Running process 1 for an hour costs $4 and yields 3 units of A, 1 unit of
Question:
Running process 1 for an hour costs $4 and yields 3 units of A, 1 unit of B, and 1 unit of C. Running process 2 for an hour costs $1 and yields 1 unit of A and 1 unit of B. To meet customer demands, at least 10 units of A, 5 units of B, and 3 units of C must be produced daily.
a. Use Solver to determine a daily production plan that minimizes the cost of meeting Leary’s daily demands.
b. Confirm graphically that the daily production plan from part a minimizes the cost of meeting Leary’s daily demands.
c. Starting with the optimal solution, use SolverTable to see what happens to the decision variables and the total cost when the hourly processing cost for process 2 increases in increments of $0.50. How large must this cost increase be before the decision variables change? What happens when it continues to increase beyond this point?
Step by Step Answer:
Practical Management Science, Revised
ISBN: 9781118373439
3rd Edition
Authors: Wayne L Winston, S. Christian Albright