What are the risks of defining problems or opportunities poorly prior to making decisions? Give a personal and a business example.© BrainMass Inc. brainmass.com October 25, 2018, 9:50 am ad1c9bdddf
The risks of poorly defining problems before making decisions is failing to gather all the facts possible to make an informed decision. It is important to evaluate what you know, determine what is missing and conduct research to fill in the missing information. If you fail to define the problem adequately you may make a decision based upon symptoms, rather than ...
This solution outlines some of the risks in poorly defining problems before making a decision. Includes a personal and a business example. Includes a helpful link.
Linear Optimization Model Problem
I need quick help with this problem and Excel SOLVER setup. I would like someone to review this, fix the solver issues and explain this problems outcome.
Linear Optimization Model: Klein Industries manufactures three types of portable air compressors: small, medium, and large, which have unit profits of $20.50, $34.00, and $42.00, respectively. The projected monthly sales are:
Small Medium Large
Minimum 14,000 6,200 2,600
Maximum 21,000 12,500 4,200
The production process consists of three primary activities: bending and forming, welding, and painting. The amount of time in minutes needed to process each product in each department is shown below:
Small Medium Large Available Time
Bending/forming 0.4 0.7 0.8 23,400
Welding 0.6 1.0 1.2 23,400
Painting 1.4 2.6 3.1 46,800
How many of each type of air compressor should the company produce to maximize profit?
a. Formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the production manager explaining the sensitivity information.
b. Solve the model without the auxiliary variables and explain the relationship between the reduced costs and the shadow prices found in part a.
Solution Tip: You MUST USE SOLVER TOOL in Excel. Set your constraints right, and fill in the solver dialogue box properly. Additional Slides and a basic example is attached. The example and slides are for demonstration and illustration purpose only to help practice how to use solver tool.View Full Posting Details