Use Solver to create a Sensitivity Report for question 18 at the end of Chapter 3 and

Question:

Use Solver to create a Sensitivity Report for question 18 at the end of Chapter 3 and answer the following questions:

a. Which of the constraints in the problem are binding?

b. If the company was going to eliminate one of its products, which should it be?

c. If the company could buy 1,000 additional memory chips at the usual cost, should they do it? If so, how much would profits increase?

d. Suppose the manufacturing costs used in this analysis were estimated hastily and are known to be somewhat imprecise. For which products would you want more precise cost estimates before implementing this solution?

e. Create a Spider Plot showing the sensitivity of the total profit to the selling price of each product (adjusting the original values by 90%, 92%, . . ., 110%). According to this graph, total profit is most sensitive to which product?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: