Steve and Tony Sherwoodlast year decided to branch into the production of portable record players, whichHexagon assembles
Question:
Steve and Tony Sherwoodlast year decided to branch into the production of portable record players, whichHexagon assembles from imported components. There are currently two models of record player (Ruby and Diamond) with slightly different features and parts. The unit profit from a Ruby model is 40, and from a Diamond model, 50. There are three constraints (the assembly time available per week from three employees, A, B and C, in minutes). Steve and Tony used the Excel Solver tool to determine the optimal combination of record players to produce and have generated the following Excel Sensitivity Report, which they would like you to help interpret:
Required:
a)Which of the constraints are binding? Explain how you know.
(4 marks)
b)Advise the Sherwood brothers on how much the unit profit of each of the two models (Ruby and Diamond) could vary before the solution they have found no longer holds. Explain your reasoning.
(6 marks)
(10 marks)
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr