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SENSITIVITY ANALYSIS 6.13. STOMP, Inc., purchases varying grades of metal from several sup- pliers and has managed to expand the market for nameplates, which is
SENSITIVITY ANALYSIS 6.13. STOMP, Inc., purchases varying grades of metal from several sup- pliers and has managed to expand the market for nameplates, which is now able to absorb 80 cases of plates a week. Luckily, the demand for bird cage hinges has remained strong and the market easily absorbs all that STOMP can produce. STOMP's only trouble is its union, which still will not allow its members to operate production machinery for more than 40 hours per week. A new linear program, maximizing weekly profit, has been commissioned. A portion of the output follows. Amount Metal Price bought supplier ($/ton) (ton/wk) Supply constraint Shadow (ton/wk) price Opportunity cost Range 1.5 600 SX 1300 I II III 20 25 22 1000 0 400 1000 2000 1000 2.5 1 ... Price Amount bought Supply constraint Shadow price Range Machine Time $25/hr 40 hr/wk 40 hr/wk 150 35
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