Consider the Think-Big Development Co. problem presented in Section 3.2, including the spreadsheet in Figure 3.3 showing its formulation and optimal solution. In parts a-g, use the spreadsheet and Solver to check whether the optimal solution would change and, if so, what the new optimal solution would be, if the estimates in Table 3.3 of the s of the projects were to be changed in each of the following ways. (Consider each part by itself.)
a. The of project 1 (a high-rise office building) increases by $200,000.
b. The of project 2 (a hotel) increases by $200,000.
c. The of project 1 decreases by $5 million.
d. The of project 3 (a shopping center) decreases by $200,000.
e. All three changes in parts b, c, and d occur simultaneously.
f. The s of projects 1, 2, and 3 change to $46 million, $69 million, and $49 million, respectively.
g. The s of projects 1, 2, and 3 change to $54 million, $84 million, and $60 million, respectively.
h. Use Solver to generate the sensitivity report for this problem. For each of the preceding parts, suppose that the change occurs later without having the spreadsheet model immediately available on a computer. Show in each case how the sensitivity report can be used to check whether the original optimal solution must still be optimal.
i. For each of the three projects in turn, use a parameter analysis report to systematically generate the optimal solution and the total when the only change is that the of that project increases in $1 million increments from $5 million less than the current value up to $5 million more than the current value.
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