Microsoft Excel 16.

0 Answer Report
Worksheet: [week8.xlsx]Sheet1
Report Created: 01/04/2024 10:46:48 CH
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0,047 Seconds.
Iterations: 4 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0,000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Max)

Cell Name Original Value Final Value
$E$2 solution Z 0 1250

Variable Cells
Cell Name Original Value Final Value Integer
$B$2 solution x1 0 25 Contin
$C$2 solution x2 0 0 Contin
$D$2 solution x3 0 25 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$E$5 machine 1 LHS 31.25 $E$5<=$G$5Not Binding 8.75
$E$6 machine 2 LHS 37.5 $E$6<=$G$6Not Binding 2.5
$E$7 labor available LHS 100 $E$7<=$G$7Binding 0
$E$8 p.require 1 LHS 0 $E$8<=$G$8Binding 0
$E$9 p.require 2 LHS 15 $E$9>=$G$9Not Binding 15
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [week8.xlsx]Sheet1
Report Created: 01/04/2024 10:46:48 CH

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$2 solution x1 25 0 30 1E+030 10
$C$2 solution x2 0 -7.5 50 7.5 1E+030
$D$2 solution x3 25 0 20 10 4.285714286

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$E$5 machine 1 LHS 31.25 0 40 1E+030 8.75
$E$6 machine 2 LHS 37.5 0 40 1E+030 2.5
$E$7 labor available LHS 100 12.5 100 6.666666667 100
$E$8 p.require 1 LHS 0 10 0 5 25
$E$9 p.require 2 LHS 15 0 0 15 1E+030
 x1 x2 x3 Z
solution 25 0 25 1250
profit 30 50 20
LHS RHS
machine 1 0.5 2 0.75 31.25 <= 40
machine 2 1 1 0.5 37.5 <= 40
labor available 2 5 2 100 <= 100
p.require 1 0.5 -0.5 -0.5 0 <= 0
p.require 2 -0.2 -0.2 0.8 15 >= 0

x1 x2 x3 Z
solution 24 8 16 1440
profit 30 50 20
LHS RHS
machine 1 0.5 2 0.75 40 <= 40
machine 2 1 1 0.5 40 <= 40
labor available 2 5 2 120 <= 120
p.require 1 0.5 -0.5 -0.5 -1.78E-15 <= 0
p.require 2 -0.2 -0.2 0.8 6.4 >= 0
Microsoft Excel 16.0 Answer Report
Worksheet: [week8.xlsx]ex20
Report Created: 02/04/2024 1:35:39 SA
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0,031 Seconds.
Iterations: 3 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0,000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Max)

Cell Name Original Value Final Value
$E$11 Solution 0 88750

Variable Cells
Cell Name Original Value Final Value Integer
$B$11 Solution A 0 375000 Contin
$C$11 Solution P 0 225000 Contin
$D$11 Solution H 0 400000 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$E$14 home loans 2.910383E-11 $E$14>=$G$14 Binding 0
$E$15 personal 0 $E$15<=$G$15 Binding 0
$E$16 total 1000000 $E$16=$G$16 Binding 0
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [week8.xlsx]ex20
Report Created: 02/04/2024 1:35:39 SA

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$11 Solution A 375000 0 0.09 0.03 0.05
$C$11 Solution P 225000 0 0.12 1E+030 0.03
$D$11 Solution H 400000 0 0.07 0.03125 1E+030

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$E$14 home loans 2.910383E-11 -0.03125 0 600000 400000
$E$15 personal 0 0.01875 0 600000 360000
$E$16 total 1000000 0.08875 1000000 1E+030 1000000
a, Standard form c, No change. Because sensitivity re
Max
0,09A + 0,12P + 0,07H for this have the allow increase = 0,0
S.t.
-0,4A - 0,4P + 0,6H >= 0 remains H equals to 400.000, p = 225
-0,6A + P <= 0
A + P + H = 1000000 d, if increase $10000
A, P, H >= 0
Solution
b, solve problem max
A P H
Solution 375000 225000 400000 88750 ->Total annual return home loans
max 0.09 0.12 0.07 personal
LHS RHS total
home loans -0.4 -0.4 0.6 2.91E-11 >= 0
personal -0.6 1 0 <= 0 e,
total 1 1 1 1000000 = 1000000
Solution
% annual return = 8.875 max

