Create a Sensitivity Report for Electro-Polys make vs. buy problem in section 3.8 of Chapter 3 and
Question:
Create a Sensitivity Report for Electro-Poly’s make vs. buy problem in section 3.8 of Chapter 3 and answer the following questions.
a. Is the solution degenerate?
b. How much can the cost of making model 1 slip rings increase before it becomes more economical to buy some of them?
c. Suppose the cost of buying model 2 slip rings decreased by $9 per unit. Would the optimal solution change?
d. Assume workers in the wiring area normally make $12 per hour and get 50% more when they work overtime. Should Electro-Poly schedule these employees to work overtime to complete this job? If so, how much money would this save?
e. Assume workers in the harnessing area normally make $12 per hour and get 50% more when they work overtime. Should Electro-Poly schedule these employees to work overtime to complete this job? If so, how much money would this save?
f. Create a Spider plot that shows the effect of varying each of the wiring and harnessing requirements (in cells B17 thru D18) to 90% of their current levels in 1% increments. If Electro-Poly wanted to invest in training or new technology to reduce one of these values, which one offers the greatest potential for cost savings?
Step by Step Answer:
Spreadsheet Modeling And Decision Analysis A Practical Introduction To Business Analytics
ISBN: 1233
8th Edition
Authors: Cliff T. Ragsdale