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Linear Programming –Week 4

  1. What are the conditions causing linear programming problems to have multiple solutions?
  1. Do you prefer the corner point method or the isoprofit, isocost method? Why?
  2. Explain the purpose and procedures of the simplex method.
  3. What is a shadow price? How does the concept relate to the dual of an LP problem? How does it relate to the primal?
  4. Assume that you will set your production (of products or services) according to the results of a linear programming solution. What else is needed to assure financial success?
  5. Management of Sundown Rent-a-Car (see Problem 8-8) has decided that perhaps the cost during the six-month period is not the appropriate Cost to minimize because the agency may still be obligated to additional months on some leases after that time. For example, if Sundown had some cars delivered at the beginning of the sixth month, Sundown would still he obligated for two additional months on a three-month lease. Use LP to determine how many cars should be leased in each month on each type of lease to minimize the cost of leasing over the entire life of these leases

Part 2 : E-Business

Application of Value Curve Tool

Using PowerPoint or Excel graphic tools, develop a value curve (see Exhibit 7.1) for an industry context where there are both bricks and mortar and e-commerce players competing against each other. Specify the “dimensions of benefit” in the graph. Once you have developed your graphic model, briefly support why you placed data points of performance in each of the dimensions of benefit. In other words, what is the basis for the structure of your value curve in terms of each of the dimensions of benefit? Thus this assignment will contain two elements: (1) your value curve and, (2) a roughly 750 word essay supporting your decisions in constructing the value curve.

Value Innovation Brainstorm – approximately 1,250 words

Using a company of your choice, provide a set of recommendations to the CEO of this company to help it compete against existing competitors. Focus your recommendations on the six starting points for value creation as found in Exhibit

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!":

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