specified that at least 20% of the total production must be…
Q: Based on the following sensitivity analysis, which of the following products would be considered…
A: Sensitivity analysis or study is a financial representation that defines how target variables are…
Q: iven the following information for a product-mix problem with three products and three resources.…
A: Given,
Q: Маx 11X + 16Y subject to 8X +5Y 30 3X + 2Y 2 25 5X + 2Y < 148 X 20 Y 20 Consider the linear…
A:
Q: 1.) Objective Function: Maximize Z = 60X₁ +50X₂ Subject to Assembly 4X₁ +…
A: Since you have submitted multiple questions, as per guidelines we have answered the first question…
Q: The optimal solution of this linear programming problem is at the intersection of constraints 1 (c)…
A: Objective function: Max 2X1 + X2 Constraint: s.t. 4X1 + 1X2 ≤ 400 4X1 + 3X2 ≤ 600…
Q: W = jars of Western Foods Salsa M = jars of Mexico City Salsa leads to the formulation (units for…
A: As per Bartleby guidelines, we can only solve the first three subparts of one question at a…
Q: Formulate a linear integer program that generates a feasible production plan to maximize the total…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: The Mega-Bucks Corporation is planning its production schedule for the next four weeks and is…
A: Given, Forecasted Demand of Compound X Week Demand 1 400 lbs. 2 150 lbs.…
Q: 18. SuperCity iš a largé rétáilèř óf éléčtroničs and appliances. The store sells three different…
A: The goal is to limit the absolute expense. Choice Variables is , where is the quantity of TV of…
Q: Comp Sets Answer the following questions regarding Comp Sets. Demonstrate how KPIs and percent…
A: KPIs for the comp set are inferred dependent on the totaled raw information for each different inn…
Q: Complete the firs iteration of the Simplex table for the following Maximization problem. Note: If…
A: in simplex method, to remove the inequalities from constraint equations, we add slack and surplus to…
Q: Two alloys, A and B, are made from four metals, I, II, III, and IV, according to the follow- ing…
A: Let, xij be tons of ore i allocated to j where i = 1,2,3,4 j = A, B wj is the tons of alloy j…
Q: Cox Electric makes electronic components and has estimated the following for a new design of one of…
A: Find the Given details below: Given Details: Fixed Cost 12750 $ Material Cost 0.16 $/Unit…
Q: Consider the problem to the right. Мaximize z= - 2x1 + 5x2 - 4x3 subject to - 5x2 + 2x3 s7 (a)…
A: Slack and surplus variables are used for the purpose of solving Linear Programming Problems (LPP).…
Q: A firm offers three different prices on its products, depending upon the quantity purchased. Since…
A: Let; x11=Units produced of Product 1 with a profit of $16 x12=Units produced of Product 1 with a…
Q: Barlow Company manufactures three products—A, B, and C. The selling price, variable costs, and…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: The Solver Sensitivity Report for some profit maximization problem with several constraints…
A: Sensitivity analysis is performed to identify the extent of changes in the constraints and…
Q: Q2. Solve the given LP problem on the right by (LP): Max Z = 2X1 + 4X2 using The Graphical Solution…
A: MAX z = 2x1 + 4x2subject to3x1 + 2x2 <= 12x1 + 2x2 <= 82x1 + x2>= 2and x1,x2 >= 0
Q: An investor is looking to invest R 250,000 with the intent of getting the highest possible return.…
A: Given data is Available amount to invest = R 250,000 Limit to invest in ASBA stock = less than or…
Q: A company produces a single type of product. The product sells for $9 per unit. The customer demands…
A: Given data: Month Demand (units) Holding cost Production cost Production capacity M1 55 0.1…
Q: In the spreadsheet model shown below, an analyst makes the following data entries. Cell ВЗ В4 В5 B6…
A: Find the Given details below: Given details: Cell B3 B4 B5 B6 Value 113000 90000 119000…
Q: -A Hot dog mixture in 1000-pound batches. Two ingredients is needed to create the mixture, chicken…
A: Decision Variable: Suppose- X1 be the pound of chicken used as an ingredientX2 be the pound of…
Q: Liva's Lumber, Inc., manufactures three types of plywood. The following table summarizes the…
A: Decision variable: Suppose-x1 be the no. of Grade A type of plywood to be producedx2 be the no. of…
Q: 10
A: The option (c ) represents the correct graphical solution. As the feasible area is bound by the…
Q: Bahrain International Company has 1400 KG of Raw Material to make two products: X1 and X2. There are…
A: The question is related to maximization of linear programming.