home loans
personal
total

Increase of =
% return =
No change. Because sensitivity report created by Excel the object coefficients
this have the allow increase = 0,03. Since 0.09 is within the optimal solution
mains H equals to 400.000, p = 225.000 and a = 375.000

if increase $10000
A P H
378750 227250 404000 89637.5 ->increase of = 887,5
0.09 0.12 0.07
LHS RHS
-0.4 -0.4 0.6 2.91E-11 >= 0
-0.6 1 0 <= 0
1 1 1 1010000 = 1010000

A P H
381250 228750 390000 89062.5 ->Total new annual return
0.09 0.12 0.07
LHS RHS
-0.39 -0.39 0.61 0 >= 0
-0.6 1 0 <= 0
1 1 1 1000000 = 1000000

312.5
0.03125
Microsoft Excel 16.0 Answer Report
Worksheet: [week8.xlsx]ex22
Report Created: 02/04/2024 3:24:18 SA
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0,031 Seconds.
Iterations: 7 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0,000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Min)

Cell Name Original Value Final Value
$E$3 Solution 3780 3780

Variable Cells
Cell Name Original Value Final Value Integer
$B$3 Solution L 48 48 Contin
$C$3 Solution D 72 72 Contin
$D$3 Solution S 30 30 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$E$10 Constraints 5 150 $E$10=$G$10 Binding 0
$E$6 Constraints 1 3.552714E-15 $E$6>=$G$6 Binding 0
$E$7 Constraints 2 7.5 $E$7>=$G$7 Not Binding 7.5
$E$8 Constraints 3 0 $E$8<=$G$8 Binding 0
$E$9 Constraints 4 48 $E$9<=$G$9 Not Binding 2
NonNegative
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [week8.xlsx]ex22
Report Created: 02/04/2024 3:24:18 SA

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$3 Solution L 48 0 30 1E+030 5
$C$3 Solution D 72 0 25 5 15
$D$3 Solution S 30 0 18 9 1E+030

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$E$10 Constraints 5 150 25.2 150 6.25 150
$E$6 Constraints 1 3.552714E-15 5 0 2 48
$E$7 Constraints 2 7.5 0 0 7.5 1E+030
$E$8 Constraints 3 0 -7.2 0 150 6.25
$E$9 Constraints 4 48 0 50 1.00E+30 2
b, a,
L D S Min
Solution 48 72 30 3780 Total cost S.t.
wage 30 25 18

Constraints 1 0.6 -0.4 3.55E-15 >= 0

Constraints 2 -0.15 -0.15 0.85 7.5 >= 0
Constraints 3 -0.25 -0.25 1 0 <= 0
Constraints 4 1 48 <= 50
Constraints 5 1 1 1 150 = 150

c, No change because constraint 4 is not binding d, No change because constraint 2 is

L D S
Solution 48 72 30 3780 No change Total cost Solution
wage 30 25 18 wage

Constraints 1 0.6 -0.4 3.55E-15 >= 0 Constraints 1

Constraints 2 -0.15 -0.15 0.85 7.5 >= 0
Constraints 3 -0.25 -0.25 1 3.55E-15 <= 0 Constraints 3
Constraints 4 1 48 <= 60 Constraints 4
Constraints 5 1 1 1 150 = 150 Constraints 5
 30L +25D + 30S
0,6L - 0,4D >= 0
- 0,15L -0,15D +0,85S >= 0
-0,25L -0,25D + S <= 0
L <= 50
L + D + S = 150
L, D, S >= 0

No change because constraint 2 is not binding

L D S
48 72 30 3780 No change Total cost
30 25 18

0.6 -0.4 -3.55E-15 >= 0

-0.25 -0.25 1 0 <= 0

1 48 <= 50
1 1 1 150 = 150
a, Min
A B C D
Min 33333.333 0 66666.667 100000 14666.67 ->Risk
Risk 0.1 0.07 0.05 0.08

total 1 1 1 1 200000 = 200000

return 0.0000006 0.0000004 0.0000003 0.0000005 0.09 >= 0.09
Stock A 1 33333.33 <= 100000
Stock B 1 0 <= 100000
Stock C 1 66666.67 <= 100000
Stock D 1 100000 <= 100000

