Solve the MBI product-mix problem

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  • Solve the MBI product-mix problem described in this chapter (Chapter 9 page 430), using either Excel’s Solver or a student version of an LP solver, such as Lindo. Lindo is available from Lindo Systems, Inc., at lindo.com; others are also available—search the Web. Examine the solution (output) reports for the answers and sensitivity report. Did you get the same results as reported in this chapter? Try the sensitivity analysis outlined in the chapter; that is, lower the right-hand side of the CC-8 marketing constraint by 1 unit, from 200 to 199. What happens to the solution when you solve this modified problem? Eliminate the CC-8 lower-bound constraint entirely (this can be done easily by either deleting it in Solver or setting the lower limit to zero) and re-solve the problem. What happens? Using the original formulation, try modifying the objective function coefficients and see what happens.

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