Olympic bike is introducing two new lightweight bicycle frames, the deluxe and the professional to be made from special aluminum and steel alloys. The anticipated unit profits are 10$ for the deluxe and 15$ for the professional. A supplier delivers 100 pounds of the aluminum alloy and 80 pounds of the steel alloy weekly

Using Sensitivity analysis, answer following questions:

a) How many Deluxe and Professional frames should Olympic produce each week?

b) Suppose the prom on deluxe frames is increased to $20. Is the above solution still optimal!? What is the value of the objective function when this unit profit Is Increased to $20?

c) If the unit profit on deluxe frames were $6 instead of $10. Would the optimal solution change?

Partial solution using MS Excel Software is given as under:

Transcribed Image Text:

Deluxe Professional Aluminum Alloy Steel Alloy 2 4 32 Bikes Made Decision Variables Deluxe 15 Maximized Total Profit Constraints Amount Used Aluminum Steel 100 80 Professional 17.500 412.500 Amount Avail. 100 80 Deluxe Professional Aluminum Alloy Steel Alloy 2 4 32 Bikes Made Decision Variables Deluxe 15 Maximized Total Profit Constraints Amount Used Aluminum Steel 100 80 Professional 17.500 412.500 Amount Avail. 100 80

Answer rating: 100% (QA)

a Variable Let X be the number of ... View the full answer