0,09 % Return = 18 000

c, The dollar difference between part a) and part b) is $4 000. The company might choose part b) because it have more return
 b, Max Model
A B C D Min
Max 100000 0 0 100000 18000 ->Risk S.t.
Risk 0.1 0.07 0.05 0.08

total 1 1 1 1 200000 = 200000

return 0.0000006 0.0000004 0.0000003 0.0000005 0.11 >= 0.09
Stock A 1 100000 <= 100000
Stock B 1 0 <= 100000
Stock C 1 0 <= 100000
Stock D 1 100000 <= 100000

0,11 % return = 22 000

rt b) because it have more return

0,1A + 0,07B + 0,05C + 0,08D
A + B + C + D = 200000
(0,12A + 0,08B + 0,06C + 0,1D)/200000 >= 0,09
A <= 0,5*200000
B<= 0,5*200000
C <= 0,5* 200000
D <= 0,5*200000
A, B, C, D >= 0
Microsoft Excel 16.0 Answer Report
Worksheet: [week8.xlsx]ex26
Report Created: 02/04/2024 5:42:47 SA
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0,047 Seconds.
Iterations: 8 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0,000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Min)

Cell Name Original Value Final Value
$H$3 Solution 73550 73550

Variable Cells
Cell Name Original Value Final Value Integer
$B$3 Solution M1 2000 2000 Contin
$C$3 Solution M2 4000 4000 Contin
$D$3 Solution M3 1400 1400 Contin
$E$3 Solution P1 4000 4000 Contin
$F$3 Solution P2 0 0 Contin
$G$3 Solution P3 2100 2100 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$H$6 Production 21600 $H$6<=$J$6 Binding 0
$H$7 Assembly 12200 $H$7<=$J$7 Not Binding 2800
$H$8 Test& package 18000 $H$8<=$J$8 Binding 0
$H$9 Component 1 6000 $H$9=$J$9 Binding 0
$H$10 Component 2 4000 $H$10=$J$10 Binding 0
$H$11 Component 3 3500 $H$11=$J$11 Binding 0
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [week8.xlsx]ex26
Report Created: 02/04/2024 5:42:48 SA

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$3 Solution M1 2000 0 4.5 0.725 0.125
$C$3 Solution M2 4000 0 5 0.83125 1E+030
$D$3 Solution M3 1400 0 2.75 0.25 2.416666667
$E$3 Solution P1 4000 0 6.5 0.125 0.725
$F$3 Solution P2 0 0.83125 8.8 1E+030 0.83125
$G$3 Solution P3 2100 0 7 2.416666667 0.25

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$H$6 Production 21600 -0.90625 21600 3200 1600
$H$7 Assembly 12200 0 15000 1E+030 2800
$H$8 Test& package 18000 -0.125 18000 2000 2800
$H$9 Component 1 6000 6.5 6000 1E+030 4000
$H$10 Component 2 4000 7.96875 4000 1142.857143 2285.714286
$H$11 Component 3 3500 7 3500 1E+030 2100
b,
M1 M2 M3 P1 P2 P3
Solution 2000 4000 1400 4000 0 2100 73550 -> Total cost
Min 4.5 5 2.75 6.5 8.8 7

Production 2 3 4 21600 <= 21600

Assembly 1 1.5 3 12200 <= 15000
Test& package 1.5 2 5 18000 <= 18000
Component 1 1 1 6000 = 6000
Component 2 1 1 4000 = 4000
Component 3 1 1 3500 = 3500

c, The Assembly department is limiting quantities.

