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A garden store prepares various grades of pine bark for mulch: nuggets (), mini-nuggets (X2), and chips (x3). The process requires pine bark, machine
A garden store prepares various grades of pine bark for mulch: nuggets (), mini-nuggets (X2), and chips (x3). The process requires pine bark, machine time, labor time, and storage space. The following model has been developed. Maximize Subject to Bark Machine Labor Storage 9x1 + 9x2+ 63 (profit) 5x1 + 62 + 33 600 pounds 2x1 + 4x2 + 53 600 minutes 2x1 + 4x2 + 33 480 hours 1x11x2 + 13 150 bags X1, X2, X3 0 a-1. What is the marginal value of a pound of pine bark? (Round your answer to 2 decimal places.) The marginal value of a pound of bark is a-2. Over what range is this price value appropriate? This marginal value is in effect from lbs. to lbs. of bark. b. What is the maximum price the store would be justified in paying for additional pine bark? (Round your answer to 2 decimal places.) Maximum price per pound c-1. What is the marginal value of labor? (Leave no cells blank - be certain to enter "O" wherever required.) The marginal value of 1 labor hour c-2. Over what range is this value in effect? This marginal value is in effect from d. If the manager could add an additional 60 minutes of labor, should she? Yes No e. If the manager can obtain either additional pine bark or additional storage space, which one should she choose and how much (assuming additional quantities cost the same as usual)? Add pounds of f-1. If a change in the chip operation increased the profit on chips from $6 per bag to $7 per bag, would the optimal quantities change? Yes No f-2. What is the new value of the objective function, if profit on chips increases from $6 per bag to $7 per bag? The new value is g-1. If profits on chips increased to $7 per bag and profits on nuggets decreased by $.60, would the optimal quantities change? Yes No g-2. Given an increase in profit on chips to $7 per bag, and a decrease in profit on nuggets of $0.60, what is the new value of the objective function? (Round intermediate calculations to 3 decimal places and final answer to nearest whole number.) The new value is h. If the amount of pine bark available decreased by 15 pounds, machine time decreased by 27 minutes, and storage capacity increased by five bags, would this fall in the range of feasibility for multiple changes? Yes
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