Description of this paper

CITM 501 Spring/Summer 2014 Homework Assignment 5

Description

solution


Question

Question;CITM 501;Spring/Summer 2014;Homework Assignment;5;Due Month #, 2014 @5 PM via Bb;Refer to the models at the end of this;document to answer the following questions.;Solve model A;adding answer and sensitivity analysis reports to your output. Answer the;following questions based on the sensitivity analysis. Do not re?solve the;model. Clearly indicate the part of the output each answer is based on.;If ABC;found out that they underestimated their return on investment on the CRM;offering, what would be the impact of this on their estimated profit, i.e.;how much increase in the ROI from the current level of 0.4 would require;you to re?solve the model and change your recommendation?;If the;ROI for Data warehousing services went up to 0.5, how much of an increase;in profit would that imply?;If the VP thinks that he can increase the;computer capacity by acquiring 10 more computers for $72,000 (total, i.e.;for all computers) annually, should he go ahead and spend the money on;these 10 computers? Why? (Note: this money would not be part of the;existing operating budget);Solve model B adding answer and sensitivity analysis reports to your;output. Answer the following questions based on the sensitivity analysis. Do;not re?solve the model. Clearly indicate the part of the output each answer;is based on.;If the;profit requirement was reduced by 10% (from $500,000), how much of their;spending can they decrease?;If;they now decided that $500,000 is low for profit, how much should they;increase their spending to make 5% more profit (than $500,000)?;Submit one spreadsheet file (with 7 tabs: the model, the answer;report, and the sensitivity report for each part, and your analysis) beginning;with your first initial ending with #5 as the file name (i.e. _ #5.xlsx, e.g. j_smith#5.xlsx);Model A;Decision Variables;CRM: annual amount ($) spent on CRM;services;DWH: annual amount;($) spent on DWH services;DB: annual amount ($) spent on DB;services;Objective Function;Maximize 0.4*CRM + 0.35*DWH + 0.4*DB;Constraints;CRM + DWH + DB;<=;1.9M (annual budget in $);1.8*CRM + 1.3*DWH + 1.9*DB;<=;5M (monthly bandwidth in MB);3.6*CRM + 2.6*DWH + 3.8*DB;<=;4320000 (monthly M/C;capacity in minutes);CRM;<=;0.4*(CRM + DWH + DB) (diversification);DWH;=;500,000 (minimum ROI);1.8*CRM + 1.3*DWH + 1.9*DB;<=;5M (monthly bandwidth in MB);3.6*CRM + 2.6*DWH + 3.8*DB;<=;4320000 (monthly M/C;capacity in minutes);CRM;<=;0.4*(CRM + DWH + DB) (diversification);DWH;<=;0.4*(CRM + DWH + DB) (diversification);DB;=;0 (nonnegativity)

 

Paper#47885 | Written in 18-Jul-2015

Price : $24
SiteLock