From the sensitivity report we have the shadow price of Production = -0,90625 and Test& package = -0,125
So the value of an extra hour:
Production = $54,37
Test& package = $7,5

d, From the sensitivity report, the shadow price of Component 2 = 7,96875. It means that it would cost Benson $7,96875 to add
 a,
Min 4,5M1 + 5M2 +2,75M3 + 6,5P1 + 8,8P2 + 7P3
S.t. 2M1 + 3M2 + 4M3 <= 21600
M1 + 1,5M2 + 3M3 <= 15000
1,5M1 + 2M2 + 5M3 <= 18000
M1 + P1 = 6000
M2 + P2 = 4000
M3 + P3 = 3500
M1, M2, M3, P1, P2, P3 >= 0

t Benson $7,96875 to add a unit of component 2

Microsoft Excel 16.0 Answer Report
Worksheet: [week8.xlsx]ex28
Report Created: 02/04/2024 4:24:04 CH
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0,063 Seconds.
Iterations: 5 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0,000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Max)

Cell Name Original Value Final Value
$E$12 Solution 0 36000

Variable Cells
Cell Name Original Value Final Value Integer
$B$12 Solution G 0 120000 Contin
$C$12 Solution I 0 30000 Contin
$D$12 Solution M 0 150000 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$E$15 Constraint 1 15000 $E$15<=$G$15 Binding 0
$E$16 Constraint 2 120000 $E$16>=$G$16 Not Binding 90000
$E$17 Constraint 3 30000 $E$17>=$G$17 Binding 0
$E$18 Constraint 4 150000 $E$18>=$G$18 Not Binding 90000
$E$19 Constraint 5 300000 $E$19<=$G$19 Binding 0
onNegative
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [week8.xlsx]ex28
Report Created: 02/04/2024 4:24:04 CH

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$12 Solution G 120000 0 0.2 0.4 0.05
$C$12 Solution I 30000 0 0.1 0.022222222 1E+030
$D$12 Solution M 150000 0 0.06 0.14 0.04

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$E$15 Constraint 1 15000 1.5555555556 15000 8100 8100
$E$16 Constraint 2 120000 0 30000 90000 1E+030
$E$17 Constraint 3 30000 -0.022222222 30000 162000 30000
$E$18 Constraint 4 150000 0 60000 90000 1E+030
$E$19 Constraint 5 300000 0.0444444444 300000 810000 81000
Microsoft Excel 16.0 Limits Report
Worksheet: [week8.xlsx]ex28
Report Created: 02/04/2024 4:24:05 CH

Objective
Cell Name Value
$E$12 Solution 36000

Variable Lower Objective Upper Objective

Cell Name Value Limit Result Limit Result
$B$12 Solution G 120000 30000 18000 120000 36000
$C$12 Solution I 30000 30000 36000 30000 36000
$D$12 Solution M 150000 60000 30600 150000 36000
a, Linear model c, From the sensitivity report
Max 0,2G + 0,1I + 0,06M
S.t. 0,1G + 0,05I + 0,01M <= 0,05 *300000
G >= 0,1 * 300000
I >= 0,1*300000 G
M >= 0,2*300000 I
G + I + M <= 300000 M
G, I, M >= 0
The Growth stock fund may vary fro
b, solve The Income fund may vary no lower
G I M The Money market fund may vary fr
Solution 120000 30000 150000 36000
Max 0.2 0.1 0.06 d, From the sensitivity report , the sh

Constraint 1 0.1 0.05 0.01 15000 <= 15000

Constraint 2 1 120000 >= 30000
Constraint 3 1 30000 >= 30000
Constraint 4 1 150000 >= 60000
Constraint 5 1 1 1 300000 <= 300000 If the risk index is increased to 0,06
So yeild increase =
he sensitivity report e, If the Growth stock fund downward to 0,1
G I
Solution 48000 192000
Max 0.1 0.1

Constraint 0.1 0.05

Constraint 1
Constraint 3 1
wth stock fund may vary from 0,15 to 0,6 Constraint 4
me fund may vary no lower limit to 0,12 Constraint 1 1
ey market fund may vary from 0,02 to 0,2
f, Pfeiffer must maintain the client's risk index and
he sensitivity report , the shadow price = 1,556

index is increased to 0,06, the Constraint 1 will be increase of 3000

4668
 k fund downward to 0,1
M
60000 27600
0.06

0.01 15000 <= 15000

48000 >= 30000
192000 >= 30000
1 60000 >= 60000
1 300000 <= 300000

ntain the client's risk index and the amount of funds available on each client
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [week8.xlsx]ex30
Report Created: 02/04/2024 5:56:31 CH

