Figure 13.34 shows the Solver sensitivity report for the Burger Office Equipment scenario in Problem 3.

Using only the information in the sensitivity report, answer the following questions.

a. Explain the reduced cost associated with deluxe desks.

b. If 25% of the pine is deemed to be cosmetically defective, how will the optimal solution be affected?

c. The shop supervisor is suggesting that the workforce be allowed to work an additional 50 hours at an overtime premium of $18/hour. Is this a good suggestion? Why or why not?

d. If the unit profit for standard desks is decreased to $215, how will the optimal solution and total profit be affected?

e. If the unit profit of standard desks is only $210, how will the optimal solution and total profit be affected?

Transcribed Image Text:

A B 6 Objective Cell (Max) 7 689 8 Cell $A$19 TOTAL PROFIT C D E F G H Name Final Value 9000 10 Decision Variable Cells 11 Final Reduced Objective Allowable Allowable 12 Cell Name Value Cost Coefficient Increase Decrease 13 $B$11 Number Produced Standard 40.00 14 $C$11 Number Produced Deluxe 0.00 0.00 -17.50 225 1E+30 11.66666673 320 17.5 1E+30 15 16 Constraints 17 Final Shadow Constraint Allowable Allowable 18 Cell Name Value Price R.H. Side Increase Decrease 19 $D$14 Pine Used 2800 0 5000 1E+30 2200 20 $D$15 Oak Used 0 0 750 1E+30 750 21 $D$16 Labor Used 400 22.5 400 314.2857143 400