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Please refer to the model and sensitivity report screenshots below and answer the following questions: Please refer the Sensitivity Report answer this question. Why is

Please refer to the model and sensitivity report screenshots below and answer the following questions:

image text in transcribedimage text in transcribed

  1. Please refer the Sensitivity Report answer this question. Why is the reduced cost for "Supplier 1 Purchases" zero? Please answer this without using technical language.
  2. Continue to refer to the Sensitivity Report and the Variable Cells section. Use the information in line "Supplier 2 Purchases", row 10. In non-technical terms, explain what this line is telling you.
  3. In a short paragraph, in non-technical terms, explain the 100 Shadow price for the Large Valves in the Constraint section of Sensitivity Report.
Manufacturing mechanical heart valves Key: Purpose: To determine the number of valves to order from each supplier to minimize total costs. Given Data Decision Variables Objective Function (Goal) Inputs Supplier 1 Supplier 2 Supplier 3 Cost/valve $20 $16 $12 % small % medium 40 40 30 35 20 20 % large 20 35 60 Available 500 Supplier 1 Supplier 2 Supplier 3 Purchases 125 500 500 500 500 Small 300 Medium 325 Large 500 Valves obtained >= Required 300 300 500 Total cost $16,500 Microsoft Excel 16.0 Sensitivity Report Worksheet: [S03_36.xlsx]Model Report Created: 6/16/2020 9:57:37 AM Variable Cells Cost Cell Name $B$10 Supplier 1 Purchases $B$11 Supplier 2 Purchases $B$12 Supplier 3 Purchases Final Reduced Objective Value Coefficient 125 0 20 500 -19 16 500 -48 12 Allowable Allowable Increase Decrease 1E+30 10.85714286 19 1E+30 48 1E+30 Constraints Cell Name $B$15 Valves obtained Small $C$15 Valves obtained Medium $D$15 Valves obtained Large Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 300 0 300 1.42109E-13 1E+30 325 0 300 25 1E+30 500 100 500 75 7.10543E-14 Manufacturing mechanical heart valves Key: Purpose: To determine the number of valves to order from each supplier to minimize total costs. Given Data Decision Variables Objective Function (Goal) Inputs Supplier 1 Supplier 2 Supplier 3 Cost/valve $20 $16 $12 % small % medium 40 40 30 35 20 20 % large 20 35 60 Available 500 Supplier 1 Supplier 2 Supplier 3 Purchases 125 500 500 500 500 Small 300 Medium 325 Large 500 Valves obtained >= Required 300 300 500 Total cost $16,500 Microsoft Excel 16.0 Sensitivity Report Worksheet: [S03_36.xlsx]Model Report Created: 6/16/2020 9:57:37 AM Variable Cells Cost Cell Name $B$10 Supplier 1 Purchases $B$11 Supplier 2 Purchases $B$12 Supplier 3 Purchases Final Reduced Objective Value Coefficient 125 0 20 500 -19 16 500 -48 12 Allowable Allowable Increase Decrease 1E+30 10.85714286 19 1E+30 48 1E+30 Constraints Cell Name $B$15 Valves obtained Small $C$15 Valves obtained Medium $D$15 Valves obtained Large Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 300 0 300 1.42109E-13 1E+30 325 0 300 25 1E+30 500 100 500 75 7.10543E-14

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