Question: A firm that assembles computers and computer equipment is about to start production of two types of microcomputers. Each type will require assembly time, inspection

 A firm that assembles computers and computer equipment is about to

start production of two types of microcomputers. Each type will require assembly

A firm that assembles computers and computer equipment is about to start production of two types of microcomputers. Each type will require assembly time, inspection time and storage space. The amounts of each of these resources that can be devoted to the production of the microcomputers is limited. The manager of the firm would like to determine the quantity of each microcomputer to produce in order to maximize the profit generated by sales of these microcomputers. In order to develop a suitable model of the problem, the manager has met with design and production personnel. As a result of those meetings, the manager has obtained the following information: The manager also has acquired information on the availability of company resources. These (daily) amounts are as follows: a) Express the decision variables for this and formulate a linear programming model for this problem for management. The model was solved using solver and part of the results is provided in the Table below. Use it to answer the questions that follow Variable Cells Conctminto b) (i) From the sensitivity analysis, what will be the optimal solution? (ii)Evaluate the corresponding value of the objective function? c) Based on the sensitivity analysis, why does the reduced cost column contain zeros? And which constraint(s) is/are binding and why? d) (i) If the profit on Type 1 computers increased from GHS 60 per unit to GHS 65 per unit what will be the effect on the optimal solution (ii). If management could obtain additional resources, which of the resource constraints would you advise to be of most value to them and why

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