Based on this sensitivity report, answer the following questions and enter them in your Booklet. You may answer need to resolve the LP if the question cannot be answered based on this sensitivity report.

2a. Suppose the capacity at Plant 2 is increased by 2000 units. What impact will this have on the optimal cost (be sure to show your calculations)?

2b. Suppose the capacity at Plant 3 decreases by 3000 units and the capacity at Plant 2 increases by 1000 units. What impact will this have on the optimal cost?

2c. Suppose the cost of shipping from Plant 1 to Customer 1 increases by $1.50. What impact will this have on the optimal shipping schedule? The optimal cost?

2d. Suppose the cost of shipping from Plant 2 to Customer 2 increases by $0.50. What impact will this have on the optimal shipping schedule? The optimal cost?

2. (10 points) You may recall the classical transportation model covered in class and in a video), whose network diagram is shown below, followed by its sensitivity report. Flow Out 9 12000 27000 P1 12 12 112 Flow In 15000 10 11 30000 P2 14 10 C3 23000 14 23000 P3 C4 18000 11 Total Supply: 80,000 Total Demand: 68,000 Variable Cells Name Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 12000 0 9 2 9 0 12 1E+30 0 3 12 11 10 0 3000 0 15000 Cell $B$2 E11 $C$2 E12 $D$2 E13 $E$2 E14 $F$2 E21 $G$2 E22 SH$2 E23 $1$2 E24 $J$2 E31 $K$2 E32 $L$2 E33 $M$2 E34 1E+30 O O O ONOM O O O O bow SNOO 0 11 14 0 15000 10 0 14 1E+30 1 1E+30 1E+30 0 1E+30 0 8 0 23000 8 1E+30 0 4 11 4 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease $N$5 Capacity Plant 1 15000 0 27000 1E+30 12000 $N$6 Capacity Plant 2 30000 -1 30000 3000 12000 $N$ 7 Capacity Plant 3 23000 -4 23000 0 12000 $N$8 Demand C1 12000 9 12000 12000 12000 $N$9 Demand C2 15000 12 15000 12000 3000 $N$10 Demand C3 23000 12 23000 12000 0 $N$11 Demand C4 18000 11 18000 12000 3000