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Am I on the right track to do this question correctly? If not please show me where I went wrong and how to fix it.   The government is auctioning off oil leases at two sites. At each site, 150,000 acres of land are to be auctioned. Cliff Ewing, Blake Barnes, and Alexis Pickens are bid- ding for the oil. Government rules state that no bidder can receive more than 45% of the land being auctioned. Cliff has bid $2000 per acre for site 1 land and $1000 per acre for site 2 land. Blake has bid $1800 per acre for site 1 land and $1500 per acre for site 2 land. Alexis has bid $1900 per acre for site 1 land and $1300 per acre for site 2 land. a. Determine how to maximize the government’s revenue with a transportation model. b. Use SolverTable to see how changes in the government’s rule on 45% of all land being auctioned affect the optimal revenue. Why can the optimal revenue not decrease if this percentage required increases? Why can the optimal revenue not increase if this percentage required decreases?

Am I on the right track to do this question correctly? If not please show me where I went wrong and how to fix it.   The government is auctioning off oil leases at two sites. At each site, 150,000 acres of land are to be auctioned. Cliff Ewing, Blake Barnes, and Alexis Pickens are bid- ding for the oil. Government rules state that no bidder can receive more than 45% of the land being auctioned. Cliff has bid $2000 per acre for site 1 land and $1000 per acre for site 2 land. Blake has bid $1800 per acre for site 1 land and $1500 per acre for site 2 land. Alexis has bid $1900 per acre for site 1 land and $1300 per acre for site 2 land. a. Determine how to maximize the government’s revenue with a transportation model. b. Use SolverTable to see how changes in the government’s rule on 45% of all land being auctioned affect the optimal revenue. Why can the optimal revenue not decrease if this percentage required increases? Why can the optimal revenue not increase if this percentage required decreases?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Am I on the right track to do this question correctly? If not please show me where I went wrong and how to fix it.

 

The government is auctioning off oil leases at two sites. At each site, 150,000 acres of land are to be auctioned. Cliff Ewing, Blake Barnes, and Alexis Pickens are bid- ding for the oil. Government rules state that no bidder can receive more than 45% of the land being auctioned. Cliff has bid $2000 per acre for site 1 land and $1000 per acre for site 2 land. Blake has bid $1800 per acre for site 1 land and $1500 per acre for site 2 land. Alexis has bid $1900 per acre for site 1 land and $1300 per acre for site 2 land.

a. Determine how to maximize the government’s revenue with a transportation model.

b. Use SolverTable to see how changes in the government’s rule on 45% of all land being auctioned affect the optimal revenue. Why can the optimal revenue not decrease if this percentage required increases? Why can the optimal revenue not increase if this percentage required decreases?

