5. (Task 3 b). Use the Sensitivity Report from the Toledo case to answer the following four questions.

(Important: questions should be answered using the Sensitivity Report ONLY (you should not answer the questions by changing the Parameters and resolve the LP model). Please Give clear explanations and point out where (Exact cell position) in the Sensitivity Report you come up with the answers.

a) If the shipping cost from Supplier 2 to Demand A is increased to $14, will the overall optimal shipping quantities from Suppliers to Customers remain the same? What will be Total Transportation Cost now? Explain.

b) If the shipping cost from Supplier 2 to Demand B is reduced by $7, will this affect optimal shipping quantities from Suppliers to Customers? Explain.

c) If the new Toledo capacity is reduced to 180 units, how much Total Transportation costs can be reduced? Explain.

d) If the new Toledo capacity is increased to 230 units, can you determine the optimal total shipping cost from the sensitivity reports? Explain?

Cincinnati Sensitivity Report:

Toledo Sensitivity Report:

A B #1 10 14 17 Capacity 10 20 12 210 140 150 200 14 11 #2 #3 Toledo Demand 12 16 9 12 220 220 220 A B Capacity 10 10 12 #1 #2 #3 Cincinnati Demand 14 17 11 20 210 140 150 200 14 12 13 11 220 220 220 A B C D E F G H Microsoft Excel 16.50 Sensitivity Report wprksheet: [MSD_301. Proj.2_Singh, Veras & Lott.xlsx]LP Cincinnati Relport Created: 8/8/21 5:27:29 PM Variable Cells ocolo 3 . Cell Name $B$10 Supp 1 A $C$ 10 Supp 1 B $D$ 10 Supp 1 C $E$10 Supp 1 Dummy $B$11 Supp 2 A $C$11 Supp 2 B $D$11 Supp 2 C $E$11 Supp 2 Dummy $B$12 Supp 3 A $C$12 Supp 3 B $D$12 Supp 3 C $E$12 Supp 3 Dummy $B$13 Toledo A $C$13 Toledo B $D$13 Toledo C $E$13 Toledo Dummy Final Reduced Value Cost 0 4 0 3 210 0 6 30 70 0 4 40 0 0 8 150 0 0 2 0 6 190 0 0 1 10 0 0 5 Objective Allowable Allowable Coefficient Increase Decrease 10 1E+30 4 14 1E+30 3 10 3 1E+30 0 1E+30 6 12 2 1 17 1 2 20 1E+30 4 0 5 1E+30 14 1E+30 8 11 2 1E+30 12 1E+30 2 0 1E+30 6 7 1 2 13 1E+30 1 11 2 3 0 1E+30 5 3 Constraints Cell Name $B$14 Demand A $C$14 Demand B $D$14 Demand C $E$14 Demand Dummy $F$ 10 Supp 1 Capacity $F$11 Supp 2 Capacity $F$12 Supp 3 Capacity $F$13 Toledo Capacity Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 220 12 220 0 30 220 17 220 0 70 220 16 220 0 10 40 0 40 0 40 210 -6 210 10 0 140 0 140 1E+30 150 -6 150 70 200 -5 200 30 0 3 000 H B C D E Microsoft Excel 16.50 Sensitivity Report Worksheet: [MSD_301. Proj.2_Singh, Veras & Lott.xlsx]Sheet4 Report Created: 8/8/21 5:21:31 PM Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$10 Supp 1 A 80 0 10 2 0 $C$10 Supp 1 B 0 5 14 1E+30 5 1 $D$ 10 Supp 1 C 130 0 10 0 2 2 $E$ 10 Supp 1 Dummy 0 2 0 1E+30 2 3 $B$11 Supp 2 A 140 0 12 1E+30 24 $C$11 Supp 2 B 0 6 17 1E+30 6 $D$11 Supp 2 C 0 8 20 1E+30 8 3 $E$11 Supp 2 Dummy 0 0 0 1E+30 0 7 $B$12 Supp 3 A 0 2 14 1E+30 2 3 $C$12 Supp 3 B 20 0 11 5 2 3 $D$12 Supp 3 C 90 0 12 2 0 $E$12 Supp 3 Dummy 40 0 0 0 1E+30 1 $B$13 Toledo A 0 6 16 1E+30 6 2 $C$13 Toledo B 200 0 9 2 1E+30 3 $D$13 Toledo C 0 2 12 1E+30 2 24 $E$13 Toledo Dummy 0 2 0 1E+30 2 5 6 Constraints Final Shadow Constraint Allowable Allowable 3 Cell Name Value Price R.H. Side Increase Decrease 3 $B$14 Demand A 220 12 220 80 $C$14 Demand B 220 11 220 20 1 $D$14 Demand C 220 12 220 90 2 $E$14 Demand Dummy 40 0 40 0 40 3 $F$10 Supp 1 Capacity 210 -2 210 90 0 4 $F$11 Supp 2 Capacity 140 0 140 80 0 5 $F$12 Supp 3 Capacity 150 0 150 1E+30 0 3 $F$13 Toledo Capacity 200 -2 200 20 0 7 000