Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Use Solver to create Answer and Sensitivity Reports for the following problem and answer the questions below: Sanderson Manufacturing produces ornate, decorative wood frame
2. Use Solver to create Answer and Sensitivity Reports for the following problem and answer the questions below: Sanderson Manufacturing produces ornate, decorative wood frame doors and windows. Each item produced goes through three manufacturing processes: cutting, sanding, and finishing Each door produced requires 1 hour in cutting, 30 minutes in sanding, and 30 minutes in finishing. Each window requires 30 minutes in cutting, 45 minutes in sanding, and 1 hour in finishing. In the coming week Sanderson has 40 hours of cutting capacity available, 40 hours of sanding capacity, and 60 hours of finishing capacity. Assume all doors produced can be sold for a profit of $500 and all windows can be sold for a profit of $400. Doors Windows Qty Profit $500 $400 $0 0 0 Constraints Hours Used Available Cutting 1 0.50 0 40 Sanding 0.5 0.75 0 40 Finishing 0.5 1.00 0 60 If the profit on doors increased to $700 would the optimal solution change? If the profit on windows decreased to $200 would the optimal solution change? Explain the shadow price for the finishing process. If 20 additional hours of cutting capacity became available how much additional profit could the company earn? Suppose another company wanted to use 15 hours of Sanderson's sanding capacity and was willing to pay $400 per hour to acquire it? Should Sanderson agree to this? How (if at all) would your answer change if the company instead wanted 25 hours of sanding capacity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started