Assignment 2 - Damian Illing EBGN 525 Homework#2 1 Sunco...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Damian Illing EBGN 525 Homework #2 1. Sunco Oil a. Solver Information i. B56 ii. B24:D26 iii. Constraints 1. Oil consumption E24:E26<=G24:G26 2. Sulfur Content Constraints B48:D48<=B50:D50 3. Octane Constraints B43:D43<=B45:D45 4. Production Constraints B40<=D40 5. B36:D36 = B34:D34 b. Cells i. B50 = sumproduct(E24:E26, B2:B4) ii. B51 = [B7*B40] iii. B52 = sum(B32:D32) iv. B53 = sumproduct(B36:D36, D3:F3) v. B54 = B53-sum(B50:B52) c. B33=B32*B$10$ d. B40 = sum(B36:BD36) e. B48 = sumproduct(B24:B26, E$18$:E$20$)
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
f. In the gas demand constraint, if the constant read ΣX i1 from i=1 to 3 >= 3000+10*A1, the solver will always try to maximize the left hand side and minimize the right hand side subject to all other constraints. Therefore, the value of A2 would always be pushed to its minimum value (0), while the left hand side, the demand for that gas, would be inflated. This would mean that extra demand would be stimulated for free. This does not make sense. The optimization would not take into account the opportunity or benefits of advertising. Advertising will always be pushed to zero and the optimization will be done with just original demand. g. If the operator is X Σ i1 from i=1 to 3 <= 3000 +10*A1, there will be no minimum amount to produce to satisfy demand. This is contrary to the problem statement because it states that the company will ALWAYS supply the consumers at least the nominal amounts stated in the problem. In this situation, because gas 3 is least profitable, they will sell none of it to make more profit on gas 1 and gas 2. Therefore they will violate the rule of always supplying the nominal amount.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern