Variable Cells Cell $B$ 13 SCS 13 $D$13 $E$13 Name DV Marine distributors DV Business distributors DV National retail stores DV Direct mail Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 25 0 90 1.00E+30 6 425 0 84 34 0 70 17 100E+30 0 60 45 1.00E+30 Oo 150 -45 Constraints 850 Cell $85 20 58521 $B$ 22 $B$ 23 Name Advertising expenditure Constrain Sales time used Constraint Radios produced Constraint Retail distribution Constraint Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 5000 3 5000 1775 1800 1.00E+30 600 60 600 3.57 1429 85 150 -17 150 50 150 50 25 2. The Sensitivity Reports for the Marine Radio problem are given above. We will be looking at the sensitivity report for changing the RHS of a constraint. a. Which are the binding constraints? Give the names, and justify why you say they are binding constraints. b. If the advertising expenditure increases by $400, does the shadow price change? Explain why or why not. C. If possible, give the change in profit for a $400 increase in advertising expenditure. If you cannot calculate this, explain why it cannot be done. d. If the retail distribution constraint decreases by 75, does the shadow price change? Explain why or why not. e. If possible, give the change in profit for the 75-unit decrease in retail distribution. If it is not possible, explain why not. f. Suppose both changes in b and d occur. Use the 100% rule to determine if the shadow prices change. Be sure to show all your work. 8. If possible, give the total change in profit for the two changes in RHS given above. If it is not possible, explain why it is not possible. Variable Cells Cell $B$ 13 SCS 13 $D$13 $E$13 Name DV Marine distributors DV Business distributors DV National retail stores DV Direct mail Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 25 0 90 1.00E+30 6 425 0 84 34 0 70 17 100E+30 0 60 45 1.00E+30 Oo 150 -45 Constraints 850 Cell $85 20 58521 $B$ 22 $B$ 23 Name Advertising expenditure Constrain Sales time used Constraint Radios produced Constraint Retail distribution Constraint Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 5000 3 5000 1775 1800 1.00E+30 600 60 600 3.57 1429 85 150 -17 150 50 150 50 25 2. The Sensitivity Reports for the Marine Radio problem are given above. We will be looking at the sensitivity report for changing the RHS of a constraint. a. Which are the binding constraints? Give the names, and justify why you say they are binding constraints. b. If the advertising expenditure increases by $400, does the shadow price change? Explain why or why not. C. If possible, give the change in profit for a $400 increase in advertising expenditure. If you cannot calculate this, explain why it cannot be done. d. If the retail distribution constraint decreases by 75, does the shadow price change? Explain why or why not. e. If possible, give the change in profit for the 75-unit decrease in retail distribution. If it is not possible, explain why not. f. Suppose both changes in b and d occur. Use the 100% rule to determine if the shadow prices change. Be sure to show all your work. 8. If possible, give the total change in profit for the two changes in RHS given above. If it is not possible, explain why it is not possible
