IP Algebraic and Spreadsheet Model: This problem is based on (but not exactly) number 13 in Chapter 6 of Cliff Ragsdale’s textbook, “Spreadsheet Modeling and Decision Analysis”. This problem requires the use of Excel and the add-in, called Solver. The course is Excel-based and Solver is the optimization application used for all problems. The problem appears in this text box and is also attached as a MS Word file, so it is sure to transmit legibly. The MS Word version will likely need to be the document from which to work, as the text box does not allow information to be transmitted well (see attached MS Word doc below). A developer of video game software has seven proposals for new games. Unfortunately, the company cannot develop all the proposals because its budget for new projects is limited to $950,000 and it has only 20 programmers to assign to new projects. The financial requirements, returns, and the number of programmers required by each project are summarized in the following table. Projects 2 and 6 require specialized programming knowledge that only one of the programmers has. Both of these projects cannot be assigned to only one of the projects. (Note: All dollar amounts represent thousands.) Project Programmers Required Capital Required Estimated NPV 1 7 $250 $650 2 6 $175 $550 3 9 $300 $600 4 5 $150 $450 5 6 $145 $375 6 4 $160 $525 7 8 $325 $750

LP+2abc

Download DOC Report

Upload
majka077677
View
87
Download
1

Embed Size (px)

Citation preview

IP Algebraic and Spreadsheet Model:

This problem is based on (but not exactly) number 13 in Chapter 6 of Cliff Ragsdale’s textbook, “Spreadsheet Modeling and Decision Analysis”.

This problem requires the use of Excel and the add-in, called Solver. The course is Excel-based and Solver is the optimization application used for all problems. The problem appears in this text box and is also attached as a MS Word file, so it is sure to transmit legibly. The MS Word version will likely need to be the document from which to work, as the text box does not allow information to be transmitted well (see attached MS Word doc below).

A developer of video game software has seven proposals for new games. Unfortunately, the company cannot develop all the proposals because its budget for new projects is limited to $950,000 and it has only 20 programmers to assign to new projects. The financial requirements, returns, and the number of programmers required by each project are summarized in the following table. Projects 2 and 6 require specialized programming knowledge that only one of the programmers has. Both of these projects cannot be assigned to only one of the projects. (Note: All dollar amounts represent thousands.)

Project Programmers Required

Capital Required Estimated NPV

1 7 $250 $6502 6 $175 $5503 9 $300 $6004 5 $150 $4505 6 $145 $3756 4 $160 $5257 8 $325 $750

a) Provide a complete algebraic formulation.b) Implement spreadsheet in Excel and use Solver to identify optimal solution.c) Analyze and explain the solution obtained.