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$2 Solution L 3 0 300 1E+030 100
$C$2 Solution N 7 0 200 100 100
$D$2 Solution W 5 0 100 0 1E+030
$E$2 Solution S 5 0 100 200 0

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$F$10 Constraint 6 20 100 20 10 2
$F$5 Constraint 1 3 100 3 7 3
$F$6 Constraint 2 10 100 10 2 3.333333333
$F$7 Constraint 3 0 0 0 10 2
$F$8 Constraint 4 -5 0 0 1E+030 5
$F$9 Constraint 5 5 0 4 1 1E+030
a, L N W S
Solution 3 7 5 5 3300
Min 300 200 100 100

Constraint 1 1 3 >= 3
Constraint 2 1 1 10 >= 10
Constraint 3 1 -1 0 <= 0
Constraint 4 -1 -1 1 -5 <= 0
Constraint 5 1 5 >= 4
Constraint 6 1 1 1 1 20 = 20

b, From Sensitivity report, Each additional minute of broadcast time increase cost by $100
c, Following the shadow price, if local coverage is increased by 1 minute, total cost will increase by $100
d, If the tiem devoted to local and national news is increased by 1 minute, total cost will increase by $100
e, Increasing the sports by 1 minute will not effect because the shadow price is 0
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [week8.xlsx]ex32a,
Report Created: 02/04/2024 6:44:58 CH

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$14 Solution P1 40000 0 1.13 1E+030 0.05
$C$14 Solution P2 100000 0 1.16 0.05 1E+030
$D$14 Solution P3 50000 0 1.52 1E+030 0.27
$E$14 Solution M1 160000 0 1.08 0.05 1E+030
$F$14 Solution M2 0 0.05 1.16 1E+030 0.05
$G$14 Solution M3 100000 0 1.25 0.27 1E+030

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$H$17 Constraints 1 200000 1.13 200000 35000 40000
$H$18 Constraints 2 100000 1.16 100000 35000 100000
$H$19 Constraints 3 150000 1.52 150000 25000 50000
$H$20 Constraints 4 140000 0 175000 1E+030 35000
$H$21 Constraints 5 160000 -0.05 160000 40000 35000
$H$22 Constraints 6 50000 0 75000 1E+030 25000
$H$23 Constraints 7 100000 -0.27 100000 50000 25000
a, Linear
Min 1,13P1 + 1,16P2 + 1,52P3 + 1,08M1 + 1,16M2 + 1,25M3
S.t. P1 + M1 = 200000
P2 + M2 = 100000
P3 + M3 = 150000
P1 + P2 <= 175000
M1 + M2 <= 160000
P3 <= 75000
M3 <= 100000
P1, P2, P3, M1, M2, M3 >=0

b, Solve
P1 P2 P3 M1 M2 M3
Solution 40000 100000 50000 160000 0 100000 535000 -> Total product and shipping cost
Min 1.13 1.16 1.52 1.08 1.16 1.25

Constraints 1 1 1 200000 = 200000

Constraints 2 1 1 100000 = 100000
Constraints 3 1 1 150000 = 150000
Constraints 4 1 1 140000 <= 175000
Constraints 5 1 1 160000 <= 160000
Constraints 6 1 50000 <= 75000
Constraints 7 1 100000 <= 100000
 c, From sensitivity report, the allowable decrease coefficient for the PT-
product and shipping cost 100 production cost is 0.05. This means that if the cost of producing a PT-
100 in the Philippines plant decreases by just $0.05, then the optimal
solution will change.

d, Looking at cell F14 in the image, we see that the coefficient is currently
0.05. The allowable increase is 1E+30 and the allowable decrease is 0.05.
This tells us that the cost can increase by any amount. If the cost
decreases by even a small amount ($0.05) , then M2 will become part of
the optimal solution and PT-200s will be produced in Mexico.