Study Guides (238,613)
Canada (115,253)
Administration (1,171)
ADM2302 (25)
All (15)


3 Pages
Unlock Document

University of Ottawa

QUESTION 1 25 points SENSITIVITY REPORTc From the optimal solution what are the sales effort allocations to each of the distribution channels 4 pointsSolution Sales effort allocation to each distribution channel is 1 T258 units25 hrs per unit645 hours 2B 0units375hrsperunit 0hours 3 C480 units38 hrs per unit1824 hours 4 I4262 units05 per unit2131 hoursd What would need to happen to the Business distribution option unit profits before it would be optimal to acquire an advertising and sales force allocation of its own 4 pointsSolution Unit Profits from the Business distribution option would need to increase by the Reduced Cost amount of 31375 to 94375 6331375 before it would be optimal to distribute there and acquire an advertising and sales force allocatione Given the highly competitive markets for MP3 players in 2005 EPG was considering committing more financial resources to support the advertising costs for this project After some discussion the Board of Directors approved another 12000 for this project What will be the impact on the new optimal profit of these new operating funds for advertising Solution Since the Shadow Price for Advertising dollars is zero then all the available funds are not being used up now Therefore it would not be worthwhile for EPG to add more advertising dollars and the new optimal profit will not change from these new operating fundsf Given a high volume of sales in early December WalMart has sent a memo to EPG requesting that the current contract be renegotiated so that the 480 units be increased by 144 more units Determine the impact on EPGs total optimal profit if the new terms of the contract go into effect 4 pointsSolution Given the Shadow Price for Commercial Contract sales of 4515 then it costs EPG to increase distribution to WalMart Thus only if forced to do so the optimal objective function value would decrease from 230878 to 230878144 units 451523087865016022437640 Note also that the decrease of 144 units does not exceed the Allowable Increase of 156 units and therefore the Shadow Price is applicableQUESTION 2BINARY PROBLEMDWR Ltd has MADE new game consoles zbox and ybox Production lines cost 25000 for zbox and 32000 for ybox Each console has profits 150unit for zbox and 210unit for ybox DWR Ltd has space for creating 3 production lines capable of manufacturing the consoles and each line can be used to manufacture both consoles at the same time However management has decided that in order to mitigate the risks only one production line would be openzbox can be produced at the rate of 15 unitshr on line 1 18 unitshr on line 2 and 22 unitshr on line 3 Ybox can be
More Less

Related notes for ADM2302

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.