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A manufacturing company produces three types of products: Product A, Product B and Product C. One item of product A requires 2 hours of wiring,

A manufacturing company produces three types of products: Product A, Product B and Product C. One item of product A requires 2 hours of wiring, 1 hour of testing and 2 hours to assemble. One item of Product B requires 1 hour of wiring, 1 hour of testing and 5 hours to assemble. One item of Product C requires 1 hour of wiring, 1 hour of testing and 2 hours to assemble. Available hours are 160 for wiring, 100 for testing and 400 for assembly. Product A sells for $70 Product B sells for 40$ and product C sells for 30$. A linear program is formulated and solved using excel solver add-in.

a) What is the optimal solution and the total revenue? b) Which constraints are binding? Calculate the slack for the non-binding constraint(s). c) Product B now sells for $50 instead of $40 per unit. It is possible to find the optimal solution and revenue without resolving the LP? If so, find the optimal decision and revenue. Explain. d) Consider the original model. An employee takes two days off and now we only have 84 hours of testing. Is it possible to find the optimal solution and revenue without solving the LP? If so, find the optimal solution and revenue. Explain. e) A skilled worker can work extra 5 hours of overtime. Which operation should the worker be assigned to: wiring, testing or assembly, in order to maximise the revenue? Justify briefly. f) How will the total revenue change if you force the production of one item of product C? Justify. g) Consider the original model. We are considering manufacturing a new product (Product D) along with products A and B. One unit of product D requires an unknown of hours of wiring, 2 hours of testing and 8 hours to assemble, and sells for 80$. What is the maximum number of wiring per unit of product D that will keep the production of product D economically justifiable?

image text in transcribed Sensitivity Report 1. Answer the following questions. Assume that each question is independent of the other. (Note that all answers must be well explained, and all calculations must be shown)

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