Statistics Analytical Decisions

Linear Programming models and their Importance in Business World

1. All Work Must Be Your Own. I Do Not Want Copy-Paste Answers Or Book Definitions. For Question-4 And Where Appropriate You Must Provide References You Are Using. For Definitions You Can Use Sources But Final One You Are Using Should Be Your Own. 

This should be about two or three paragraphs or no more than a one-sided page in length. You should use your own words and comments and not those of the text or anyone else. In your own words briefly discuss the essentials and importance of Linear Programming models and how they are used in the business world. What are the pros and cons of linear programming. Give an example of their use in functional business areas like Marketing, Production, Finance, Human Resources. 

A corporation plans on building a maximum of 11 new stores in a large city. They will build these stores in one of three sizes for each location – a convenience store (open 24 hours), standard store, and an expanded services store. The convenience store requires $4.125 million to build and 30 employees to operate. The standard store requires $8.25 million to build and 15 employees to operate. The expanded-services store requires $12.375 million to build and 45 employees to operate. The corporation can dedicate $82.5 million in construction capital, and 300 employees to staff the stores. On the average, the convenience store nets $1.2 million annually, the standard store nets $2 million annually, and the expanded services store nets $2.6 million annually. How many of each should they build to maximize revenue? Please put screen shots of Excel Model and Solver and interpret the results. 

Please go over blending at chandler OIL from our textbook. Pg 639. I know that the solution is already there. I want you to look at the question, understand it. Look at the book design and solution of problem provided in the book and understand it. Then close the book and design it by yourself and develop your own model. If you have difficulty you can revisit  the book solution and comeback to your own design.  So, only copy and pasting will not help, I want to see your design. Of course the results will be same as book but your design  will be different.

Please tell me your understanding of what is sensitivity analysis in linear programming problems? What is the definition of shadow price? What is the managerial use of sensitivity analysis and shadow prices? Find an example (from any source) and clearly explain sensitivity analysis and shadow prices on it by using managerial approach.  Your example must be meaningful for explaining sensitivity analysis.

You are  high level decision maker for a production company.  You produce and export your products.  You are aware of uncertainty in the market and trying to predict your end of 2020 profit.