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1. Agri-Pro is a company that sells agricultural products to farmers in several states. One service it provides to its customers is custom feed mixing,
1. Agri-Pro is a company that sells agricultural products to farmers in several states. One service it provides to its customers is custom feed mixing, whereby a farmer can order a specific amount of livestock feed and specify the amount of corn, grain, and minerals the feed should contain. Agri-Pro stocks bulk amounts of four types of feeds that it can mix to meet a given customer's specifications. The following table summarizes the four feeds, their composition of corn, grain, and minerals, and the cost per pound for each type.
Percent of Nutrient in Nutrient Feed 1 Feed 2 Feed 3 Feed 4 Corn 30% 5% 20% 10% Grain 10% 30% 15% 10% Minerals 20% 20% 20% 30% Cost per pound 50.25 50.30 50.32 50.15\fPlease perform the analysis based on the sensitivity reports provided below, which may be different from what you obtained in Part (b). Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$5 Dec Var X1 4500 0 0.25 0.135555556 0.1 $C$5 Dec Var X2 2000 0 0.3 0.305 0.175 $D$5 Dec Var X3 0 0.07625 0.32 1E+30 0.07625 $E$5 Dec Var X4 1500 0 0.15 0.1 1E+30 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease $F$11 Total pounds 8000 0.0125 4000 705.8823529 $F$8 Corn 0.5 300 900 $F$9 Grain 1200 0.875 240 400 $F$10 Minerals 0 1200 550 1E+30 (c) [3 points] Using the sensitivity table above, what will happen if corn requirement is increased from at least 20% to at least 21%? Explain with reference to the quantities from the sensitivity report. a. Cost will increase by $5 b. Cost will increase by $40 c. Cost will increase by $50 d. It is outside the allowable increase and we need to resolve the LPStep by Step Solution
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