20%

Consider a possible shortage of ingredients in the following week. What would the optimized production process look like if Eli Orchid could only procure 4320 pounds of ingredient 1 and 1440 pounds of ingredient 2?

Follow these steps:

1. In the appropriate cells below type in the numbers obtained from the original optimal solution (no shortage) produced in P2.

2. In the Constraints table label each constraint in the original solution as binding or not-binding (select from the drop-down list).

3. Go back to P2, introduce the appropriate modifications that reflect the shortage situation described above and re-run the analysis.

4. Write down the new numbers (resulting from the shortage situation) in the appropriate cells below (Shortage column).

5. In the Constraints table (Shortage column) label each constraint in the new solution as binding or not-binding (select from the drop-down list).

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Process 1 $14,000 180 60 120 Available 4500 3600 Cost of production per batch Ingredient 1 required per batch (pounds) Ingredient 2 required per batch (pounds) Orchid Relief ylelded per batch (units) Process 2 Process 3 Used $30,000 $11,000 Supply of ingredient 1 (pounds) 1920- 120 540 Supply of Ingredient 2 (pounds) 3300