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.

Also check whether the optimal solution remains optimal if the unit profit for activity 1 still is $2 but the unit profit for activity 2 changes from $5 to $2.50. Does the optimal solution change?

From $5 to $7.50. Does the optimal solution change?

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