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Crebo Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. To find an optimal solution
Crebo Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. To find an optimal solution to maximize the gross profit, the Excel add-in Solver was used. The accompanying figure shows the Solver Sensitivity Report. Using only the information in the Sensitivity Report, complete parts a through e. i Click the icon to view the Solver Sensitivity Report. a. Explain the value of the reduced cost ( - 0.4) for the number of plugs to produce. Choose the correct answer below. O A. The value - 0.4 indicates that the gross margin of plugs would need to be 0.4 more than the gross margin for clips before the company might start making plugs. B. The value - 0.4 indicates that if the gross margin of plugs goes up by 0.4, the company might start making plugs. O C. The value - 0.4 indicates that if the gross margin of plugs goes down by 0.4, the company might start making plugs. D. The value - 0.4 indicates that the gross margin of plugs would need to be 0.4 less than the gross margin for clips before the company might start making plugs. b. If the gross margin for rails is decreased to $1.05, can you predict what the optimal solution and profit will be? Select the correct choice and, if necessary, fill in the answer box(es) to complete your choice. O A. The optimal solution would not change. The profit would change, but its value cannot be determined. O B. The optimal solution might change, but the values cannot be determined. The profit would change to $ (Type integers or decimals rounded to two decimal places as needed.) O C. The optimal solution would not change. The profit would change to $ (Type integers or decimals rounded to two decimal places as needed.) O D. The optimal solution and profit might change, but their values cannot be determined. E. The optimal solution would not change. The profit would not change. c. Suppose that the gross margin for rivets is increased to $0.95. Can you predict what the optimal solution and profit will be? Select the correct choice and, if necessary, fill in the answer box(es) to complete your choice. O A. The optimal solution would not change. The profit would change to $ (Type integers or decimals rounded to two decimal places as needed.) B. The optimal solution would not change. The profit would not change. C. The optimal solution might change, but the values cannot be determined. The profit would change to $O D. The optimal solution and profit might change, but their values cannot be determined. O E. The optimal solution would not change. The profit would change, but its value cannot be determined. d. If the gross margin for clips is reduced to $1.15, can you predict what the optimal solution and profit will be? What if the gross margin is reduced to $1.25? If the gross margin for clips is reduced to $1.15, can you predict what the optimal solution and profit will be? Select the correct choice and, if necessary, fill in the answer box(es) to complete your choice. O A. The optimal solution and profit might change, but their values cannot be determined. B. The optimal solution would not change. The profit would change to $ 161000 (Type integers or decimals rounded to two decimal places as needed.) O C. The optimal solution would not change. The profit would change, but its value cannot be determined. O D. The optimal solution might change, but the values cannot be determined. The profit would change to $ (Type integers or decimals rounded to two decimal places as needed.) O E. The optimal solution would not change. The profit would not change. What if the gross margin is reduced to $1.25? Select the correct choice and, if necessary, fill in the answer box(es) to complete your choice. O A. The optimal solution might change, but the values cannot be determined. The profit would change to $ (Type integers or decimals rounded to two decimal places as needed.) O B. The optimal solution and profit might change, but their values cannot be determined. O C. The optimal solution would not change. The profit would change, but its value cannot be determined. D. The optimal solution would not change. The profit would change to $ 175000 . (Type integers or decimals rounded to two decimal places as needed.) O E. The optimal solution would not change. The profit would not change. e. Suppose that an additional 500 minutes of machine capacity is available. How will the optimal solution and profit change? What if planned maintenance reduces capacity by 300 minutes?e. Suppose that an additional 500 minutes of machine capacity is available. How will the optimal solution and profit change? What if planned maintenance reduces capacity by 300 minutes? How will the optimal solution and profit change if an additional 500 minutes of machine capacity is available? Select the correct choice and, if necessary, fill in the answer box(es) to complete your choice. O A. The optimal solution would not change. The profit would change to $ (Type integers or decimals rounded to two decimal places as needed.) O B. The optimal solution might change, but the values cannot be determined. The profit would change to $ (Type integers or decimals rounded to two decimal places as needed.) O C. The optimal solution would not change. The profit would not change. O D. The optimal solution would not change. The profit would change, but its value cannot be determined. O E. The optimal solution and profit might change, but their values cannot be determined.Solver Sensitivity Report A B C D E F G H 6 Objective Cell (Max) 7 Cell Name Final Value 8 $A$13 Profit 182000 9 10 Decision Variable Cells 11 Final Reduced Objective Allowable Allowable 12 Cell Name Value Cost Coefficient Increase Decrease 13 $B$10 Units Produced Plugs (X1) 0 - 0.4 0.4 0.4 1E + 30 14 $C$10 Units Produced Rails (X2) O - 0.3 1.2 0.3 1E + 30 15 $D$10 Units Produced Rivets (X3) 0 - 0.25 0.75 0.25 1E + 30 16 SE$10 Units Produced Clips (X4) 140000 0 1.3 1E +30 0.22000009 17 18 Constraints 19 Final Shadow Constraint Allowable Allowable 20 Cell Name Value Price R.H. Side Increase Decrease 21 $A$16 Capacity Used 280000 0.6 280000 1E + 30 280000
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