D ,e and f Consider the Union Airways problem presented in Sec-tion 3.3, including the spreadsheet in Figure 3.5 showing its for-mulation and optimal solution.Management is about to begin negotiations on a new contractwith the union that represents the company's customer serviceagents. This might result in some small changes in the dailycosts per agent given in Table 3.5 for the various shifts. Severalpossible changes listed below are being considered separately. Ineach case, management would like to know whether the changemight result in the solution in Figure 3.5 no longer being opti-mal. Answer this question in parts a to e by using the spread-sheet and Solver directly. If the optimal solution changes, recordthe new solution.a. The daily cost per agent for shift 2 changes from$160 to $165.C. The changes in parts a and b both occur.d. The daily cost per agent increases by $4 for shifts 2,4, and 5, but decreases by $4 for shifts 1 and 3.e. The daily cost per agent increases by 2 percent foreach shift.f. Use Solver to generate the sensitivity report for thisproblem. Suppose that the above changes are beingconsidered later without having the spreadsheetmodel immediately available on a computer. Showin each case how the sensitivity report can be usedto check whether the original optimal solution muststill be optimal.8. For each of the five shifts in turn, use a parameteranalysis report to systematically generate the opti-mal solution and total cost when the only change inASS The spreadsheet model for the Think-Big problem, including the formulas for the objective cell TotalNPV (H16) and the other ocells CapitalSpent (F9:F12), as well as the specifications needed to set up Solver. The changing cells ParticipationShare (C16:E43.3 Cost-Benefit-Trade-Off Problems 85FIGURE 3.5The spreadsheet moel fer ine Uaion Airways problem, including the formulas for the objective cell TotalCost (J21) and the otheroutput celis TotalWorking (H8:HI7), as weil as the specifications needed to set up Solver. The changing cells NumberWorking(C21:G21) show the optimal solution ootained by Solver.ABDEHUnion Airways Personnel Scheduling Problem36AM-2PM8AM-4PMNoon-8PM4PM-Midnight10PM-6AM4.ShiftShiftShiftShiftShiftCost per Shift$170$160$175$180$1956.TotalMinimum7Time PeriodShift Works Time Period? (1=yes, 0=no)WorkingNeeded8.6AM-8AM0.489.8AM-10AM11.791010AM-12PM1791112PM-2PM111887122PM-4PM1170134PM-6PM0.1018273146PM-8PM0.1018282158PM-10PM0143431610PM-12AM38521712AM-6AM0.01151518196AM-2PM8AM-4PM4PM-MidnightNoon-8PM1OPM-6AM20ShiftShiftShiftShiftShiftTotal Cost21Number Working4831394315FIGURE 3.3show the optimal solution obtained by Solver.EFGHВCA1Think-Big Development Co. Capital Budgeting ProgramShoppingOfficeHotelCenterBuilding4705045Net Present ValueCumulativeCumulative($millions)CapitalСapital7SpentAvailableCumulative Capital Required ($millions)825408090259.Now16014044.764510010End of Year 124016060.586519011End of Year 22003102208080End of Year 31213OfficeShoppingTotal NPV14BuildingHotelCenter($millions)150.00%16.50%13.11%18.1116Participation Share4225%Al A A A A A NANVIVI VI VI3.

The excel model is replicated as follows.

Consider the Union Airways problem presented in Sec- tion 3.3, including the spreadsheet in Figure 3.5 showing its for- mulation and optimal solution. Management is about to begin negotiations on a new contract with the union that represents the company's customer service agents. This might result in some small changes in the daily costs per agent given in Table 3.5 for the various shifts. Several possible changes listed below are being considered separately. In each case, management would like to know whether the change might result in the solution in Figure 3.5 no longer being opti- mal. Answer this question in parts a to e by using the spread- sheet and Solver directly. If the optimal solution changes, record the new solution. a. The daily cost per agent for shift 2 changes from $160 to $165. c. The changes in parts a and b both occur. d. The daily cost per agent increases by $4 for shifts 2, 4, and 5, but decreases by $4 for shifts 1 and 3. e. The daily cost per agent increases by 2 percent for each shift. f. Use Solver to generate the sensitivity report for this problem. Suppose that the above changes are being considered later without having the spreadsheet model immediately available on a computer. Show in each case how the sensitivity report can be used to check whether the original optimal solution must still be optimal. . For each of the five shifts in turn, use a parameter AS analysis report to systematically generate the opti- mal solution and total çost when the only

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...