Q: Based on the given information answer the following questions: a) Formulate the integer programming…
A: Linear programming refers to a method of optimizing operations with few constraints. The primary…
Q: Ex-2: Reddy mikks produces both interior and exterior paints from tow raw materials Ml and M2 the…
A: Decision variable: Let; x1 be the tons of exterior point to be produced x2 be the tons of interior…
Q: XYZ Corporation manufactures two products, Simple and Complex. The following annual information was…
A: Profit maximization is a cycle business firms go through to guarantee the best result and cost…
Q: Min X +2x, X +3x, 2 90 8x, + 2x, 2160 3x, + 2x, 2120 s.t. X S70 a. Write the problem in standard…
A: The linear programming method can be defined as a method of developing and improving operations with…
Q: FIGURE 3.14 THE SOLUTION FOR THE INVESTMENT ADVISORS PROBLEM Optimal Objective Value = 8400.00000…
A: Note: - Since we can answer only up to three subparts we will answer the first three subparts(a, b,…
Q: PRODUCT MIX: The JP Manufacturing Company produces two products. Resource requirements for…
A:
Q: A LP model is given as Min z = 30x1+7x2 S/t 12x1 + 3x2 > 32 (High income wor 4x1 + 9x2 > 16 (High…
A: Variables: x1= Number of comedy Spotsx2= Number of Football Spots Objective: Minimize the cost…
Q: Find the solution using two-phase met hod Minimize Z = r+2x2 + 3x3-4 Subject to the constraints 5r,…
A: This question is related to the topic Decision Making and this topic falls under the business…
Q: LP PROBLEM: Ozark Farms uses at least 800 lb. of special feed daily. The special feed is a mixture…
A: Given data is
Q: Friendly Waste Co. runs three different factories and is required by law to safely dispose of…
A: THE ANSWER IS AS BELOW:
Q: Minimize Z = -5x1 + 4r2 subject to 213 x2 + 4r3 < 3 2x2 + 6x3 < 10 (1) (2) I1 2 0, x2 2 0, x3 2 0.…
A: GivenMIN Z = -5x1 + 4x2 - 2x3subject tox1 - x2 + 4x3 <= 33x1 - 2x2 + 6x3 <= 10and x1,x2,x3…
Q: 1. Write a linear program for the problem. 2. What is the optimal production mix among different…
A: Note: - Since we can answer only up to three subparts we will answer the first three subparts(1, 2,…
Based on the following sensitivity analysis, which of the following products would be considered most sensitive to changes or errors in the objective function coefficient?
