Question: A firm that assembles computers and computer equipment is about to start producing two new microprocessors ( type 1 and type 2 ) . Each
A firm that assembles computers and computer equipment is about to start producing two new
microprocessors type and type Each requires assembly, inspection, and storage.
Management likes to maximize profit. You are given the following information.
Whatever combination of type and is produced will be sold. Using an Excel solver, solve this problem.
a What is the total profit?
b Go to your sensitivity analysis; if type profit increases to $ what is the new optimal value type and type or is it still the same? Explain
c What constraint is binding?
d If you decrease the inspection constraint on the righthand side by one hour one hour less what would happen to your profit? Hint: shadow pricedual price
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