Question: FIGURE 8.13 SENSITIVITY REPORT FOR THE ELECTRONIC COMMUNICATIONS PROBLEM WEB file Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 25.000 0.000 90.000 1E+30

FIGURE 8.13 SENSITIVITY REPORT FOR THE ELECTRONIC

FIGURE 8.13 SENSITIVITY REPORT FOR THE ELECTRONIC COMMUNICATIONS PROBLEM WEB file Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 25.000 0.000 90.000 1E+30 6.000 425.000 0.000 84.000 6.000 34.000 150.000 0.000 70.000 17.000 1E+30 0.000 -45.000 60.000 45.000 1E+30 Variable Cells Model Variable Name M Number of Units Produced Marine B Number of Units Produced Business R Number of Units Produced Retail D Electronic Number of Units Produced Direct Mail Constraints Constraint Number Name Advertising Budget 2 Sales Force Availability 3 Production Level 4 Retail Stores Requirement 1 Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 5000.000 3.000 5000.000 850.000 50.000 1775.000 0.000 1800.000 IE+30 25.000 600.000 60.000 600.000 3.571 85.000 150.000 - 17.000 150.000 50.000 150.000 Cengage Learning 2013 Part II. (60 points) Please answer the following questions (10 points each). For that part, just stating a single word or a value will not be enough. Please write your solutions clearly by considering changes on the original optimum values of decision variables, the original optimum objective function value, feasibility ranges, optimality ranges, shadow prices, reduced costs. binding constraints etc. Your grade will depend on the clarity of your answers. 1 If the company make a change on the limits of constraints, which constraint should receive the highest priority? Why? 2- A suggestion is made to increase the Production Level at the additional cost of $50/unit. Is this advisable? Why? 3 If the Advertising Budget is increased from the present $5000 hours to $5500. how will this increase impact the optimum profit contribution 4 What would happen if the objective function coefficient associated with Number of Units Produced Direct Mail (D) increases up to $100 per unit 5- For what range of profit contributions for the Number of Units Produced Business (B) will the original solution remain optimale 6 What happens to the optimum profit contribution if the objective function coefficient associated with Number of Units Produced Business (B) drops to $80 per unit B? In case you think information is missing for a question, you may continue to solve the question by stating your assumptions. Good lucki

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