Variable Cells
Cell | Name | Final Value | Reduced Cost | Objective Coefficient | Allowable Increase |
Allowable Decrease |
$B$2 | Product_1 | 0 | −2 | 25 | 10 | 5 |
$B$3 | Product_2 | 175 | 0 | 25 | 10 | 14 |
$B$4 | Product_3 | 0 | −1.5 | 25 | 8 | 6 |
Constraints
Cell | Name | Final Value | Shadow Price | Constraint R.H.Side | Allowable Increase |
Allowable Decrease |
$H$9 | Resource_A | 0 | 0 | 100 | 1E+30 | 100 |
$H$10 | Resource_B | 525 | 0 | 800 | 1E+30 | 275 |
$H$11 | Resource_C | 700 | 1.75 | 700 | 366.6666667 | 700 |
Choose the product
Product 1
Product 2
Product 3
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- You want to take out a 450,000 loan on a 20-year mortgage with end-of-month payments. The annual rate of interest is 3%. Twenty years from now, you will need to make a 50,000 ending balloon payment. Because you expect your income to increase, you want to structure the loan so at the beginning of each year, your monthly payments increase by 2%. a. Determine the amount of each years monthly payment. You should use a lookup table to look up each years monthly payment and to look up the year based on the month (e.g., month 13 is year 2, etc.). b. Suppose payment each month is to be the same, and there is no balloon payment. Show that the monthly payment you can calculate from your spreadsheet matches the value given by the Excel PMT function PMT(0.03/12,240, 450000,0,0).Suppose that GLC earns a 2000 profit each time a person buys a car. We want to determine how the expected profit earned from a customer depends on the quality of GLCs cars. We assume a typical customer will purchase 10 cars during her lifetime. She will purchase a car now (year 1) and then purchase a car every five yearsduring year 6, year 11, and so on. For simplicity, we assume that Hundo is GLCs only competitor. We also assume that if the consumer is satisfied with the car she purchases, she will buy her next car from the same company, but if she is not satisfied, she will buy her next car from the other company. Hundo produces cars that satisfy 80% of its customers. Currently, GLC produces cars that also satisfy 80% of its customers. Consider a customer whose first car is a GLC car. If profits are discounted at 10% annually, use simulation to estimate the value of this customer to GLC. Also estimate the value of a customer to GLC if it can raise its customer satisfaction rating to 85%, to 90%, or to 95%. You can interpret the satisfaction value as the probability that a customer will not switch companies.The method for rating teams in Example 7.8 is based on actual and predicted point spreads. This method can be biased if some teams run up the score in a few games. An alternative possibility is to base the ratings only on wins and losses. For each game, you observe whether the home team wins. Then from the proposed ratings, you predict whether the home team will win. (You predict the home team will win if the home team advantage plus the home teams rating is greater than the visitor teams rating.) You want the ratings such that the number of predictions that match the actual outcomes is maximized. Try modeling this. Do you run into difficulties? (Remember that Solver doesnt like IF functions.) EXAMPLE 7.8 RATING NFL TEAMS9 We obtained the results of the 256 regular-season NFL games from the 2015 season (the 2016 season was still ongoing as we wrote this) and entered the data into a spreadsheet, shown at the bottom of Figure 7.38. See the file NFL Ratings Finished.xlsx. (Some of these results are hidden in Figure 7.38 to conserve space.) The teams are indexed 1 to 32, as shown at the top of the sheet. For example, team 1 is Arizona, team 2 is Atlanta, and so on. The first game entered (row 6) is team 19 New England versus team 25 Pittsburgh, played at New England. New England won the game by a score of 28 to 21, and the point spread (home team score minus visitor team score) is calculated in column J. A positive point spread in column J means that the home team won; a negative point spread indicates that the visiting team won. The goal is to determine a set of ratings for the 32 NFL teams that most accurately predicts the actual outcomes of the games played.
