Use Solver to create a Sensitivity Report for question 14 at the end of chapter 3 and
Question:
Use Solver to create a Sensitivity Report for question 14 at the end of chapter 3 and answer the following questions:
a. If the company could get 50 more units of routing capacity, should they do it? If so, how much should they be willing to pay for it?
b. If the company could get 50 more units of sanding capacity, should they do it? If so, how much should they be willing to pay for it?
c. Suppose the polishing time on country tables could be reduced from 2.5 to 2 units per table. How much should the company be willing to pay to achieve this improvement in efficiency?
d. Contemporary tables sell for $450. By how much would the selling price have to decrease before we would no longer be willing to produce contemporary tables? Does this make sense? Explain.
e. Create a Spider Plot showing the effect on optimal profit of varying the availability of each resource between 90% and 110% of its base case value in 2% increments. Describe the information illustrated by this plot.
Step by Step Answer:
Spreadsheet Modeling And Decision Analysis A Practical Introduction To Business Analytics
ISBN: 1233
8th Edition
Authors: Cliff T. Ragsdale