Spreadsheet Modeling & Decision Analysis: A Practical Introduction to Business Analytics (MindTap Course List)
8th Edition
ISBN: 9781305947412
Author: Cliff Ragsdale
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 19QP
Use Solver to create a Sensitivity Report for question 23 at the end of chapter 3 and answer the following questions:
- a. Is the optimal solution unique? How can you tell?
- b. Which location is receiving the fewest cars?
- c. Suppose a particular car at location 1 must be sent to location 3 in order to meet a customer’s request. How much does this increase costs for the company?
- d. Suppose location 6 must have at least eight cars shipped to it. What impact does this have on the optimal objective function value?
23. The Rent-A-Dent car rental company allows its customers to pick up a rental car at one location and return it to any of its locations. Currently, two locations (1 and 2) have 16 and 18 surplus cars, respectively, and four locations (3, 4, 5, and 6) each need 10 cars. The costs of getting the surplus cars from locations 1 and 2 to the other locations are summarized in the following table.
Because 34 surplus cars are available at locations 1 and 2, and 40 cars are needed at locations 3, 4, 5, and 6, some locations will not receive as many cars as they need. However, management wants to make sure that all the surplus cars are sent where they are needed, and that each location needing cars receives at least five.
- a. Formulate an LP model for this problem.
- b. Create a spreadsheet model for this problem and solve it using Solver.
- c. What is the optimal solution?
Expert Solution & Answer
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Students have asked these similar questions
Using the grid technique to determine the least-cost location (warehouse) for this problem:
Tons
Rate
X - Coordinates
Y – Coordinates
S1
200
0.5
2
14
S2
300
0.6
6
10
M1
100
1
2
2
M2
100
2
10
14
M3
100
1
14
18
M4
100
2
14
6
The Grid center coordination is ____ and _____
(round the results to 1 decimal place)
Group of answer choices
(9.9; 7.8)
(5.5; 6.9)
(8.7; 10.5)
(10.5; 6.4)
(9.9; 8.9)
Please answer:
b) Using a computer software for solving LP, the objective value at the optimal solution Minimum number of total miles traveled (objective
value)equals=
(round your response to a whole number).
A fertilizer manufacturer has to fulfill supply contracts to its two main customers (650 tons to Customer A and 800 tons to Customer B). It can meet this demand by shipping existing inventory from any of its three warehouses. Warehouse 1
has 400 tons of inventory onhand, Warehouse 2 (W2) has 500 tons, and Warehouse 3 (W3) has 600 tons. The company would like to arrange the shipping for the lowest cost possible, where the per-ton transit costs are as follows:
W 1
W 2
W 3
$7.50
$6.75
$6.25
$7.00
$6.50
$8.00
Customer A
Customer B
Write the objective function and the constraint in equations. Let V;= tons shipped to customer i from warehouse j, and so on. For example, VA1 = tons shipped to customer A from warehouse W1.
This exercise contains only parts b, c, d, e, and f.
b) The objective function for the LP model =
Minimize Z =
$7.50
+ $6.25
+ $6.50
(shipping cost to customer A)
V +
$6.75
+ $7.00
+ $8.00
(shipping cost to customer B)
c) Subject to:
Customer A's demand
Customer B's demand…
Chapter 4 Solutions
Spreadsheet Modeling & Decision Analysis: A Practical Introduction to Business Analytics (MindTap Course List)
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