{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Homework Examples - Product Mix A Product Mix Example...

Info icon This preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
Product Mix Page 1 A Product Mix Example Products: X1 X2 X3 X4 Profit per box: 90 125 45 65 Resources: Usage processing time (hr/box) 0.1 0.25 0.08 0.21 72.0 shipping capacity (boxes) 3 3 1 1 1200.0 budget ($/box) 36 48 25 35 21593.3 blank sweatshirts (boxes) 1 1 233.3 blank T-shirts (boxes) 1 1 500.0 Production: X1 = 175.56 sweatshirts, front printing X2 = 57.78 sweatshirts, back and front printing X3 = 500.00 T-shirts, front printing X4 = 0.00 T-shirts, back and front printing Profit = 45522.22 maximi subject
Image of page 1

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

View Full Document Right Arrow Icon
Product Mix Page 2 Resources Constraints Available Left over <= 72 0.0 <= 1200 0.0 <= 25000 3406.7 <= 500 266.7 <= 500 0.0 ize Z = 90 x 1 + 125 x 2 + 45 x 3 + 65 x 4 t to: .1 x 1 + .25 x 2 + .08 x 3 + .21 x 4 <= 72 3 x 1 + 3 x 2 + x 3 + x 4 <= 1200 36 x 1 + 48 x 2 + 25 x 3 + 35 x 4 <= 25000 x 1 + x 2 <= 500 x 3 + x 4 <= 500 x 1, x 2, x 3, x 4 >= 0
Image of page 2
Microsoft Excel 12.0 Answer Report Worksheet: [Chapter 4 examples.xlsx]Investment Report Created: 9/23/2010 12:46:52 PM Target Cell (Max) Cell Name Original Value Final Value $B$17 Z = 6618.18 6618.18 Adjustable Cells Cell Name Original Value Final Value $B$13 X1 = 0 0 $B$14 X2 = 0 0 $B$15 X3 = 38181.82 38181.82 $B$16 X4 = 31818.18 31818.18 Constraints Cell Name Cell Value Formula Status $H$6 1. municipal bonds Achievement 0.00 $H$6<=$J$6 Not Binding $H$7 2. CDs Achievement -70000.00 $H$7<=$J$7 Not Binding $H$8 3. treasury bills and CDs Achievement 38181.82 $H$8>=$J$8 Not Binding $H$9 4. ratio Achievement 0.00 $H$9>=$J$9 Binding $H$10 total invested Achievement 70000.00 $H$10=$J$10 Not Binding
Image of page 3

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

View Full Document Right Arrow Icon
Slack 14000 70000 17181.82 0.00 0 8.5% is current return rate for x1. In order for x1 to app solution the return rate must increase by at lease 4.5%
Image of page 4
pear in final % (
Image of page 5

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

View Full Document Right Arrow Icon
Microsoft Excel 12.0 Sensitivity Report Worksheet: [Chapter 4 examples.xlsx]Investment Report Created: 9/23/2010 12:46:52 PM Adjustable Cells Final Reduced Objective Cell Name Value Cost Coefficient $B$13 X1 = 0 -0.04 0.09 $B$14 X2 = 0 -0.01 0.05 $B$15 X3 = 38181.82 0 0.07 $B$16 X4 = 31818.18 0 0.13 Constraints Final Shadow Constraint Cell Name Value Price R.H. Side $H$6 1. municipal bonds Achievement 0.00 0.00 14000 $H$7 2. CDs Achievement -70000.00 0.00 0 $H$8 3. treasury bills and CDs Achievement 38181.82 0.00 21000 $H$9 4. ratio Achievement 0.00 -0.03 0 $H$10 total invested Achievement 70000.00 0.09 70000
Image of page 6
Allowable Allowable e more unit of X1 profit would decrease[reduce] by .0449999 Increase Decrease 0.04 1.00E+030 0.01 1.00E+030 0.06 0.01 45355.04 0.05 Allowable Allowable Increase Decrease 1.00E+030 14000 1.00E+030 70000 17181.82 1.00E+030 70000 37800 1.00E+030 31500 8.5% is current return rate for x1. In order for x1 solution the return rate must increase by at leas (4.5+8.5=13%) Shadow price of zero: increasing right hand side bond achievement would not increase returns Shadow price or .09: If you increase the allowabl $70,000 profit will increase by 9 cents. The -70,000 for CD's achievement is like that be investment in the other investments
Image of page 7

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

View Full Document Right Arrow Icon
1 to appear in final se 4.5% e value of Municial ble investment of ecause we had no
Image of page 8
Investment Page 9 An Investment Example Investments: X1 X2 X3 X4 Rate of return: 0.09 0.05 0.07 0.13 Guidelines: Achievement 1. municipal bonds 1 0.00 2. CDs -1 1 -1 -1 -70000.00 3. treasury bills and CDs 1 1 38181.82 4. ratio -1.2 1 1 -1.2 0.00 total invested 1 1 1 1 70000.00 Returns: X1 = 0 invested in municipal bonds X2 = 0 invested in CDs X3 = 38181.82 invested in treasury bills X4 = 31818.18 invested in stock fund Z = 6618.18 total return m su
Image of page 9

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

View Full Document Right Arrow Icon
Investment Page 10 Guidelines Constraints Requirements Slack/Surplus <= 14000.00 14000.00 <= 0.00 70000.00 >= 21000.00 17181.82 >= 0.00 0.00 = 70000.00 0.00 maximize Z = .085 x 1 + .050 x 2 + .065 x 3 + .130 x 4 ubject to: x 1 <= 14000 x 2 - x 1 - x 3 - x 4 <= 0 x 2 + x 3 >= 21000 -1.2 x 1 + x 2 + x 3 - 1.2 x 4 >= 0 x 1 + x 2 + x 3 + x 4 = 70000 x 1, x 2, x 3, x 4 >= 0
Image of page 10
Microsoft Excel 12.0 Answer Report
Image of page 11

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

View Full Document Right Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}