Below you can find the optimal solution and the sensitivity report.It is optimal to order 94 bicycles and 54 mopeds. This solution gives the maximum profit of 25600. This solution uses all the resources available (93000 units of capital and 101 units of storage). You can find these numbers in the Final Value column. Reduced CostThe reduced costs tell us how much the objective coefficients (unit profits) can be increased or decreased before the optimal solution changes. If we increase the unit profit of Child Seats with 20 or more units, the optimal solution changes.1. At a unit profit of 69, it's still optimal to order 94 bicycles and 54 mopeds.
Below you can find the optimal solution.2. At a unit profit of 71, the optimal solution changes.Conclusion: it is only profitable to order child seats if you can sell them for at least 70 units. Shadow PriceThe shadow prices tell us how much the optimal solution can be increased or decreased if we change the right hand side values (resources available) with one unit.1.
Choosing Analytic Solver Platform gives you all the features of Risk Solver Platform and XLMiner, so this is usually the best choice. You can CHANGE this choice later in Excel, by choosing a menu option Help – Change Product on the Ribbon. When the SolverSetup program finishes, start Excel (the last Setup dialog prompts you to do this). If you are running Excel 2016 on Mac, you need to install the solvers after unzipping OpenSolver. Inside the unzipped folder, go to Solvers/osx you will find a file called “OpenSolver Solvers.pkg”. Open this file and click through the prompt to set up the solvers on your computer (you will need to enter the administrator password to do so).
With 101 units of storage available, the total profit is 25600. Below you can find the optimal solution.2. With 102 units of storage available, the total profit is 25700 (+100).Note: with a shadow price of 100 for this resource, this is according to our expectations. This shadow price is only valid between 101 - 23,5 and 101 + 54 (see sensitivity report).
The first is that, within the formula, there is disagreement as to what the best equalizer is. The standard definition is, but the problem with using revenue is that saying 'we need to sell X amount to cover costs' excludes taxes, which are a very real expense. In business planning, you should always consider what operating income after taxes looks like, and that measure is called (NOPAT). By using NOPAT, you incorporate the cost of all actual operations, including the effect of taxes. However, the widely understood definition uses revenue, so that is what we'll use.
Comments are closed.
|
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
March 2023
Categories |