3. (continued) (d) Below is the sensitivity report generated with Excel with some terms omitted. Variable Cells Cell Name Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 4500 0 5 2 1 $B$21 X1A $C$21 x1B 0 2 6 mi 2 x1P 3000 0 11 2 1E+30 X2A 3500 0 4 1 $D$21 $E$21 $F$21 $G$21 $H$21 2 1E+30 X2B 9500 0 3 2 X2C 0 0 7 - 3 XAB 0 5 4 5 XAP 3000 0 8 1E+30 2 $I$21 $J$21 XAQ 5000 0 7 3 3 xBQ 1500 0 5 3 3 $K$21 $L$21 XBR 8000 0 6 3 1E+30 $M$21 0 3.5 - 3.5 XCQ XCR $N$21 0 3 3 3 Constraints Name Cell $B$25 Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease m2 0 12000 1E+30 4500 ma -1 13000 4500 3500 Node 1 $B$26 0 5 0 0 4500 $B$27 $B$28 $B$29 Node 2 Node A Node B Node C Node P 0 7 0 0 4500 0 8 0 3500 0 $B$30 6000 12 6000 0 6000 $B$31 Node Q 6500 12 6500 0 4500 Node R 8000 13 8000 0 4500 1 0 0 4000 1E+30 4000 0 -1 0 6000 0 $B$32 $B$33 $B$34 $B$35 $B$36 $B$37 8000 0 8000 1E+30 0 IV 9500 -3 3500 0 9500 7000 V 0 0 1E+30 7000 5 3. (d) (continued) (1) Determine the minimum total shipping cost. (11) Determine the values of my, m, and mz in the sensitivity report. (1) If the unit shipping cost from A to Q increases to $9, would the number of units shipped from A to Q in the optimal solution decrease because the unit shipping cost for that shipping route is more expensive? Justify your answer. (iv) If the unit shipping costs for shipments from 2 to A and from A to P are both lowered by $0.25, whereas the unit shipping cost for shipment from 1 to P increases to $11.5, will the optimal shipping scheme be affected? Justify your answer. (v) If the demands of P, Q and R are each increased by 1,600 units, how would it affect the solution of the LP problem? Justify your answer. (vi) Suppose there is now an inventory cost of $6.5 for each unit shipped to the warehouse at location B. The objective is then to minimize the total shipping plus inventory cost. How would you modify the objective function? 3. (continued) (d) Below is the sensitivity report generated with Excel with some terms omitted. Variable Cells Cell Name Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 4500 0 5 2 1 $B$21 X1A $C$21 x1B 0 2 6 mi 2 x1P 3000 0 11 2 1E+30 X2A 3500 0 4 1 $D$21 $E$21 $F$21 $G$21 $H$21 2 1E+30 X2B 9500 0 3 2 X2C 0 0 7 - 3 XAB 0 5 4 5 XAP 3000 0 8 1E+30 2 $I$21 $J$21 XAQ 5000 0 7 3 3 xBQ 1500 0 5 3 3 $K$21 $L$21 XBR 8000 0 6 3 1E+30 $M$21 0 3.5 - 3.5 XCQ XCR $N$21 0 3 3 3 Constraints Name Cell $B$25 Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease m2 0 12000 1E+30 4500 ma -1 13000 4500 3500 Node 1 $B$26 0 5 0 0 4500 $B$27 $B$28 $B$29 Node 2 Node A Node B Node C Node P 0 7 0 0 4500 0 8 0 3500 0 $B$30 6000 12 6000 0 6000 $B$31 Node Q 6500 12 6500 0 4500 Node R 8000 13 8000 0 4500 1 0 0 4000 1E+30 4000 0 -1 0 6000 0 $B$32 $B$33 $B$34 $B$35 $B$36 $B$37 8000 0 8000 1E+30 0 IV 9500 -3 3500 0 9500 7000 V 0 0 1E+30 7000 5 3. (d) (continued) (1) Determine the minimum total shipping cost. (11) Determine the values of my, m, and mz in the sensitivity report. (1) If the unit shipping cost from A to Q increases to $9, would the number of units shipped from A to Q in the optimal solution decrease because the unit shipping cost for that shipping route is more expensive? Justify your answer. (iv) If the unit shipping costs for shipments from 2 to A and from A to P are both lowered by $0.25, whereas the unit shipping cost for shipment from 1 to P increases to $11.5, will the optimal shipping scheme be affected? Justify your answer. (v) If the demands of P, Q and R are each increased by 1,600 units, how would it affect the solution of the LP problem? Justify your answer. (vi) Suppose there is now an inventory cost of $6.5 for each unit shipped to the warehouse at location B. The objective is then to minimize the total shipping plus inventory cost. How would you modify the objective function