The CFO for the Shelton Corporation has $1.2 million to allocate to the following budget requests from 5 departments: Because the total budget requests exceed
The CFO for the Shelton Corporation has $1.2 million to allocate to the following budget requests from 5 departments:
.png){kind=small}
Because the total budget requests exceed the available $1.2 million, not all the requests can be satisfied. Suppose that the CFO considers the requests for departments 2 and 3 to be twice as important as those from departments 4 and 5, and the request from department 1 to be twice as important as those from departments 2 and 3. Further suppose that the CFO wants to make sure each department receives at least 70% of the requested amount.
a. Formulate a GP model for this problem.
b. Implement your model and solve it. What is the optimal solution?
c. Suppose the CFO is willing to allocate more than $1.2 million to these budgets but regards exceeding the $1.2 million figure as being twice as undesirable as not meeting the budget request of department 1. What is the optimal solution?
d. Suppose the CFO regards all deviations from the original budget amounts (including the $1.2 million available) to be equally undesirable. What solution minimizes the maximum percentage deviation from the budgetedamounts?
Dep Dept 2 De 4Dept 5 $450,000$310,000 $275,000 $187,500 $135,000
Step by Step Solution
3.34 Rating (178 Votes )
There are 3 Steps involved in it
a b Dept 1 Dept 2 Dept 3 Dept 4 Dept 5 Total Allocated 450 217 26675 13125 135 1200 Under 0 93 825 5... View full answer
Get step-by-step solutions from verified subject matter experts
100% Satisfaction Guaranteed-or Get a Refund!
Document Format (1 attachment)
167-B-M-L-M-D-A (243).xlsx
300 KBs Excel File
See step-by-step solutions with expert insights and AI powered tools for academic success
-
Access 30 Million+ textbook solutions.
-
Ask unlimited questions from AI Tutors.
-
Order free textbooks.
-
100% Satisfaction Guaranteed-or Get a Refund!
Claim Your Hoodie Now!
Spreadsheet Modeling And Decision Analysis A Practical Introduction To Business Analytics
Authors: Cliff T. Ragsdale
8th Edition
130594741X, 978-1337517317, 1337517313, 978-1305947412
Study Smart with AI Flashcards
Access a vast library of flashcards, create your own, and experience a game-changing transformation in how you learn and retain knowledge
Explore Flashcards
Study Help
