Question: Consider a resource-allocation problem having the following data:

Resource Usage per Unit of Each Activity

Resource 1 2 Amount of Resource Available

1 1 2 10

2 1 3 12

Unit Profit $2 $5

The objective is to determine the number of units of each activity to undertake so as to maximize the total profit.

While doing what-if analysis, you learn that the estimates of the unit profits are accurate only to within + 50%. In other words, the ranges of likely

values for these unit profits are $1 to $3 for activity 1 and $2.50 to $7.50 for activity 2.

1. Formulate a spreadsheet model for this problem based on the original estimates of the unit profits. The use Solver to find an optimal solution
   and to generate the sensitivity report.
2. Use the spreadsheet and Solver to check whether this optimal solution remains optimal if the unit profit for activity 1 changes from $2 to $1. From $2 to $3.
3. Also check whether the optimal solution remains optimal if the unit profit for activity 1 still is $2 but the unit profit for activity 2

changes from $5 to $2.50. From $5 to $7.50

F) Use the sensitivity report to find the allowable range for the unit profit of each activity. Then use these ranges to check your results in part b and c.

Price: $2.99

Solution: The downloadable solution consists of 6 pages
Deliverable: Word Document