The sensitivity report for this model is provided in the Answers sheet. Use it to answer the following sensitivity questions. 5.1 How much the

Question

47 users unlocked this solution today!

  

The sensitivity report for this model is provided in the Answers sheet. Use it to answer the following sensitivity questions. 5.1 How much the unit profit of the large size product produced in plant 1 can decrease, before the current production changes? a. Any drop in the unit profit will change the optimal production plan b. From the sensitivity report the change is 588.23. c. Two coefficients are changing. (i) Plant 1= 1200.; (ii) Large product = 900 Therefore we cannot answer. 5.2 How much should the company be willing to pay for 100 sq-ft of additional storage in each plant, when each addition is considered individually? a. The company should not pay any amount in plant 1, not pay any amount in plant 2, and 289.2157 dollars in plant 3. b. The company should pay any amount charged in plant 1, pay any amount charged in plant 2, and 289.2157 ollars in plant 3. c. The company should only pay 5000/100*289.2157 in plant 3. d. None of the above. 5.3 Management now believes that the sales estimate of the medium size product were too optimistic (too high) by 10%. Management wants to know what is your maximum new profit if you correct the overestimation of the sales mentioned. Do you need to rerun your model with the new sales estimates to answer this question? Answer Yes or No in the Answers sheet. Variable Cells Constraints Cell Final Name Value Large Plant 346.0784 Large Plant $T$25 $U$25 $V$25 Large Plant $T$26 $U$26 $V$26 $T$27 $U$27 $V$27 Cell $T$28 $U$28 $V$28 $T$32 $U$32 $T$37 $U$37 $V$37 $W$25 Medium Pl: 242.1569 Medium Pl: 441.1765 Medium Pl 416.6667 Small Plant Small Plant Small Plant 0 0 Final Value $W$26 Medium Pr $W$27 $W$25 $W$26 Medium Pr $W$27 Small Prod 0 0 0 Name Production 588.2353 Production 441.1765 Production 416.6667 Equal % Pla 0.490196 Equal % Pla 0.490196 Space Occu 11764.71 Space Occu 6617.647 Space Occu 5000 Large Prod 346.0784 1100 0 Small Prod Large Prod 346.0784 1100 0 Reduced Cost Shadow Price oooo 0 0 0 -300 -300 -300 OOO woooa 1200000 2100000 289.2156863 0 100 0 0 0 0 Objective Coefficient 1000 1000 1000 1100 1100 1100 700 700 700 Constraint R.H. Side 1200 900 850 0 0 13000 12000 5000 1000 1100 700 900 1200 750 Allowable Increase Allowable Increase 100 0 0 0 1E+30 1E+30 300 300 300 Allowable Decrease 0 1E+30 1E+30 100 0 0 1E+30 1E+30 1E+30 Allowable Decrease 1E+30 611.7647 1E+30 458.8235 1E+30 433.3333 0.051470588 0.288399 0.051470588 0.164799 1E+30 1235.294 1E+30 5382.353 525 1196.61 1E+30 653.9216 100 242.1569 700 1E+30 1E+30 553.9216 1E+30 1E+30 100 750