- Based on Grossman and Hart (1983). A salesperson for Fuller Brush has three options: (1) quit, (2) put forth a low level of effort, or (3) put forth a high level of effort. Suppose for simplicity that each salesperson will sell 0, 5000, or 50,000 worth of brushes. The probability of each sales amount depends on the effort level as described in the file P07_71.xlsx. If a salesperson is paid w dollars, he or she regards this as a benefit of w1/2 units. In addition, low effort costs the salesperson 0 benefit units, whereas high effort costs 50 benefit units. If a salesperson were to quit Fuller and work elsewhere, he or she could earn a benefit of 20 units. Fuller wants all salespeople to put forth a high level of effort. The question is how to minimize the cost of encouraging them to do so. The company cannot observe the level of effort put forth by a salesperson, but it can observe the size of his or her sales. Thus, the wage paid to the salesperson is completely determined by the size of the sale. This means that Fuller must determine w0, the wage paid for sales of 0; w5000, the wage paid for sales of 5000; and w50,000, the wage paid for sales of 50,000. These wages must be set so that the salespeople value the expected benefit from high effort more than quitting and more than low effort. Determine how to minimize the expected cost of ensuring that all salespeople put forth high effort. (This problem is an example of agency theory.)An automobile manufacturer is considering whether to introduce a new model called the Racer. The profitability of the Racer depends on the following factors: The fixed cost of developing the Racer is triangularly distributed with parameters 3, 4, and 5, all in billions. Year 1 sales are normally distributed with mean 200,000 and standard deviation 50,000. Year 2 sales are normally distributed with mean equal to actual year 1 sales and standard deviation 50,000. Year 3 sales are normally distributed with mean equal to actual year 2 sales and standard deviation 50,000. The selling price in year 1 is 25,000. The year 2 selling price will be 1.05[year 1 price + 50 (% diff1)] where % diff1 is the number of percentage points by which actual year 1 sales differ from expected year 1 sales. The 1.05 factor accounts for inflation. For example, if the year 1 sales figure is 180,000, which is 10 percentage points below the expected year 1 sales, then the year 2 price will be 1.05[25,000 + 50( 10)] = 25,725. Similarly, the year 3 price will be 1.05[year 2 price + 50(% diff2)] where % diff2 is the percentage by which actual year 2 sales differ from expected year 2 sales. The variable cost in year 1 is triangularly distributed with parameters 10,000, 12,000, and 15,000, and it is assumed to increase by 5% each year. Your goal is to estimate the NPV of the new car during its first three years. Assume that the company is able to produce exactly as many cars as it can sell. Also, assume that cash flows are discounted at 10%. Simulate 1000 trials to estimate the mean and standard deviation of the NPV for the first three years of sales. Also, determine an interval such that you are 95% certain that the NPV of the Racer during its first three years of operation will be within this interval.The eTech Company is a fairly recent entry in the electronic device area. The company competes with Apple. Samsung, and other well-known companies in the manufacturing and sales of personal handheld devices. Although eTech recognizes that it is a niche player and will likely remain so in the foreseeable future, it is trying to increase its current small market share in this huge competitive market. Jim Simons, VP of Production, and Catherine Dolans, VP of Marketing, have been discussing the possible addition of a new product to the companys current (rather limited) product line. The tentative name for this new product is ePlayerX. Jim and Catherine agree that the ePlayerX, which will feature a sleeker design and more memory, is necessary to compete successfully with the big boys, but they are also worried that the ePlayerX could cannibalize sales of their existing productsand that it could even detract from their bottom line. They must eventually decide how much to spend to develop and manufacture the ePlayerX and how aggressively to market it. Depending on these decisions, they must forecast demand for the ePlayerX, as well as sales for their existing products. They also realize that Apple. Samsung, and the other big players are not standing still. These competitors could introduce their own new products, which could have very negative effects on demand for the ePlayerX. The expected timeline for the ePlayerX is that development will take no more than a year to complete and that the product will be introduced in the market a year from now. Jim and Catherine are aware that there are lots of decisions to make and lots of uncertainties involved, but they need to start somewhere. To this end. Jim and Catherine have decided to base their decisions on a planning horizon of four years, including the development year. They realize that the personal handheld device market is very fluid, with updates to existing products occurring almost continuously. However, they believe they can include such considerations into their cost, revenue, and demand estimates, and that a four-year planning horizon makes sense. In addition, they have identified the following problem parameters. (In this first pass, all distinctions are binary: low-end or high-end, small-effect or large-effect, and so on.) In the