Question: please solve a,b,c,d,e,f elaborately 5.13. Consider a resource-allocation problem having the fol- lowing data: Resource Usage per Unit of Each Activity Amount of Resource Available

please solve a,b,c,d,e,f elaborately 5.13.

please solve a,b,c,d,e,f elaborately

5.13. Consider a resource-allocation problem having the fol- lowing data: Resource Usage per Unit of Each Activity Amount of Resource Available Resource 1 2 1 2 Unit profit 1 1 3 1 8 4 $1 $2 The objective is to determine the number of units of each activity to undertake so as to maximize the total profit. a. Use the graphical method to solve this model. b. Use graphical analysis to determine the shadow price for each of these resources by solving again after increasing the amount of the resource avail- able by one. E* c. Use the spreadsheet model and Solver instead to do parts a and b. E* d. For each resource in turn, use a parameter analysis report to systematically generate the optimal solu- tion and the total profit when the only change is that the amount of that resource available increases in increments of 1 from 4 less than the original value up to 6 more than the original value. Use these results to estimate the allowable range for the amount available for each resource. E* Use Solver's sensitivity report to obtain the shadow prices. Also use this report to find the range for the amount of each resource available over which the corresponding shadow price remains valid. f. Describe why these shadow prices are useful when management has the flexibility to change the amounts of the resources being made available. e

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!