A company wants to release a new product. They are considering the profit in case they release the book. The profit depends on number of sold products, per product price and per product cost. The lower bound, base value and upper bound for each parameter are as follows: I Number Sold Per Unit Price Per Unit Cost Lower Bound Base Value 500 10 5 1500 20 10 Upper Bound 5000 30 15 The company wants a profit of 10000 in order to have it as a viable product. a) Draw a tornado diagram to find out which of the parameters are more critical and needs further analysis. Report these parameters. b) Make a two way sensitivity analysis for number sold and per unit price to find out the joint values for which releasing the product is viable.
A company wants to release a new product. They are considering the profit in case they release the book. The profit depends on number of sold products, per product price and per product cost. The lower bound, base value and upper bound for each parameter are as follows: I Number Sold Per Unit Price Per Unit Cost Lower Bound Base Value 500 10 5 1500 20 10 Upper Bound 5000 30 15 The company wants a profit of 10000 in order to have it as a viable product. a) Draw a tornado diagram to find out which of the parameters are more critical and needs further analysis. Report these parameters. b) Make a two way sensitivity analysis for number sold and per unit price to find out the joint values for which releasing the product is viable.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:A company wants to release a new product. They are considering the profit in case they
release the book. The profit depends on number of sold products, per product price and per
product cost. The lower bound, base value and upper bound for each parameter are as
follows:
AMAN
I
Number Sold
Per Unit Price
Per Unit Cost
Lower Bound Base Value
500
10
5
1500
20
10
Upper Bound
5000
30
15
The company wants a profit of 10000 in order to have it as a viable product.
a) Draw a tornado diagram to find out which of the parameters are more critical and
needs further analysis. Report these parameters.
b) Make a two way sensitivity analysis for number sold and per unit price to find out
the joint values for which releasing the product is viable.
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