Refer to the sensitivity report for a problem shown in the figure 1 below:

a)Interpret the ranges of optimality for the objective function coefficients.

b)Suppose that the manufacturing cost increases to $11.20 per case for model A. What is the new optimal solution?

c)Suppose that the manufacturing cost increases to $11.20 per case for model A and the manufacturing cost for model B decreases to $5 per unit. Would the optimal solution change?

Figure 1: Sensitivity Report

Variable Cells

Model

Variable

Name

Final Value

Reduced Cost

Objective Coefficient

Allowable Increase

Allowable Decrease

AM

Model A Manufactured

100.000

0.000

10.000

1.750

1E+30

BM

Model B Manufactured

60.000

0.000

6.000

3.000

2.333

AP

Model A Purchased

0.000

1.750

14.000

1E+30

1.750

BP

Model B

Purchased

90.000

0.000

9.000

2.333

3.000

Constraint

Constraint number

Name

Final Value

Shadow Price

Constraint

R.H Side

Allowable Increase

Allowable Decrease

1

Demand for Model A

100.000

12.250

100.000

11.429

100.000

2

Demand for Model B

150.000

9.000

150.000

1E+30

90.000

3

Injection molding time

580.000

0.000

600.000

1E+30

20.000

4

Assembly time

1080.000

-0.375

1080.000

53.333

480.000