ADM 2302 Study Guide - Final Guide: Integer Programming, Prad Am Stilfser Joch, Citral

• School: University of Ottawa
• Department: Administration
• Course: ADM 2302
• Professor: All

Document Summary

Question 1: (25 points) sensitivity report (c) from the optimal solution, what are the sales effort allocations to each of the distribution channels? (4 points) Solution: unit profits from the business distribution option would need to increase by the. After some discussion, the board of directors approved another ,000 for this project. Solution: since the shadow price for advertising dollars is zero, then all the available funds are not being used up now. Determine the impact on epg"s total optimal profit if the new terms of the contract go into effect. (4 points) Solution: given the shadow price for commercial contract sales of -45. 15, then it costs epg to increase distribution to wal-mart. Thus, only if forced to do so, the optimal objective function value would decrease from ,878 to ,878 + (144 units * - 45. 15) = ,878-. 60 = ,376. 40.