Question
(c) What is the sensitivity range of the unit cost of activity 1? Please calculate the optimalobjective value if we change the unit cost of
(c) What is the sensitivity range of the unit cost of activity 1? Please calculate the optimalobjective value if we change the unit cost of activity 1 to80. What if we change the unitcost of activity 1 to90? (Hint: You can use excel or python to solve the problem.)
(d) What is the sensitivity range of the minimum acceptable level of benefit 3? Pleasecalculate the optimal objective value if change the minimum acceptable level of benefit3 to130. What if we change the minimum acceptable level of benefit 3 to110?
(e) What is the sensitivity range of the unit cost of activity 2? Suppose we change the unitcost of the two activities to90for activity 1 and80for activity 2. Are the new unitcosts in the sensitivity range? Does the optimal solution change? Is the sensitivity rangeapplicable when multiple parameters change?
Benefit Contribution per Unit of Each Activity Minimum Acceptable Level Benefit Activity 1 Activity 2 60 FNM 1 2 3 5 2 7 3 2 9 30 126 Unit cost $60 $50 Benefit Contribution per Unit of Each Activity Minimum Acceptable Level Benefit Activity 1 Activity 2 60 FNM 1 2 3 5 2 7 3 2 9 30 126 Unit cost $60 $50Step by Step Solution
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