• Which cells contain the decision variable quantities? • Which cells contain the unit costs for each decision variable? • Which cells contain the constraints? • Which cells contain the objective value? • Is (Activity 1 = 25, Activity 2 = 50, and Activity 3 = 15) a feasible solution? B D Activity 2 $40 A ctivity 3 $30 1 Unit Profit Activ ity 1 $20 Resource Available Totals 400 100 200 4 Resource Used per Unit Produced 1 400 100 200 6. 1 1 1 7 1 2 8. Activity 2 50 Activity 1 50 A ctivity 3 Total Cost 10 Units Produced $3,000 4,

• Which cells contain the decision variable quantities? • Which cells contain the unit costs for each decision variable? • Which cells contain the constraints? • Which cells contain the objective value? • Is (Activity 1 = 25, Activity 2 = 50, and Activity 3 = 15) a feasible solution? B D Activity 2 $40 A ctivity 3 $30 1 Unit Profit Activ ity 1 $20 Resource Available Totals 400 100 200 4 Resource Used per Unit Produced 1 400 100 200 6. 1 1 1 7 1 2 8. Activity 2 50 Activity 1 50 A ctivity 3 Total Cost 10 Units Produced $3,000 4,

Practical Management Science

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...

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Variable cells Cell Name Final Value Reduced Cost Objective Coefficient Allowable Increase Allowable Decrease $B$6 Activity 1 3 0 30 23 17 $C$6 Activity 2 6 0 40 50 10 $D$6 Activity 3 0 –7 20 7 1E+30 Constraints Cell Name Final Value Shadow Price Constraint R.H. Side Allowable Increase Allowable Decrease $E$2 Resource A 20 7.78 20 10 12.5 $E$3 Resource B 30 6 30 50 10 $E$4 Resource C 18 0 40 1E+30 22 Which parameter is most sensitive to an increase in its value?
19. What combination of x and y will yield the optimum for this problem? Maximize $3x + $15y, subject to (1) 2x + 3y ≤ 12 and (2) 5x + 2y ≤ 10 and (3) x, y ≥ 0. Part 2 A. x = 0, y = 3 B. x = 2, y = 0 C. x = 0, y = 0 D. x = 0, y = 4 E. x = 1, y = 5
Answer the following MCQ questions. 1) When Delroy draw on well-developed procedures in his job of grocery store inventory clerk to determine which products to stock first, he is making which type of decision? a) Tactical b) Programmed c) Operational d) Non-Programmed 2) Identifying a problem and matching it with established routines and procedures for resolving it is a ? a) Tactical decision b) Programmed decision c) Operational decision d) Non-Programmed decision 3) Crystal is a marketing manager who is deciding how to allocate the financial resources among three different product launches over the next three months years. Crystal is making a ? a) Strategic decision b) Operational decision c) Tactical decision d) Opportunistic decision
a. Use a decision tree to recommend a decision. b. Use EVPI to determine whether Gorman should attempt to obtain a better estimate of demand. c. A test market study of the potential demand for the product is expected to report either a favorable (F) or unfavorable (U) condition. The relevant conditional probabilities are as follows: P(F | s1) = 0.10 P(U | s1) = 0.90 P(F | s2) = 0.40 P(U | s2) = 0.60 P(F | s3) = 0.60 P(U | s3) = 0.40 What is the probability that the market research report will be favorable?
Refer to the following sensitivity report: Variable Cells Cell Name Final Value Reduced Cost Objective Coefficient AllowableIncrease AllowableDecrease $B$2 Product_1 0 −2 5 2 1E+30 $B$3 Product_2 175 0 7 1E+30 1 $B$4 Product_3 0 −1.5 9 1.5 1E+30 Constraints Cell Name Final Value Shadow Price Constraint R.H.Side AllowableIncrease AllowableDecrease $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 If the objective function coefficient for Product_1 were increased to a value of 8, which of the following would be TRUE? The optimal solution would change. The optimal objective function value would stay the same. Product_1 would enter the solution (the final value of the variable Product_1 would be greater than zero).
