3. (continued) (d) Below is the sensitivity report generated with Excel with some terms omitted. Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$21x1A 2500 0 2 $C$21 x1B 4000 0 6 2 $D$21 x1D 11 2 1E+30 $E$21 3500 0 1 5 1 3000 0 X2A 4 2 $F$21 X2B 4500 0 3 2 1E+30 0 0 3 0 5 mi 5 3000 0 8 2 0 7 3 3 $G$21 x2c $H$21 XAB $i$21 XAD $J$21 XAE $K$21 XBE $L$21 XBF $M$21 XCE $N$21 XCF 3000 3500 0 5 3 3 5000 0 6 3 1E+30 0 3.5 3.5 0 3 3 Constraints Final Shadow Price Cell Name Value Constraint Allowable Allowable R.H. Side Increase Decrease 10000 1E+30 500 0 Node 1 Node 2 Node A m2 8000 0 -1 8000 2500 500 500 2500 5 0 Node B 0 7 0 500 2500 0 8 0 500 0 $B$25 $B$26 $B$27 $B$28 $B$29 $B$30 $B$31 $B$32 $B$33 $B$34 $B$35 Node C Node D m3 12 6000 500 5000 2500 Node E 6500 12 6500 500 Node F 5000 13 5000 500 2500 C1 -4000 -2 -4000 3500 2500 C2 0 -1 0 5000 4000 C3 6000 0 8000 1E+30 2000 C4 8500 -3 8500 3000 2000 $B$36 $B$37 C5 0 0 7000 1E+30 7000 3. (d) (continued) ) Determine the minimum total shipping cost. Show your calculations. (ii) Determine the values of m, mz and mz in the sensitivity report. (ii) If the unit shipping cost from B to E increases to $6.5, would the number of units shipped from B to E in the optimal solution decrease because the unit shipping cost for that shipping route is now more expensive? Justify your answer. (iv) If the unit shipping costs for shipments from 2 to A and from A to D are both lowered by $0.4, whereas the unit shipping cost for shipment from A to E increases to $8.5, will the optimal shipping scheme be affected? Justify your answer. (v) After upgrading their computer system, warehouse A can now handle 500 units more than before. How will it affect the optimal shipping scheme? Justify your answer. (vi) What if warehouse B can now handle 1000 units more than before? How will it affect the optimal shipping scheme? Justify your answer. (vii) Suppose there is now an inventory cost of $7.25 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 Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$21x1A 2500 0 2 $C$21 x1B 4000 0 6 2 $D$21 x1D 11 2 1E+30 $E$21 3500 0 1 5 1 3000 0 X2A 4 2 $F$21 X2B 4500 0 3 2 1E+30 0 0 3 0 5 mi 5 3000 0 8 2 0 7 3 3 $G$21 x2c $H$21 XAB $i$21 XAD $J$21 XAE $K$21 XBE $L$21 XBF $M$21 XCE $N$21 XCF 3000 3500 0 5 3 3 5000 0 6 3 1E+30 0 3.5 3.5 0 3 3 Constraints Final Shadow Price Cell Name Value Constraint Allowable Allowable R.H. Side Increase Decrease 10000 1E+30 500 0 Node 1 Node 2 Node A m2 8000 0 -1 8000 2500 500 500 2500 5 0 Node B 0 7 0 500 2500 0 8 0 500 0 $B$25 $B$26 $B$27 $B$28 $B$29 $B$30 $B$31 $B$32 $B$33 $B$34 $B$35 Node C Node D m3 12 6000 500 5000 2500 Node E 6500 12 6500 500 Node F 5000 13 5000 500 2500 C1 -4000 -2 -4000 3500 2500 C2 0 -1 0 5000 4000 C3 6000 0 8000 1E+30 2000 C4 8500 -3 8500 3000 2000 $B$36 $B$37 C5 0 0 7000 1E+30 7000 3. (d) (continued) ) Determine the minimum total shipping cost. Show your calculations. (ii) Determine the values of m, mz and mz in the sensitivity report. (ii) If the unit shipping cost from B to E increases to $6.5, would the number of units shipped from B to E in the optimal solution decrease because the unit shipping cost for that shipping route is now more expensive? Justify your answer. (iv) If the unit shipping costs for shipments from 2 to A and from A to D are both lowered by $0.4, whereas the unit shipping cost for shipment from A to E increases to $8.5, will the optimal shipping scheme be affected? Justify your answer. (v) After upgrading their computer system, warehouse A can now handle 500 units more than before. How will it affect the optimal shipping scheme? Justify your answer. (vi) What if warehouse B can now handle 1000 units more than before? How will it affect the optimal shipping scheme? Justify your answer. (vii) Suppose there is now an inventory cost of $7.25 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