An Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $5 per unit on special risk insurance and $2 per unit on mortgages. Management wishes to establish sales quotas for the new product lines to maximize total expected profit. Please see figure for work requirements. The sensitivity report for this optimization problem is given in the following figure 1 - Can you determine the optimal value (maximum expected profit) based on the sensitivity report? 2 - Identify the non-binding constraint(s).
An Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $5 per unit on special risk insurance and $2 per unit on mortgages. Management wishes to establish sales quotas for the new product lines to maximize total expected profit. Please see figure for work requirements. The sensitivity report for this optimization problem is given in the following figure 1 - Can you determine the optimal value (maximum expected profit) based on the sensitivity report? 2 - Identify the non-binding constraint(s).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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An Insurance Company is introducing two new product lines: special risk insurance
and mortgages. The expected profit is $5 per unit on special risk insurance and $2 per unit on
mortgages. Management wishes to establish sales quotas for the new product lines to
maximize total expected profit. Please see figure for work requirements.
The sensitivity report for this optimization problem is given in the following figure
1 - Can you determine the optimal value (maximum expected profit) based on the sensitivity
report?
2 - Identify the non-binding constraint(s).
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