Consider the cell phone manufacturing problem presented in Chapter 3 as Problem 3-6 on page 105. Use

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Consider the cell phone manufacturing problem presented in Chapter 3 as Problem 3-6 on page 105. Use Solver to create the Sensitivity Report for this LP problem. Use this report to answer the following questions. Each question is independent of the others.

(a) Interpret the reduced costs for the products that are not currently included in the optimal production plan

(b) Another part of the corporation wants to take 35 hours of time on test device 3. How does this affect the optimal solution?

(c) The company has the opportunity to obtain 20 additional hours on test device 1 at a cost of $25 per hour. Would this be worthwhile?

(d) The company has the opportunity to give up 20 hours of time on device 1 and obtain 40 hours of time on device 2 in return. Would this be worthwhile? Justify your answer.

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Managerial Decision Modeling With Spreadsheets

ISBN: 718

3rd Edition

Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair

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