Question: 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.
1. Formulate linear programming model for this problem on a spreadsheet
2. Use excel solver to find the optimal solution
3. Express the model in mathematical form
4. 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)
5. Suppose the available amount of resource for resource 1 increases to 20. What could be said about the change in shadow price?