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

Transcribed Image Text:

D. G. н 6 Objective Cell (Max) Final Value Cell Name SA$19 TOTAL PROFIT 9000 10 Decision Variable Cells Allowable Decrease 11 Final Reduced Objective Allowable 12 Cell Name Value Cost Coefficlent Increase $B$11 Number Produced Standard ŞC$11 Number Produced Deluxe 13 40.00 0.00 225 1E+30 11.66666673 14 0.00 -17.50 320 17.5 1E+30 15 16 Constraints Final 17 Shadow Constraint Allowable Allowable 18 Cell $D$14 Pine Used ŠD$15 Oak Used SD$16 Labor Used Name Value Price R.H. Side Increase Decrease 2200 19 2800 5000 1E+30 20 750 1E+30 750 21 400 22.5 400 314.2857143 400