Use Solver to create a Sensitivity Report for question 13 at the end of chapter 3 and
Question:
Use Solver to create a Sensitivity Report for question 13 at the end of chapter 3 and answer the following questions:
a. How much would electric trimmers have to cost in order for the company to consider purchasing these items rather than making them?
b. If the cost to make gas trimmers increased to $90 per unit, how would the optimal solution change?
c. How much should the company be willing to pay to acquire additional capacity in the assembly area? Explain.
d. How much should the company be willing to pay to acquire additional capacity in the production area? Explain.
e. Prepare a Spider Plot showing the sensitivity of the total cost to changes in costs to make and the costs to buy (adjusting the original values by of 90%, 92%, …, 110%). Which of these costs is the total cost most sensitive to?
f. Suppose the hours of production capacity available is uncertain and could vary from 9,500 to 10,500. How does the optimal solution change for every 100-hour change in production capacity within this range?
Step by Step Answer:
Spreadsheet Modeling And Decision Analysis A Practical Introduction To Business Analytics
ISBN: 1233
8th Edition
Authors: Cliff T. Ragsdale