Assignment:
Consider a resource-allocation problem having the following data:
|
Resource Usage
per Unit of each activity
|
Amount of Resource
Available
|
|
|
Resource
|
A
|
B
|
|
1
|
1
|
2
|
10
|
|
|
2
|
1
|
3
|
12
|
|
|
Unit Profit in ($)
|
2
|
5
|
|
|
The objective is to determine the number of units of each activity to undertake so as to maximize the profit.
- Formulate linear programming model for this problem on a spreadsheet
- Use excel solver to find the optimal solution
- Express the model in mathematical form
- Suppose the profit for activity A changes to $4. Will this change the optimal production quantities? What could be said about the change in total profit? (use sensitivity analysis repot to answer to this question)
- Suppose the available amount of resource for resource 1 increases to 20. What could be said about the change in shadow price?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.