123 45 8 5 Ewing 6 Barnes 7 22 23 24 25 26 27 28 29 30 31 32 33 34 Oil lease auction 35 36 37 38 39 Bids for sites (dollars/acre) Pickens 9 10 11 Number of acres sold to bidders 12 13 Ewing 14 Barnes 15 Pickens 16 Total 17 18 Available 19 20 Revenue ($millions) 21 x fx A Point ure P5-43 Max % that can be sold to any bidder P5-46 All 2000 1800 1900 0.45 =SUM(B13:B15) 150000 STS_1 ELO Edit Links 5 B les SUMPRODUCT(B5:C7,B13:C15) P5-52 Site 1 Site 1 11 + 1000 1500 1300 -SUM(C13:C15) 150000 C KLOPA Site 2 V Stocks Site 2 BEATRI 2 19-9-9-- www SUM(B13:C13) -SUM(B14:C14) SUM(B15:C15) =B18+C18 M Geography D Total Set Objective: To: 슈슈슈 O Max 2↓ Solving Method Select a Solving Method: E 令 ↓ Sort Filter Mac -$D$18*$B$9 =$D$18*$B$9 -$D$18*$B$9 Min By Changing Variable Cells: $B$13:$C$15 $B$20 Subject to the Constraints: $B$16:$C$16 <= $B$18:$C$18 $D$13:$D$15 <= $F$13:$F$15 R Y Make Unconstrained Variables Non-Negative Simplex LP Tell me Value Of: ARMAN Solver Parameters Clear Reapply Advanced F Max allowed 0 Add Change Delete Reset All Load/Save Options 111 Text to Columns G
Transcribed Image Text:123 45 8 5 Ewing 6 Barnes 7 22 23 24 25 26 27 28 29 30 31 32 33 34 Oil lease auction 35 36 37 38 39 Bids for sites (dollars/acre) Pickens 9 10 11 Number of acres sold to bidders 12 13 Ewing 14 Barnes 15 Pickens 16 Total 17 18 Available 19 20 Revenue ($millions) 21 x fx A Point ure P5-43 Max % that can be sold to any bidder P5-46 All 2000 1800 1900 0.45 =SUM(B13:B15) 150000 STS_1 ELO Edit Links 5 B les SUMPRODUCT(B5:C7,B13:C15) P5-52 Site 1 Site 1 11 + 1000 1500 1300 -SUM(C13:C15) 150000 C KLOPA Site 2 V Stocks Site 2 BEATRI 2 19-9-9-- www SUM(B13:C13) -SUM(B14:C14) SUM(B15:C15) =B18+C18 M Geography D Total Set Objective: To: 슈슈슈 O Max 2↓ Solving Method Select a Solving Method: E 令 ↓ Sort Filter Mac -$D$18*$B$9 =$D$18*$B$9 -$D$18*$B$9 Min By Changing Variable Cells: $B$13:$C$15 $B$20 Subject to the Constraints: $B$16:$C$16 <= $B$18:$C$18 $D$13:$D$15 <= $F$13:$F$15 R Y Make Unconstrained Variables Non-Negative Simplex LP Tell me Value Of: ARMAN Solver Parameters Clear Reapply Advanced F Max allowed 0 Add Change Delete Reset All Load/Save Options 111 Text to Columns G
d 123 7 3 Bids for sites (dollars/acre) 4 5 Ewing 6 8 22 23 24 25 26 27 28 9 10 11 Number of acres sold to bidders 12 13 Ewing 14 Barnes 15 Pickens 16 Total 17 18 Available 19 20 Revenue ($millions) 21 29 Oil lease auction mer ect Barnes Pickens 9 A 30 TV 31 O 32 33 34 35 36 37 38 3.9 Max % that can be sol Point P5-43 fx B Site 1 $2,000 $1,800 $1,900 45% Site 1 135000 P5 46 0 15000 150000 $520,500,000 C Site 2 $1,000 $1,500 $1,300 Site 2 0 135000 15000 150000 $150,000 $150,000 $300,000 STS_1 D Total 135000 135000 30000 合企企 E Specify the following information about the input to be varied and the outputs to be captured. Input cell: (Optional) Descriptive name for input: $B$9 Maximum value: Increment: Output cell(s): Max allowed 135000 135000 135000 Parameters for oneway table Values of input to use for table O Base input values on following: Minimum value: 0.3 $8.520 F Land being Actioned 0.9 0.05 Use the values from the following range: Input value range: Use the values below (separate with Input values: G Note about specifying output cells: The safest way to select multiple output cells or ranges is to put your finger on the Ctrl key and then drag as many output cell ranges as you like. This will automatically insert commas between the ranges you select. OK Cancel H 1 12 J K
Transcribed Image Text:d 123 7 3 Bids for sites (dollars/acre) 4 5 Ewing 6 8 22 23 24 25 26 27 28 9 10 11 Number of acres sold to bidders 12 13 Ewing 14 Barnes 15 Pickens 16 Total 17 18 Available 19 20 Revenue ($millions) 21 29 Oil lease auction mer ect Barnes Pickens 9 A 30 TV 31 O 32 33 34 35 36 37 38 3.9 Max % that can be sol Point P5-43 fx B Site 1 $2,000 $1,800 $1,900 45% Site 1 135000 P5 46 0 15000 150000 $520,500,000 C Site 2 $1,000 $1,500 $1,300 Site 2 0 135000 15000 150000 $150,000 $150,000 $300,000 STS_1 D Total 135000 135000 30000 合企企 E Specify the following information about the input to be varied and the outputs to be captured. Input cell: (Optional) Descriptive name for input: $B$9 Maximum value: Increment: Output cell(s): Max allowed 135000 135000 135000 Parameters for oneway table Values of input to use for table O Base input values on following: Minimum value: 0.3 $8.520 F Land being Actioned 0.9 0.05 Use the values from the following range: Input value range: Use the values below (separate with Input values: G Note about specifying output cells: The safest way to select multiple output cells or ranges is to put your finger on the Ctrl key and then drag as many output cell ranges as you like. This will automatically insert commas between the ranges you select. OK Cancel H 1 12 J K
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