Refer to the following sensitivity report: Variable Cells Cell Name Final Value Reduced Cost Objective Coefficient AllowableIncrease AllowableDecrease $B$2 Product_1 0 −2 5 2 1E+30 $B$3 Product_2 175 0 7 1E+30 1 $B$4 Product_3 0 −1.5 9 1.5 1E+30 Constraints Cell Name Final Value Shadow Price Constraint R.H.Side AllowableIncrease AllowableDecrease $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 If the right-hand side of Resource_C increases to 750, which of the following would be true The objective function value will increase by $1.75 The objective function value will decrease by $1.75 The objective function value will increase by $87.50 The objective function value will decrease by $87.50 None of the answer choices is correct
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Variable cells Cell Name Final Value Reduced Cost Objective Coefficient Allowable Increase Allowable Decrease $B$6 Activity 1 0 425 500 1E+30 425 $C$6 Activity 2 27.5 0.0 300 500 300 $D$6 Activity 3 0 250 400 1E+30 250 Constraints Cell Name Final Value Shadow Price Constraint R.H. Side Allowable Increase Allowable Decrease $E$2 Benefit A 110 0 60 50 1E+30 $E$3 Benefit B 110 75 110 1E+30 46 $E$4 Benefit C 137.5 0 80 57.5 1E+30 If the coefficient for Activity 1 in the objective function changes to $50, then the objective function value: Multiple Choice will decrease by $450. is $0. will decrease by $2750. will remain the same. can only be discovered by resolving the problem.
Maximize z= 5R+8P Subject to R+3/2P≤900 1/2R+1/3P≤300 1/8R+1/4P≤100 R,P ≥ 0 non-binding constraint: R+(3/2) P≤900 binding constraints: (1/8) R+(1/4) P≤100 and (1/2) R+(1/3) P≤300 redundant constraint R+(3/2) P≤900 1. What is the range of the coeficient, c1, of the decision variable R that will make the optimal solution remain unchange? a. 13/3≤c1≤7 b. 10/3≤c1≤10 c. 4≤c1≤12 d. 13/2≤c1≤19/2 2. What is the range of the coeficient, c2, of the decision variable P that will make the optimal solution remain unchange? a. 13/3≤c1≤7 b. 10/3≤c1≤10 c. 4≤c1≤12 d. 13/2≤c1≤19/2
West Company’s contribution format income statement for March 2020 is givenbelow:Sales (15,000 units X $30 per unit) $450,000Variable expenses 315,000Contribution margin 135,000Fixed expenses 90,000Net operating income $ 45,000The industry in which West Company operates is quite sensitive to regularmovements in the economy. Thus, profits vary considerably from year to yearaccording to general economic conditions. The company has a large amount ofunused capacity and is studying ways of improving profits.Required:The company CEO has asked you as a Senior Manager to evaluate the belowsituations with recommendations:1- New equipment has come onto the market that would allow WestCompany to automate a portion of its operations. Variable expenseswould be reduced by $9 per unit. However, fixed expenses wouldincrease to a total of $225,000 each month. How Net Income wouldappear if the new equipment were purchased. As a Senior Manager,what factor/s would be paramount in your mind deciding…
#3 Mention some drawbacks of the Linear Model?
Given the following information for a product-mix problem with three products and three resources. Primal Decision Variables: x1 = number of unit 1 produced; x2 = # of unit 2 produced; x3 = # of unit 3 produced Primal Formulation:Dual Formulation: Max Z (Rev.) = 25x1 + 30x2 + 20x3Min W = 50π1+ 20π2+25π3 Subject To8x1+ 6x2+ x3≤ 50(Res. 1 constraint)Subject To8π1+ 4π2+2π3≥ 25 4x1+ 2x2+ 3x3≤ 20(Res. 2 constraint)6π1+ 2π2+π3 ≥ 30 2x1+ x2+ 2x3≤ 25(Res. 3 constraint)π1+ 3π2+2π3≥ 20 x1, x2, x3≥ 0 (Nonnegativity)π1, π2, π3 ≥ 0 Optimal Solution: Optimal Z = Revenue = $268.75 x1 = 0 (Number of unit 1)Dual Var. Optimal Value = 22.5 (Surplus variable in 1st dual constraint) x2 = 8.125 (Number of unit 2)Dual Var. Optimal Value = 0 (Surplus variable in 2nd dual constraint) x3 = 1.25 (Number of unit 3)Dual Var. Optimal Value = 0 (Surplus variable in 3rd dual constraint) Resource Constraints: Resource 1 = 0 leftover…