Answer Sheet$)$

Question $14.(40$ points$)$

PC Tech must decide how many of each of its computer models to assemble and test, but there are now ten available models. Each computer must be assembled and then tested, but there are two lines for testing. The first line tends to test faster, but its labor costs are slightly higher, and each line has a certain number of hours available for testing. Any computer can be tested on either line. The inputs for the model are same as we learned in class:

$1.$ the hourly labor costs for assembling and testing,

$2.$ the required labor hours for assembling and testing any computer model,

$3.$ the cost of component parts for each model,

$4.$ the selling prices for each model,

$5.$ the maximum sales for each model, and

$6.$ labor availabilities.

These input values can be found in the Excel file $$Answer Sheet$.$ Please answer the following questions:

a$.$ Use Solver to determine the product mix that maximizes its total net profit. Please notice that: fractional number of solutions are allowed; do NOT set integer constraint because it will not give you sensitivity report. $(20$ points$)$

b$.$ Create a sensitivity report by Solver. Answer the following question: what are the shadow price, allowable increase and decrease of labor availability for assembling which will NOT change the final value of the optimal solution? $(10$ points$)$

c$.$ Conduct a sensitivity analysis by SolverTable. Use SolverTable to report how the available testing hours on line $2$ affect the optimal total net profit. Assuming the available testing hours on line $2$ could be $3000,4000,5000,6000,7000,8000,9000$ and $10000$ hours $($Hint: use one way table of SolverTable; $10$ points$).$