After setting goals for how much the sales of three products should increase as a result of an upcoming advertising campaign, the management of the Profit & Gambit Co. now wants to explore the trade-off between advertising cost and increased sales. Your first task is to perform the associated sensitivity analysis. Your main task then is to write a nontechnical memo to Profit & Gambit management presenting your results in the language of management.
Answer to relevant QuestionsReconsider the model of Prob. 7.2-4. Suppose that the right-hand sides of the functional constraints are changed to 30 + 3θ (for constraint 1) and 10 – θ (for constraint 1) where θ can be assigned any positive or ...Consider the following problem. Maximize Z = 8x1 + 24x2, Subject to And x1 ≥ 0, x2 ≥ 0. Suppose that Z represents profit and that it is possible to modify the objective function somewhat by an appropriate shifting of key ...Consider the following problem. Maximize Z = 2x1 + x2, Subject to and x1 ≥ 0, x2 ≥ 0. I (a) Solve this problem graphically. (b) Use the upper bound technique manually to solve this problem. (c) Trace graphically the path ...Consider the following problem. Maximize Z = x1 + 2x2, Subject to x1 + x2 = 8 and x1 ≥ 0, x2 ≥ 0. Consider the Z*(θ) function shown in Fig. 8.2 for parametric linear programming with systematic changes in the bi parameters. (a) Explain why this function is piecewise linear. (b) Show that this function must be concave.
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