Figure 13.31 shows the sensitivity report after solving the Crebo Manufacturing model using Solver. Using only the information in the sen­sitivity report, answer the following questions.

a. Explain the value of the reduced cost (- 0.3) for the number of plugs to produce.

b. If the gross margin for rails is decreased to $ 1.05, can you predict what the optimal solution and profit will be?

c. Suppose that the gross margin for rivets is in­creased to $ 0.85. Can you predict what the optimal solution and profit will be?

d. If the gross margin for clips is reduced to $ 1.10, can you predict what the optimal solution and profit will be? What if the gross margin is reduced to $ 1.00?

e. Suppose that an additional 500 minutes of machine capacity is available. How will the optimal solution and profit change? What if planned maintenance reduces capacity by 300 minutes?

Sensitivity Report for Crebo Manufacturing

Sensitivity Report for Valencia Products

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B. 6 Objective Cell (Max) Coll Name Final Value SAS13 Profit 168000 9. 10 Decision Variable Cells Reduced Objective Allowable Allowable 11 Final Coll SB$10 Units Produced Plugs (X1) SC$10 Units Produced Rails (X2) $D$10 Units Producad Rivets (X3) 16 Cost Coefficient Increase Decrease 12 Name Value 13 0.3 0.3 -0.3 1E+30 14 -0.2 1.3 0.2 1E+30 -0.15 0.75 0.15 1E+30 0.16000008 1E+30 15 SEŞ10 Units Produced Clips (X4) 140000 1.2 17 18 Constraints 19 Shadow Constraint Allowable Allowable Final Cell Value Price R.H. Side Increase Decrease 20 Name SAS16 Capacity Used 280000 280000 1E+30 21 0.6 280000