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. Is the solution degenerate?
b. Is the solution unique?
c. Suppose the profit per pallet of Tahoe panels went down by $40. Would the optimal solution change?
d. Suppose the profit per pallet of Aspen panels went up by $40. Would the optimal solution change?
e. How much should the company be willing to pay to obtain 1,000 additional hours of pressing capacity?
f. Suppose the company has received an offer to buy 5,000 pounds of its pine chips for $1,250. Should it accept this offer? Explain your answer.
g. Create a Spider Plot illustrating how the optimal profit changes as the availability of each of the four resources varies from 90% to 110% of their given values. Explain the relationship between this graph and the shadow prices of the resources given on the Sensitivity Report.
h. Suppose there is some uncertainty about the amount of pressing capacity that might be available. Create a Solver Table Report summarizing how the optimal solution and profit changes as the amount of pressing capacity available changes from 5,000 to 7,000 in increments of 500. What information does this report convey about the optimal product mix as a function of the available pressing capacity?
Step by Step Answer:
Spreadsheet Modeling And Decision Analysis A Practical Introduction To Business Analytics
ISBN: 1049
7th Edition
Authors: Cliff Ragsdale