Figure 13.34 shows the Solver sensitivity report for the Burger Office Equipment. Using only the information in
Question:
Figure 13.34 shows the Solver sensitivity report for the Burger Office Equipment. Using only the information in the sensitivity report, answer the following questions.
a. Explain the reduced cost associated with deluxe desks.
b. If 25% of the pine is deemed to be cosmetically defective, how will the optimal solution be affected?
c. The shop supervisor is suggesting that the workforce be allowed to work an additional 50 hours at an overtime premium of $ 18/ hour. Is this a good suggestion? Why or why not?
d. If the unit profit for standard desks is decreased to $ 215, how will the optimal solution and total profit be affected?
e. If the unit profit of standard desks is only $ 210, how will the optimal solution and total profit be affected?
Sensitivity Report for Burger Office Equipment
Step by Step Answer:
Business Analytics Methods Models and Decisions
ISBN: 978-0321997821
2nd edition
Authors: James R. Evans