Question

Please assist with the following:

Q1. For each of the following decision-making problems, determine whether the problem involves constrained or unconstrained optimization; what the objective function is and, for each constrained problem, what the constraint is; and what the choice variables are.

We aren’t earning enough profits. Your job is to redesign our global market structure to make sure that we maintain the optimal presence in every profitable market on the planet! Get to work now.

Answer 1

Solution(s):

a)

Constrained or Unconstrained : Constrained

Objective Function Identifying what PC's are affordable and suit the taste of the staff

If Constrained

Constraint The budget , tastes ,number of staff members

Choice Available : List down common features acceptable by staff

Remove that fall above budget given the number of staff members

b)

Constrained or Unconstrained :Constrained

Objective FunctionREdesigning the advertising programme(for TV,direct mail and magazine) with new strategies to generate profits

If Constrained:

Constraint: TV, direct-mail, and magazine

Choice Available:

Reviewing earlier programme and assessing mistakes.

Redesigning with respect to consumer preferences as to what effects their decisions the most.

Allocating the methods accordingly.

c)

Constrained or Unconstrained :Constrained

Objective Function: Reallocating machinery,the numbre of workes and raw materials needed to meet quota without overspending

If Constrained:

Constraint: Amount spent

Choice Available

Assuring efficient use and allocation of optimum number of workers and raw material such that production is maximized.