Solve the following problem using the three methods, and after solving the problem, use a method for the optimal solution D SUPPLY A 10 2 20 11 1 15 12 9 20 25 4 14 16 18 10 DEMAND 15 15 15 50 2. 3.
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- Formulate an LP for this minimization problemFind the dual of the problem.Suppose we are solving a maximization problem andthe variable xr is about to leave the basis.a What is the coefficient of xr in the current row 0?b Show that after the current pivot is performed, thecoefficient of xr in row 0 cannot be less than zero.c Explain why a variable that has left the basis on agiven pivot cannot re-enter the basis on the next pivot.
- Explain why the reward for a saddle point must be thesmallest number in its row and the largest number in itscolumn. Suppose a reward is the smallest in its row and thelargest in its column. Must that reward yield a saddle point?what is advantage and dis advantage of the following: maximac criterion maximin Criterion Minimax regret criterion Hurwicz Criterion Equal likelihood criterionFor minimization linear programming problem, the simplex method is terminated when all values of: a. Z (NB) s0 Ob. None of them Z (NB) = 0 Z (NB) 2 0
- Consider an independent case for each decision variable. Find the range of pricesfor handbag, shoulder bag and backpack that makes the optimal solution remainunchanged.e. Determine the new optimal solution when the available leather is increased to 47 ft2.f. Determine the new optimal solution when the available finishing hours is decreasedto 15 ft2. g. Interpret the dual prices given in the sensitivity analysis report of the original problem.h. Interpret the values under the reduced cost column found in the sensitivity analysisreport of the original problem.2 Vidhya Balan is planning to liquidate her investments inmutual funds and invest in real estate. Before makingthe change to her investment strategy, Vidhya wants toforecast the price of mutual funds for the next 2 months.She has collected the following data on the average fundprices for the past 10 months.Month Average Fund Price1 55.12 53.83 53.44 52.955 52.156 52.757 52.658 51.59 52.2510 51.7a Using a five-period moving average, forecast theaverage fund price for Period 11.b. Using exponential smoothing with α = 0.3 forecastthe average fund price for Period 11. Assume an initialforecast for Month 2 (F2) as 55.10Porter five forces model, developed by Michael E. Porter of Harvard University in 1979, holds the purpose to analyse theindustry in order to determine the level of intensity regarding the competition and attractiveness of the industry. Theattractiveness of an industry is measured in terms of profit; more profitability means a more attractive industry and lowprofitability means a low attractive industry. Porter’s Five Forces model is a powerful management tool for analysing thecurrent industry profitability and attractiveness by using the outside-in perspective. Within the last decades, the model hasattracted some criticism because of the developing Internet economy. Due to an increasing significance of Digitalization,Globalization and Deregulation, the industry structure of the ‘Old Economy’ changed fundamentally. The ‘New Economy’ isnot comparable with the ‘Old Economy’, which is the basis of the Five Forces model. Moreover, the last decades haveshown that Information Technology…
- Porter five forces model, developed by Michael E. Porter of Harvard University in 1979, holds the purpose to analyse theindustry in order to determine the level of intensity regarding the competition and attractiveness of the industry. Theattractiveness of an industry is measured in terms of profit; more profitability means a more attractive industry and lowprofitability means a low attractive industry. Porter’s Five Forces model is a powerful management tool for analysing thecurrent industry profitability and attractiveness by using the outside-in perspective. Within the last decades, the model hasattracted some criticism because of the developing Internet economy. Due to an increasing significance of Digitalization,Globalization and Deregulation, the industry structure of the ‘Old Economy’ changed fundamentally. The ‘New Economy’ isnot comparable with the ‘Old Economy’, which is the basis of the Five Forces model. Moreover, the last decades haveshown that Information Technology…Martin owns an older home, which requires minor renovations. However, the neighborhood where Martin lives mostly includes newly constructed luxury homes. Why might Martin's home increase in value? Based on the principle of substitution, the value of Martin's house will equal the value of the newly constructed homes in the neighborhood. ○ The value of Martin's home will decrease due to the new competition in the neighborhood. Based on the principle of regression, the newly constructed homes in the neighborhood will increase the home values of the entire neighborhood. Based on the principle of progression, the newly constructed homes in the neighborhood will increase the home values of the entire neighborhood."A chipboard company has 4 factories, Mazatenango, Retalhuleu, Escuintla and Xela. It has four major distributors of its chipboards, which are distributor 1, distributor 2, distributor 3 and distributor 4: Mazatenango Retalhuleu Escuintla Xela DEMAND D1 10 16 19 12 350 D2 12 10 18 15 300 D3 15 22 10 10 250 IN THIS CASE USE VOGEL'S APPROXIMATION METHOD D4 20 10 12 20 200 SUPPLY 150 150 350 250 1) Formulate the problem as a transportation problem, solve it with the three methods and find the optimal cost for this problem. methods and find the optimal cost for this transportation problem. (remember to go through all possible routes).