# weekly problems sets in excel/solver (approx 2 problems per week)

## Project Description:

set up the model and use excel solver to solve. generate the answer report and include a brief interpretation for each problem. complete your work in excel and submit the excel file.

complete the following problems from the textbook:
exercise 1.2: pricing in two markets
exercise 1.5: allocating plant output

1.2
pricing in two markets global products, inc. has been making an electronic appliance for the domestic market. demand for the appliance is price sensitive, and the demand curve is known to follow the linear function d = 4000— 5p, where d represents annual demand and p represents selling price in the home currency, which is the frank (f). the cost of manufacturing the appliance is 100f.
for the coming year, global is planning to sell the same product in a foreign market, where the currency is the marc (m). from surveys, the demand curve in the foreign country is estimated to follow a different linear function, d = 2000— 2p, where the price is denominated in marcs.
all production will be carried out at global's domestic plant, with the expectation that the unit cost will remain unchanged. the exchange rate is 1.5 m/f, and global plans to offer an equivalent price in both markets.
if global were to operate exclusively in its domestic market, what would be its profit-maximizing price a1.5

allocating plant output a firm owns five manufacturing plants that are responsible for the quarterly production of an industrial solvent. the production process exhibits diseconomies of scale. at plant p, the cost of making x thousand pounds of the solvent is approximated by the quadratic function f(x) = (1/cp)x2. the parameters cp are plant dependent, as shown in the table.
p
1
2
3
4
5
cp
3
6
4
8
5
the quarterly volume requirement is 50,000 pounds.
how should production be allocated among the five plants in order to minimize the total cost of meeting the volume requirement?nd its annual profit?
when global sells in both markets at one equivalent price, what is its profit-maximizing price and its annual profit?
Skills Required:
Project Stats: Edited

Price Type: Fixed

Project Budget: \$0 to \$10
Completed
Total Proposals: 1
1 Current viewersl
113 Total views
Project posted by:

### Proposals

Proposals Reputation Price offered
• 4.9
95 Jobs 45 Reviews
\$15 in 1 Day