Question: Figure 13.34 shows the Solver sensitivity report for the Burger Office Equipment scenario in Problem 3. Using only the information in the sensitivity report, answer

Figure 13.34 shows the Solver sensitivity report

Figure 13.34 shows the Solver sensitivity report for the Burger Office Equipment scenario in Problem 3. Using only the information in the sensitivity report, answer the following questions.

  1. Explain the reduced cost associated with deluxe desks.

  2. If 25% of the pine is deemed to be cosmetically defective, how will the optimal solution be affected?

  3. The shop supervisor is suggesting that the work- force be allowed to work an additional 50 hours at an overtime premium of $18/hour. Is this a good suggestion? Why or why not?

  4. If the unit profit for standard desks is decreased to $215, how will the optimal solution and total profit be affected?

  5. If the unit profit of standard desks is only $210, how will the optimal solution and total profit be affected?

Figure : 13.34 6 Objective Cell (Max) Cell Name $A$19 TOTAL PROFIT Sensitivity Report for Burger Office Equipment Final Value 9000 10 Decision Variable Cells Cell Name $B$11 Number Produced Standard $C$11 Number Produced Deluxe Final Value 40.00 0.00 Reduced Objective Cost Coefficient 0.00 225 -17.50 320 Allowable Allowable Increase Decrease 1 E+30 11.66666673 17.5 1E+30 16 Constraints Allowable 19 Cell Name $D$14 Pine Used $D$15 Oak Used $D$16 Labor Used Final Shadow Constraint Allowable Value Price R.H. Side Increase 28000 50001E+30 0 07501E+30 400 22.5 400 314.2857143 2200 750 400

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