Question: Consider a resource allocation problem having the following data: Resource Usage Per Unit of Each Activity Resource 1 2 Amount of Resource Available 1 1
Consider a resource allocation problem having the following data:
| Resource Usage Per Unit of Each Activity | |||
|---|---|---|---|
| Resource | 1 | 2 | Amount of Resource Available |
| 1 | 1 | 2 | 10 |
| 2 | 1 | 3 | 12 |
| Unit Profit | $2 | $5 |
The objective is to determine the number of units of each activity to undertake so as to maximize the total profit.
While doing what-if analysis, you learn that the estimates of the unit profits are accurate only to within 50 percent. In other words, the ranges of likely values for these unit profits are $1 to $3 for activity 1 and $2.50 to $7.50 for activity 2.
Use a parameter analysis report in Analytic Solver to systematically generate the optimal solution, product mix, and total profit as the unit profit of activity 1 increases in 20 cent increments from $1 to $3 (without changing the unit profit of activity 2). Then do the same as the unit profit of activity 2 increases in 50 cent increments from $2.50 to $7.50 (without changing the unit profit of activity l). Use these results, not the sensitivity report, to estimate the allowable range for the unit profit of each activity.
Activity 1 unit profit allowable range (i.e., the decision variables do not change):
Activity 2 unit profit allowable range (i.e., the decision variables do not change):
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
