The CFO for the Shelton Corporation has $1.2 million to allocate to the following budget requests from five departments: Dept. 1 Dept. 2 Dept. 3 Dept. 4 Dept. 5 $450,000 $310,000 $275,000 $187,500 $135,000 Because the total budget requests exceed the available $1.2 million, not all the requests can be satisfied. Suppose the CFO wants to make sure each department receives at least 70% of the requested amount. Further, suppose the CFO considers the requests for departments 2 and 3 to be twice as important as those from departments 4 and 5, and the request from department 1 to be twice as important as those from departments 2 and 3. The CFO want to minimize the sum of the weighted deviations from the goals. What is the optimal sum of weighted deviations? a. 0.96 b. 1.00 c. 0.00 d. 218.25
The CFO for the Shelton Corporation has $1.2 million to allocate to the following budget requests from five departments: Dept. 1 Dept. 2 Dept. 3 Dept. 4 Dept. 5 $450,000 $310,000 $275,000 $187,500 $135,000 Because the total budget requests exceed the available $1.2 million, not all the requests can be satisfied. Suppose the CFO wants to make sure each department receives at least 70% of the requested amount. Further, suppose the CFO considers the requests for departments 2 and 3 to be twice as important as those from departments 4 and 5, and the request from department 1 to be twice as important as those from departments 2 and 3. The CFO want to minimize the sum of the weighted deviations from the goals. What is the optimal sum of weighted deviations? a. 0.96 b. 1.00 c. 0.00 d. 218.25
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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Question
The CFO for the Shelton Corporation has $1.2 million to allocate to the following budget requests from five departments:
|
Dept. 1 |
Dept. 2 |
Dept. 3 |
Dept. 4 |
Dept. 5 |
|
$450,000 |
$310,000 |
$275,000 |
$187,500 |
$135,000 |
Because the total budget requests exceed the available $1.2 million, not all the requests can be satisfied. Suppose the CFO wants to make sure each department receives at least 70% of the requested amount. Further, suppose the CFO considers the requests for departments 2 and 3 to be twice as important as those from departments 4 and 5, and the request from department 1 to be twice as important as those from departments 2 and 3. The CFO want to minimize the sum of the weighted deviations from the goals.
What is the optimal sum of weighted deviations?
a.
0.96
b.
1.00
c.
0.00
d.
218.25
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