ALY 6050 NU Module 5 Fundamentals of System Variable Based Mathematics Essay

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Economics

ALY 6050

Northeastern University

ALY

Description

The submission of each weekly project will consist of an Excel workbook (or an R script file if R has been used) and a Word document– a minimum of two submissions that have been submitted as attachments. For each weekly project, students should complete their analytic work in an Excel workbook, and write a minimum of 1500 words in a Word document describing their findings. The Word document should be according to the APA standards, i.e., it consists of a title page (including student’s name, assignment title, course number and title, the current academic term, instructor’s name, and the assignment completion date), and a reference page. The Word submission of each project will consist of three sections:

(i) Introduction (ii) Analysis (iii) Conclusion

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1 ALY-6050 Module Five Project The submission of each weekly project will consist of an Excel workbook (or an R script file if R has been used) and a Word document– a minimum of two submissions that have been submitted as attachments. For each weekly project, students should complete their analytic work in an Excel workbook, and write a minimum of 1500 words in a Word document describing their findings. The Word document should be according to the APA standards, i.e., it consists of a title page (including student’s name, assignment title, course number and title, the current academic term, instructor’s name, and the assignment completion date), and a reference page. The Word submission of each project will consist of three sections: (i) (ii) (iii) Introduction Analysis Conclusion Project: A northern hardware company is studying a plan to open a new distribution center in southeast. The company plans to rent a warehouse and an adjacent office, and distribute its main products to the local dealers. The company has decided to initially start with four of its main products: Pressure washers, Go karts, Generators, and Water pumps. The table below describes how much each of the products will cost the company (including transportation costs): Item Cost (in Dollars) Pressure washer 330 Go-kart 370 Generator 410 (Case of 5 Water Pumps) 635 The company has set aside a purchasing monthly budget of $170,000 for the new location. The selling prices (per unit) for each item are given in the table below: 2 Item Selling Price (in Dollars) Pressure washer 499.99 Go-kart 729.99 Generator 700.99 Water pump 269.99 Other than the budget, another of the company’s concern is the available space in the warehouse. The warehouse has 82 shelves, and each shelf is 30 ft long and 5 ft wide. Pressure washers and generators each are stored on 5 ft by 5 ft pallets whereas each Go Kart is stored on an 8 ft by 5 ft pallet. Furthermore, a 5 ft by 5 ft pallet is used to store four cases of water pumps For promoting its brand products, the company’s marketing department has decided to allocate at least 30% of its inventory to pressure washers and Go Karts, and sell at least twice as many generators as water pumps. Perform a monthly analysis using a linear programming model to maximize the company's net profit. Complete the following in a Word document and in an Excel workbook (or R). Submit both the Word document and the Excel workbook (or R script file) as attachments. 1. 2. 3. 4. In a Word document, write the mathematical formulation of the problem. Set up the linear programming formulation in an Excel workbook or R. Use the Excel Solver or R to solve the problem, and generate a Solver sensitivity report. Describe the optimal solutions obtained in the Word document. These will consist of the inventory level for all four products and the optimal monthly profit. 5. One of the decision variables has an optimal value of zero. Use the Solver sensitivity report to determine the smallest selling price for that item so that this optimal zero solution value changes to a non-zero value. 6. In the word document explain whether, in addition to the $170,000 allocated to the purchasing budget during the first month, the company should allocate additional money. If yes, how much additional investment do you recommend, and how much should the company expect its net monthly profit to increase as a consequence of this increase? 7. In the word document, explain whether you recommend that the company should rent a smaller or a larger warehouse. In any case, indicate the ideal size of your recommended warehouse in square feet, and indicate how much this change in the size of the warehouse will contribute to the monthly profit.
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Explanation & Answer

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econ
by A L

Submission date: 27-Nov-2020 07:47AM (UTC+0700)
Submission ID: 1457850581
File name: Module_Five_Project.docx (23.81K)
Word count: 1741
Character count: 9456

econ
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theory.doc.ic.ac.uk
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Variable
X1
X2
X3
X4

0
459.4595
0
0

Objective
Maximize

335400.8

Constraints

Inquality
1
170000 =
7
0 >=

RHS
170000
51000
51000
0
0
0
0


Linear Programming Outline
i.

Introduction

Applied mathematicians and task analysis specialists developed linear programming to take care
of specific problems using linear techniques.
Linear programming
Linear programming (LP) can be defined as a numerical method for determining the best
distribution of a business's limited assets to achieve an ideal target.
ii.

Analysis

The mathematical formulation of the problem.
Maximize
p= 499.99x_1+729.99x_2+700.99x_3+269.99x_4
Optimal solutions
Our maximum value is 335400.8, with X1=170000, X2=49.4595, X3=0, X4=0.
Decision Variable: A factor over which the chief has control, otherwise referred to as a variable
of controllable information.
Unit Cost or Profit: Speaks to the co-productive statistical calculation of the target job for
preference variables.
Total Contribution: A choice variable's full contribution to the target work is equal to replicating
its prior arrangement and target work coefficient.
Reduced Costs: The variable's gain coefficient should be raised before the variable can be
positive in the ideal arrangement.
Basis Status: A choice variable will join the premise (a bunch of variables that approximate 0 or
positive linked to an imperative) in the simplex approach for taking care of LP problems.
iii.

Conclusion

The linear programming model assumes that input and output sources may be fragmented.
Limitations
The linear approach to programming is based on the assumption that the universe is linear. This
is not normally the situation.


Running head: MODULE FIVE PROJECT

1

Module five project
Institution affiliation
Name
Date

MODULE FIVE PROJECT

2

Introduction
Applied mathematicians and task analysis specialists developed linear programming to
take care of specific problems using linear techniques. Linear programming attempts to find an
optimal arrangement, using quantitative methods, for a particular problem given a limited number
of imperatives, in light of the fundamentals of system variable-based mathematics. It i...


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