WINQSB Screen Shot 8: RHS Sensitivity Analysis Table for Demand Gas • (As mentioned above, avoid this conclusion. There will be a new set of solution.) From the Sensitivity Analysis, if our demand increases up to 5000 barrels, so will our profit. If our demand for gas is equal to 5000 we will have a profit maximization of $323,000 (as shown in WINQSB Screen Shot 2). However, once our demand goes over 5000 our profit will reduce because we cannot meet demand. When gas demand equals 8333 barrels our profit will reduce to $208,333 because more money has to be spent in advertising to create that demand. Any demand above 8333 barrels is infeasible. Simplex Tableau WinQSB Output: WINQSB Screen Shot 7: Simplex Tableau Iteration #s1-8 • iterations These shots are from WinQSB of Simplex method and were not required. of simplex tableau is different from your textbook. You need to WinQSB’s presentation know your for quiz and exam. book’s style Simplex Tableau Hand Calculation explanation for 1 for column: “Oil Gas” This table needs modification to follow your style. For example, all coefficients in book’s Row 0 should be negative. Though, the next step will not change. The term “iteration” and should be used with care. There are some mistakes below on proper term to “step” be used. Please update this after discussion of simplex method in class.
• WINQSB Screen Shot 8: RHS Sensitivity Analysis Table for Demand Gas (As mentioned above, avoid this conclusion. There will be a new set of solution.) From the Sensitivity Analysis, if our demand increases up to 5000 barrels, so will our profit. If our demand for gas is equal to 5000 we will have a profit maximization of $323,000 (as shown in WINQSB Screen Shot 2). However, once our demand goes over 5000 our profit will reduce because we cannot meet demand. When gas demand equals 8333 barrels our profit will reduce to $208,333 because more money has to be spent in advertising to create that demand. Any demand above 8333 barrels is infeasible. Simplex Tableau WinQSB Output: • WINQSB Screen Shot 7: Simplex Tableau Iteration #s1-8 These shots are from WinQSB iterations of Simplex method and were not required. WinQSB’s presentation of simplex tableau is different from your textbook. You need to know your book’s style for quiz and exam. Simplex Tableau Hand Calculation explanation for “Oil 1 for Gas” column: This table needs modification to follow your book’s style. For example, all coefficients in Row 0 should be negative. Though, the next step will not change. The term “iteration” and “step” should be used with care. There are some mistakes below on proper term to be used. Please update this after discussion of simplex method in class.
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