A B C D E G H 1 Problem 3: Sensitivity Analysis Exercise - Sensitivity Report 2 Variable Cells 4 Final Reduced Objective Allowable Allowable 5 Cell Name Value Cost Coefficient Increase Decrease 6 $B$15 Mill 1 0 6000 1000 5000 7 $C$15 Mill 2 0 1000 7000 1E+30 1000 9 Constraints 10 Final Shadow Constraint Allowable Allowable 11 Cell Name Value Price R.H. Side Increase Decrease 12 $D$7 High Production Quantity 24 0 12 12 18+30 13 SD$8 Medium Production Quantity 8 3000 1E+30 14 SD$9 Low Production Quantity 16 0 11 1E+30 15 16 17 Problem 3-Sensitivity Report Problem 3-Questions Ready + 74.F hp esc ? 12 4 f51. What is the current optimal nd the objective function value? . What is the objective function o of decision variable 1 (operation days of mill 1)? 3. What is the sensitivity range for the objective function coefficient of decision variable 1 (operation days of mill 1)? 4. If the operation cost of mill 1 II 1 increases from 56000 to $7500, will the optimal solution change? And why? 5. What is the ive function coeffici variable 2 (operation days of mill 2)? 6. what is the s sitivity range for the obj unction coefficient of decision variable 2 (operation days of mill 2)? . If the operation cost of mill 2 decreases from $7000 to $6500, will the optimal solution change? And why? 8. which constrains are binding? 9. If we can decrease the demand of high-grade aluminum by 2 tons at the cost of $1000/ton, is it worth doing this? And why? 10. if the demand of medium-grade aluminum increases by 4 tors, what is the new total cost? And why? 30. If we can purchase 2 tons of medium-grade aluminum from our competitors at $2000.ton to satisfy part of the demand, instead of making is in our mills (in other words, we can decrease the demand by 2 tons at the price of $ 20co/ton), is it worth going this? and why R 34 35 12. If the customer needs additional 5 tons of low-grade aluminum and is willing to pay It to accept this offers And why? 36 Problem 3-Sensitivity Report Problem 3-Questions Ready 74-F Most wicloudy Q9. If we can decrease the demand of high-grade aluminum by 2 tons at the cost of sooo/ton, is it worth doing this? And why? 10. If the demand of medium-grade aluminum increases by 4 tons, what is the new total cost? And why? 27 28 11. If we can purchase 2 tons of medium-grade aluminum from our competitors at $2000/ton to satisfy part of the demand, instead of making 30 it in our mills (in other words, we can decrease the demand by 2 tons at the price of $2000/ton), is it worth doing this? And why? 31 32 33 34 12. If the customer needs additional 5 tons of low-grade aluminum and is willing to pay $1000/ton, do we want to accept this offer? And why? 35 36 13. If the customer needs additional 20 tons of low-grade aluminum and is willing to pay $1000/ton, do we want to accept this offer? And why ? Problem 3-Sensitivity Report Problem 3-Questions Ready 74" F Mostly cloudy hp esc ? 3 4 10I 6