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NatureHomes P/L has a small workforce that produces three types of houses to sell to people wanting to get back to nature. Based on your
NatureHomes P/L has a small workforce that produces three types of houses to sell to people wanting to get back to nature. Based on your discussions with the manager, you construct the information on profits, labour hours required and weekly hours available reported in Table 28. TABLE 28. Profits, Labour Hours Required and Weekly Hours Available Profit Per Unit Fabrication Hours Assembly Painting Crating Hours Hours Hours 2.5 Birdhouse Doghouse Outhouse Hours Available $15 $35 $58 1 1.25 1.75 1.5 1 0.5 2 20 0.25 0.5 0.75 20 4 30 50 Based on the information in Table 28, you formulate a profit maximisation problem as an LP and solve it using Excel QM. The sensitivity report is given in Figure 41. Variable Cells Cell Name $B$17 Variables Birdhouse $C$17 Variables Doghouse $D$17 Variables Outhouse Final Value 0 15.38 6.15 Reduced Objective Allowable Allowable Cost Coefficient Increase Decrease -17.15 15 17.15 1E+30 0 35 6.43 20.5 0 58 82 9 Constraints Cell Name $K$11 Fabrication constraints $M$12 Assembly > constraints $M$13 Painting > constraints $M$14 Cratiing > constraints Final Value 30 47.69 20 12.31 Shadow Constraint Allowable Allowable Price R.H. Side Increase Decrease 25.23 30 3.75 12.5 0 50 1E+30 2.31 6.92 20 1.58 8 0 20 1E+30 7.69 0 0 0 1E+30 0 0 0 1E+30 0 0 0 1E+30 0 0 0 1E+30 0 0 0 0 FIGURE 41. Sensitivity Analysis Suppose the company is required by contract with the Australian Birding Association to make one birdhouse each week. How will this affect maximum profit? O a. Maximum profit will not change. Ob. Maximum profit will decrease by $17.15. OC Maximum profit will increase by $15. O d. Maximum profit will decrease by $1E+30. Oe. None of the above
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