absence of cannibalization, the sales of existing eTech products are expected to produce year I net revenues of 10 million, and the forecast of the annual increase in net revenues is 2%. The ePIayerX will be developed as either a low-end or a high-end product, with corresponding fixed development costs (1.5 million or 2.5 million), variable manufacturing costs ( 100 or 200). and selling prices (150 or 300). The fixed development cost is incurred now, at the beginning of year I, and the variable cost and selling price are assumed to remain constant throughout the planning horizon. The new product will be marketed either mildly aggressively or very aggressively, with corresponding costs. The costs of a mildly aggressive marketing campaign are 1.5 million in year 1 and 0.5 million annually in years 2 to 4. For a very aggressive campaign, these costs increase to 3.5 million and 1.5 million, respectively. (These marketing costs are not part of the variable cost mentioned in the previous bullet; they are separate.) Depending on whether the ePlayerX is a low-end or high-end produce the level of the ePlayerXs cannibalization rate of existing eTech products will be either low (10%) or high (20%). Each cannibalization rate affects only sales of existing products in years 2 to 4, not year I sales. For example, if the cannibalization rate is 10%, then sales of existing products in each of years 2 to 4 will be 10% below their projected values without cannibalization. A base case forecast of demand for the ePlayerX is that in its first year on the market, year 2, demand will be for 100,000 units, and then demand will increase by 5% annually in years 3 and 4. This base forecast is based on a low-end version of the ePlayerX and mildly aggressive marketing. It will be adjusted for a high-end will product, aggressive marketing, and competitor behavior. The adjustments with no competing product appear in Table 2.3. The adjustments with a competing product appear in Table 2.4. Each adjustment is to demand for the ePlayerX in each of years 2 to 4. For example, if the adjustment is 10%, then demand in each of years 2 to 4 will be 10% lower than it would have been in the base case. Demand and units sold are the samethat is, eTech will produce exactly what its customers demand so that no inventory or backorders will occur. Table 2.3 Demand Adjustments When No Competing Product Is Introduced Table 2.4 Demand Adjustments When a Competing Product Is Introduced Because Jim and Catherine are approaching the day when they will be sharing their plans with other company executives, they have asked you to prepare an Excel spreadsheet model that will answer the many what-if questions they expect to be asked. Specifically, they have asked you to do the following: You should enter all of the given data in an inputs section with clear labeling and appropriate number formatting. If you believe that any explanations are required, you can enter them in text boxes or cell comments. In this section and in the rest of the model, all monetary values (other than the variable cost and the selling price) should be expressed in millions of dollars, and all demands for the ePlayerX should be expressed in thousands of units. You should have a scenario section that contains a 0/1 variable for each of the binary options discussed here. For example, one of these should be 0 if the low-end product is chosen and it should be 1 if the high-end product is chosen. You should have a parameters section that contains the values of the various parameters listed in the case, depending on the values of the 0/1 variables in the previous bullet For example, the fixed development cost will be 1.5 million or 2.5 million depending on whether the 0/1 variable in the previous bullet is 0 or 1, and this can be calculated with a simple IF formula. You can decide how to implement the IF logic for the various parameters. You should have a cash flows section that calculates the annual cash flows for the four-year period. These cash flows include the net revenues from existing products, the marketing costs for ePlayerX, and the net revenues for sales of ePlayerX (To calculate these latter values, it will help to have a row for annual units sold of ePlayerX.) The cash flows should also include depreciation on the fixed development cost, calculated on a straight-line four-year basis (that is. 25% of the cost in each of the four years). Then, these annual revenues/costs should be summed for each year to get net cash flow before taxes, taxes should be calculated using a 32% tax rate, and taxes should be subtracted and depreciation should be added back in to get net cash flows after taxes. (The point is that depreciation is first subtracted, because it is not taxed, but then it is added back in after taxes have been calculated.) You should calculate the company's NPV for the four-year horizon using a discount rate of 10%. You can assume that the fixed development cost is incurred now. so that it is not discounted, and that all other costs and revenues are incurred at the ends of the respective years. You should accompany all of this with a line chart with three series: annual net revenues from existing products; annual marketing costs for ePlayerX; and annual net revenues from sales of ePlayerX. Once all of this is completed. Jim and Catherine will have a powerful tool for presentation purposes. By adjusting the 0/1 scenario variables, their audience will be able to see immediately, both numerically and graphically, the financial consequences of various scenarios.