Question: Formulate the equations only using the four steps, you do not need to solve. Sensitivity Analysis . See file attached for your problem information. Answer
Formulate the equations only using the four steps, you do not need to solve. Sensitivity Analysis. See file attached for your problem information. Answer the following questions: 1) What is the range of optimality for each product? 2) What is the reduced cost for those listed and what do they mean? 3) What is the range of feasibility for each constraint? 4) What is the shadow price for any listed and what do they mean? 5) Develop a multiple change equation for the objective coefficients (function) ie top part of the sensitivity report and determine if it is feasible. Develop a multiple change equation for the constraints ie bottom part of the sensitivity report and determine if it is feasible. (MEDIA SELECTION PROBLEM) THE ADVERTISING DIRECTOR FOR DIVERSEY PAINT AND SUPPLY, A CHAIN OF FOUR RETAIL STORES ON CHICAGOS NORTH SIDE, IS CONSIDERING TWO MEDIA POSSIBLITIES. ONE PLAN IS FOR A SERIES OF HALF-PAGEADS IN THE SUNDAY CHICAGO TRIBUNE NEWSPAPER, AND THE OTERE IS FOR ADVERTISING TIME ON CHICAGO TV. THE STORES ARE EXPANDING THEIR LINES OF DO-I-YOURSELF TOOLS, AND THE AVERTISING DIRECTOR IS INTERESTED IN AN EXPOSURE LEVEL OF AT LEAST 40% WITHIN THE CITYS NEIGHBORHOODS AND 60% IN NORTHWEST SUBURBAN AREAS. THE TV VIEWING TIME UNDER CONSIDERATION HAS AN EXPOSURE RATING PER SPOT OF 5% IN CITY HOMES AND 3% IN THE NORTHWEST SUBURBS. THE SUNDAY NEWPAPER HAS CORRESPONDING EXPOSURE RATES OF 4% AND 3% PER AD. THE COST OF A HALF-PAGE TRIBUNE ADVERTISEMENT IS $925; A TELEVISION SPOT COST $2,000. DIVERSEY PAINT WOULD LIKE TO SELECT THE LEAST COSTLY ADVERTISING STRATEGY THAT WOULD MEET DESIRED EXPOSURE LEVELS.
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