Essay About Total Cost Of Calls And White Sand

Decision Models
1.The LP formulation of the problem where,Decision Variables: X1 : Calls made during Daytime X2 : Calls made during eveningObjective function:MIN:  3X1 + 5X2   }  Total Cost of calls has to be minimized.Constraints:0.3X1 + 0.3X2    ≥   600   } Wives contacted0.1X1 + 0.3X2    ≥   480   } Husbands contacted0.1X1 + 0.15X2  ≥   400   } Single Males contacted0.1X1 + 0.2X2    ≥    400  } Single females contacted0.4(X1 +  X2)        ≤      X2      } 40% of total calls can be evening calls.i.e,  0.4 X1 – 0.6X2  ≤   0 X1,X2       ≥  0    } Non negativity conditionsb.) The optimal solution results in a minimum cost value of $12666.67 [pic 1]   c.) From sensitivity report below the maximum drop in price without affecting the number of calls during daytime or evening is mentioned in the ‘allowable decrease’ column in the sensitivity report below. So if daytime calls get cheaper will still not change the number of contacts made during evening. But if the cost of evening calls drops by more than 0.5, solving the LP leads to a totally different optimal solution showing that there will be no daytime calls. All calls will be made only during evening. This confirms the above sensitivity report.[pic 2]2.The LP formulation of the problem where,Decision Variables: X1 : White sand from North DakotaX2 : White sand from FloridaX3 : Raw cotton from North DakotaX4 : Raw cotton from AlabamaObjective function:MIN:  0.2X1 + 0.09X2 + 0.05X3 + 0.36X4   } Total Cost of procurement of White sand and cotton has to be minimized.