Figure 13.33 shows the Solver sensitivity report for the ColPal Products. Using only the information in the
Question:
Figure 13.33 shows the Solver sensitivity report for the ColPal Products. Using only the information in the sensitivity report, answer the following questions.
a. Suppose that the exposure for TV advertising was incorrectly estimated and should have been 875. How would the optimal solution have been affected?
b. Radio listening has gone down, and new marketing studies have found that the exposure has dropped to 150. How will this affect the optimal solution?
c. The marketing manager has increased the budget by $ 2,000. How will this affect the solution and total exposure?
d. The shadow price for the mix constraint (that at least 70% of the time should be allocated to TV) is – 250. The marketing manager was told that this means that if the percentage of TV advertising is increased to 71%, exposure will fall by 250. Explain why this statement is incorrect.
Sensitivity Report for ColPal Products
Step by Step Answer:
Business Analytics Methods Models and Decisions
ISBN: 978-0321997821
2nd edition
Authors: James R. Evans