Data Analysis for Business Decision Making Essay

Data Analysis for Business Decision Making - Essay Example Table1: Time needed in minutes on electronic devices Internal modem External modem Circuit board CD drive Hard drive Memory board Available minutes per week Test device1 2 3 5 6 4 8 9000 Test device 2 1 5 3 2 5 5 7800 Test device3 5 2 3 3 3 2 6600 Test device 4 3 4 2 1 2 3 6120 Next calculation will involve determining of the mathematical relationship for describing the constraints given in the problem. One relationship that is general is the quantity of resource that is utilized should be less than or rather equal to the quantity of resource that is available. The decision variables should also be greater than zero. First constraint: Test device 1 time used Test device 1 time available 2a+3b+5c+6d+4e+8f 9000 Second constraint: Test device 2 time used Test device 2 time available a+5b+3c+2d+5e+5f 7800 Third constraint: Test device 3 time used Test device 3 time available 5a+2b+3c+3d+3e+2f 6600 Fourth constraint: Test device 4 time used Test device 4 time available 3a+4b+2c+1d+2e+3f 6 120 Fifth constraint: a, b, c, d, e, f 0 All these constraints do represent the restrictions of the capacity of production, and have an effect on the total profit. The constraints display a linear programming aspect in which certain specific interactions would exist in between the given variables. Increasing the number of units produced by a company would reduce the production of other products. Response to question c. Solution. The decision variables in this problem are a, b, c, d, e, f. This problem was solved using the excel solver that is displayed the worksheet. Microsoft Excel 12.0 Answer Report Worksheet: [Book3]Sheet1 Report Created: 20/07/2012 10:52:29 Target Cell (Max) Cell Name Original Value Final Value $B$7 z 0 545568 Adjustable Cells Cell Name Original Value Final Value $B$1 a 0 168 $B$2 b 0 0 $B$3 c 0 984 $B$4 d 0 0 $B$5 e 0 936 $B$6 f 0 0 Constraints Cell Name Cell Value Formula Status $B$8 c1 9000 $B$8=0 Binding $B$5 e 936 $B$5>=0 Not Binding $B$6 f 0 $B$6>=0 Bindin g From the table, the maximum profit for Northern H-Tec E. Ltd Company is ?545,568 as displayed in the work sheet. Where c1, c2, c3, and c4 represents the constraints involved in the problem. Response to question d. Constraints that are biding are those constraints that limit the output of profit where as the non binding constraints do not always have a limitation in the overall profit. This implies that changing the non binding constraints do not affect the profit so long as the changes in this kind of constraints are within the allowable decrease and increase indicated in the sensitive report. Changing binding constrain