Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Vodafone Ghana is about to make changes to its highly successful and oversubscribed Red monthly call and data plans. It has become necessary that the
Vodafone Ghana is about to make changes to its highly successful and oversubscribed Red monthly call and data plans. It has become necessary that the company cap the number of subscribers due to limited resources, cost reduction plans, and the need to avoid incurring costly penalty for poor customer service due to oversubscription There are four different Red plans: Red and Red Red and edl at monthly prices of GHe GHe GHe and GH respectively. The Red and Red are targeted at the middle class, whies the Red and Red are targeted at the upper class customers. The Red offers minutes to call any network including VodafoneMB of data, and SMS The Red offers minutes to call any network, l minutes to call Vodafone numbers only, GB of data, and SMS The Red also offers minutes to call any network, GB of data, and SMS Lastly, the Red offers minutes to call any network, minutes to call Vodafone numbers only, SGB of data, and SMS The company's broadband and SMS contract means that it has up to Million GB of data and Million SMS per month. Also, the company's call contract means it can have a total of Bilion minutes of cals per month to any network including Vodafone and a total of Million minutes of calls to only Vodafone numbers. Per the terms of its contract, when the company exhaust its total minutes of cals to Vodafone only numbers which it always does any other calls to Vodafone numbers cost the company the same as cals to any network. Calls to any network cost GH per minute and the company would want to limit the total cost of calls to any network to GH Milion per month. Lastly. in order not to lose the middle class market. there must be twice as many Red pans for the middle class as Red plans for the upper class. a Formuate a linear program to determine the quota for the four different Vodafone Red plans to maximize the company's monthly gross revenue for the Red plans. b Convert the LP problem into standard form. c Solve the problem using Excel Solver and generate the sensitivity report. What is the optimal solution? d Which of the constraints are binding and which are nonbinding? e Interpret the sensitivity report in relation to the three senstivity actions discussed in cass. Be practical as much as possible in relation to the question at hand. Overall, what advice will you give to Vodafone Ghana?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started