busi 2013

Question 4: Sensitivity Analysis (20 Points) Using the Excel Solver results in Table, address the following questions: Given results after developing the excel LP and Solver 10 minutes on slide a. What is the objective function and its optimal solution? b. How much more "steel" can we buy without changing the current optimal solution? Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient increase Decrease Type A x 15 0 B Type By 8 6 2 Type C 2 0 -9.5 5 6.5 1E130 E. Considering wood to be sunk cost, how much will it cost the company to order an additional 30 units of wood? Will the optimal solution remain unchanged if coefficient of Type A" increases to 9 and coefficient of Type C increases to 6.5? Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease Wood 1 15 1 15 20 Steel 2 30 1.5 30 110 hours 3 15 0 70 1E+30 How much will it cost the company to buy 55 more "hours