Consider a resource= allocation problem having the following data: The objective is to determine the number of

Question:

Consider a resource= allocation problem having the following data:

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 Si to 53 for activity land 52.50 to $7.50 for activity a
a- Formulate a spreadsheet model for this problem based on the original estimates of the unit profits. Then use the
Solver to find an optimal solution and to generate the sensitivity report.
b- Use the spreadsheet and Solver to check whether this optimal solution remains optimal if the unit profit for activity 1 changes from S2 to Si. From $2 to $3.
c- Also check whether the optimal solution remains optimal if the unit profit for activity 1 stiU is $2 but the unit profit for activity 2 changes from $5 to 52.50. From $5 to S750.
d- Use the Solver Table to systematically generate the optimal solution and total profit as the unit profit of activity 1 increases in 200 increments from Si to $3 (without changing the unit profit of activity 2) Then do the same as the unit profit of activity 2 increases in 50 increments from $250 to S7.50 (without changing the unit profit of activity 1). Use these results to estimate the allowable range for the unit profit of each activity
e- Use the Graphical linear Programming and Sensitivity Analysis module In your Interactive Management Science
Modules to estimate the allowable range for the unit profit of each activity E f Use the sensitivity report to find the allowable range for the unit profit of each activity. Then use these ranges to check your results In parts b-e
g- Use a two-way Solver Table to systematically generate the optimal solution as the unit profits of the two activities are changed simultaneously as described , part a'