5. The sensitivity report for this model is provided at the bottom. Use it to answer the following sensitivity questions.

5.1 How much the unit profit of the large size product produced in plant 1 can decrease, before the current production changes?

a. Any drop in the unit profit will change the optimal production plan

b. From the sensitivity report the change is 588.23.

c. Two coefficients are changing. (i) Plant 1= 1200.; (ii) Large product = 900 Therefore we cannot answer.

5.2 How much should the company be willing to pay for 100 sq-ft of additional storage in each plant, when each addition is considered individually?

Remember: The objective is profit maximization

a. The company should not pay any amount in plant 1, not pay any amount in plant 2, and 289.2157 dollars in plant 3.

b. The company should pay any amount charged in plant 1, pay any amount charged in plant 2, and 289.2157 ollars in plant 3.

c. The company should only pay 5000/100*289.2157 in plant 3.

d. None of the above.

Variable Cells Final Value Reduced Cost Objective Coefficien 0 1000 Allowable Increase Allowable Decrease 346.0784 0 100 0 0 0 1E+30 1000 1000 0 0 0 1E+30 0 0 100 Cell $T$25 $U$25 $V$25 $T$26 $U$26 $V$26 $T$27 $U$27 $V$27 Name Large Plant 1 Large Plant2 Large Plant3 Medium Plant 1 Medium Plant2 Medium Plant3 Small Plant 1 Small Plant2 Small Plant3 242.1569 441.1765 416.6667 0 1100 1100 1100 1E+30 0 0 1E+30 0 0 -300 700 300 1E+30 0 -300 700 300 1E+30 0 -300 700 300 1E+30 Allowable Allowable Shadow Price Constraint R.H. Side Increase Decrease 0 1200 0 900 0 850 1200000 0 0 Constraints Final Cell Name Value $T$28 Production in Plant 1 588.2353 $U$28 Production in Plant2 441.1765 $V$28 Production in Plant3 416.6667 $T$32 Equal % Plant 1,2 0.490196 $U$32 Equal % Plant 2,3 0.490196 $T$37 Space Occupied Plant 11764.71 $U$37 Space Occupied Plant 6617.647 $V$37 Space Occupied Plant 5000 $W$25 Large Production 346.0784 $W$26 Medium Production 1100 $W$27 Small Production 0 $W$25 Large Product sales 346.0784 $W$26 Medium Product sale 1100 $W$27 Small Product sales 0 2100000 0 13000 0 12000 5000 1E+30 611.7647 1E+30 458.8235 1E+30 433.3333 0.051470588 0.288399 0.051470588 0.164799 1E+30 1235.294 1E+30 5382.353 525 1196.61 1E+30 653.9216 100 242.1569 1E+30 700 1E+30 553.9216 1E+30 100 289.2156863 0 1000 100 1100 0 700 0 900 0 1200 0 750 1E+30 750