spreadsheet modeling and decision analysis related question

3- (7 Marks) SRG sporting equipment Inc makes three different types of kit bags for cricketers i.e. Standard, Deluxe, and Custom. These bags are produced using hours in cutting and dyeing, sewing, finishing, and inspection & packaging department. Company uses Linear programming for solving its daily production mix problem. Following table gives the sensitivity report for one such LP formulation. Adjustable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$16 Bags Produced Standard 540 0 10 3.50 3.06 $C$16 Bags Produced Deluxe 252 0 9 5.29 2.33 $D$16 Bags Produced Custom 0 -5.74 12 5.74 1E+30 Constraints Final Shadow Constraint Allowable Allowable Cell Name (Hours Used) Value Price R.H. Side Increase Decrease $B$21 Cutting and Dyeing (LHS) 630 4.37 630 52.36 134.4 $B$22 Sewing (LHS 480.00 0 60 1E+30 120.00 $B$23 Finishing (LHS) 708 6.94 708 192 128.00 Inspection and Packaging SB$24 (LHS) 117.00 135 1E+30 18.00 Answer the following questions using the sensitivity report. Provide reasons and/or calculations in support of each response. If you feel that any question cannot be answered using Sensitivity Report then write "Cannot be Determined". a- What is the optimal solution of this problem and what is the optimal profit? (2 Marks) b- Suppose the profit on "Standard" type bags increases by Rs 2. Evaluate the change in the optimal solution and total daily profit? Give reasons and/or show calculations? (1 Mark) c- If 100 "Custom" type bags are produced, what will be the impact on optimal profit? (7 Mark) Page 4 of 6 BBA OM320 - DECISION MODELS d- Suppose the company has the option of hiring 6 more laborers at the rate of Rs 5 per hour above what it normally pays in the cutting and dying department which will increase the labor hours in this department by 48. Should the company hire these laborers? What will be affect of this change on optimal solution and optimal profit? Be as specific as possible in your response. (1 Mark) e- SRG is considering producing another kind of bag which will use 0.6 hrs in cutting and dyeing, 0.75 hrs in sewing, 0.4 hrs in finishing and 0.8 hrs in inspection and packaging department? The profit of this bag is going to be Rs 15. Should the company produce this bag? (2 Marks)