Refer to Example A.3. 1. Solve this product mixture problem using Excel Solver. What are the optimum solution values? 2. Interpret the allowable increase and

Refer to Example A.3.
1. Solve this product mixture problem using Excel Solver. What are the optimum solution values?

2. Interpret the €œallowable increase€ and €œallowable decrease€ values for the objective function coefficients.

3. Interpret the values of the shadow prices and the €œallowable increase€ and €œallowable decrease€ values for the righthand- side values of the constraints.

Data from example 3

Diamond Plywood Inc. manufactures four types of plywood panels. Each product must go through the following operations: patching, grading, gluing, and baking. The time in hours required for each operation for each panel, the total capacity available for each these operations in a given month, and the profit contributions per panel are given in the following table. In addition, the minimum production requirements for these panels to meet demand are also given in the table. Use linear programming to solve this problem with the objective of profit maximization:

OPERATION MINIMUM PRODUCTION REQUIREMENTS PLYWOOD PANEL PATCHING GLUING BAKING PROFIT GRADING 1.5 120 0.6 Soft $8 Hardwood 2.5 1.0 4 2 150 $12 Tropical $18 2.0 3.5 200 4 Aircraft 2.5 300 5 4 $30 Total Capacity Available (in hours) 2,500 3,500 5,000 4,000 LO