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ieor project page 21

# ieor project page 21 - use the program as well which is...

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Most people need these sought out skills. When we actually applied weights to the program costs too see which programs were overpriced and which ones were underpriced, we concluded that while this method may work at times, interferences took precedence as a scarcity metric. Therefore, we cannot conclude that any prices of the fifteen programs should be negotiated from this information. We did construct another model where we found out based on your constraints and your objective to minimize costs, what would be the maximum price your company would pay in order to have an employee take the given program. It is possible that the current optimal solution has to do with the fact that the prices of other programs are too high. If we take an example such as program 5, we try to see at what price the program would have to be offered at in order to increase the amount of employees that use it. Currently it is priced at \$800. However, if it were reduced to \$220, the administrative assistant would

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Unformatted text preview: use the program as well which is beneficial to both the company offering the program (more revenue) and to your company (less cost). However, in this case, we see that there are two employees whereby you would need to send them to this program regardless of the price. If not, the solution is infeasible. There are two more employees that have a cut-off price of over \$1500 as well. Therefore, we see that in most cases, regardless of how high the price is (as long as it is less than \$1575), the company offering this program would gain more revenue if they kept the price high than if they decreased the price to \$220. This is because the company already knows that you need four of your employees to use Program 5 regardless and thus, the revenue gained from having an extra employee use the program is not worth the decrease in revenue from lowering the price....
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ieor project page 21 - use the program as well which is...

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